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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2012-11-14 Daily Xml
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STATUTES AMENDMENT AND REPEAL (BUDGET 2012) (NO. 2) BILL

Second Reading

Second reading.

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for Tourism, Minister for the Status of Women) (17:56): 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.

This Bill introduces legislative amendments required to implement budget measures that have been announced as part of the 2012-13 Budget.

This Bill amends the Education Act 1972, Electricity Corporations Act 1994, Electricity Corporations (Restructuring and Disposal) Act 1999, Highways Act 1926, Local Government Act 1999, Parliament (Joint Services) Act 1985, Payroll Tax Act 2009, Public Finance and Audit Act 1987, Public Sector Act 2009, Residential Tenancies Act 1995, Stamp Duties Act 1923, Summary Procedure Act 1921 and repeals the State Bank of South Australia Act 1983.

To support the government's objective of creating a vibrant city for people to live and work in and to encourage higher density inner metropolitan, living in line with the government's 30 Year Plan, this Bill amends the Stamp Duties Act 1923 to introduce a stamp duty concession that will apply for the next four years for purchases of off-the-plan apartments in the Adelaide City Council area, Bowden Village and at 45 Park Terrace, Gilberton.

The concession will provide a full stamp duty concession for the first two years (capped at stamp duty payable on a $500,000 apartment) and a partial concession for the second two years.

A full stamp duty exemption will be available for all apartments purchased off-the-plan with a market value of $500,000 or less, where the contract is entered into between 31 May 2012 and 30 June 2014 inclusive, saving eligible purchasers up to $21,330. Where an eligible apartment has a market value greater than $500,000, the purchaser will be entitled to a stamp duty concession of $21,330.

For eligible off-the-plan apartment purchase contracts with a market value of $500,000 or less entered into from 1 July 2014 to 30 June 2016, stamp duty will be payable only on the deemed unimproved value of the apartment and the value of any construction already undertaken and not the full market value of the apartment. Purchasers of eligible apartments where no construction has commenced will therefore pay a level of duty broadly in line with duty paid by purchasers of house and land packages. This concession will save purchasers of eligible off-the-plan apartments up to $15,500.

The Bill sets the deemed unimproved value of an apartment at 35 per cent of the market value of the apartment (at contract signing), and the value of construction will reflect the nature of works already performed. The Bill provides for 6 stages of construction of a multi-storey residential development or substantial refurbishment and the Commissioner of State Taxation will liaise with industry representatives to provide appropriate information about those stages in a Gazettal notice prior to 1 July 2014.

Where a contract is entered into from 1 July 2014 to 30 June 2016 to purchase an off-the-plan apartment with a market value greater than $500,000, the purchaser will be entitled to a stamp duty concession of up to $15,500 (adjusted for construction works completed prior to the date the contract is signed). In effect, a purchaser of an eligible apartment with a market value over $500,000 will receive the same concession in dollar terms as a purchaser of a $500,000 apartment at the same stage of construction of the apartment building.

The off-the-plan stamp duty concession will replace the existing inner city rebate administrative scheme which provides a $1,500 rebate to purchasers of new apartments in the city centre.

The Bill also provides an exemption from stamp duty for a conveyance of a carbon right created under an Act of the Commonwealth or a conveyance of a renewable energy certificate created under the Renewable Energy (Electricity) Act 2000 of the Commonwealth. The Government has previously given an undertaking to the Commonwealth Government that carbon rights would not be dutiable under the Stamp Duties Act 1923. With the deferral of the abolition of stamp duty on non-real property transfers until budget circumstances allow, and to avoid any uncertainty in relation to the duty implications arising upon the transfer of these instruments, it is considered appropriate that a specific exemption be included in the Stamp Duties Act 1923 for these rights.

This Bill amends the Electricity Corporations Act 1994 and the Electricity Corporations (Restructuring and Disposal) Act 1999 to allow RESI Corporation (RESI) to finish its operations and to put in place a scheme to enable the dissolution of RESI in an orderly fashion.

ETSA Corporation, established under the Electricity Corporations Act 1994, changed its name to RESI Corporation (RESI) in January 2000 under section 8 of the Statutes Amendment (Electricity) Act 1999.

RESI's principal activity is the litigation of a number of matters initiated by former employees of ETSA or contractors who worked at ETSA sites. The plaintiffs' claims are usually for compensation for 'breach of duty and care' going as far back as the early 1950's. The litigation process is complex and it is funded from RESI's own resources originally allocated when it was established in 2000 and supplemented when required through the budgetary process.

Due to the falling numbers in asbestos claims and the reduction in volume in the remainder of RESI's operations, including placement requests from employees returning to the public sector from the private sector, it has become inefficient to continue to run RESI as a separate entity.

SAFA and an administrative unit of the Public Service that is primarily responsible for assisting the Treasurer in the performance of his Ministerial functions and responsibilities are to take on the residual activities of RESI following its dissolution.

RESI will stop its operations at the earliest opportunity but, in order to be in a position to transfer assets and liabilities at an appropriate time and to manage reporting requirements, the start and operation of the various provisions will be controlled by one or more proclamations until financial statements and reporting has been completed by the RESI Board and so as to ensure that RESI has zero balances when it is dissolved.

This Bill introduces a public sector skills and experience retention entitlement to apply to public sector employees who have completed 15 or more years of effective service and who are employed under the Education Act 1972, Public Sector Act 2009 or Parliament (Joint Services) Act 1985, or who are subject to the long service leave entitlements under the Public Sector Act 2009.

The new public sector skills and experience retention entitlement is based on completed months of service and will be phased in with up to two working days entitlement in 2012-13, up to three working days entitlement in 2013-14, and then fixed at a maximum of four working days entitlement from 2014-15 onwards.

There is a transitional entitlement of up to two working days in relation to 2011-12 provided the person was employed as at 1 July 2012. The entitlement will accrue on a monthly basis and will be pro-rata for part-time employees.

A public sector skills and experience retention entitlement may be taken, depending on the amount accrued, as one or more whole working days of leave and must be taken within 5 years from the end of the financial year in which it accrued, otherwise it will lapse.

An entitlement accrued during a particular financial year may, at the end of that financial year, be converted at the election of an employee to a monetary amount to be fixed by the regulations in accordance with a scheme prescribed by the regulations.

The annual cash payment will be fixed at $180 per full day of leave accrued during the 2012-13 financial year. The per day cash payment will be indexed in accordance with the consumer price index for each subsequent financial year.

The public sector skills and experience retention entitlement will apply to about 26,000 public sector employees with 15 or more years of effective service. An employee can only be entitled to one form of retention leave and this leave will not apply to SAPOL employees who benefit from the Retaining Police Knowledge and Experience entitlement established in the South Australian Police Enterprise Agreement 2011.

Administrative arrangements to implement this entitlement will need to be put in place during 2012-13. While this will limit employees being able to take this entitlement as leave during 2012-13, employees will not be disadvantaged. At the end of 2012-13, employees will be able to elect to convert their accrued entitlement for both 2011-12 and 2012-13 to a cash payment and any entitlement retained as leave will not expire before 1 July 2018.

Regulations will extend the public sector skills and experience retention entitlement to prescribed employees under the TAFE SA Act 2012, which is currently before the Parliament.

This Bill repeals the State Bank of South Australia Act 1983 and makes related amendments to the Public Finance and Audit Act 1987, to allow South Australian Asset Management Corporation (SAAMC) to wind up its operations and to provide for other matters relevant to the final dissolution process.

Since its establishment in 1994, SAAMC has:

Sold all its assets at no less that their value as recorded in SAAMC's balance sheet

Extinguished all its outstanding liabilities except for $2.5 million of unclaimed customer deposits, some of them dating back to the late 1800's

Completed all the outstanding SAAMC litigation

Recovered and repaid the State about a third of the indemnity paid to the State Bank of South Australia

Wound up all of its subsidiaries

Except for two part time employees who will resign when SAAMC is wound up, retrenched or offered retirement packages to all of its employees with all their entitlements paid.

SAAMC has now met all the objectives of its Act and the dissolution will close down the operations of SAAMC with any contingencies in either assets or liabilities being transferred to the Treasurer or, if appropriate, another State entity.

This Bill amends the Highways Act 1926 and Local Government Act 1999 to allow for commercial activities on specified roads.

The Highways Act 1926 gives the Commissioner of Highways general powers, subject to the approval of the Minister for Transport and Infrastructure, to purchase or acquire land for road works, or obtain land for any purpose under the Act associated with road works. When road works are finished, the land acquired by the Commissioner becomes a public road and the ownership of the road transfers from the Commissioner to the relevant Council.

Although the Commissioner is permitted to generate income from land that has been acquired for the purposes of section 20 of the Act until the land is required for road works, for example, rental income from existing properties on the land, he does not have the ability to put in place opportunities of a longer term nature, because land that is no longer required for road works must be disposed of (usually by sale).

The amendments will vest certain existing and future roads in the Commissioner of Highways rather than allowing them to vest in the relevant Council upon the completion of the roadworks. They will also enable the Commissioner, subject to the approval of the Minister, to retain land that is no longer required for roadwork, for purposes related to roads or transport needs. This will give the Commissioner similar powers to those that Councils already have.

Existing roads that will vest in the Commissioner are the South Eastern Freeway, and the Port River, Southern and Northern Expressways. Future roads, to be identified by regulation, will also be major controlled access arterial roads like these expressways. In these cases, the land that will vest in the Commissioner will be land that has been acquired for the purpose of making the road, land that was already road (and was therefore vested in the relevant Council) or land that was already Crown land. These are roads where the Commissioner has, or is intended to have, responsibility for maintenance of all of the road corridor.

This will enable the Commissioner, with the approval of the Minister for Transport and Infrastructure, to enter into commercial contracts for activities on the roads vested in the Commissioner, and to lease land that is no longer required for roadworks to enable facilities such as service centres for motorists to be built alongside the road.

The revenue from any commercial activities will be paid into the Highways Fund and it is intended that it be used to fund additional road maintenance. Other States already have such powers, including New South Wales and Victoria.

Freeways and expressways experience high volumes of traffic and are therefore suited to commercial activities such as service centres and advertising. It is anticipated that commercial activities will be placed strategically at high exposure sites and planned to ensure that road safety is not compromised. It is initially proposed to raise revenue from leasing land for service centres and selling advertising space. Future revenue opportunities could include mobile phone towers and underground fibre optic services (in conduits alongside the road). Any developments that are made possible by these amendments will require development approval.

An amendment to the definition of roadwork will clarify that the Commissioner has the power to construct parking facilities for the benefit of commuters, and other amendments ensure that the land that vests in the Commissioner can be used for these purposes.

The Bill amends the Payroll Tax Act 2009 to remove the current payroll tax exemption for apprentices and trainees. From 1 July 2012, the existing payroll tax exemption for the wages of eligible trainees and apprentices will be abolished and replaced with a grant scheme administered by the Department of Further Education, Employment, Science and Technology (DFEEST). These grants are intended to ensure that the government's assistance is targeted to training areas most in need.

Registered training organisations will be assisted through grants to support the training of apprentices and trainees. This approach recognises the higher completion rates that group training organisations achieve and the key support they provide to small and medium enterprises, to which they hire apprentices and trainees. Other organisations that employ apprentices and trainees who complete their training in a priority skill area, will receive a completion bonus.

With effect from 1 January 2013, there will be a one-off Water Security Rebate provided to SA Water's residential drinking water customers, in recognition of the water price increases for 2012-13. This Bill amends the Residential Tenancies Act 1995, to require a landlord to pass on the Water Security Rebate to a tenant, where the landlord recovers all or some of the SA Water bill for drinking water from a tenant.

This Bill amends the Summary Procedure Act 1921 so that in proceedings for an offence prosecuted by a police officer that are dismissed or withdrawn, costs may only be awarded if it is proper to do so. The amendment sets out the circumstances relevant to the making of a costs order, including whether the prosecution of the offence was conducted in good faith and whether the investigation into the offence was conducted in an appropriate way. The costs are not to exceed $2,000 (including GST) indexed annually by CPI.

I commend the Bill to Members.

Explanation of Clauses

Part 1—Preliminary

1—Short title

This clause is formal.

2—Commencement

This clause provides for commencement of the measure. The provisions will commence on a day or days to be fixed by proclamation apart from Parts 2, 7, 8 and 10 and clause 36 (which will be taken to have commenced on 1 July 2012) and clause 35 (which will be taken to have commenced on 31 May 2012).

3—Amendment provisions

This clause is formal.

Part 2—Amendment of Education Act 1972

4—Amendment of section 19—Long service leave and retention entitlement

These amendments will provide for a form of leave to be known as skills and experience retention leave. The leave will accrue as follows:

(a) for each month of effective service completed during the 2012/2013 financial year—⅙ working days leave;

(b) for each month of effective service completed during the 2013/2014 financial year—¼ working days leave;

(c) for each month of effective service completed on or after 1 July 2014—⅓ working days leave.

It will be possible to convert skills and experience retention leave accrued over the course of a financial year to a monetary amount fixed by the regulations in accordance with a scheme prescribed by the regulations.

This form of leave will be required to be taken as 1 or more whole working days. Leave not taken within 5 years after the end of the financial year in which it accrues will be lost (and no monetary equivalent will be payable).

5—Amendment of section 20—Taking of leave

This is a consequential amendment.

6—Transitional provisions

An officer who has, or attains, at least 15 years of effective service during the 2011/2012 financial year and who is an officer on 1 July 2012 will qualify for an additional entitlement equal to ⅙ working days for each month of effective service completed during that financial year (for the period for which the officer is a long-term employee). It will be possible for the Governor to make other transitional or ancillary provisions that may be necessary or expedient in connection with the provision of an entitlement to skills and experience retention leave.

Part 3—Amendment of Electricity Corporations Act 1994

Division 1—Amendment of Act

7—Amendment of section 4—Interpretation

These are consequential amendments.

8—Repeal of Part 2

The Part of the Act providing for the continuation and activities of RESI Corporation is to be repealed.

9—Amendment of section 34—Establishment of corporation

This is a consequential amendment.

Division 2—Transitional provisions

10—Interpretation

This clause sets out the definitions that are to be used for the purposes of the transitional provisions that are required in order to wind up the activities of RESI. It is important to note that the concept of a claim for workers compensation is to include any claim or action relating to personal injury, disease, other medical condition or death arising out of or in the course of the performance of work, or resulting in any other way from exposure to any material, substance, disease or conditions at a workplace.

11—Assets and liabilities of RESI

This clause will provide a mechanism for dealing with the assets and liabilities of RESI.

12—Redeployees

The Department will be required to assume responsibility for arranging for the redeployment of any person who, under the scheme established under the Electricity Corporations (Restructuring and Disposal) Act 1999, is to be employed in the public sector.

13—Related provisions

This clause sets out various provisions that are relevant to the transfer or vesting of assets or liabilities of RESI under this Bill.

Part 4—Amendment of Electricity Corporations (Restructuring and Disposal) Act 1999

14—Amendment of section 3—Interpretation

These are consequential amendments.

Part 5—Amendment of Highways Act 1926

15—Amendment of section 7—Interpretation

This clause makes a consequential amendment to the definition of controlled access road and amends the definition of roadwork to include the construction of buildings or facilities relating to public transport or parking for users of public transport.

16—Amendment of section 20—General powers of Commissioner

This clause makes a consequential amendment to section 20 to ensure that the Development Act 1993 exemption that exists in relation to land acquired under the section doesn't extend to land to be used for the purposes of a lease or licence granted in respect of a road that vests, or land that remains vested, in the Commissioner under proposed section 21A.

17—Insertion of section 21A

This clause inserts a new section as follows:

21A—Certain roads and land vest in Commissioner

Proposed section 21A allows for the vesting of roads, or parts of roads, in the Commissioner by regulation (where the Commissioner has, after commencement, carried out roadworks on a road) and the vesting of the whole or parts of the South Eastern Freeway, the Port River Expressway and Salisbury Highway, the Southern Expressway and the Northern Expressway and Sturt Highway by proclamation. A regulation or proclamation may define the extent to which land or structures on land vest in the Commissioner (and may do so by reference to a plan deposited or filed in the Lands Titles Registration Office or by any other method of description).

The provision further provides that where the Commissioner has, after commencement, determined that land vested in the Commissioner is not required for the purposes of present or future roadwork or any other purposes connected with this Act, the Commissioner may, subject to the approval of the Minister, determine not to dispose of the land if the Commissioner is satisfied that the land may be required in the future for purposes related to roads or transport needs.

18—Amendment of section 26—Powers of Commissioner to carry out roadwork etc

19—Amendment of section 26A—Powers of Commissioner in relation to trees etc on roads

20—Amendment of section 26B—Total or partial closure of roads to ensure safety or prevent damage

21—Amendment of section 26C—Certain road openings etc require Commissioner's concurrence

22—Amendment of section 27CA—Vesting of roads outside districts

These clauses make minor consequential amendments.

23—Insertion of section 30AC

This clause inserts a new section as follows:

30AC—Certain roads taken to be controlled-access roads

This proposed section allows the regulations to specify that a road that is vested in the Commissioner by regulation under section 21A is a controlled-access road.

24—Amendment of section 30B—Provision for compensation

This clause is consequential (and ensures that the compensation provision applies in relation to roads that become controlled-access roads by virtue of section 30AC).

25—Insertion of section 42B

This clause inserts a new section as follows:

42B—Registrar-General to issue certificate of title

This proposed section provides for the issuing of certificates of title in respect of land that vests in the Commissioner.

Part 6—Amendment of Local Government Act 1999

26—Insertion of section 240A

This clause inserts a new section as follows (consequentially to the amendments proposed to the Highways Act 1926):

240A—Roads vested in Commissioner of Highways

A by-law made under the Local Government Act 1999 does not apply to any act or omission specifically authorised under a lease or licence granted by the Commissioner in relation to a road vested in the Commissioner under the proposed amendments to the Highways Act 1926.

Part 7—Amendment of Parliament (Joint Services) Act 1985

27—Amendment of section 20—Long service leave and retention entitlement

These amendments will provide for the long service retention leave entitlement to apply to an officer under the Act. The scheme will be the same as that applying to other categories of employees under other related Acts to be amended by this measure.

28—Insertion of section 36

This is a consequential amendment.

29—Transitional provisions

This clause will provide for transitional and other provisions relating to the skills and experience retention leave entitlements of officers.

Part 8—Amendment of Payroll Tax Act 2009

30—Amendment of Schedule 2—South Australia specific provisions

This clause repeals Schedule 2 clause 10A, abolishing the exemption for wages paid to apprentices and trainees (as defined by that clause).

Part 9—Amendment of Public Finance and Audit Act 1987

31—Amendment of section 18—Financial arrangements

This is a consequential amendment.

Part 10—Amendment of Public Sector Act 2009

32—Amendment of Schedule 1—Leave and working arrangements

These amendments will provide for the skills and experience retention leave entitlement to apply to employees under the Public Sector Act 2009.

33—Transitional provisions

This clause will provide for transitional and other provisions relating to skills and experience retention leave entitlements.

Part 11—Amendment of Residential Tenancies Act 1995

34—Amendment of section 73—Rates, taxes and charges

This section is amended to require a landlord who receives the benefit of the water security rebate amount to ensure that the rebate is credited to any amount for rates and charges for water supply to be borne by tenants under an agreement under subsection (2) or under subsection (3)(b).

Part 12—Amendment of Stamp Duties Act 1923

35—Insertion of section 71DB

This clause establishes a scheme to provide for concessions with respect to stamp duty payable on conveyances that give effect to the purchase under off-the-plan contracts of apartments (being apartments that are to be situated in multi-storey residential developments) within the City of Adelaide and certain areas close to the City.

The scheme will apply to contracts entered into between 31 May 2012 and 30 June 2016 (both dates inclusive). However, the amount of the concession will vary according to whether the contract is entered into by 30 June 2014 or between 1 July 2014 and 30 June 2016. The rate of the concession will also vary according to whether the market value of the apartment does not exceed $500,000, or exceeds $500,000. For the purposes of determining the market value of an apartment for the calculation and imposition of stamp duty on the conveyance, the date of the sale of the relevant property will be taken to be the date on which the relevant qualifying off-the-plan contract was entered into.

36—Amendment of Schedule 2—Stamp duties and exemptions

The following instruments are to be exempt from stamp duty:

(a) a conveyance of any carbon right created under an Act of the Commonwealth;

(b) a conveyance of a renewable energy certificate under the Renewable Energy (Electricity) Act 2000 of the Commonwealth.

Part 13—Amendment of Summary Procedure Act 1921

37—Amendment of section 189—Costs generally

This amendment is consequential.

38—Insertion of section 189AA

This clause inserts a new section 189AA as follows:

189AA—Costs payable by Crown in certain criminal proceedings

New section 189AA provides that, in proceedings for an offence prosecuted by a police officer that are dismissed or withdrawn, costs may only be awarded if it is proper to do so. Subsection (2) sets out a list of circumstances relevant to the making of a costs order. Subsection (3) provides that costs must not exceed $2,000 (indexed to CPI).

Part 14—Repeal of State Bank of South Australia Act 1983

Division 1—Repeal of Act

39—Repeal of State Bank of South Australia Act 1983

The State Bank of South Australia Act 1983 is to be repealed.

Division 2—Transitional provisions

40—Interpretation

This clause sets out the definitions required for the purposes of the Division.

41—Vesting of assets and liabilities

This clause provides a specific power for assets or liabilities of the South Australian Asset Management Corporation to be vested in the Treasurer or another State entity.

42—Additional provisions

This clause provides that, on the repeal of the State Bank of South Australia Act 1983, any remaining assets or liabilities of SAAMC will vest in the Treasurer. The Governor will also be able to address any outstanding transitional or saving matters by proclamation.

43—Related provisions

This clause provides for some ancillary matters associated with the operation of the measure.

Debate adjourned on motion of Hon. R.W. Ridgway.

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