South Australia Financial Institutions Duty Regulations 1998 under the Financial Institutions Duty Act 1983 Contents 1 Short title 2 Commencement 3 Revocation 4 Interpretation 5 Non-dutiable receipts 6 Non-ADI financial institutions 7 Prescribed States and Territories 8 Amounts not to be debited against short-term dealing account Legislative history 1--Short title These regulations may be cited as the Financial Institutions Duty Regulations 1998. 2--Commencement These regulations come into operation on the day on which they are made. 3--Revocation The Financial Institutions Duty Act Regulations 1984 (see Gazette 5.4.1984 p851), as varied, are revoked. 4--Interpretation In these regulations-- the Act means the Financial Institutions Duty Act 1983. 5--Non-dutiable receipts (1) For the purposes of section 7(2)(r) of the Act, the following classes of receipt are declared to be non-dutiable: (a) a receipt of money by a foreign exchange dealer, being a receipt that forms part of a transaction entered into by the dealer under a general authority granted and issued to the dealer, but not including, where the dealer is an ADI, a receipt by the ADI for the credit of an account of a customer of the ADI with the whole or any part of the proceeds of any such transaction; (d) a receipt of money by a financial institution in respect of the repayment of an advance under the Defence Service Homes Act 1918 of the Commonwealth; (e) a receipt of money by a financial institution in relation to any one of, or a combination of, the following transactions (not being a receipt comprising the crediting of an account of a customer of a financial institution with the proceeds of any such transaction or transactions): (i) an interest rate, currency or commodity swap; (ii) an interest rate, currency or commodity option; (iii) a forward exchange rate agreement; (iv) a forward interest rate agreement; (v) a futures contract traded on a Futures Exchange within the meaning of the Corporations Law; (f) a receipt of money by a financial institution that is an offshore banking unit (within the meaning of Division 11A of Part III of the Income Tax Assessment Act 1936 of the Commonwealth) in relation to an offshore banking activity (within the meaning of section 121D of that Act); (g) a receipt of money resulting from the direct credit of a prescribed payment to an account kept by a financial institution; (h) a receipt of money by a financial institution in the following circumstances: (i) the money is received by the financial institution for the purpose of transfer to an account kept by the financial institution, or another financial institution, in another State or Territory of the Commonwealth in the name of a charitable organisation; and (ii) the charitable organisation would be eligible under section 34(2)(c) of the Act to have the account approved as a special account if it were kept in South Australia; (i) a receipt for money transferred from the Income Equalisation Deposit scheme or the Farm Management Bond scheme to the Farm Management Deposit scheme; (j) a receipt of money by a financial institution, being-- (i) a receipt of a first home owner grant from the Consolidated Account for the credit of an account kept by the financial institution in the name of the applicant for the grant; or (ii) a receipt of a first home owner grant from the Consolidated Account for the credit of an account kept by the financial institution (other than an account in the name of the applicant for the grant) where the grant is to be held by the financial institution on behalf of the applicant pending completion or for the purposes of the eligible transaction in respect of which the grant was made; or (iii) a receipt of the whole or a part of a first home owner grant held in accordance with subparagraph (ii) from the account credited in accordance with that subparagraph for the credit of an account kept by the financial institution in the name of the applicant for the grant (whether or not the financial institution is the same as that referred to in subparagraph (ii)). (2) In this regulation-- direct credit occurs where the authority making the payment pays it directly to the financial institution and the financial institution credits the payment to an account nominated by the person for whom the payment is intended; eligible transaction has the same meaning as in the First Home Owner Grant Act 2000; Farm Management Bond scheme--see subregulation (4); Farm Management Deposit scheme--see subregulation (5); first home owner grant has the same meaning as in the First Home Owner Grant Act 2000; foreign exchange dealer means a person who is the holder of a general authority that is in force; general authority means a general authority to engage in foreign currency transactions granted and issued under regulation 38A of the Banking (Foreign Exchange) Regulations of the Commonwealth to a person named in that authority; Income Equalisation Deposit scheme--see subregulation (4); prescribed payment means-- (a) a pension, benefit, allowance or other payment under the Social Security Act 1991 of the Commonwealth; or (b) a pension, benefit, allowance or other payment under the Veterans' Entitlements Act 1986 of the Commonwealth; or (c) a payment known as a Domiciliary Nursing Care Benefit made by the Commonwealth Government; or (d) a payment made by the Commonwealth Government as part of the scheme known as the Farm Household Support Scheme; or (da) a payment under A New Tax System (Family Assistance) Act 1999 of the Commonwealth; or (db) a payment under A New Tax System (Bonuses for Older Australians) Act 1999 of the Commonwealth; or (e) a payment from a source outside Australia approved by the Commissioner under this regulation as a prescribed payment. (3) For the purposes of paragraph (e) of the definition of prescribed payment, the Commissioner may approve a payment as a prescribed payment if satisfied that-- (a) the payment corresponds to a payment referred to in another paragraph of that definition; and (b) satisfactory arrangements have been made to enable financial institutions to recognise a direct credit of such a payment as a non-dutiable receipt; and (c) financial institutions have been given at least one month's notice of the impending approval. (4) The Farm Management Bond scheme and the Income Equalisation Deposit scheme are farm income equalisation schemes administered by the Commonwealth Department of Agriculture Fisheries and Forestry. (5) The Farm Management Deposit scheme is a farm income equalisation scheme administered by financial institutions and was established to replace the Farm Management Bond scheme and the Income Equalisation Deposit scheme. (6) For the purposes of paragraph (j) of subregulation (1): in the case of joint applicants for a first home owner grant, an account will be taken to be kept by a financial institution in the name of the applicant for the grant if it is kept in the name of any one or more of the joint applicants. 6--Non-ADI financial institutions (1) For the purposes of section 31(11)(i) of the Act, the following are prescribed as non-ADI financial institutions: (a) a person who is a futures broker within the meaning of the Corporations Law; (b) SA Produce Credit Pty Ltd; (c) Thomas Cook Ltd. (2) For the purposes of section 31(9) of the Act, the following amounts are prescribed: (a) in relation to a futures broker--any amount received from a client that is required to be deposited in a clients' segregated account under the Corporations Law; (b) in relation to SA Produce Credit Pty Ltd--any amount received in the course, or for the purposes, of its business as a credit service; (c) in relation to Thomas Cook Ltd--any amount received in the course of the banking business carried on by Thomas Cook Ltd under an order of exemption granted by the Commonwealth Treasurer and published in the Commonwealth of Australia Gazette, 23 May 1968. 7--Prescribed States and Territories For the purposes of section 32(4)(b) of the Act, the following States and Territories are prescribed: (a) New South Wales; (b) Tasmania; (c) Victoria; (d) Western Australia; (e) the Australian Capital Territory; (f) the Northern Territory. 8--Amounts not to be debited against short-term dealing account (1) Pursuant to section 32(5) of the Act, an amount must not be debited against a short-term dealing account kept by an ADI in the name of a registered short-term money market operator unless the amount-- (a) is an amount paid by that operator in the course of short-term dealings; or (b) is an amount paid from that account to another account kept in the name of that operator in South Australia or in a prescribed State or Territory by that ADI or by another ADI that is a registered financial institution. (2) In this regulation-- a prescribed State or Territory means a State or Territory prescribed for the purposes of section 32(4)(b) of the Act. Legislative history Notes o For further information relating to the Act and subordinate legislation made under the Act see the Index of South Australian Statutes. Principal regulations and variations New entries appear in bold. Year No Reference Commencement 1998 168 Gazette 13.8.1998 p412 13.8.1998: r 2 1999 15 Gazette 11.3.1999 p1395 11.3.1999: r 2 1999 41 Gazette 27.5.1999 p2776 27.5.1999: r 2 1999 168 Gazette 19.8.1999 p932 1.12.1998: r 2(1) except r 3(c)--19.8.1999: r 2(2) 2000 152 Gazette 29.6.2000 p3516 29.6.2000: r 2 2000 158 Gazette 29.6.2000 p3529 1.7.2000: r 2 Provisions varied New entries appear in bold. Provision How varied Commencement r 5 r 5(1) varied by 168/1999 r 3 1.12.1998 (c) revoked by 168/1999 r 3(d) 1.12.1998 varied by 15/1999 r 3 11.3.1999 varied by 41/1999 r 3(a) 27.5.1999 (b) revoked by 168/1999 r 3(c) 19.8.1999 varied by 152/2000 r 3(a) 29.6.2000 r 5(2) eligible transaction inserted by 152/2000 r 3(b) 29.6.2000 Farm Management Bond scheme inserted by 41/1999 r 3(b) 27.5.1999 Farm Management Deposit scheme inserted by 41/1999 r 3(b) 27.5.1999 first home owner grant inserted by 152/2000 r 3(c) 29.6.2000 Income Equalisation Deposit scheme inserted by 41/1999 r 3(c) 27.5.1999 prescribed payment varied by 158/2000 r 3 1.7.2000 r 5(4) and (5) inserted by 41/1999 r 3(d) 27.5.1999 r 5(6) inserted by 152/2000 r 3(d) 29.6.2000 r 6 r 6(1) varied by 168/1999 r 4 1.12.1998 r 8 r 8(1) varied by 168/1999 r 5 1.12.1998