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This is a Bill, not an Act. For current law, see the Acts databases.


STRATA SCHEMES (LEASEHOLD DEVELOPMENT) AMENDMENT BILL 1999





                         New South Wales




Strata Schemes (Leasehold
Development) Amendment Bill 1999


Contents
                                                                    Page

            1 Name of Act                                             2
            2 Commencement                                            2
            3 Amendment of Strata Schemes (Leasehold Development)
              Act 1986 No 219                                         2
            4 Amendment of other Acts                                 2


Schedules
            1 Amendment of Strata Schemes (Leasehold Development)
              Act 1986                                                3
            2 Amendment of other Acts                                 7
I certify that this PUBLIC BILL, which originated in the LEGISLATIVE ASSEMBLY, has
finally passed the LEGISLATIVE COUNCIL and the LEGISLATIVE ASSEMBLY of NEW
SOUTH WALES.

                                               Clerk of the Legislative Assembly.
                                               Legislative Assembly,
                                               Sydney,                       , 1999




                               New South Wales


Strata Schemes (Leasehold
Development) Amendment Bill 1999
Act No      , 1999



An Act to amend the Strata Schemes (Leasehold Development) Act 1986 to allow
the strata leasehold development of privately owned land; to amend certain other
Acts to make further provision for the rating and taxation of land that is the subject
of a leasehold strata scheme; and for other purposes.




I have examined this Bill, and find it to correspond in all respects with the Bill as
finally passed by both Houses.


                            Chairman of Committees of the Legislative Assembly.
Clause 1        Strata Schemes (Leasehold Development) Amendment Bill 1999




The Legislature of New South Wales enacts:


  1      Name of Act
             This Act is the Strata Schemes (Leasehold Development) Amendment
             Act 1999.

  2      Commencement
             This Act commences on a day or days to be appointed by
             proclamation.

  3      Amendment of Strata Schemes (Leasehold Development) Act 1986 No
         219
             The Strata Schemes (Leasehold Development) Act 1986 is amended as
             set out in Schedule 1.

  4      Amendment of other Acts
             The Acts specified in Schedule 2 are amended as set out in that
             Schedule.




Page 2
Strata Schemes (Leasehold Development) Amendment Bill 1999

Amendment of Strata Schemes (Leasehold Development) Act 1986                      Schedule 1




Schedule 1         Amendment of Strata Schemes (Leasehold
                   Development) Act 1986

                                                                                      (Section 3)

 [1]   Part 1, note

       Insert after the heading to Part 1:
                    Note. The purpose of this Act is to allow land to be subdivided by means
                    of a strata scheme in cases where the owner of the land does not wish,
                    or is not able, to part with ownership of the land. Under a leasehold strata
                    scheme, the owner of the land that is the subject of the scheme retains an
                    estate in fee simple in the land. The purchaser of each lot that is created
                    under the subdivision obtains a leasehold interest, rather than a freehold
                    interest, in the lot. The scheme of subdivision provided for by this Act is an
                    alternative to that provided for by the Strata Schemes (Freehold
                    Development) Act 1973, but many of the provisions governing the two
                    types of schemes are the same.

 [2]   Section 4 Definitions

       Omit paragraph (d) of the definition of lessee from section 4 (1).
       Insert instead:
                    (d)     while a proprietor is deemed by section 35 (1) to be the
                            lessee of the lot, that proprietor,

 [3]   Section 4 (1), definition of "lessor"

       Omit "the prescribed authority which is".
       Insert instead "the proprietor who is".

 [4]   Section 4 (1), definition of "prescribed authority"

       Omit the definition. Insert instead:
                  proprietor, in relation to a parcel, means the person for the
                  time being recorded in the Register as entitled to an estate in
                  fee simple in that parcel.

 [5]   Section 6 Subdivision

       Omit "a prescribed authority" from the definition of land in section 6 (1).
       Insert instead "any person".



                                                                                         Page 3
                  Strata Schemes (Leasehold Development) Amendment Bill 1999

Schedule 1        Amendment of Strata Schemes (Leasehold Development) Act 1986




 [6]     Section 6 (3)

         Omit "prescribed authority in which".
         Insert instead "person in whom".

 [7]     Section 6 (6) and note

         Insert after section 6 (5):
                 (6) In this section, a reference to land held in fee simple by, or
                     vested in, a person includes land held in fee simple by, or
                     vested in, the Crown in right of New South Wales or a public
                     authority (including any local council) constituted or
                     established by an Act.
                      Note. Before the amendments made to this Act by the Strata Schemes
                      (Leasehold Development) Amendment Act 1999, only land owned by the
                      Crown or a public authority (including a local council) could be subdivided
                      under this Act. As a result of the amendments, land held in fee simple by
                      any person (including the Crown, a public authority or local council) may
                      be subdivided under this Act.

 [8]     Section 7 Registration of strata plans

         Omit "prescribed authority" from section 7 (1) (d) (i).
         Insert instead "proprietor".

 [9]     Section 7 (1) (d) (i)

         Omit "the authority".
         Insert instead "the proprietor".

[10]     Section 7 (3)

         Omit "prescribed authority as lessor".
         Insert instead "proprietor as lessor".

[11]     Section 7 (3)

         Omit "that authority"
         Insert instead "that proprietor".




Page 4
Strata Schemes (Leasehold Development) Amendment Bill 1999

Amendment of Strata Schemes (Leasehold Development) Act 1986           Schedule 1




[12]   Section 34 Restrictions on dealings by lessee

       Omit section 34 (1).

[13]   Section 35 Powers of lessor where no current lease

       Omit section 35 (1). Insert instead:
              (1) If a proprietor is entitled to immediate possession of a lot
                  because of the determination of a lease, the proprietor is, for
                  the purposes of this Act (but subject to such exceptions as may
                  be prescribed), to be deemed to be the lessee of the lot.

[14]   Section 69 Appeal against local council refusing approval

       Omit "prescribed authority" wherever occurring.
       Insert instead "local council".

[15]   Section 69 (4)

       Omit "the authority's". Insert instead "the local council's".

[16]   Schedule 5 Transitional and savings provisions

       Insert before Part 1:


       Part 1A Regulations
          1   Regulations
              (1) The regulations may contain provisions of a savings or
                  transitional nature consequent on the enactment of the
                  following Acts:
                   Strata Schemes (Leasehold Development) Amendment Act
                   1999
              (2) Any such provision may, if the regulations so provide, take
                  effect from the date of assent to the Act concerned or a later
                  date.




                                                                            Page 5
              Strata Schemes (Leasehold Development) Amendment Bill 1999

Schedule 1    Amendment of Strata Schemes (Leasehold Development) Act 1986




             (3) To the extent to which any such provision takes effect from a
                 date that is earlier than the date of its publication in the Gazette,
                 the provision does not operate so as:
                 (a)    to affect, in a manner prejudicial to any person (other
                        than the State or an authority of the State), the rights of
                        that person existing before the date of its publication, or
                 (b)    to impose liabilities on any person (other than the State
                        or an authority of the State) in respect of anything done
                        or omitted to be done before the date of its publication.




Page 6
Strata Schemes (Leasehold Development) Amendment Bill 1999

Amendment of other Acts                                                 Schedule 2




Schedule 2         Amendment of other Acts

                                                                           (Section 4)


2.1    Land Tax Management Act 1956 No 26


 [1]   Section 3 Definitions

       Insert "or 21D" after "section 21C" in paragraph (c) of the definition of
       Owner in section 3 (1).

 [2]   Section 10 Land exempted from tax

       Omit section 10 (1CA).

 [3]   Section 21D

       Insert after section 21C:

       21D    Liability of lessees of leasehold strata lots
              (1) The lessee of land that is a leasehold strata lot is taken to be the
                  owner of the leasehold strata lot for land tax purposes. The
                  lessor of the lot is not to be considered to be the owner of the
                  lot (unless the lessor is the lessee for the purposes of the Strata
                  Schemes (Leasehold Development) Act 1986).
              (2) Accordingly, the lessee is liable for any land tax payable in
                  respect of the leasehold strata lot.
              (3) If there are joint lessees, they are deemed to be joint owners of
                  the leasehold strata lot.
              (4) This section does not apply in respect of land to which section
                  21C applies (land owned by the Crown, a local council or a
                  county council).
              (5) In this section:
                  leasehold strata lot means a lot within the meaning of the
                  Strata Schemes (Leasehold Development) Act 1986.




                                                                              Page 7
                  Strata Schemes (Leasehold Development) Amendment Bill 1999

Schedule 2        Amendment of other Acts




                      lessee means a lessee within the meaning of the Strata Schemes
                      (Leasehold Development) Act 1986.
                      lessor means a lessor within the meaning of the Strata Schemes
                      (Leasehold Development) Act 1986.

 [4]     Schedule 2 Savings and transitional provisions

         Insert at the end of clause 1A (1):
                      Strata Schemes (Leasehold Development) Amendment Act 1999

 [5]     Schedule 2, Part 11

         Insert after clause 24:


         Part 11 Strata Schemes (Leasehold Development)
                 Amendment Act 1999
          25    Operation of amendments
                      Section 21D, as inserted by the Strata Schemes (Leasehold
                      Development) Amendment Act 1999, does not impose any
                      liability for land tax for a tax year that commenced before the
                      commencement of that amendment and does not affect any
                      liability for land tax for any such tax year.

2.2      Local Government Act 1993 No 30


 [1]     Section 555 What land is exempt from all rates?

         Insert after section 555 (3):
                (4) Land that is a lot in a strata plan registered under the Strata
                    Schemes (Leasehold Development) Act 1986 is taken, for the
                    purposes of subsection (1) (e), (f), (g) and (g1), to belong to or
                    be vested in the lessee (within the meaning of that Act) of the
                    lot and not the lessor (within the meaning of that Act), unless
                    the lessor is the lessee for the purposes of that Act.




Page 8
Strata Schemes (Leasehold Development) Amendment Bill 1999

Amendment of other Acts                                                Schedule 2




 [2]   Section 556 What land is exempt from all rates, other than water supply
       special rates and sewerage special rates?

       Insert at the end of the section:
              (2) Land that consists of a lot in a strata plan registered under the
                  Strata Schemes (Leasehold Development) Act 1986 is taken, for
                  the purposes of subsection (1) (h)-(o), to belong to or be vested
                  in the lessee (within the meaning of that Act) of the lot and not
                  the lessor (within the meaning of that Act), unless the lessor is
                  the lessee for the purposes of that Act.

 [3]   Schedule 8 Savings, transitional and other provisions consequent on
       the enactment of other Acts

       Insert at the end of clause 1 (1):
                    Strata Schemes (Leasehold Development) Amendment Act 1999

 [4]   Schedule 8, Part 15

       Insert after clause 49:


       Part 15 Provisions consequent on enactment of
               Strata Schemes (Leasehold Development)
               Amendment Act 1999
         50   Changes to rating provisions
                    The amendments made to this Act by the Strata Schemes
                    (Leasehold Development) Amendment Act 1999 do not apply
                    in respect of any year or part of a year occurring before the
                    commencement of those amendments and do not affect any
                    liability for rates in respect of such a year or part of a year.




                                                                             Page 9


 


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