SUCCESSION DUTIES REPEAL BILL

Introduction and First Reading

The Hon. M.F. O'BRIEN (Napier—Minister for Finance, Minister for Police, Minister for Correctional Services, Minister for Emergency Services, Minister for Road Safety) (12:00): Obtained leave and introduced a bill for an act to repeal the Succession Duties Act 1929. Read a first time.

Second Reading

The Hon. M.F. O'BRIEN (Napier—Minister for Finance, Minister for Police, Minister for Correctional Services, Minister for Emergency Services, Minister for Road Safety) (12:00): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation inserted in Hansard without my reading it.

Leave granted.

The Succession Duties Act 1929 (the 'Act') was amended in 1979 to exempt from succession duty the estates of persons who died on or after 1 January 1980.

However, succession duty assessments and refunds continue to be made in relation to those persons who died before that date as certain events trigger a liability or an entitlement under the Act.

Although assessments and refunds are increasingly infrequent events, the technical knowledge necessary to assess succession duty liability and consider refund applications is difficult to sustain or justify against the administration of more substantial state taxes.

All other Australian jurisdictions have abolished comparable legislation on the basis that the employment of resources required to administer the legislation was not cost effective.

The repeal of the Act will remove any confusion as to whether there is an ongoing liability to pay succession duty.

The Succession Duties Repeal Bill 2013 (the 'Bill') gives effect to the abolition of succession duty from 1 July 2014, extinguishing any liability from duty that has not been paid from and including 1 July 2014.

The Bill also extinguishes any potential entitlement to a refund under the Act that has not crystallised before 1 July 2014.

The Bill further extinguishes any entitlement to a refund that existed prior to 1 July 2014 but in respect of which applications for a refund have not been made on or before 31 December 2014.

The Bill was released to the Public Trustee, Australian Executor Trustees, The Law Society of South Australia, Law Council of Australia, Property Council of Australia, The Tax Institute, The Real Estate Institute of South Australia Inc, CPA Australia, The Institute of Chartered Accountants in Australia, Institute of Public Accountants, Australian Institute of Conveyancers (SA Division) Inc and other law firms for confidential consultation prior to its introduction into Parliament.

Both the Public Trustee and The Law Society of South Australia have indicated that they support the Bill. No other comments were received.

I commend the Bill to Members.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

These clauses are formal.

Part 2—Repeal of Succession Duties Act 1929

3—Repeal of Act

The Succession Duties Act 1929 is repealed.

4—Liability for duty and entitlement to refund etc extinguished

Liability for duty under the Succession Duties Act 1929 that was outstanding immediately before the commencement of this section is extinguished. After commencement of the Bill, a person is not entitled to a refund, rebate or remission under the Succession Duties Act 1929 unless the entitlement accrued before that commencement and an application is made on or before 31 December 2014.

Debate adjourned on motion of Mr Pederick.