Supplementary Order Paper No 139

No 139

House of Representatives

Supplementary Order Paper

Tuesday, 10 November 2015

Taxation (Bright-line Test for Residential Land) Bill

Proposed amendments

Julie Anne Genter, in Committee, to move the following amendments:

Clause 1

In clause 1 (page 2, line 3), replace “Residential Land” with “Land”.

Clauses 4 to 12

In clauses 4 to 12 (page 3, line 1 to page 10, line 11), replace in each place it occurs “residential land” with “land”.

Clause 14

In clause 14 (page 10, line 36 to page 12, line 11), replace in each place it occurs “residential land” with “land” .

Clause 15

In clause 15(2) and (3) (page 12, lines 17 to 30), replace “residential land” with “land”.

Delete clause 15(5), (7), and (11) (page 12, line 32 to page 14, line 10).

Explanatory note

This Supplementary Order Paper removes the references to residential land, so that the bill applies to all land. As currently drafted, the bill only applies to residential land, despite the fact that existing tax rules around property speculation apply to all land. The rules would be simpler and easier to enforce if they applied to all land equally. The definition of “residential” versus other types of land in the bill may be difficult to apply and could result in a loophole by which some land being purchased and sold by speculators that may eventually be used for residential purposes is not captured by the rule. It may also have the unintended consequence of encouraging more speculation in non-residential land.