I would like more information and the justification for the exemption.
SECTION 186.
Question proposed: "That section 186 stand part of the Bill."
Sections 186 to 190, inclusive, contain a number of provisions almost all of which are contained in the Stamp Duties (Variation) Order which came into effect in November 1991. The Order itself arose out of the process of revision of stamp duty law undertaken with the Finance Act of last year. Prior to that Act stamp duty was, in many respects, a voluntary tax. The 1991 Finance Act removed the voluntary character of stamp duty and placed the collection enforcement of the tax on a footing similar to that applying to other taxes. As a result of the changes in stamp duty, representations were made to my predecessor by a number of groups.
A particular difficulty was caused because the Act made mandatory the payment of duty on a wide range of documents which, up until then, largely escaped a charge, often by the signing of the documents abroad. The financial services industry was particularly affected because of the number and range of such documents used by them. Obviously, the development of that industry is important. The revised stamp duty regime would not have helped that development. To overcome the difficulties I created the revised stamp duty provisions. The effective date was deferred until November last and the Minister for Finance was given power to exempt documents from duty, or reduce duty, by order. A review of the effects of the stamp duty was undertaken with the financial services industry. As a result of this review, an order was made exempting a range of documents for stamp duty and reducing duty on others. The order became effective on 1 November.
Question put and agreed to.