Statutes Amendment (Budget Measures 2021) Bill

Second Reading

The Hon. R.I. LUCAS (Treasurer) (16:32): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation and the detailed explanation of clauses inserted into Hansard without my reading them.

Leave granted.

The 2021-22 Budget focused on the government's priorities of increasing economic growth and jobs, supporting our businesses and the community and providing better public services for South Australians.

The 2021-22 Budget announced and includes the financial impact of measures that;

As part of the government's housing strategy, introduce a 50 per cent land tax discount for eligible new build to rent residential construction projects. The discount will reduce the land value for eligible projects for land tax purposes by 50 per cent to the 2039-40 land tax year.

ensure all future sale transactions of minerals are done within a reasonable market price reflective of an approved index price on the day of the sale ensuring that mineral royalty calculations are done on a reasonable basis, and

Abolish the legislated payroll tax exemption applicable to wages paid or payable in connection to a feature film produced in South Australia.

allow for the introduction of mobile phone detection cameras as prefaced in the 2020-21 Budget.

Mr President, I turn now to a more specific discussion of the detail of these important amendments.

Land Tax Act 1936

This Bill introduces a 50 per cent land tax discount for eligible new build-to-rent properties. The discount reduces the land value of the parcel of land being used as an eligible build-to-rent property by 50 per cent until the 2039-40 land tax year. The criteria for an eligible build-to-rent property will be established in guidelines approved by the Treasurer and may include matters such as the minimum number of build-to-rent dwellings or units within a property, the minimum lease terms that must be offered to tenants and requirements to support the development of new affordable housing in build-to-rent properties.

Build-to-rent projects where construction commenced from 1 July 2021 will be able to apply for relief. The land tax discount will be available from the 2022-23 land tax year, providing time for the associated guidelines to be developed.

The reduction in land tax for eligible build-to-rent properties is designed to support the uptake of scale investment in residential rental housing, increasing the supply of housing and creating more opportunities for renters.

Mining Act 1971

The Bill introduces an amendment to the Mining Act 1971 to allow for the use of an observable market index price or similar independently determined sale price in cases where the mineral sale price declared as part of a royalty self-assessment is not consistent with market pricing of that commodity.

The amendment which is intended to take effect from 1 July 2021 is intended to close a loop hole that allowed tenement holders to pay lower royalties by contracting at less than market value.

Payroll Tax Act 2009

The 2021-22 Budget announced the Government's intention to abolish the film production payroll tax exemption and ex-gratia scheme and redirect the average annual costs of those schemes to the South Australian Film Corporation's Screen Production Fund.

The additional revenue expected to be raised as a result of this amendment and the cessation of associated ex-gratia relief provided on a case-by-case basis for film productions that do not meet the criteria of the exemption in the Payroll Tax Act 1936, will be used to increase the Screen Production Fund administered by the South Australian Film Corporation.

The Screen Production Fund supports the production of screen content for commercial release via theatrical, broadcast, or digital content platforms that generates significant economic outcomes for the South Australian industry. Projects funded under this scheme are expected to be substantially produced and post-produced in South Australia.

Historically the payroll tax exemption and ex-gratia schemes have cost $1.6 million in total per annum, with the breakdown between the cost of the two individual arrangements varying by year.

The new arrangement will enable the South Australian Film Corporation to invest in local film productions.

The Bill removes the payroll tax exemption for film production from 1 July 2022.

The increase in funding for the Screen Production Fund of $1.6 million per annum indexed, will commence one year earlier from 2021-22.

Road Traffic Act 1961

The Bill introduces an amendment to the Road Traffic Act 1961 to allow for the detection of offences that involve use of mobile phone devices while driving using safety cameras, which in practice will be installed at high risk metropolitan sites. The high-definition cameras will target drivers illegally using a mobile phone.

Distraction, including using a mobile phone while driving, is one of the leading causes of fatalities and serious injury collisions on South Australian roads. Road crash data collected between 2015-2019 lists distraction as a key contributing factor in 43% (193) of all fatalities and 48% (1,396) of all serious injury collisions. In 2020, inattention/distraction was attributed as a contributing factor to 56% of crashes involving loss of life.

Motor Vehicles Act 1959

The Bill makes consequential amendment to the Motor Vehicles Act 1959 to ensure consistency of definitions resulting from amendments to the Road Traffic Act 1971 to implement the mobile phone cameras initiative.

Mr President, the 2021-22 Budget is a responsible budget focused on creating jobs, better services and building what matters. The measures contained in this Budget Measures Bill 2021 support the efficient operation of government, the ongoing collection of necessary revenues, the provision of better services and improving safety on our roads and saving lives.

I commend this Bill to the Council.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

3—Amendment provisions

These clauses are formal.

Part 2—Amendment of Land Tax Act 1936

4—Insertion of section 7A

This clause inserts a new provision in the Land Tax Act 1936 allowing for a 50% reduction in the taxable value of land (from 1 July 2022) where the Commissioner is satisfied that a building constructed on the land on and after 1 July 2021 is being used and occupied for a build-to-rent property in accordance with guidelines approved by the Treasurer.

Part 3—Amendment of Mining Act 1971

5—Amendment of section 17—Royalty

Subclause (1) substitutes section 17(5) and (6). Proposed subsection (5) provides that the value of minerals for the purposes of determining royalty will be the value that represents the market value of the minerals. The proposed subsection is a rewriting and clarification of the provisions that currently apply in respect of determining the market value of minerals sold pursuant to a contract with a genuine purchaser at arms length and minerals that are not sold pursuant to such a contract.

Proposed section 17(6) sets out the manner in which market value is to be determined, which includes a new provision allowing the Treasurer to determine the market value of minerals sold pursuant to a contract with a genuine purchaser at arms length in circumstances where the Treasurer is not satisfied that the contract price for the minerals reflects the market pricing of the minerals. Proposed subsection (6)(b) sets out the manner in which market value is to be determined in these circumstances, which replicates the provisions that currently apply to determining market value of minerals in circumstances where the minerals are not sold pursuant to a contract with a genuine purchaser at arms length.

Subclause (2) makes a consequential amendment.

6—Amendment of section 17B—Assessments by Treasurer

This clause makes a consequential amendment.

7—Transitional provision

Subclause (1) ensures that the amendments in this Part will apply in relation to the value of minerals for the purposes of determining royalty from 1 July 2021. Subclause (2) provides for the continuing application of a declaration of the Treasurer made by notice in the Gazette under section 17(6)(b) of the Act after the commencement of this Part.

Part 4—Amendment of Motor Vehicles Act 1959

8—Amendment of section 5—Interpretation

This clause defines a 'series of photographs' so as to include a film, video or other continuous visual recording.

9—Amendment of Schedule 1—Evidence obtained by photographic detection device

This clause makes it clear that continuous visual recordings by photographic detection devices can be admitted into evidence in relation to registration offences in the manner provided for in the Schedule.

Part 5—Amendment of Payroll Tax Act 2009

10—Amendment of Schedule 2—South Australia specific provisions

This clause removes the payroll tax exemption for wages paid or payable to a person who is involved in the production of certain feature films produced in the State.

11—Transitional provision

This clause ensures that the exemption will continue to apply to wages that were paid or payable before 1 July 2022.

Part 6—Amendment of Road Traffic Act 1961

12—Amendment of section 5—Interpretation

This clause defines a 'series of photographs' so as to include a film, video or other continuous visual recording.

13—Amendment of section 79B—Provisions applying where certain offences are detected by photographic detection devices

This clause makes it clear that continuous visual recordings by photographic detection devices can be admitted into evidence in the manner provided for in section 79B(10).

14—Insertion of section 175B

This clause provides that evidentiary provisions can be made by regulation to facilitate the proof of offences relating to the use of devices in vehicles where the evidence is obtained through the operation of photographic detection devices of a kind specified in the regulations. The evidentiary provisions can include presumptions that the defendant has to rebut on the balance of probabilities.

This clause also provides that evidence obtained through the operation of the specified photographic detection devices can only be used in connection with the detection and enforcement of offences under the Road Traffic Act 1961 or Motor Vehicles Act 1959 or offences arising out of the use of a motor vehicle.

Debate adjourned on motion of Hon. I.K. Hunter.