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This is a Bill, not an Act. For current law, see the Acts databases.
Queensland
DUTIES BILL 2001
Queensland
DUTIES BILL 2001
TABLE OF PROVISIONS
Section Page
CHAPTER 1--INTRODUCTION
PART 1--PRELIMINARY
1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
2 Commencement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
PART 2--INTERPRETATION
3 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
4 Notes in text. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
5 Relationship of Act with Administration Act . . . . . . . . . . . . . . . . . . . . . . . . 31
PART 3--APPLICATION OF ACT
6 Act binds all persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
7 Extra-territorial application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
CHAPTER 2--TRANSFER DUTY
PART 1--PRELIMINARY
8 Imposition of transfer duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
PART 2--SOME BASIC CONCEPTS FOR TRANSFER DUTY
9 What is a "dutiable transaction" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
10 What is "dutiable property". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
11 What is the "dutiable value" of a dutiable transaction . . . . . . . . . . . . . . . . . 34
12 Consideration for dutiable transactions--general . . . . . . . . . . . . . . . . . . . . . 35
13 Consideration for dutiable transaction--transfer by way of security . . . . . . 36
14 What is the "unencumbered value" of property . . . . . . . . . . . . . . . . . . . . . . 36
15 When unencumbered value of property is determined . . . . . . . . . . . . . . . . . 37
PART 3--LIABILITY FOR TRANSFER DUTY
16 When liability for transfer duty arises. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
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Duties Bill 2001
17 Who is liable to pay transfer duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
18 Need for instrument or statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
19 Lodging instrument or statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
20 Effect of making or lodging instrument or statement by 1 party . . . . . . . . . 38
21 No double duty--general . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
22 No double duty--particular dutiable transactions. . . . . . . . . . . . . . . . . . . . . 39
23 When credit to be allowed for lease duty paid . . . . . . . . . . . . . . . . . . . . . . . 40
24 Rates of transfer duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
25 Payment of transfer duty for deeds of grant . . . . . . . . . . . . . . . . . . . . . . . . . 41
PART 4--APPORTIONMENT OF CONSIDERATION OR
UNENCUMBERED VALUE FOR PARTICULAR DUTIABLE
TRANSACTIONS
26 Apportionment--head office or principal place of business in Queensland . 42
27 Apportionment--head office or principal place of business in another State 43
28 Apportionment of particular dutiable transactions relating to existing
and new rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
PART 5--DUTIABLE TRANSACTIONS RELATING TO
DUTIABLE PROPERTY
29 When transaction for chattel is not dutiable transaction . . . . . . . . . . . . . . . . 45
30 Aggregation of dutiable transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
31 Partitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
32 Transfer by way of security--land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
33 Transfer by way of security--other dutiable property . . . . . . . . . . . . . . . . . 48
PART 6--SPECIAL PROVISIONS ABOUT DUTIABLE
TRANSACTIONS RELATING TO QUEENSLAND BUSINESS
ASSETS
Division 1--Some basic concepts about Queensland businesses and
their assets
34 What is a "Queensland business asset" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
35 What is a "business asset" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
36 What is a "Queensland business" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Division 2--Transactions for particular assets of Queensland businesses
37 When transaction for particular Queensland business assets not dutiable
transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
38 When consignment of trading stock of Queensland business is a dutiable
transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
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Duties Bill 2001
39 Surrender of Queensland business asset so replacement asset may
be granted .............................................. 52
PART 7--DUTIABLE TRANSACTIONS RELATING TO
PARTNERSHIPS
Division 1--Preliminary
40 Interpretation for property held by partnership or trust. . . . . . . . . . . . . . . . . 53
Division 2--Some basic concepts about partnership acquisitions
41 What is a "partnership acquisition". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
42 What is a partner's "partnership interest" . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
43 What is a partnership's "indirect interest" in dutiable property . . . . . . . . . . 54
44 Acquiring a partnership interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Division 3--Dutiable value of partnership acquisitions
45 What is the dutiable value of a partnership acquisition. . . . . . . . . . . . . . . . . 55
46 What is the value of a partnership acquisition--general. . . . . . . . . . . . . . . . 55
47 What is the value of a partnership acquisition--merger of 2 or
more partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Division 4--Dutiable value of other dutiable transactions for dutiable
property of partnership
48 Dutiable value of dutiable transaction reduced for transfer of dutiable
property to partner on retirement or dissolution . . . . . . . . . . . . . . . . . . . . . 58
PART 8--DUTIABLE TRANSACTIONS RELATING TO TRUSTS
Division 1--Preliminary
49 Application of pt 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
50 Joint trustees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Division 2--Some basic concepts about property
51 Interpretation for property held by trust or partnership. . . . . . . . . . . . . . . . . 59
52 Contracted property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Division 3--Creation and termination of trusts
53 Creating trust of dutiable property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
54 Terminating trust of dutiable property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Division 4--Some basic concepts about trust acquisitions and trust
surrenders
55 What is a "trust acquisition" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
56 What is a "trust surrender" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
57 What is a "trust interest" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
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Duties Bill 2001
58 What is a trust's "indirect interest" in dutiable property . . . . . . . . . . . . . . . . 61
59 Acquiring a trust interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
60 Beneficiary's trust interest is percentage of or proportionate to property
held on trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
61 Who is a "related person" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Division 5--Dutiable value of trust acquisitions and trust surrenders
62 What is the dutiable value of a trust acquisition or trust surrender . . . . . . . . 64
63 What is the value of a trust acquisition or trust surrender. . . . . . . . . . . . . . . 64
Division 6--Liability to transfer duty
64 Liability to pay transfer duty on creation or termination of trust . . . . . . . . . 66
65 Liability of joint trustees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
66 When no transfer duty on trust acquisition or trust surrender. . . . . . . . . . . . 66
67 Parties to trust acquisition and trust surrender . . . . . . . . . . . . . . . . . . . . . . . 67
Division 7--Public unit trusts
Subdivision 1--Preliminary
68 What is a "public unit trust" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Subdivision 2--Basic concepts about listed unit trusts
69 What is a "listed unit trust" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Subdivision 3--Basic concepts about widely held unit trusts
70 What is a "widely held unit trust" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
71 When unit trust may be treated as widely held unit trust . . . . . . . . . . . . . . . 69
Subdivision 4--Basic concepts about wholesale unit trusts
72 What is a "wholesale unit trust" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
73 What is a "funds manager" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
74 Who is a "wholesale investor". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Subdivision 5--Basic concepts about pooled public investment unit
trusts
75 What is a "pooled public investment unit trust" . . . . . . . . . . . . . . . . . . . . . . 72
76 Who is a "qualified holder" and a "large qualified holder". . . . . . . . . . . . . . 73
77 Who is holder of units in pooled public investment unit trust. . . . . . . . . . . . 73
78 Who is entitled to units in pooled public investment unit trust . . . . . . . . . . . 74
Subdivision 6--Basic concepts about declared public unit trusts
79 What is a "declared public unit trust" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
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Duties Bill 2001
Subdivision 7--Majority trust acquisitions in land holding trusts
80 What is a "majority trust acquisition" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
81 Interpretation for majority trust acquisitions. . . . . . . . . . . . . . . . . . . . . . . . . 75
82 Deduction--transfer duty for majority trust acquisition . . . . . . . . . . . . . . . . 75
Subdivision 8--Indirect trust interests
83 Person's indirect trust interest is proportionate to land holding
trust's dutiable property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
84 What is the value of person's entitlement in land holding trust . . . . . . . . . . 76
PART 9--CONCESSIONS FOR HOMES
Division 1--Preliminary
85 Purpose of pt 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Division 2--Some basic concepts about concessions for homes
86 What is a "home" and a "first home" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
87 What is a "residence" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
88 What is a person's "occupation date" for a residence . . . . . . . . . . . . . . . . . . 78
89 What is a person's "transfer date" for residential land . . . . . . . . . . . . . . . . . 78
90 What is the "dutiable value" of residential land . . . . . . . . . . . . . . . . . . . . . . 78
Division 3--Concessions for homes and first homes
91 Concession for transfer duty--home. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
92 Concession for transfer duty--first home . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
93 Concession for transfer duty--mixed and multiple claims for homes and
first homes for individuals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
94 Concession for transfer duty--mixed and multiple claims for
homes and first homes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
95 Application for concession for transfer duty for home or first home . . . . . . 83
PART 10--CONCESSIONS FOR DUTIABLE TRANSACTIONS
FOR PARTICULAR FAMILY BUSINESSES
Division 1--Preliminary
96 Purpose of pt 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
97 Dutiable transactions to which pt 10 applies. . . . . . . . . . . . . . . . . . . . . . . . . 84
98 Conditions for transfer or agreement for transfer of business property . . . . 84
99 Conditions for partnership acquisitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
100 Conditions for particular trust acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . 86
101 Conditions for creation of trusts and particular trust acquisitions. . . . . . . . . 86
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Duties Bill 2001
102 Conditions for acquisitions of interest in family unit trusts . . . . . . . . . . . . . 87
103 Conditions for transfer or agreement for transfer of Queensland
marketable security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
104 Dutiable transactions by way of gift . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Division 2--Concessions for transfer duty for dutiable transactions
105 How transfer duty is assessed on dutiable transaction . . . . . . . . . . . . . . . . . 89
106 Special provision for assessing transfer duty if total gifts of property
used for prescribed business exceed $500 000 . . . . . . . . . . . . . . . . . . . . . 89
107 Application for concession for transfer duty under pt 10 . . . . . . . . . . . . . . . 90
PART 11--CONCESSIONS FOR SUPERANNUATION
108 Dutiable transactions to which pt 11 applies. . . . . . . . . . . . . . . . . . . . . . . . . 90
109 Concession for transfer duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
110 Documents to accompany application. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
PART 12--CONCESSIONS FOR PARTICULAR INVESTMENT
SCHEMES
111 Dutiable transactions to which pt 12 applies. . . . . . . . . . . . . . . . . . . . . . . . . 91
112 Conditions for concession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
113 Concession for conversion of interests in prescribed interest schemes. . . . . 92
114 Expiry of pt 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
PART 13--EXEMPTIONS FOR TRANSFER DUTY
Division 1--Exemptions for cancelled agreements and particular
agreements entered into before registration of companies
115 Exemption--cancelled agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
116 Exemption--particular agreements entered into before
registration of company .................................... 94
Division 2--Exemptions for trusts
117 Exemption--change of trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
118 Exemption--trust acquisition or surrender in family trust . . . . . . . . . . . . . . 95
119 Exemption--trust acquisition or surrender in superannuation fund . . . . . . . 96
120 Exemption--trust acquisition or surrender for membership of particular
unincorporated association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
121 Exemption--trust acquisition or surrender for dutiable property
comprising only existing rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
122 Exemption--mortgage-backed securities . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
123 Exemption--particular distribution of dutiable property to a beneficiary . . 98
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124 Exemption--deceased person's estate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
125 Exemption--particular vestings of dutiable property . . . . . . . . . . . . . . . . . . 99
126 Exemption--transactions for trust created for person under legal disability 99
127 Exemption--declaration of charitable trust . . . . . . . . . . . . . . . . . . . . . . . . . 100
128 Exemption--community purpose associations . . . . . . . . . . . . . . . . . . . . . . . 100
Division 3--Exemptions for particular investment schemes
129 Exemption--transfer by direction to primary custodian for responsible
entity of registered managed investment scheme . . . . . . . . . . . . . . . . . . . . . 100
130 Exemption--other transfers of scheme property of registered
managed investment scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Division 4--Exemptions for dealings under particular Acts
131 Exemption--dealings under Aboriginal and Torres Strait Islander Land Acts 101
132 Exemption--vesting under boundary adjustment plans . . . . . . . . . . . . . . . . 102
133 Exemption--building units and group titles plans and community
titles schemes ............................................. 102
134 Exemption--forfeiture orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
135 Exemption--industrial organisations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
136 Exemption--dealings under Land Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
137 Exemption--mining and petroleum legislation. . . . . . . . . . . . . . . . . . . . . . . 104
138 Exemption--mobile homes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
139 Exemption--dealings under South Bank Corporation Act . . . . . . . . . . . . . . 106
140 Exemption--particular water entitlements . . . . . . . . . . . . . . . . . . . . . . . . . . 106
141 Exemption--particular statutory bodies . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
Division 5--Miscellaneous exemptions
142 Exemption--exempt institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
143 Exemption--change of tenure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
144 Exemption--joint tenancy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
145 Exemption--transfer to State for public or community purpose . . . . . . . . . 108
146 Exemption--lease duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
147 Exemption--surrender of lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
148 Exemption--marketable securities etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
149 Exemption--debt factoring agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
150 Exemption--particular chattels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
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Duties Bill 2001
151 Exemption--particular residences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
152 Exemption--to correct error in previous dutiable transaction . . . . . . . . . . . 110
PART 14--REASSESSMENTS FOR TRANSFER DUTY
Division 1--Reassessments for concessions for homes
153 Reassessment--noncompliance with occupancy requirements after
occupation date for residence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
154 Reassessment--other noncompliance with occupancy requirements . . . . . . 112
155 When transferees must give notice for reassessment . . . . . . . . . . . . . . . . . . 112
Division 2--Reassessments for concessions for superannuation
156 Reassessment--noncomplying superannuation fund . . . . . . . . . . . . . . . . . . 113
CHAPTER 3--LAND RICH DUTY AND CORPORATE TRUSTEE
DUTY
PART 1--LAND RICH DUTY
Division 1--Preliminary
157 Imposition of land rich duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
Division 2--Some basic concepts for land rich duty
Subdivision 1--Some basic concepts about acquiring interests in
corporations
158 What is a "relevant acquisition" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
159 What are "interests" and "majority interests" in a corporation . . . . . . . . . . . 115
160 Interest in corporation is percentage of distributable property on
winding up ............................................. 115
161 Entitlement on distribution of corporation's property . . . . . . . . . . . . . . . . . . 116
162 Acquiring an interest in a corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
163 When is an interest in a corporation acquired . . . . . . . . . . . . . . . . . . . . . . . . 117
164 Who is a "related person" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
Subdivision 2--Some basic concepts about land rich corporations,
subsidiaries and their land-holdings and property
165 What is a "land rich corporation" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
166 What is a "subsidiary" of a corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
167 What are a corporation's "land-holdings" . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
168 What is a corporation's "property" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
Subdivision 3--Some basic concepts about unencumbered values of
land-holdings and property
169 Application of sdiv 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
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Duties Bill 2001
170 Value of co-owned land-holdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
171 Value of land-holdings in uncompleted agreement for transfer included . . . 121
172 Value of particular property disregarded . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
173 Value of land-holdings and property--business property disregarded . . . . . 122
Division 3--Liability for land rich duty
174 When liability for land rich duty arises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
175 Who is liable to pay land rich duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
176 Rate of land rich duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
177 Land rich duty statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
178 Effect of lodging land rich duty statement by acquirer or related person . . . 123
Division 4--Dutiable value of relevant acquisitions
179 Working out dutiable value of relevant acquisition . . . . . . . . . . . . . . . . . . . . 123
180 Aggregation of particular relevant acquisitions. . . . . . . . . . . . . . . . . . . . . . . 124
181 Unencumbered value of Queensland land-holdings of land rich corporation 126
182 Unencumbered value of land-holdings of subsidiary of land rich
corporation ............................................. 126
183 Land transferred for shares to be disregarded . . . . . . . . . . . . . . . . . . . . . . . . 127
184 Value of co-owned land-holdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
185 Deduction--corporate trustee duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
186 Deduction--transfer duty for particular trusts . . . . . . . . . . . . . . . . . . . . . . . 128
187 Deduction--transfer duty for marketable securities . . . . . . . . . . . . . . . . . . . 128
188 Deduction--mortgage duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
Division 5--Exempt acquisitions
189 Exemption--particular share issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
190 Exemption--security interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
191 Exemption--change of trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
192 Exemption--acquisition by liquidator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
193 Exemption--compromise or arrangements. . . . . . . . . . . . . . . . . . . . . . . . . . 131
194 Exemption--if transfer duty not imposed . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
195 Exemption--no liability for transfer duty on acquisition in other way. . . . . 132
196 Interests acquired under exempt acquisitions disregarded for
particular purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
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Division 6--Reassessments for land rich duty
197 When commissioner must make reassessment . . . . . . . . . . . . . . . . . . . . . . . 133
Division 7--Enforcement
Subdivision 1--Charges
198 Registration of charge over land for unpaid land rich duty . . . . . . . . . . . . . . 134
199 Release of charge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
Subdivision 2--Power of sale
200 Commissioner may apply to Supreme Court for order to sell. . . . . . . . . . . . 135
201 When court must order sale of land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
202 Application of proceeds of sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
203 Registration of transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
204 Corporation or subsidiary may recover proceeds of sale as debt . . . . . . . . . 136
PART 2--CORPORATE TRUSTEE DUTY
Division 1--Preliminary
205 Imposition of corporate trustee duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
206 Interpretation for property held by partnership or trust. . . . . . . . . . . . . . . . . 137
Division 2--Some basic concepts for corporate trustee duty
207 What is a "relevant acquisition" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
208 What is a "share interest" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
209 What is a "corporate trustee". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138
210 What is a corporate trustee's "indirect interest" in dutiable property . . . . . . 138
211 What is a "relevant corporation" for a corporate trustee . . . . . . . . . . . . . . . . 138
212 Acquiring share interest in corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138
213 Contracted property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
Division 3--Liability for corporate trustee duty
214 When liability for corporate trustee duty arises . . . . . . . . . . . . . . . . . . . . . . 139
215 Who is liable to pay corporate trustee duty. . . . . . . . . . . . . . . . . . . . . . . . . . 139
216 Rate of corporate trustee duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
217 Corporate trustee duty statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
Division 4--Apportionment of unencumbered value for particular
relevant acquisitions
218 Apportionment--head office or principal place of business in Queensland . 140
219 Apportionment--head office or principal place of business in another State 141
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Duties Bill 2001
220 Apportionment of particular acquisitions relating to existing rights. . . . . . . 142
Division 5--Dutiable value of relevant acquisitions
221 Acquirer's share interest is proportionate to shares in corporate trustee
or relevant corporation ....................................... 143
222 What is the dutiable value of a relevant acquisition . . . . . . . . . . . . . . . . . . . 144
223 Aggregation of particular relevant acquisitions. . . . . . . . . . . . . . . . . . . . . . . 145
Division 6--Exempt acquisitions
224 Exemption--change of trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
225 Exemption--relevant acquisition in family trust. . . . . . . . . . . . . . . . . . . . . . 147
226 Exemption--if transfer duty not imposed . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
Division 7--Deductions and reassessments
227 Deduction--transfer duty for marketable securities . . . . . . . . . . . . . . . . . . . 147
228 Deduction--transfer duty for trust acquisition . . . . . . . . . . . . . . . . . . . . . . . 148
229 When commissioner must make reassessment . . . . . . . . . . . . . . . . . . . . . . . 148
CHAPTER 4--LEASE DUTY
PART 1--PRELIMINARY
230 Imposition of duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
PART 2--SOME BASIC CONCEPTS ABOUT LEASES AND
OCCUPANCY RIGHTS
231 What is a "lease" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
232 What is an "occupancy right" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
233 What is the "cost" of a lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
234 What is the "cost" of an occupancy right . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
235 Cost of lease or occupancy right variable . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
236 Cost of lease or occupancy right paid in goods or services. . . . . . . . . . . . . . 151
PART 3--LIABILITY FOR, PAYMENT AND REASSESSMENTS
OF LEASE DUTY
237 When liability for lease duty arises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
238 Who is liable to pay lease duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
239 Rate of lease duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
240 Lodging instrument . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152
241 Lodging statements and payment of lease duty. . . . . . . . . . . . . . . . . . . . . . . 152
242 Reassessment of lease duty for particular earlier termination of
lease or occupancy right . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
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Duties Bill 2001
243 Credit for lease duty paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
PART 4--EXEMPTIONS FOR LEASE DUTY
244 Exemption--particular residences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
245 Exemption--leases under Land Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
246 Exemption--National Trust leases and occupancy rights . . . . . . . . . . . . . . . 155
CHAPTER 5--MORTGAGE DUTY
PART 1--PRELIMINARY
247 Imposition of mortgage duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
PART 2--SOME BASIC CONCEPTS FOR MORTGAGE DUTY
248 What is a "mortgage" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
249 What is an "advance" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
250 What is a "loan" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
251 Location of property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
PART 3--LIABILITY FOR MORTGAGE DUTY
252 When liability for mortgage duty arises . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
253 Who is liable to pay mortgage duty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
254 Rate of mortgage duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
255 Lodging mortgage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
256 Effect of lodging mortgage by mortgagor or mortgagee. . . . . . . . . . . . . . . . 159
257 Stamping before advance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
PART 4--AMOUNT SECURED BY A MORTGAGE
258 What is the amount secured by a mortgage. . . . . . . . . . . . . . . . . . . . . . . . . . 159
259 Contingent liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
260 Mortgage over property not wholly in Queensland. . . . . . . . . . . . . . . . . . . . 160
261 Advances secured by mortgage package. . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
262 Collateral mortgage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
263 Extent mortgage is enforceable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
264 Limit on security provided by stamped and collateral mortgages. . . . . . . . . 163
265 Multi-jurisdictional statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
PART 5--MORTGAGE DUTY ON PARTICULAR DEBENTURE
ISSUES, CAVEATS AND RELEASES OF MORTGAGES
266 Mortgage duty associated with particular debenture issues . . . . . . . . . . . . . 164
267 What is an "exempt short-term debenture" . . . . . . . . . . . . . . . . . . . . . . . . . . 164
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Duties Bill 2001
268 Caveats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
269 Releases of mortgages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
PART 6--CONCESSIONS FOR HOME MORTGAGES AND FIRST
HOME MORTGAGES
Division 1--Preliminary
270 Purpose of pt 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
Division 2--Concessions for mortgage duty for home mortgages
Subdivision 1--Some basic concepts about concessions for mortgage
duty for home mortgages
271 What is a "home mortgage" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
272 What is a "home" and "first home" for div 2 . . . . . . . . . . . . . . . . . . . . . . . . 166
273 Who is a "home borrower" and a "first home borrower" . . . . . . . . . . . . . . . 166
Subdivision 2--Concessions for home mortgages
274 Concession for mortgage duty--home mortgage . . . . . . . . . . . . . . . . . . . . . 167
275 Concession for mortgage duty--particular trusts . . . . . . . . . . . . . . . . . . . . . 168
Division 3--Concessions for mortgage duty for home refinance
mortgages
Subdivision 1--Some basic concepts about concessions for mortgage
duty for home refinance mortgages
276 What is a "home refinance mortgage". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
277 What is a "home" for div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
278 Who is a "home refinance borrower" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Subdivision 2--Concessions for home refinance mortgages
279 Concession for mortgage duty--home refinance mortgage . . . . . . . . . . . . . 169
280 Concession for mortgage duty--particular trusts . . . . . . . . . . . . . . . . . . . . . 170
Division 4--Miscellaneous provisions
281 Further concession for particular home refinance mortgages . . . . . . . . . . . . 171
282 Application for concession for mortgage duty . . . . . . . . . . . . . . . . . . . . . . . 172
PART 7--EXEMPTIONS FOR MORTGAGE DUTY
Division 1--Particular debentures and instruments of trust, transfer of
land by security and mortgages under particular Acts
283 Exemption--particular debentures and instruments of trust . . . . . . . . . . . . . 172
284 Exemption--transfer of land by way of security . . . . . . . . . . . . . . . . . . . . . 173
285 Exemption--mortgages under particular Acts . . . . . . . . . . . . . . . . . . . . . . . 173
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Duties Bill 2001
Division 2--Mortgage-backed securities
Subdivision 1--Some basic concepts for mortgage-backed securities
286 What is a "mortgage-backed security" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
287 What is a "mortgage" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
288 What is a "pool of mortgages" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
289 What is an "authorised investment" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
Subdivision 2--Exemption
290 Exemption--mortgage-backed security . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
PART 8--REASSESSMENTS FOR MORTGAGE DUTY
291 Reassessment--concession under pt 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
292 Reassessment--noncomplying use by cooperatives . . . . . . . . . . . . . . . . . . . 178
CHAPTER 6--CREDIT BUSINESS DUTY AND CREDIT CARD
DUTY
PART 1--CREDIT BUSINESS DUTY
Division 1--Preliminary
293 Imposition of credit business duty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
294 Credit transactions to which pt 1 applies--jurisdictional link . . . . . . . . . . . 179
Division 2--Some basic concepts for credit business duty
295 What is a "credit transaction" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180
296 What is a "loan" for pt 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180
297 What is a "discount transaction" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
298 What is a "credit arrangement" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182
299 Who is a "credit provider". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182
300 Form of credit transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182
Division 3--Liability for credit business duty
301 Who is liable to pay credit business duty . . . . . . . . . . . . . . . . . . . . . . . . . . . 182
302 Rate of credit business duty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183
303 What is the "credit amount" for a credit transaction . . . . . . . . . . . . . . . . . . . 183
Division 4--Arrangements applying to credit providers
304 Credit providers to be registered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184
305 Credit business duty base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
306 When credit provider not liable for credit business duty . . . . . . . . . . . . . . . 185
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Duties Bill 2001
307 Lodging return and payment of credit business duty--registered credit
provider .................................................. 185
308 Lodging statement and payment of credit business duty--unregistered
credit providers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186
Division 5--Exemptions
309 Exemption--government entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186
PART 2--CREDIT CARD DUTY
Division 1--Preliminary
310 Imposition of credit card duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
Division 2--Some basic concepts for credit card duty
311 What is a "credit card transaction" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
312 Who is a "credit card holder" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
313 What is a "credit card" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
314 What is a "credit card account". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
315 Who is a "credit card provider". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
316 Who is a "prescribed credit card provider" . . . . . . . . . . . . . . . . . . . . . . . . . . 188
317 Who is a "merchant" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
318 What is a "billing period" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
Division 3--Liability for credit card duty
319 Who is liable to pay credit card duty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
320 Rate of credit card duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
321 Credit card duty base. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
Division 4--Arrangements applying to credit card providers
322 Credit card providers to be registered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190
323 Lodging return and payment of credit card duty--registered credit card
provider ................................................. 190
324 Lodging return and payment of credit card duty--unregistered credit
card provider ........................................... 190
CHAPTER 7--HIRE DUTY
PART 1--PRELIMINARY
325 Imposition of hire duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191
326 Hire of goods to which ch 7 applies--jurisdictional link . . . . . . . . . . . . . . . 191
PART 2--SOME BASIC CONCEPTS FOR HIRE DUTY
327 What are "goods" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192
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Duties Bill 2001
328 What is a "hire of goods" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192
329 What is a "credit purchase agreement" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193
330 What is an "equipment financing arrangement" . . . . . . . . . . . . . . . . . . . . . . 193
331 What is a "hire-purchase agreement" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193
332 What are "hiring charges" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194
333 What is an "exempt payment". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194
334 Who is a "commercial hirer". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
PART 3--LIABILITY FOR HIRE DUTY
335 Who is liable to pay hire duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
336 Rate of hire duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
337 Credit for duty paid in another State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196
PART 4--OBLIGATIONS OF PARTIES TO HIRE OF GOODS
338 Hirer to advise of place of registration of motor vehicle or sole or
predominant use of other goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196
339 Ascertainment and disclosure of place of use of goods . . . . . . . . . . . . . . . . 197
PART 5--ARRANGEMENTS APPLYING TO COMMERCIAL
HIRERS
340 Commercial hirer to be registered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
341 Hire duty base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
342 When commercial hirer not liable for hire duty . . . . . . . . . . . . . . . . . . . . . . 198
343 Lodging returns and payment of hire duty--registered commercial hirer . . 199
344 Lodging statement and payment of hire duty--unregistered commercial hirer 199
PART 6--ARRANGEMENTS APPLYING TO OTHER PERSONS
345 Application of pt 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
346 Lodging instrument . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
347 Hire of goods for indefinite period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
PART 7--EXEMPTIONS FOR HIRE DUTY
348 Exemption--particular credit purchase agreements . . . . . . . . . . . . . . . . . . . 201
CHAPTER 8--INSURANCE DUTY
PART 1--PRELIMINARY
349 Imposition of insurance duty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201
PART 2--SOME BASIC CONCEPTS FOR INSURANCE DUTY
350 What is "general insurance" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202
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351 What is "life insurance" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202
352 What is "accident insurance" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202
353 What is a "premium". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202
354 Who is a "general insurer" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203
355 Who is a "life insurer". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203
356 What are "net premiums charged" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203
PART 3--LIABILITY FOR INSURANCE DUTY
357 Who is liable to pay insurance duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203
358 When insurance duty is payable--general insurance . . . . . . . . . . . . . . . . . . 204
359 When premium is paid--general insurance . . . . . . . . . . . . . . . . . . . . . . . . . 204
360 When insurance duty is payable--life insurance . . . . . . . . . . . . . . . . . . . . . 204
361 When insurance duty is payable--accident insurance . . . . . . . . . . . . . . . . . 204
362 Rate of insurance duty--general and accident insurance . . . . . . . . . . . . . . . 204
363 Rate of insurance duty--life insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
PART 4--APPORTIONMENT OF PREMIUMS
Division 1--Apportionment between States
364 Application of div 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
365 Purpose of div 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
366 Apportionment of premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
Division 2--Other apportionments
367 Apportionment between different types or classes of insurance . . . . . . . . . . 206
368 Apportionment of premiums between 2 or more policies. . . . . . . . . . . . . . . 206
PART 5--ARRANGEMENTS APPLYING TO GENERAL
INSURERS, LIFE INSURERS AND WORKCOVER QUEENSLAND
369 General and life insurers to be registered . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
370 Lodging returns and payment of insurance duty . . . . . . . . . . . . . . . . . . . . . . 208
PART 6--ARRANGEMENTS APPLYING TO OTHER PERSONS
371 Application of pt 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
372 Lodging statement and payment of insurance duty. . . . . . . . . . . . . . . . . . . . 209
PART 7--EXEMPTIONS FOR INSURANCE DUTY
373 Exemption--particular marine insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
374 Exemption--goods in transit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210
375 Exemption--health insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210
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376 Exemption--reinsurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210
CHAPTER 9--VEHICLE REGISTRATION DUTY
PART 1--PRELIMINARY
377 Imposition of vehicle registration duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210
PART 2--SOME BASIC CONCEPTS FOR VEHICLE
REGISTRATION DUTY
378 What is the "dutiable value" of a vehicle . . . . . . . . . . . . . . . . . . . . . . . . . . . 211
379 What is the "market value" of a vehicle . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211
PART 3--LIABILITY FOR VEHICLE REGISTRATION DUTY
380 Who is liable to pay vehicle registration duty . . . . . . . . . . . . . . . . . . . . . . . . 211
381 When vehicle registration duty must be paid . . . . . . . . . . . . . . . . . . . . . . . . 212
382 Assessment of vehicle registration duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212
383 Rate of vehicle registration duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212
384 Reduction in vehicle registration duty payable . . . . . . . . . . . . . . . . . . . . . . . 212
PART 4--EXEMPTIONS FOR VEHICLE REGISTRATION DUTY
385 Exemption--registration of previously registered vehicle . . . . . . . . . . . . . . 214
386 Exemption--registration of interstate registered vehicle . . . . . . . . . . . . . . . 214
387 Exemption--registration of heavy vehicle . . . . . . . . . . . . . . . . . . . . . . . . . . 215
388 Exemption--business name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
389 Exemption--vehicle dealer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216
390 Exemption--particular persons and entities . . . . . . . . . . . . . . . . . . . . . . . . . 216
391 Exemption--forfeiture orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
392 Exemption--industrial organisations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
393 Exemption--disposal under particular Acts . . . . . . . . . . . . . . . . . . . . . . . . . 218
PART 5--REASSESSMENTS FOR VEHICLE REGISTRATION
DUTY
394 Reassessment--noncomplying use by primary producer . . . . . . . . . . . . . . . 218
395 Reassessment of vehicle registration duty. . . . . . . . . . . . . . . . . . . . . . . . . . . 219
PART 6--MISCELLANEOUS PROVISIONS
396 Obligations of vehicle dealers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219
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CHAPTER 10--GENERAL EXEMPTIONS
PART 1--EXEMPTIONS FOR PARTICULAR DUTIES FOR
CORPORATE RECONSTRUCTION
Division 1--Preliminary
397 Purpose of pt 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
Division 2--Some basic concepts about exemptions for duty for
corporate reconstructions
Subdivision 1--Basic concepts about corporate reconstructions
398 What is a "corporate reconstruction" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
Subdivision 2--Basic concepts about companies, group companies,
parent companies and subsidiaries
399 What is a "company". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221
400 What are "group companies", a "group company" and a "corporate group" 221
401 What is a "parent company" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221
402 What is a "subsidiary". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221
403 Example of corporate group structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222
404 How part applies to particular transactions . . . . . . . . . . . . . . . . . . . . . . . . . . 222
Division 3--Exemptions for corporate reconstructions
405 Exemption--interposing new company between existing companies and
their shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222
406 Exemption--intra-group transfers of property . . . . . . . . . . . . . . . . . . . . . . . 223
407 Group property for intra-group transfer of property . . . . . . . . . . . . . . . . . . . 224
408 Exemption--trustees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226
409 Exemption--land rich duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226
Division 4--Applications for rulings and exemptions
410 Application for ruling for proposed dutiable transaction or relevant
acquisition ............................................... 227
411 Application for exemption for dutiable transaction or relevant acquisition . 227
Division 5--Reassessments for corporate reconstructions
412 Reassessment--exemption for intra-group transfers of property,
trustees and land rich duty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228
413 When parties must give notice for reassessment . . . . . . . . . . . . . . . . . . . . . . 229
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PART 2--EXEMPTIONS FOR PARTICULAR DUTIES FOR
EXEMPT INSTITUTIONS
Division 1--Exemptions for exempt institutions
414 Exemption--particular duties for exempt institutions. . . . . . . . . . . . . . . . . . 230
Division 2--Use requirements for exemptions
415 Use requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
416 Start of use requirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
417 Commissioner to extend start date and duration period . . . . . . . . . . . . . . . . 233
Division 3--Reassessments for exempt institutions
418 Reassessment on application of exempt institution. . . . . . . . . . . . . . . . . . . . 233
419 Reassessment--noncompliance with use requirements . . . . . . . . . . . . . . . . 234
PART 3--EXEMPTIONS FOR MATRIMONIAL AND DE FACTO
RELATIONSHIP INSTRUMENTS
Division 1--Some basic concepts for matrimonial and de facto
relationship instruments
420 What is a "matrimonial instrument" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235
421 What is "matrimonial property" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235
422 What is a "de facto relationship instrument". . . . . . . . . . . . . . . . . . . . . . . . . 235
423 What is "de facto relationship property" . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236
Division 2--Exemptions and reassessments
424 Exemption--matrimonial and de facto relationship instruments . . . . . . . . . 236
425 Reassessment on application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236
PART 4--OTHER EXEMPTIONS
426 Exemption--State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237
427 Exemption--particular instruments and transactions under Associations
Incorporation Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237
428 Exemption--particular instruments and transactions under Gas Pipelines
Access (Queensland) Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238
429 Exemption--instruments and transactions under State Housing Act . . . . . . 238
430 Exemption--instruments and transactions under other Acts . . . . . . . . . . . . 238
431 Exemption--Queensland Investment Corporation . . . . . . . . . . . . . . . . . . . . 239
CHAPTER 11--AVOIDANCE SCHEMES
432 Purpose and operation of ch 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239
433 Application of ch 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239
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434 When is a "duty benefit" obtained. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240
435 Matters to be considered in deciding purpose for scheme . . . . . . . . . . . . . . 240
436 Assessments because of duty benefit from scheme. . . . . . . . . . . . . . . . . . . . 241
CHAPTER 12--REGISTERED PERSONS
PART 1--REGISTRATION OF PERSONS CARRYING ON
PARTICULAR BUSINESSES AND THEIR REGISTRATION AS
SELF ASSESSORS
437 Application for registration to carry on particular businesses. . . . . . . . . . . . 242
438 Registration to carry on business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242
439 Registration as self assessor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242
440 Notice of registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
PART 2--REGISTRATION OF PARTIES TO INSTRUMENTS AND
TRANSACTIONS AS SELF ASSESSORS
441 Application for registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
442 Decision on application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
443 Approval of application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244
444 Registration of self assessor without application . . . . . . . . . . . . . . . . . . . . . 244
445 Notice of registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244
446 Refusal of application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244
447 Restriction on assessment by commissioner . . . . . . . . . . . . . . . . . . . . . . . . . 245
PART 3--REGISTRATION OF AGENTS AS SELF ASSESSORS
448 Application for registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
449 Decision on application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
450 Approval of application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
451 Registration of self assessor without application . . . . . . . . . . . . . . . . . . . . . 245
452 Notice of registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246
453 Refusal of application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246
454 Restriction on assessment by commissioner . . . . . . . . . . . . . . . . . . . . . . . . . 246
PART 4--RETURNS AND REASSESSMENTS BY SELF
ASSESSORS
455 Lodging returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247
456 When self assessor may make reassessments . . . . . . . . . . . . . . . . . . . . . . . . 248
PART 5--REGISTRATION OF EXEMPT INSTITUTIONS
457 Application for registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248
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458 Decision on application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248
459 Restrictions on registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249
460 Approval of application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250
461 Refusal of application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250
462 Later registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250
463 Notice of registration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251
PART 6--AMENDMENT, SUSPENSION AND CANCELLATION
OF REGISTRATION OF SELF ASSESSORS AND EXEMPT
INSTITUTIONS
Division 1--Self assessors
464 Amendment of self assessor's registration . . . . . . . . . . . . . . . . . . . . . . . . . . 251
465 Grounds for suspension or cancellation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252
466 Show cause notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252
467 Representations about show cause notices . . . . . . . . . . . . . . . . . . . . . . . . . . 253
468 Ending show cause process without further action . . . . . . . . . . . . . . . . . . . . 253
469 Suspension or cancellation of registration. . . . . . . . . . . . . . . . . . . . . . . . . . . 253
470 Cancellation of registration--ceasing to carry on business . . . . . . . . . . . . . 254
Division 2--Exempt institutions
471 Cancellation of registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254
CHAPTER 13--REVIEWS AND APPEALS
PART 1--REVIEWS
472 Applying for a review of an original decision. . . . . . . . . . . . . . . . . . . . . . . . 255
473 Deciding review. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256
474 Notice of review decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256
PART 2--APPEALS
475 Right of appeal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256
476 How to start appeal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256
477 Grounds of appeal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257
478 Hearing procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257
479 Decision on appeal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257
CHAPTER 14--ENFORCEMENT AND LEGAL PROCEEDINGS
480 Offences about self assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 258
481 Offence to endorse instrument unless self assessor. . . . . . . . . . . . . . . . . . . . 258
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482 Obligations relating to unstamped instruments . . . . . . . . . . . . . . . . . . . . . . . 258
483 Registration of instruments and transactions. . . . . . . . . . . . . . . . . . . . . . . . . 259
484 Registration of instrument disposing of particular marketable securities etc. 259
485 Registration of instrument disposing of units in unit trust etc. . . . . . . . . . . . 259
486 Saving of title--marketable securities and units in unit trust . . . . . . . . . . . . 259
487 Receipt of instruments in evidence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259
488 Commissioner may require payment of penalty . . . . . . . . . . . . . . . . . . . . . . 260
489 Penalty amounts to be alternative to prosecution . . . . . . . . . . . . . . . . . . . . . 261
CHAPTER 15--SIGNING AND STAMPING OF INSTRUMENTS
490 When is an instrument "first signed". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262
491 When is an instrument "properly stamped" . . . . . . . . . . . . . . . . . . . . . . . . . 262
492 Way instruments are stamped . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262
493 Stamping of instrument dependant on another instrument or transaction. . . 263
494 Copies of instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263
495 Instrument must not be delivered until duty or fee paid . . . . . . . . . . . . . . . . 264
CHAPTER 16--MISCELLANEOUS PROVISIONS
496 Lodging declaration stating facts and circumstances . . . . . . . . . . . . . . . . . . 264
497 Recognition of duty paid for Commonwealth places . . . . . . . . . . . . . . . . . . 265
498 Special provisions for working out value of particular shares . . . . . . . . . . . 265
499 Reassessments of duty in particular circumstances. . . . . . . . . . . . . . . . . . . . 265
500 Application of Administration Act, pt 6, to particular decisions. . . . . . . . . . 267
501 Consideration for instruments and transactions on which duty imposed . . . 268
502 Consideration based on contingency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268
503 Amounts stated in foreign currency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269
504 Aggregate minimum value and unencumbered value of particular shares . . 269
505 Valuation or evidence of value of property . . . . . . . . . . . . . . . . . . . . . . . . . . 270
506 Requirement to keep particular instruments . . . . . . . . . . . . . . . . . . . . . . . . . 270
507 Approved forms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271
508 Regulation-making power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271
CHAPTER 17--REPEAL, SAVINGS AND TRANSITIONAL
PROVISIONS
PART 1--REPEAL OF STAMP ACT 1894
509 Act repealed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271
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PART 2--SAVINGS AND TRANSITIONAL PROVISIONS
Division 1--Interpretation
510 Definition for pt 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272
Division 2--Application of this Act and repealed Act
511 Application of this Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272
512 Continued application of repealed Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272
513 Delegations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273
Division 3--Provisions for transfer duty
Subdivision 1--Provisions for continuing repealed Act for particular
transactions
514 Repealed Act applies to particular agreements to transfer . . . . . . . . . . . . . . 273
515 Repealed Act applies to particular acquisitions after transfer by way of
security of other property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273
516 Repealed Act applies to particular dealings with statutory business licences 274
517 Repealed Act applies to particular dispositions of units in unit trust schemes 274
Subdivision 2--Provisions for applying this Act for transactions before
commencement day
518 Aggregation of dutiable transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275
519 Transfers by way of security--land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275
520 Particular transfers for deceased persons' estates not dutiable transactions . 275
Subdivision 3--Provisions for public unit trusts
521 Repealed Act applies to particular trust acquisitions and trust
surrenders in widely held unit trusts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276
522 Repealed Act applies to issue of particular units in widely held unit trusts . 276
Division 4--Provisions for land rich duty
523 Aggregations for land rich duty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277
524 References to majority interests in land rich corporations . . . . . . . . . . . . . . 278
525 Particular acquisitions included as exempt acquisitions . . . . . . . . . . . . . . . . 278
526 Application of ch 3, pt 1, to particular acquisitions of security interests . . . 278
527 Application of ch 3, pt 1, div 7, to particular amounts . . . . . . . . . . . . . . . . . 278
Division 5--Provisions for corporate trustee duty
528 Repealed Act applies to particular dispositions of shares . . . . . . . . . . . . . . . 279
529 Aggregation of relevant acquisitions for corporate trustee duty . . . . . . . . . . 279
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Duties Bill 2001
Division 6--Provisions for lease duty
530 Repealed Act applies to particular leases . . . . . . . . . . . . . . . . . . . . . . . . . . . 279
531 Credit allowed for particular leases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280
532 Credit or refund for termination of particular leases etc. . . . . . . . . . . . . . . . 280
Division 7--Provisions for mortgage duty
533 Liability for mortgage duty for particular mortgages first signed before
commencement day. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281
534 Credit allowed for particular agreements for mortgage . . . . . . . . . . . . . . . . 282
535 Particular mortgages imposed with mortgage duty on commencement day. 282
Division 8--Provision for hire duty
536 Liability for hire duty for hires of goods entered into before
commencement day ........................................ 282
Division 9--Provisions for vehicle registration duty
537 Reduction in vehicle registration duty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283
Division 10--Provisions for corporate reconstructions
538 Repealed Act applies to particular agreements . . . . . . . . . . . . . . . . . . . . . . . 283
539 Group property for intra-group transfers of property . . . . . . . . . . . . . . . . . . 284
Division 11--Provisions for approved and registered persons
540 Approved persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 284
541 Registered persons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285
542 Cardholder's banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285
543 Approved insurers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285
544 Effect of continued registration of persons . . . . . . . . . . . . . . . . . . . . . . . . . . 286
545 Exempt charitable institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286
546 Registration of particular institutions following reassessment . . . . . . . . . . . 286
Division 12--Miscellaneous provisions
547 Particular references to related persons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287
548 Instruments stamped under repealed Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . 287
549 References in Acts or documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287
550 Transitional regulation-making power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288
CHAPTER 18--AMENDMENTS OF ACTS
551 Acts amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288
SCHEDULE 1 . . . . . . . . . . . . . . . . . . . . . . . . 289
26
Duties Bill 2001
AMENDMENTS OF ACTS
ABORIGINAL LAND ACT 1991. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289
ANZAC SQUARE DEVELOPMENT PROJECT ACT 1982. . . . . . . . . . . . 289
ASSISTED STUDENTS (ENFORCEMENT OF OBLIGATIONS) ACT
1951 ................................................... 290
ASSOCIATIONS INCORPORATION ACT 1981 . . . . . . . . . . . . . . . . . . . . 290
BEACH PROTECTION ACT 1968 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290
BILLS OF SALE AND OTHER INSTRUMENTS ACT 1955. . . . . . . . . . . 290
BRISBANE FOREST PARK ACT 1977. . . . . . . . . . . . . . . . . . . . . . . . . . . . 291
CENTRAL QUEENSLAND COAL ASSOCIATES AGREEMENT AND
QUEENSLAND COAL TRUST ACT 1984 . . . . . . . . . . . . . . . . . . . . . . . . . 292
COOPERATIVES ACT 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292
CREDIT ACT 1987 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293
CRIMES (CONFISCATION) ACT 1989 . . . . . . . . . . . . . . . . . . . . . . . . . . . 293
DRUGS MISUSE ACT 1986 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293
EVIDENCE ACT 1977 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294
GAS PIPELINES ACCESS (QUEENSLAND) ACT 1998. . . . . . . . . . . . . . 294
GOVERNMENT OWNED CORPORATIONS ACT 1993. . . . . . . . . . . . . . 294
INDUSTRIAL RELATIONS ACT 1999. . . . . . . . . . . . . . . . . . . . . . . . . . . . 295
INTEGRATED RESORT DEVELOPMENT ACT 1987 . . . . . . . . . . . . . . . 295
IPSWICH TRADES HALL ACT 1986. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295
LAND ACT 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296
LAND SALES ACT 1984 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296
LAND TAX ACT 1915 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296
LIBRARIES AND ARCHIVES ACT 1988 . . . . . . . . . . . . . . . . . . . . . . . . . 297
LIENS ON CROPS OF SUGAR CANE ACT 1931 . . . . . . . . . . . . . . . . . . . 297
LOCAL GOVERNMENT ACT 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298
MEAKER TRUST (RAINE ISLAND RESEARCH) ACT 1981 . . . . . . . . . 298
MIXED USE DEVELOPMENT ACT 1993 . . . . . . . . . . . . . . . . . . . . . . . . . 298
MOUNT ISA MINES LIMITED AGREEMENT ACT 1985 . . . . . . . . . . . . 299
NATIONAL TRUST OF QUEENSLAND ACT 1963 . . . . . . . . . . . . . . . . . 299
OFFSHORE BANKING UNITS AND REGIONAL HEADQUARTERS
ACT 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299
27
Duties Bill 2001
OFFSHORE MINERALS ACT 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300
PARLIAMENTARY CONTRIBUTORY SUPERANNUATION ACT 1970 300
PAY-ROLL TAX ACT 1971 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300
PETROLEUM ACT 1923 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301
PETROLEUM (SUBMERGED LANDS) ACT 1982. . . . . . . . . . . . . . . . . . 301
PROPERTY LAW ACT 1974 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301
QUEENSLAND ART GALLERY ACT 1987. . . . . . . . . . . . . . . . . . . . . . . . 302
QUEENSLAND INSTITUTE OF MEDICAL RESEARCH ACT 1945 . . . 302
QUEENSLAND INVESTMENT CORPORATION ACT 1991 . . . . . . . . . . 302
QUEENSLAND MUSEUM ACT 1970 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303
QUEENSLAND PERFORMING ARTS TRUST ACT 1977 . . . . . . . . . . . . 303
QUEENSLAND TREASURY CORPORATION ACT 1988 . . . . . . . . . . . . 303
RECREATION AREAS MANAGEMENT ACT 1988 . . . . . . . . . . . . . . . . . 304
RETAIL SHOP LEASES ACT 1994. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304
RETIREMENT VILLAGES ACT 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304
RIVER IMPROVEMENT TRUST ACT 1940 . . . . . . . . . . . . . . . . . . . . . . . 305
ROYAL QUEENSLAND THEATRE COMPANY ACT 1970 . . . . . . . . . . . 305
RURAL LANDS PROTECTION ACT 1985 . . . . . . . . . . . . . . . . . . . . . . . . 305
SOUTH BANK CORPORATION ACT 1989. . . . . . . . . . . . . . . . . . . . . . . . 305
STATE HOUSING ACT 1945. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 306
STATUTORY BODIES FINANCIAL ARRANGEMENTS ACT 1982 . . . . 307
STOCK ACT 1915 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307
SUCCESSION ACT 1981 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308
TORRES STRAIT ISLANDER LAND ACT 1991 . . . . . . . . . . . . . . . . . . . 308
TRANSPORT INFRASTRUCTURE ACT 1994 . . . . . . . . . . . . . . . . . . . . . 309
VALUATION OF LAND ACT 1944. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309
WATER ACT 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310
WORKCOVER QUEENSLAND ACT 1996 . . . . . . . . . . . . . . . . . . . . . . . . 310
SCHEDULE 2 . . . . . . . . . . . . . . . . . . . . . . . . 311
WHEN LIABILITY FOR TRANSFER DUTY ON DUTIABLE
TRANSACTION ARISES
SCHEDULE 3 . . . . . . . . . . . . . . . . . . . . . . . . 314
28
Duties Bill 2001
RATES OF DUTY ON DUTIABLE TRANSACTIONS AND
RELEVANT ACQUISITIONS FOR LAND RICH AND
CORPORATE TRUSTEE DUTY
SCHEDULE 4 . . . . . . . . . . . . . . . . . . . . . . . . 315
EXAMPLE FOR PARTNERSHIP AND TRUST ACQUISITIONS
AND RELEVANT ACQUISITIONS FOR CORPORATE TRUSTEES
SCHEDULE 5 . . . . . . . . . . . . . . . . . . . . . . . . 318
EXAMPLE FOR CORPORATE RECONSTRUCTION
SCHEDULE 6 . . . . . . . . . . . . . . . . . . . . . . . . 320
DICTIONARY
2001
A BILL
FOR
An Act about creating and imposing duties
s1 30 s4
Duties Bill 2001
The Parliament of Queensland enacts-- 1
CHAPTER 1--INTRODUCTION 2
PART 1--PRELIMINARY 3
1 Short title 4
This Act may be cited as the Duties Act 2001. 5
2 Commencement 6
(1) This Act, other than sections 306(2), 342(2) and 497, commences on 7
a day to be fixed by proclamation. 8
(2) Sections 306(2), 342(2) and 497 commence on the later of the 9
following-- 10
(a) a day to be fixed by proclamation; 11
(b) when an arrangement is made under the Commonwealth Places 12
(Mirror Taxes) Act 1998 (Cwlth), section 9, for Queensland. 13
PART 2--INTERPRETATION 14
3 Definitions 15
The dictionary in schedule 6 defines particular words used in this Act. 16
4 Notes in text 17
A note in the text of this Act is part of the Act. 18
s5 31 s6
Duties Bill 2001
5 Relationship of Act with Administration Act 1
(1) This Act does not contain all the provisions about duties. 2
(2) The Administration Act contains provisions dealing with, among 3
other things, the following-- 4
(a) assessments of duty; 5
(b) collection and refunds of duty; 6
(c) imposition of interest and penalty tax; 7
(d) objections and appeals against assessments of duty; 8
(e) record keeping obligations of taxpayers; 9
(f) investigative powers, offences, legal proceedings and evidentiary 10
matters; 11
(g) service of documents. 12
13
Note--
14
Under the Administration Act, section 3, that Act and this Act must be read together as
15
if they together formed a single Act.
PART 3--APPLICATION OF ACT 16
6 Act binds all persons 17
(1) This Act binds all persons, including the State and, as far as the 18
legislative power of the Parliament permits, the Commonwealth and the 19
other States. 20
21
Note--
22
However, under section 426, the State is exempt from duty unless this Act expressly
23
provides otherwise.
(2) Nothing in this Act makes the State liable to be prosecuted for an 24
offence. 25
s7 32 s9
Duties Bill 2001
7 Extra-territorial application 1
This Act applies to impose duty on instruments and transactions 2
regardless of whether they are entered into or made in or outside 3
Queensland. 4
5
Note--
6
This is because instruments and transactions on which duty is imposed have a nexus to
7
Queensland.
CHAPTER 2--TRANSFER DUTY 8
PART 1--PRELIMINARY 9
8 Imposition of transfer duty 10
(1) This chapter imposes duty ("transfer duty") on dutiable 11
transactions. 12
13
Note--
14
Concessions and exemptions for transfer duty are dealt with in parts 9 to 13. Also, other
15
exemptions are dealt with in chapter 10.
(2) Transfer duty is imposed on the dutiable value of a dutiable 16
transaction. 17
PART 2--SOME BASIC CONCEPTS FOR TRANSFER 18
DUTY 19
9 What is a "dutiable transaction" 20
(1) Each of the following is a "dutiable transaction"-- 21
(a) a transfer of dutiable property; 22
(b) an agreement for the transfer of dutiable property, whether 23
conditional or not; 24
s 10 33 s 10
Duties Bill 2001
(c) a surrender of dutiable property that is land in Queensland or a 1
transferable site area; 2
(d) a share buy-back for a Queensland marketable security; 3
(e) a vesting, under an Act, Commonwealth Act or court order, of 4
dutiable property; 5
(f) a foreclosure of a mortgage over dutiable property; 6
(g) an acquisition of a new right on its creation, grant or issue; 7
(h) a partnership acquisition; 1
8
(i) the creation or termination of a trust of dutiable property;2 9
(j) a trust acquisition or trust surrender.3 10
(2) It does not matter whether a dutiable transaction-- 11
(a) is effected by an instrument or another way; or 12
(b) involves 1 or more parties. 13
(3) Subsection (1) has effect subject to sections 21, 29 and 37.4 14
15
Note--
16
Under section 21, the commissioner must decide the applicable dutiable transaction for
17
imposition of duty if a transaction constitutes more than 1 type of dutiable transaction
18
mentioned in subsection (1).
19
Also, for when transactions for particular dutiable property are not dutiable
20
transactions, see sections 29 and 37.
10 What is "dutiable property" 21
(1) Each of the following is "dutiable property"-- 22
(a) land in Queensland; 23
(b) a transferable site area; 24
1 See part 7 (Dutiable transactions relating to partnerships).
2 See part 8 (Dutiable transactions relating to trusts), division 3 (Creation and
termination of trusts).
3 See part 8 (Dutiable transactions relating to trusts), division 4 (Some basic concepts
about trust acquisitions and trust surrenders).
4 Sections 21 (No double duty--general), 29 (When transaction for chattel is not
dutiable transaction), and 37 (When transaction for particular Queensland business
assets not dutiable transaction)
s 11 34 s 11
Duties Bill 2001
(c) a Queensland marketable security; 1
(d) an existing right; 2
(e) a Queensland business asset; 3
(f) a chattel in Queensland. 4
(2) A reference to property in subsection (1) includes a reference to an 5
interest5 in the property, other than the following-- 6
(a) a security interest; 7
(b) a partner's interest in the partnership; 8
(c) a trust interest; 9
(d) the interest of a discretionary object of a trust that holds property 10
mentioned in the subsection. 11
11 What is the "dutiable value" of a dutiable transaction 12
(1) The "dutiable value" of a statutory dutiable transaction is the 13
amount payable for the transaction. 14
(2) The "dutiable value" of a dutiable transaction that is a partition is 15
determined under section 31. 16
(3) The "dutiable value" of a dutiable transaction that is the surrender 17
of a lease of land in Queensland is the total of any premium, fine or other 18
consideration payable for the surrender. 19
(4) The "dutiable value" of a dutiable transaction that is the acquisition 20
of a new right that is a lease of land in Queensland is the total of any 21
amounts mentioned in section 233(2)(d) to (f) that are payable for the lease. 22
(5) The "dutiable value" of a dutiable transaction that is a partnership 23
acquisition is determined under part 7, division 3. 24
(6) The "dutiable value" of a dutiable transaction that is a trust 25
acquisition or trust surrender is determined under part 8, division 5. 26
5 Acts Interpretation Act 1954, section 36--
"interest", in relation to land or other property, means--
(a) a legal or equitable estate in the land or other property; or
(b) a right, power or privilege over, or in relation to, the land or other property.
s 12 35 s 12
Duties Bill 2001
(7) Subject to section 48,6 the "dutiable value" of another dutiable 1
transaction is-- 2
(a) the consideration for the dutiable transaction; or 3
(b) the unencumbered value of the dutiable property or new right the 4
subject of the transaction if-- 5
(i) there is no consideration for the transaction; or 6
(ii) the consideration can not be ascertained when the liability 7
for transfer duty arises; or 8
(iii) the unencumbered value is greater than the consideration for 9
the transaction. 10
(8) However, the dutiable value of particular dutiable transactions is 11
subject to apportionment under part 4. 12
12 Consideration for dutiable transactions--general 13
(1) The consideration for a dutiable transaction includes-- 14
(a) the amount of any liabilities assumed under the transaction, 15
including an obligation, whether contingent or otherwise, to pay 16
any unpaid purchase money payable under an agreement for the 17
transfer of dutiable property; and 18
(b) the amount or value of any debt to the extent it is released or 19
extinguished under the transaction. 20
(2) If the consideration, or any part of the consideration, for a dutiable 21
transaction on which duty is imposed consists of an amount payable 22
periodically and the total amount, including any interest, to be paid can be 23
ascertained, the consideration or part of the consideration is the total 24
amount. 25
26
Note--
27
For other provisions relevant to consideration, see sections 501 to 503.
6 Section 48 (Dutiable value of a dutiable transaction reduced for transfer of dutiable
property to partner on retirement or dissolution)
s 13 36 s 14
Duties Bill 2001
13 Consideration for dutiable transaction--transfer by way of 1
security 2
The consideration for the transfer by way of security of dutiable property 3
that is land is an amount equal to the unencumbered value of the dutiable 4
property when the liability for transfer duty arises. 5
14 What is the "unencumbered value" of property 6
(1) The "unencumbered value" of property is the value of the property 7
determined without regard to-- 8
(a) any encumbrance to which the property is subject, whether 9
contingently or otherwise; or 10
(b) any arrangement-- 11
(i) the parties to which are not dealing with each other at arm's 12
length; and 13
(ii) that results in the reduction of the value of the property; or 14
(c) any arrangement for which a significant purpose of any party to 15
the arrangement was, in the commissioner's opinion, the 16
reduction of the value of the property. 17
18
Example for paragraph (c)--
19
A owns land that B wishes to purchase. The land is valued at $1M. Before the purchase,
20
A grants B a 50 year lease of the land. B is not required to pay any rent under the lease.
21
A and B then enter into an agreement to transfer the land for $50 000, being the value
22
of A's interest in the land taking into account that it is subject to the lease to B.
23
The unencumbered value of the land is determined without regard to the grant of the
24
lease if the commissioner is of the opinion there is an arrangement under which A or
25
B's significant purpose in entering into it was to reduce the value of the land.
(2) Also, the "unencumbered value" of property held on trust or by a 26
partnership must be determined without regard to the liabilities of the trust 27
or partnership, including for a trust, the liability to indemnify the trustee. 28
(3) The "unencumbered value" of property that is the goodwill of a 29
business includes the value of any restraint of trade arrangement entered 30
into by the transferor or a related person of the transferor to protect the 31
value of the goodwill acquired by the transferee. 32
(4) If, before a dutiable transaction that is the transfer, or agreement for 33
the transfer, of land, improvements are made to the land at the transferee's 34
s 15 37 s 18
Duties Bill 2001
expense, the unencumbered value of the land must be determined as if the 1
improvements had not been made. 2
3
Note--
4
For provisions about the aggregate minimum value of the shares comprising all of the
5
issued capital of a corporation or society and the unencumbered value of each of the
6
shares, see section 504.
7
15 When unencumbered value of property is determined 8
The unencumbered value of dutiable property is determined-- 9
(a) for a dutiable transaction that is the surrender of the 10
property--immediately before the surrender; or 11
(b) for another dutiable transaction--when the liability for transfer 12
duty arises. 13
PART 3--LIABILITY FOR TRANSFER DUTY 14
16 When liability for transfer duty arises 15
A liability for transfer duty imposed on a dutiable transaction in 16
schedule 2, column 1, arises at the time stated opposite the transaction in 17
schedule 2, column 2. 18
17 Who is liable to pay transfer duty 19
(1) Transfer duty imposed on a statutory dutiable transaction must be 20
paid by the statutory entity under the transaction. 21
(2) Transfer duty imposed on another dutiable transaction must be paid 22
by the parties to the transaction. 23
18 Need for instrument or statement 24
If a dutiable transaction is not effected or evidenced by an instrument, 25
the parties liable to pay transfer duty on the transaction must make a 26
s 19 38 s 21
Duties Bill 2001
statement in the approved form (a "transfer duty statement") within the 1
time stated in section 19 for lodging the statement. 2
Maximum penalty--40 penalty units. 3
19 Lodging instrument or statement 4
(1) The statutory entity under a statutory dutiable transaction must 5
lodge-- 6
(a) the instrument that effects or evidences the transaction; or 7
(b) the transfer duty statement for the transaction. 8
(2) The statutory entity must comply with subsection (1)-- 9
(a) within 60 days after the liability arises to pay transfer duty on the 10
transaction; or 11
(b) if the amount payable for the transaction is to be decided by a 12
court or tribunal--within 14 days after the amount is decided. 13
(3) The parties liable to pay transfer duty relating to another dutiable 14
transaction must, within 30 days after the liability arises, lodge-- 15
(a) the instrument that effects or evidences the transaction or transfer 16
duty statement for the transaction; and 17
(b) an approved form for the transaction. 18
20 Effect of making or lodging instrument or statement by 1 party 19
The making of a transfer duty statement, or the lodging under section 19 20
of an instrument or transfer duty statement, by 1 of the parties to the 21
dutiable transaction relieves the other parties to the transaction from 22
complying with the requirement to make the statement under section 18 or 23
lodge the instrument or transfer duty statement under section 19. 24
21 No double duty--general 25
(1) If a transaction for property constitutes more than 1 dutiable 26
transaction for the property and imposition of transfer duty on all of the 27
dutiable transactions for the property would result in transfer duty being 28
imposed more than once on the transaction, the commissioner must decide 29
the dutiable transaction on which transfer duty is imposed. 30
s 22 39 s 22
Duties Bill 2001
1
Note--
2
For objections and appeals against assessments of duty, see the Administration Act,
3
part 6.
(2) For subsection (1), the commissioner must decide the dutiable 4
transaction that is the most applicable dutiable transaction having regard to 5
the provisions of this chapter and the primary purpose of the transaction. 6
22 No double duty--particular dutiable transactions 7
(1) If transfer duty is imposed on a dutiable transaction for periodical 8
payments of consideration, no duty is imposed under this Act on any 9
agreement securing the periodical payments. 10
(2) If transfer duty imposed on a dutiable transaction that is an 11
agreement for the transfer of dutiable property is paid, no transfer duty is 12
imposed on the transfer of the property to the transferee under the 13
agreement. 14
(3) If the commissioner is satisfied-- 15
(a) a person (the "agent") is appointed in writing as an agent for 16
another person (the "principal"); and 17
(b) under the appointment, the agent enters into a dutiable 18
transaction that is an agreement for the transfer of dutiable 19
property from a person (the "original transferor") to the agent 20
on behalf of the principal (the "agreement"); and 21
(c) the principal provided all the consideration, including any 22
deposit paid; and 23
(d) transfer duty imposed on the agreement is paid; and 24
(e) the dutiable property is later transferred to the principal by the 25
original transferor or the agent (the "agency transfer"); 26
no transfer duty is imposed on the agency transfer or the trust acquisition or 27
trust surrender by the principal because of the agreement or agency 28
transfer. 29
(4) For subsection (3)(a), the commissioner must not be satisfied the 30
person was properly appointed as agent unless the original instrument of 31
appointment, or a copy of it, is lodged. 32
(5) If-- 33
s 23 40 s 24
Duties Bill 2001
(a) there is an agreement for the transfer of dutiable property (the 1
"first agreement"); and 2
(b) after the first agreement takes place, 1 or more agreements to 3
transfer all or part of the dutiable property the subject of the first 4
agreement takes place (the "intervening agreements"); and 5
(c) to give effect to the first agreement and the intervening 6
agreements, 1 or more transfers of dutiable property (the 7
"transfers") are effected by 1 or more parties to the first 8
agreement and the intervening agreements; and 9
(d) transfer duty imposed on the first agreement and the intervening 10
agreements is paid; 11
no transfer duty is imposed on the transfers. 12
13
Example for subsection (5)--
14
On 1 July, under an agreement for transfer, A agrees to sell land in Queensland to B for
15
$100 000. Settlement is to take place on 31 July. On 7 July, under an agreement for
16
transfer, B agrees to sell the land to C for $120 000. Again, settlement is to take place
17
on 31 July. Before 31 July, B directs A, that at settlement, A transfer the land to C.
18
The agreement between A and B is the first agreement. The agreement between B and
19
C is the intervening agreement. No transfer duty is imposed on the transfer from A to C
20
if transfer duty on the first and intervening agreements has been paid.
23 When credit to be allowed for lease duty paid 21
If section 14(1)(c) is applied to determine the value of land because of a 22
lease or occupancy right, in assessing the transfer duty payable for the 23
dutiable transaction that is the transfer, or agreement for the transfer, of the 24
land, a credit must be allowed for any lease duty paid for the lease or right. 25
24 Rates of transfer duty 26
(1) The rate of transfer duty imposed on each of the following dutiable 27
transactions for dutiable property that is a Queensland marketable security 28
is 60c for each $100, or part of $100, of the dutiable value of the 29
transaction-- 30
(a) a transfer of the security; 31
(b) an agreement for the transfer of the security; 32
(c) a share buy-back of the security; 33
s 25 41 s 25
Duties Bill 2001
(d) a vesting, under an Act, Commonwealth Act or court order, of the 1
security; 2
(e) a foreclosure of a mortgage over the security. 3
(2) The rate of transfer duty imposed on a dutiable transaction that is a 4
partnership acquisition, the creation or termination of a trust or a trust 5
acquisition or trust surrender is-- 6
(a) for a Queensland marketable security held by the partnership or 7
the subject of the trust--the rate under subsection (1) for the part 8
of the dutiable value of the dutiable transaction that is 9
attributable to the Queensland marketable security; and 10
(b) for other dutiable property held by the partnership or the subject 11
of the trust--the rate under subsection (4) for the part of the 12
dutiable value of the dutiable transaction that is attributable to the 13
property. 14
(3) The rate of transfer duty imposed on a dutiable transaction that is the 15
transfer, or an agreement for the transfer, of an existing right of a holder of 16
the following is $5-- 17
(a) a mortgage, including the debt secured by the mortgage, that is 18
solely over land in Queensland; 19
(b) a charge, bill of sale or other security, including the debt secured 20
by the security, over dutiable property if-- 21
(i) the security is incidental to, and transferred in connection 22
with, a mortgage mentioned in paragraph (a); and 23
(ii) the mortgage is the principal security held by the transferor. 24
(4) The rate of transfer duty imposed on another dutiable transaction is 25
stated in schedule 3, column 2, opposite the dutiable value of the 26
transaction in schedule 3, column 1. 27
25 Payment of transfer duty for deeds of grant 28
The grantee under a deed of grant issued under the Land Act 1994 must, 29
within 30 days after the liability to pay transfer duty arises, pay the transfer 30
duty to the chief executive of the department in which that Act is 31
administered. 32
s 26 42 s 26
Duties Bill 2001
PART 4--APPORTIONMENT OF CONSIDERATION OR 1
UNENCUMBERED VALUE FOR PARTICULAR 2
DUTIABLE TRANSACTIONS 3
26 Apportionment--head office or principal place of business in 4
Queensland 5
(1) This section applies for determining the consideration for a dutiable 6
transaction for or relating to, or the unencumbered value of, dutiable 7
property that is a Queensland business asset, other than a debt or personal 8
property, of a Queensland business that has its head office or principal 9
place of business in Queensland if, at any time during the 3 financial years 10
preceding the dutiable transaction concerned-- 11
(a) a supply or provision of services has been made by the business 12
to customers outside Queensland; or 13
(b) the asset has been used, exploited or exercised in, or relates to, a 14
place outside Queensland. 15
(2) A reference in this chapter to consideration for the transaction or the 16
unencumbered value of the property is taken to be a reference to the 17
amount (the "apportioned amount") worked out using the following 18
formula-- 19
( TS OS )
AA = CUV × -------------------------
-
TS
where-- 20
"AA" means the apportioned amount. 21
"CUV" means the consideration for the dutiable transaction or 22
unencumbered value of the Queensland business asset mentioned in 23
subsection (1). 24
"OS" means the gross amount of the supplies and provision of services 25
made by the business to its customers in other States during the 26
3 completed financial years preceding the dutiable transaction. 27
"TS" means the gross amount of supplies and provision of services made 28
by the business to all its customers during the 3 completed financial 29
years preceding the dutiable transaction. 30
s 27 43 s 27
Duties Bill 2001
(3) However, the commissioner may decide the consideration for the 1
dutiable transaction or the unencumbered value of the dutiable property on 2
another basis if the commissioner is satisfied the other basis would be more 3
appropriate in particular circumstances. 4
27 Apportionment--head office or principal place of business in 5
another State 6
(1) This section applies for determining the consideration for a dutiable 7
transaction for or relating to, or the unencumbered value of, dutiable 8
property that is a Queensland business asset, other than a debt or personal 9
property, of a Queensland business that does not have its head office or 10
principal place of business in Queensland if, at any time during the 3 11
financial years preceding the dutiable transaction concerned-- 12
(a) a supply or provision of services has been made by the business 13
to customers in Queensland; or 14
(b) the asset has been used, exploited or exercised in, or relates to, 15
Queensland. 16
(2) A reference in this chapter to consideration for the transaction or the 17
unencumbered value of the property is taken to be a reference to the 18
amount (the "apportioned amount") worked out using the following 19
formula-- 20
QS
AA = CUV × -------
-
TS
where-- 21
"AA" means the apportioned amount. 22
"CUV" means the consideration for the dutiable transaction or 23
unencumbered value of the Queensland business asset mentioned in 24
subsection (1). 25
"QS" means the gross amount of the supplies and provision of services 26
made by the business to its Queensland customers during the 27
3 completed financial years preceding the dutiable transaction. 28
"TS" means the gross amount of supplies and provision of services made 29
by the business to all its customers during the 3 completed financial 30
years preceding the dutiable transaction. 31
s 28 44 s 28
Duties Bill 2001
(3) However, the commissioner may decide the consideration for the 1
dutiable transaction or the unencumbered value of the dutiable property on 2
another basis if the commissioner is satisfied the other basis would be more 3
appropriate in particular circumstances. 4
28 Apportionment of particular dutiable transactions relating to 5
existing and new rights 6
(1) This section applies for determining-- 7
(a) the consideration for a dutiable transaction for or relating to an 8
existing right or acquisition of a new right on its creation, grant 9
or issue if the right is exercisable or relates to the conduct of a 10
business or activity outside Queensland; or 11
(b) the unencumbered value of dutiable property that is an existing 12
right if the right is exercisable or relates to the conduct of a 13
business or activity outside Queensland; or 14
(c) the unencumbered value of a new right on its creation, grant or 15
issue if the right is exercisable or relates to the conduct of a 16
business or activity outside Queensland. 17
(2) A reference in this chapter to consideration for the transaction or the 18
unencumbered value of the right is taken to be a reference to the amount 19
that represents the same proportion of the consideration or unencumbered 20
value that the unencumbered value of the right, to the extent it is 21
exercisable or relates to the conduct of a business or activity in Queensland, 22
bears to the total unencumbered value of the right. 23
(3) However, the commissioner may decide the consideration for the 24
dutiable transaction or the unencumbered value of the right on another 25
basis if the commissioner is satisfied the other basis would be more 26
appropriate in particular circumstances. 27
s 29 45 s 30
Duties Bill 2001
PART 5--DUTIABLE TRANSACTIONS RELATING TO 1
DUTIABLE PROPERTY 2
29 When transaction for chattel is not dutiable transaction 3
(1) If a chattel in Queensland is the subject of a transaction, the 4
transaction is not a dutiable transaction unless-- 5
(a) another type of dutiable property is the subject of the same 6
transaction; or 7
(b) under section 30, it is aggregated with a dutiable transaction that 8
is not for a chattel. 9
(2) For subsection (1)(b), section 30 applies as if the transaction were a 10
dutiable transaction. 11
30 Aggregation of dutiable transactions 12
(1) This section applies to dutiable transactions that together form, 13
evidence, give effect to or arise from what is, substantially 1 arrangement. 14
(2) For assessing transfer duty on each of the dutiable transactions, the 15
transactions must be aggregated and treated as a single dutiable transaction. 16
17
Example for subsection (2)--
18
A conducts a business of manufacturing bullbars. A agrees to sell the business to B as a
19
going concern for $500,000.00. The property included in the agreement comprises
20
land, plant and equipment, goodwill and the business name.
21
The land is dutiable property being land in Queensland and each of the other assets are
22
dutiable property being Queensland business assets.
23
The agreement, so far as it relates to the sale of the land, is a dutiable transaction being
24
an agreement to transfer land in Queensland and, so far as it relates to the agreement to
25
sell each of the business assets, is a dutiable transaction being an agreement to transfer
26
dutiable property that is a Queensland business asset. Accordingly, there are 4 dutiable
27
transactions under the agreement.
28
Because the dutiable transactions together form 1 arrangement, they must be
29
aggregated under this section for imposing transfer duty.
(3) For subsection (1), all relevant circumstances relating to the dutiable 30
transactions must be taken into account in deciding whether they together 31
form, evidence, give effect to or arise from what is, substantially 32
1 arrangement. 33
(4) For subsection (3), relevant circumstances include the following-- 34
s 30 46 s 30
Duties Bill 2001
(a) whether the transactions are contained in 1 instrument; 1
(b) whether any of the transactions are conditional on entry into, or 2
completion of, any of the other transactions; 3
(c) whether the parties to any of the transactions are the same; 4
(d) whether any party to a transaction is a related person of another 5
party to any of the other transactions; 6
(e) the time over which the transactions take place; 7
(f) whether, before the transactions take place, the dutiable property 8
the subject of the transactions was used together, or dependently 9
with one another, by the transferor or transferors; 10
(g) whether, after the transactions take place, the dutiable property 11
the subject of the transactions will be used together, or 12
dependently with one another, by the transferee or transferees. 13
(5) Transfer duty imposed on the dutiable transaction aggregated under 14
this section must-- 15
(a) be assessed on the total of the dutiable values of the transactions 16
when the liability for transfer duty for each of the transactions 17
arose; and 18
(b) be apportioned between the transactions as decided by the 19
commissioner. 20
21
Example for subsection (5)--
22
Under 4 agreements between a builder and a developer, the builder agrees to purchase 4
23
lots of land from the developer for $100,000 each. The lots are dutiable property being
24
land in Queensland and each of the agreements is a dutiable transaction being an
25
agreement to transfer land in Queensland.
26
Even though the sale of the 4 lots was negotiated at the same time, the agreements were
27
signed on different dates over a 10 month period, had different settlement dates and
28
were not conditional on each other.
29
Under section 24 (Rates of transfer duty) and schedule 3 (Rates of duty on dutiable
30
transaction and relevant acquisitions for land rich and corporate trustee duty), the
31
agreements for lots 1 to 3 have been separately stamped for $2 350 transfer duty. When
32
the agreement for lot 4 is lodged for stamping, the commissioner decides this section
33
applies because the transactions together formed 1 arrangement.
34
Accordingly, the transactions must be aggregated under this section for imposing
35
transfer duty and the duty apportioned between them.
36
Under subsection (5)(a), the total of the dutiable values of the dutiable transactions on
37
which transfer duty is imposed is $400,000, being the value of each of the lots when the
s 31 47 s 31
Duties Bill 2001
1
liability for transfer duty arose for each of the transactions, regardless of a variation in
2
the values since the liability arose.
3
Under section 24 and schedule 3, transfer duty imposed on the aggregated transaction
4
is $12 475.
5
If the commissioner decides to apportion the transfer duty equally between the dutiable
6
transactions, the amount of transfer duty payable is $3118.75 for each transaction.
7
Under the Administration Act, part 3, the commissioner will make a reassessment for
8
the transactions for lots 1 to 3. The assessment notice must state the matters mentioned
9
in section 26(2) of that Act.
(6) Each party to each of the dutiable transactions must, when lodging 10
the instrument or transfer duty statement relating to the transaction, give 11
notice to the commissioner stating details known to the party about-- 12
(a) all of the dutiable property included or to be included in the 13
arrangement mentioned in subsection (1); and 14
(b) the dutiable value of each dutiable transaction. 15
16
Note--
17
Under the Administration Act, the requirement under this subsection is a lodgment
18
requirement for which a failure to comply is an offence under section 121 of that Act.
(7) This section does not apply to a dutiable transaction to the extent that 19
it relates to-- 20
(a) a Queensland marketable security; or 21
(b) the partition of dutiable property under section 31; or 22
(c) an exchange of dutiable property. 23
31 Partitions 24
(1) This section applies to dutiable transactions under which dutiable 25
property held by persons jointly as joint tenants or tenants in common is 26
transferred, or agreed to be transferred, to 1 or more of the persons (a 27
"partition"). 28
(2) The dutiable value of each dutiable transaction comprising the 29
partition is the greater of the following-- 30
(a) the amount by which the unencumbered value of the dutiable 31
property transferred, or agreed to be transferred, is more than the 32
unencumbered value of the interest held by the transferee in the 33
property immediately before the transaction; 34
(b) the consideration paid by any party to the transaction. 35
s 32 48 s 33
Duties Bill 2001
(3) For assessing transfer duty on each of the dutiable transactions, the 1
transactions must be aggregated and treated as a single dutiable transaction. 2
(4) The transfer duty imposed on the dutiable transactions under this 3
section must be apportioned between the transactions as decided by the 4
commissioner. 5
(5) This section does not apply to a transaction if section 487 applies to 6
the transaction. 7
32 Transfer by way of security--land 8
(1) This section applies if the commissioner is satisfied-- 9
(a) there has been a dutiable transaction that is a transfer of dutiable 10
property by way of security (the "original transfer"); and 11
(b) the property is land; and 12
(c) transfer duty has been paid on the transaction; and 13
(d) the property has been retransferred to the person who transferred 14
it by way of security (the "retransfer") or has been transferred 15
to a person to whom the property has been transmitted by death 16
or bankruptcy (also the "retransfer"). 17
(2) The commissioner must make a reassessment of transfer duty paid on 18
the original transfer to reduce the duty to the amount that would have been 19
payable if the amount secured by the transfer had been secured by a 20
mortgage for which mortgage duty were imposed. 21
(3) Transfer duty is not imposed on the dutiable transaction that is the 22
retransfer. 23
(4) Subsection (2) applies to the reassessment despite the limitation 24
period under the Administration Act for reassessments.8 25
33 Transfer by way of security--other dutiable property 26
(1) Transfer duty is not imposed on a dutiable transaction if-- 27
7 Section 48 (Dutiable value of dutiable transaction reduced for transfer of dutiable
property to partner on retirement or dissolution)
8 See the Administration Act, part 3, (Assessments of tax), division 3
(Reassessments).
s 34 49 s 35
Duties Bill 2001
(a) the transaction is a transfer of dutiable property by way of 1
security; and 2
(b) the property is not land. 3
(2) Subsection (3) applies if-- 4
(a) after the transfer by way of security, the transferee, or the 5
transferee's assignee, acquires ownership of the dutiable property 6
free from any interest of the transferor, or transferor's assignee; 7
and 8
(b) the transferee, or the transferee's assignee, were to newly acquire 9
the dutiable property at the time of the acquisition mentioned in 10
paragraph (a), the acquisition would be a dutiable transaction. 11
(3) The acquisition of the ownership of the dutiable property by the 12
transferee is taken to be a dutiable transaction and transfer duty imposed on 13
the transaction must be reduced by the amount of mortgage duty, if any, 14
paid on the transfer. 15
PART 6--SPECIAL PROVISIONS ABOUT DUTIABLE 16
TRANSACTIONS RELATING TO QUEENSLAND 17
BUSINESS ASSETS 18
Division 1--Some basic concepts about Queensland businesses and their 19
assets 20
34 What is a "Queensland business asset" 21
A "Queensland business asset" is a business asset of a Queensland 22
business. 23
35 What is a "business asset" 24
(1) Each of the following is a "business asset"-- 25
(a) goodwill; 26
(b) a statutory business licence used for carrying on a business; 27
s 36 50 s 36
Duties Bill 2001
(c) a right to use a statutory business licence used for carrying on a 1
business; 2
(d) the business name used for carrying on a business; 3
(e) a right under a franchise arrangement used for carrying on a 4
business; 5
(f) a debt of a business if the debtor resides in Queensland; 6
(g) a supply right of a business; 7
(h) intellectual property used for carrying on a business; 8
(i) personal property in Queensland of a business. 9
(2) For subsection (1)-- 10
(a) a business asset mentioned in subsection (1)(b) that is issued or 11
given under-- 12
(i) a Queensland Act is used for carrying on a business; or 13
(ii) a Commonwealth Act is used for carrying on a business if it 14
is used, exploited or exercised in Queensland; and 15
(b) another business asset is used for carrying on a business if it is 16
used, exploited or exercised in Queensland. 17
36 What is a "Queensland business" 18
A "Queensland business" is a business-- 19
(a) that is conducted on or from a place in Queensland; or 20
(b) the conduct of which consists wholly or partly of supplying land, 21
money, credit or goods or any interest in them, or providing any 22
service, to Queensland customers; or 23
(c) that has ceased but satisfied paragraph (a) or (b) at any time in the 24
1 year before a dutiable transaction that is the transfer, or 25
agreement for the transfer, of an asset of the business. 26
27
Example for paragraph (c)--
28
A business conducted from a place in Queensland goes into liquidation. Three months
29
after the business stops trading, the liquidator transfers business assets of the business.
30
For determining whether the transfer of the business assets is a dutiable transaction, the
31
business is a Queensland business because paragraph (a) was satisfied in the 1 year
32
before the transfer.
s 37 51 s 38
Duties Bill 2001
Division 2--Transactions for particular assets of Queensland businesses 1
37 When transaction for particular Queensland business assets not 2
dutiable transaction 3
(1) If a debt of a business that is evidenced by a negotiable instrument is 4
the subject of a transaction, the transaction is not a dutiable transaction 5
unless-- 6
(a) another type of dutiable property is the subject of the same 7
transaction or, under section 30, it is aggregated with a dutiable 8
transaction; or 9
(b) under the transaction, the negotiable instrument is or is to be 10
transferred with all, or substantially all, of the negotiable 11
instruments of the business. 12
(2) If a supply right of a business is the subject of a transaction, the 13
transaction is not a dutiable transaction unless-- 14
(a) another type of dutiable property is the subject of the same 15
transaction or, under section 30, it is aggregated with a dutiable 16
transaction; or 17
(b) under the transaction, the supply right is or is to be transferred 18
with all, or substantially all, of the supply rights of the business. 19
(3) If intellectual or personal property of a business is the subject of a 20
transaction, the transaction is not a dutiable transaction unless, under 21
section 30, it is aggregated with a dutiable transaction for a Queensland 22
business asset, other than intellectual or personal property. 23
(4) For subsections (1)(a), (2)(a) and (3), section 30 applies as if the 24
transaction were a dutiable transaction. 25
38 When consignment of trading stock of Queensland business is a 26
dutiable transaction 27
(1) This section applies if-- 28
(a) the owner of a Queensland business transfers or agrees to transfer 29
a Queensland business asset, other than trading stock of the 30
business, to a person (the "new owner"); and 31
(b) the owner places all or most of the trading stock on consignment 32
for sale by a person, whether or not the new owner, 33
s 39 52 s 39
Duties Bill 2001
(the "consignee") in the conduct of the business by the new 1
owner; and 2
(c) having regard to the terms of the consignment it is reasonable to 3
conclude that the consignment is, or is part of, an arrangement to 4
avoid transfer duty. 5
(2) Without limiting subsection (1)(c), the terms of the consignment 6
include the following-- 7
(a) the amount payable to the owner by the consignee and the terms 8
of payment; 9
(b) the price ultimately payable to the owner for the trading stock 10
and the way in which it is worked out; 11
(c) the basis of working out the consignee's commission; 12
(d) the right of the consignee to mix the trading stock with other 13
property not owned by the owner; 14
(e) the right of the consignee to deal with the trading stock as if it 15
were the consignee's or other than as agent of the owner. 16
(3) The placing of the trading stock on consignment is taken to be a 17
transfer of the stock. 18
19
Note--
20
Accordingly, the transfer is a dutiable transaction being the transfer of a Queensland
21
business asset because trading stock is a business asset being personal property.
39 Surrender of Queensland business asset so replacement asset may 22
be granted 23
(1) This section applies if a Queensland business asset is surrendered by 24
a person (the "owner") so that a similar business asset may be granted, 25
issued, given to or obtained by another person. 26
(2) For imposing transfer duty-- 27
(a) the surrender is taken to be a transfer of the business asset by the 28
owner to the other person when the similar business asset is 29
granted, issued, given or obtained; and 30
(b) the owner and other person are the parties to the dutiable 31
transaction that is the transfer of the business asset. 32
s 40 53 s 42
Duties Bill 2001
PART 7--DUTIABLE TRANSACTIONS RELATING TO 1
PARTNERSHIPS 2
Division 1--Preliminary 3
40 Interpretation for property held by partnership or trust 4
A reference to a partnership or trust holding property is a reference to the 5
holding of the property by the partners for the partnership or trustees on 6
trust. 7
Division 2--Some basic concepts about partnership acquisitions 8
41 What is a "partnership acquisition" 9
A person makes a "partnership acquisition" if the person acquires a 10
partnership interest in a partnership that-- 11
(a) holds dutiable property; or 12
(b) has an indirect interest in dutiable property. 13
42 What is a partner's "partnership interest" 14
(1) A partner's "partnership interest" is-- 15
(a) if the partner has a variable partnership entitlement under 16
subsection (2)--the proportion that the value of the partner's 17
entitlements as a partner bears to the value of the entitlements of 18
all partners in the partnership expressed as a percentage; or 19
(b) if the partner is entitled only to share in the profits of the 20
partnership and has given or is required to give consideration, or 21
has made or is required to make a contribution to the capital of 22
the partnership, for the acquisition of the profit-sharing 23
right--the partner's profit-sharing percentage; or 24
(c) if paragraph (a) or (b) does not apply--the greater of the 25
following-- 26
(i) the percentage of the capital of the partnership the partner 27
has contributed or is obliged to contribute; 28
s 43 54 s 44
Duties Bill 2001
(ii) the percentage of the losses of the partnership the partner is 1
required to bear. 2
(2) For subsection (1)(a), a partner has a variable partnership entitlement 3
in a partnership if, in the ordinary course of determining the partner's 4
entitlement to share in the profits or obligation to contribute to the capital 5
or losses of the partnership, the entitlement or obligation varies or may 6
vary from time to time. 7
43 What is a partnership's "indirect interest" in dutiable property 8
A partnership has an "indirect interest" in dutiable property if-- 9
(a) through a partnership interest or trust interest there is a 10
connection between the partnership and dutiable property of the 11
other partnership or trust; or 12
(b) through a series of partnership interests or trust interests, or a 13
combination of any of them, there is a connection between the 14
partnership and dutiable property of a partnership or trust in the 15
series. 16
44 Acquiring a partnership interest 17
(1) A person acquires a partnership interest if a partnership is formed or 18
the person's partnership interest increases. 19
(2) Without limiting subsection (1)-- 20
(a) a partnership may be formed on-- 21
(i) a change in the membership of a partnership; or 22
(ii) the merger of 2 or more partnerships; or 23
(b) a person's partnership interest may increase-- 24
(i) under the terms of a partnership agreement; or 25
(ii) on the retirement of a partner from a partnership; or 26
(iii) on a change in the terms of a partnership agreement 27
effecting a change in the interests of the partners. 28
(3) However, a partner's variable partnership entitlement under 29
section 42 does not increase if-- 30
s 45 55 s 46
Duties Bill 2001
(a) the partner's entitlement to share in the profits or obligation to 1
contribute to the capital or losses of the partnership increases 2
merely because of the partner's performance as a partner; and 3
(b) there is no arrangement stating-- 4
(i) the extent of the future variation to the partner's entitlement 5
or obligation; or 6
(ii) the consideration for the variation. 7
Division 3--Dutiable value of partnership acquisitions 8
45 What is the dutiable value of a partnership acquisition 9
The dutiable value of a partnership acquisition is the greater of the 10
following-- 11
(a) the consideration for the acquisition so far as the consideration 12
relates to dutiable property, or an indirect interest in dutiable 13
property, held by the partnership; 14
(b) the value of the acquisition worked out under section 46 or 47. 15
46 What is the value of a partnership acquisition--general 16
(1) Subject to subsections (5) and (6), the value of a partnership 17
acquisition is the total of the amounts worked out by applying the partner's 18
partnership interest to the unencumbered value, when the liability for 19
transfer duty arises, of-- 20
(a) the dutiable property held by the partnership (the "relevant 21
partnership"); and 22
(b) any indirect interest in dutiable property held by the relevant 23
partnership. 24
(2) For subsection (1)(b), the unencumbered value of an indirect interest 25
under section 43(a) of the relevant partnership is the amount worked out by 26
applying to the unencumbered value of the dutiable property held by the 27
entity in which the relevant partnership has a partnership or trust interest, 28
the partnership or trust interest of the relevant partnership in that entity. 29
s 47 56 s 47
Duties Bill 2001
(3) For subsection (1)(b), the unencumbered value of an indirect interest 1
under section 43(b) of the relevant partnership is the amount worked out 2
by-- 3
(a) first applying to the unencumbered value of the dutiable property 4
held by the ultimate entity, the partnership or trust interest of the 5
partnership or trust (the "last partner or beneficiary") that is a 6
partner or beneficiary of the ultimate entity; and 7
(b) applying to the amount worked out under paragraph (a), and the 8
unencumbered value of any dutiable property held by the last 9
partner or beneficiary, the partnership or trust interest of the next 10
partnership or trust in the series of partnerships or trusts that is a 11
partner or beneficiary of the last partner or beneficiary; and 12
(c) applying the calculation in paragraph (b) for each of the other 13
partnerships or trusts in the series until the first entity's 14
partnership interest or trust interest is used in the calculation; and 15
(d) applying to the amount last worked out under paragraph (c) and 16
the unencumbered value of any dutiable property held by the first 17
entity, the partnership or trust interest of the relevant partnership. 18
(4) Schedule 4 contains an example of how the value of a partnership 19
acquisition is worked out. 20
(5) For determining the value of a partner's partnership acquisition, the 21
value of any dutiable property the partner contributed to the partnership on 22
its formation must be disregarded. 23
(6) For determining the value of a partner's partnership acquisition that 24
is an increase in the partner's partnership interest, the acquisition is taken 25
to be the increase in the partner's partnership interest. 26
47 What is the value of a partnership acquisition--merger of 2 or 27
more partnerships 28
(1) This section applies if-- 29
(a) a person (the "partner") first makes a partnership acquisition 30
(the "new partnership acquisition") on the merger of 2 or more 31
partnerships; and 32
(b) the person had a partnership interest (the "old partnership 33
interest") in 1 of the merging partnerships; and 34
s 47 57 s 47
Duties Bill 2001
(c) the partner were to make a partnership acquisition for the old 1
partnership interest immediately before the merger, the value of 2
the partnership acquisition would include all or part of the 3
unencumbered value of dutiable property (the "continuing 4
property") that becomes dutiable property of the merged 5
partnership. 6
(2) The value of the new partnership acquisition must be reduced by the 7
lesser of-- 8
(a) the amount that would be the value of the new partnership 9
acquisition if the dutiable property of the merged partnership 10
comprised only the continuing property; or 11
(b) the amount that represents the value of the partner's partnership 12
acquisition for the old partnership interest mentioned in 13
subsection (1)(c) immediately before the merger worked out as if 14
the dutiable property of the former partnership comprised only 15
the continuing property. 16
17
Example for working out dutiable value under this section--
18
X is a 30% partner in the XYZ partnership that has dutiable property of $10M. The
19
XYZ partnership merges with another partnership, to form a new partnership (the
20
merged partnership). X has a 40% partnership interest in the merged partnership. The
21
merged partnership has dutiable property with an unencumbered value of $12M,
22
including $2M of the dutiable property of the XYZ partnership (the continuing
23
property).
24
The value of X's new partnership acquisition is worked out as follows--
25
Example--
26
1. The value of X's interest in the merged partnership is $4.8M, being 40% (X's
27
partnership interest in the merged partnership) of $12M (the unencumbered value
28
of the merged partnership's dutiable property).
29
2. The reduction under subsection (2)(a) is $800 000, being 40% (X's partnership
30
interest in the merged partnership) of $2M (the continuing property).
31
3. The reduction under subsection (2)(b) is $600 000, being 30% (X's partnership
32
interest in the XYZ partnership) of $2M (the continuing property).
33
The value of X's partnership acquisition is $4.2M, being $4.8M less $600 000 which is
34
the lesser of the amounts worked out under subsection (2).
s 48 58 s 49
Duties Bill 2001
Division 4--Dutiable value of other dutiable transactions for dutiable 1
property of partnership 2
48 Dutiable value of dutiable transaction reduced for transfer of 3
dutiable property to partner on retirement or dissolution 4
(1) This section applies if, on a person (the "retiring partner") ceasing 5
to be a partner in a partnership because of the retiring partner's retirement 6
from the partnership or its dissolution, dutiable property of the partnership 7
is transferred or agreed to be transferred to the retiring partner. 8
(2) The dutiable value of the dutiable transaction for the transfer, or 9
agreement for the transfer, of the dutiable property to the retiring partner 10
must be reduced by an amount worked out by applying the retiring 11
partner's partnership interest in the partnership to the unencumbered value 12
of the dutiable property immediately before the retirement or dissolution. 13
14
Example for subsection (2)--
15
A, B and C are in partnership in equal shares. B had a one-third partnership interest
16
immediately before retiring. On B ceasing to be a partner, A and C transfer land to B.
17
The dutiable value of the land acquired by B will be reduced by one-third.
PART 8--DUTIABLE TRANSACTIONS RELATING TO 18
TRUSTS 19
Division 1--Preliminary 20
49 Application of pt 8 21
(1) This part applies to all expressly or intentionally created trusts, 22
regardless of how they are created. 23
(2) However, this part does not apply to a trust acquisition or trust 24
surrender of a trust interest in a public unit trust other than a majority trust 25
acquisition in a land holding trust.9 26
9 See division 7 (Public unit trusts), subdivisions 7 (Majority trust acquisitions in land
holding trusts) and 8 (Indirect trust interests).
s 50 59 s 52
Duties Bill 2001
50 Joint trustees 1
If a trust has 2 or more trustees, the trustees are taken to be a single 2
person for this chapter. 3
4
Note--
5
Under section 65, trustees are jointly and severally liable for transfer duty payable.
Division 2--Some basic concepts about property 6
51 Interpretation for property held by trust or partnership 7
A reference to a trust or partnership holding property is a reference to the 8
holding of the property by the trustees on trust or the partners for the 9
partnership. 10
52 Contracted property 11
(1) For a trust, contracted property is taken to be dutiable property held 12
by the trust. 13
(2) For determining the dutiable value of a trust creation, trust 14
termination, trust acquisition or trust surrender-- 15
(a) a sale agreement made by the trustee is taken not to have been 16
made; and 17
(b) a purchase agreement made by the trustee is taken to have been 18
completed. 19
(3) If contracted property is included in determining the dutiable value 20
of a trust creation, trust termination, trust acquisition or trust surrender and 21
the sale agreement for the property is later completed or the purchase 22
agreement for the property is later rescinded, the commissioner must make 23
a reassessment as if the contracted property were never held by the trust. 24
(4) For the reassessment, the parties liable to pay transfer duty on the 25
trust creation, trust termination, trust acquisition or trust surrender must 26
lodge the instruments required for the original assessment. 27
s 53 60 s 55
Duties Bill 2001
Division 3--Creation and termination of trusts 1
53 Creating trust of dutiable property 2
(1) A trust of dutiable property is created if a person, who has acquired 3
property other than as trustee, starts to hold the property as trustee. 4
(2) Also, a trust of dutiable property is created if all the following 5
apply-- 6
(a) a person holds dutiable property on trust ("trust 1"); 7
(b) the person is also trustee of another trust ("trust 2"); 8
(c) the person ceases to hold the dutiable property as trustee of 9
trust 1 and starts to hold the dutiable property as trustee for 10
trust 2; 11
(d) when the person starts to hold the dutiable property as trustee for 12
trust 2-- 13
(i) a person who has a trust interest for the dutiable property 14
under trust 2 did not have a trust interest for that property 15
when it was held for trust 1; or 16
(ii) a person who has a trust interest for the dutiable property 17
under trust 2 had a trust interest for that property when it 18
was held for trust 1 and that person's trust interest increases. 19
54 Terminating trust of dutiable property 20
A trust of dutiable property is terminated if a person, having held the 21
property as trustee, starts to hold the property other than as trustee. 22
Division 4--Some basic concepts about trust acquisitions and trust 23
surrenders 24
55 What is a "trust acquisition" 25
A person makes a "trust acquisition" if the person acquires a trust 26
interest in a trust that-- 27
(a) holds dutiable property; or 28
(b) has an indirect interest in dutiable property. 29
s 56 61 s 59
Duties Bill 2001
1
Note--
2
Under section 81, an indirect trust acquisition in a land holding trust is taken to be a
3
trust acquisition. An indirect trust acquisition is the acquisition of an interest in a land
4
holding trust through 1 or more corporations, partnerships or trusts, or a combination of
5
any of them. See definitions "indirect trust acquisition" and "indirect trust interest"
6
in the dictionary.
56 What is a "trust surrender" 7
A person makes a "trust surrender" if the person surrenders a trust 8
interest in a trust that holds dutiable property or has an indirect interest in 9
dutiable property. 10
57 What is a "trust interest" 11
(1) A "trust interest" is a person's interest as a beneficiary of a trust, 12
other than a life interest. 13
(2) For a trust that is a discretionary trust, only a taker in default of an 14
appointment by the trustee can have a trust interest. 15
(3) Also, for a trust that is a superannuation fund, a member of the fund 16
has a trust interest in the fund. 17
18
Note--
19
For exemption from transfer duty for a trust acquisition or surrender of a member's
20
interest in a superannuation fund, see section 119.
58 What is a trust's "indirect interest" in dutiable property 21
A trust has an "indirect interest" in dutiable property if-- 22
(a) through a trust interest or partnership interest, there is a 23
connection between the trust and dutiable property of the other 24
trust or partnership; or 25
(b) through a series of trust interests or partnership interests, or a 26
combination of any of them, there is a connection between the 27
trust and dutiable property of a trust or partnership in the series. 28
59 Acquiring a trust interest 29
(1) A person acquires a trust interest if-- 30
s 60 62 s 60
Duties Bill 2001
(a) the person becomes a beneficiary of a trust, whether on creation 1
of the trust or otherwise; or 2
(b) being a beneficiary of a trust, the person's trust interest increases, 3
other than because of the surrender of another person's trust 4
interest in the trust for which transfer duty has been paid. 5
(2) If a beneficiary's trust interest is subject to a prior life interest, the 6
interest does not increase merely because the life tenant dies or, over time, 7
the extent of the life interest reduces. 8
60 Beneficiary's trust interest is percentage of or proportionate to 9
property held on trust 10
(1) A beneficiary's trust interest is-- 11
(a) for a beneficiary who is a taker in default under a discretionary 12
trust-- 13
(i) the percentage of the trust income or trust property the 14
beneficiary would receive in default of appointment by the 15
trustee; or 16
(ii) if the beneficiary would receive both trust income and trust 17
property in default of appointment by the trustee, the greater 18
percentage of the trust income or trust property the 19
beneficiary would receive; or 20
(b) for a beneficiary of a trust, other than a discretionary trust, whose 21
entitlement is solely to income of the property held on trust--the 22
proportion of the value of the beneficiary's entitlement that bears 23
to the value of the entitlements of all beneficiaries expressed as a 24
percentage; or 25
(c) for another beneficiary--the proportion that the beneficiary's 26
entitlement under the trust bears to the unencumbered value of 27
the property held on trust expressed as a percentage. 28
(2) For subsection (1)(c), the beneficiary's entitlement under the trust 29
is-- 30
(a) the amount of the unencumbered value of the property held on 31
trust that the beneficiary could receive as a result of the 32
acquisition of the beneficiary's trust interest determined at the 33
time of acquisition of the interest; or 34
(b) the entitlement stated in subsection (3) if-- 35
s 61 63 s 61
Duties Bill 2001
(i) the beneficiary's entitlement under the trust is not subject to 1
a prior life interest; and 2
(ii) the beneficiary's entitlement under the trust may increase, 3
including from nothing, on the fulfilment of any condition, 4
contingency or the exercise or non-exercise of any power or 5
discretion; and 6
(iii) the condition, contingency, power or discretion is part of an 7
arrangement a significant purpose of which is to lessen the 8
amount of the beneficiary's entitlement at a particular time. 9
(3) For subsection (2)(b), the beneficiary's entitlement under the trust is 10
the maximum interest in the property held on trust that the beneficiary 11
would have on the fulfilment of the condition or contingency or the 12
exercise or non-exercise of the power or discretion. 13
(4) For a majority trust acquisition, a reference in this section to a 14
beneficiary's entitlement under the trust includes the entitlement under the 15
trust of related persons of the beneficiary. 16
61 Who is a "related person" 17
(1) A person is a "related person" of another person if-- 18
(a) for individuals--they are members of the same family; or 19
(b) for an individual and a corporation--the person or a member of 20
the person's family is a majority shareholder, director or 21
secretary of the corporation or a related body corporate of the 22
corporation, or has a majority interest in it; or 23
(c) for an individual and a trustee--the person or a related person 24
under another provision of this section is a beneficiary of the 25
trust; or 26
(d) for corporations--they are related bodies corporate; or 27
(e) for a corporation and a trustee--the corporation or a related 28
person under another provision of this section is a beneficiary of 29
the trust; or 30
(f) for trustees-- 31
(i) there is a person who is a beneficiary of both trusts; or 32
s 62 64 s 63
Duties Bill 2001
(ii) a person is beneficiary of 1 trust and a related person under 1
another provision of this section is a beneficiary of the other 2
trust. 3
(2) Also, a person is a "related person" of another person if the persons 4
acquire trust interests in a land holding trust and the acquisitions form, 5
evidence, give effect to or arise from what is substantially 1 arrangement. 6
(3) However, a person is not a "related person" of another person under 7
subsection (1) if the commissioner is satisfied the interests of the persons-- 8
(a) were acquired independently; and 9
(b) were not acquired for a common purpose. 10
Division 5--Dutiable value of trust acquisitions and trust surrenders 11
62 What is the dutiable value of a trust acquisition or trust surrender 12
The dutiable value of a trust acquisition or trust surrender is the greater 13
of the following-- 14
(a) the consideration for the acquisition or surrender so far as the 15
consideration relates to dutiable property, or an indirect interest 16
in dutiable property, held by the trust; 17
(b) the value of the acquisition or surrender worked out under 18
section 63. 19
63 What is the value of a trust acquisition or trust surrender 20
(1) Subject to subsections (6) to (8), the value of a trust acquisition or 21
trust surrender is the total of the amounts worked out by applying the 22
beneficiary's trust interest to the unencumbered value, when the liability 23
for transfer duty arises, of-- 24
(a) the dutiable property held by the trust (the "relevant trust"); and 25
(b) any indirect interest in dutiable property held by the relevant 26
trust. 27
28
Note--
29
Under section 52(1), dutiable property includes contracted property.
s 63 65 s 63
Duties Bill 2001
(2) For subsection (1), the beneficiary's trust interest for a trust 1
surrender is the beneficiary's trust interest immediately before the 2
surrender. 3
(3) For subsection (1)(b), the unencumbered value of an indirect interest 4
under section 58(a) of the relevant trust is the amount worked out by 5
applying to the unencumbered value of the dutiable property held by the 6
entity in which the relevant trust has a trust or partnership interest, the trust 7
or partnership interest of the relevant trust in that entity. 8
(4) For subsection (1)(b), the unencumbered value of an indirect interest 9
under section 58(b) of the relevant trust is the amount worked out by-- 10
(a) first applying to the unencumbered value of the dutiable property 11
held by the ultimate entity, the trust or partnership interest of the 12
trust or partnership (the "last beneficiary or partner") that is a 13
beneficiary or partner of the ultimate entity; and 14
(b) applying to the amount worked out under paragraph (a), and the 15
unencumbered value of any dutiable property held by the last 16
beneficiary or partner, the trust or partnership interest of the next 17
trust or partnership in the series of trusts or partnerships that is a 18
beneficiary or partner of the last beneficiary or partner; and 19
(c) applying the calculation in paragraph (b) for each of the other 20
trusts or partnerships in the series until the first entity's trust 21
interest or partnership interest is used in the calculation; and 22
(d) applying to the amount last worked out under paragraph (c) and 23
the unencumbered value of any dutiable property held by the first 24
entity, the trust or partnership interest of the relevant trust. 25
(5) Schedule 4 contains an example of how the value of a trust 26
acquisition is worked out. 27
(6) For determining the value of a beneficiary's trust acquisition that is 28
an increase in the beneficiary's trust interest, other than a majority trust 29
acquisition, the beneficiary's trust interest is taken to be the increase in the 30
beneficiary's trust interest. 31
(7) Subsection (8) applies to a majority trust acquisition that is an 32
increase in a beneficiary's trust interest (the "relevant trust acquisition") 33
that has happened in the following circumstances-- 34
(a) the trust interest of the beneficiary and related persons of the 35
beneficiary was more than 50% immediately before the relevant 36
trust acquisition; 37
s 64 66 s 66
Duties Bill 2001
(b) transfer duty was previously paid for a majority trust acquisition 1
in the trust made by the beneficiary or related persons; 2
(c) since the majority trust acquisition mentioned in paragraph (b), 3
no other related person of the beneficiary has made a trust 4
acquisition in the trust. 5
(8) For determining the value of the beneficiary's trust acquisition that is 6
the relevant trust acquisition, the beneficiary's trust interest is taken to be 7
the increase in the beneficiary's trust interest. 8
Division 6--Liability to transfer duty 9
64 Liability to pay transfer duty on creation or termination of trust 10
(1) If a trust of dutiable property is created or terminated, the trustee of 11
the trust is the party to the dutiable transaction that is the creation or 12
termination of the trust. 13
(2) If the trustee of the trust does not pay the transfer duty, the 14
beneficiaries of the trust are jointly and severally liable for the duty. 15
65 Liability of joint trustees 16
If a trust has 2 or more trustees, the trustees are jointly and severally 17
liable for any transfer duty imposed. 18
66 When no transfer duty on trust acquisition or trust surrender 19
(1) If, because of the creation of a trust of dutiable property, a person 20
acquires a trust interest in the property, transfer duty is not imposed on the 21
acquisition if-- 22
(a) transfer duty has been paid for the dutiable transaction that is the 23
creation of the trust of the property; or 24
(b) the dutiable transaction that is the creation of the trust of the 25
property is exempt from transfer duty. 26
(2) If, because of the acquisition of dutiable property by a trust, a person 27
acquires a trust interest in the property, transfer duty is not imposed on the 28
acquisition of the trust interest if-- 29
s 67 67 s 68
Duties Bill 2001
(a) the trustee has paid transfer duty for the acquisition of the 1
property; or 2
(b) the dutiable transaction that is the acquisition of the property is 3
exempt from transfer duty; or 4
(c) duty is not imposed on the acquisition of the property by the 5
trustee. 6
(3) If, because of the termination of a trust of dutiable property, a person 7
surrenders a trust interest in the property, transfer duty is not imposed on 8
the surrender if-- 9
(a) transfer duty has been paid for the dutiable transaction that is the 10
termination of the trust of the property; or 11
(b) the dutiable transaction that is the termination of the trust of the 12
property is exempt from transfer duty. 13
67 Parties to trust acquisition and trust surrender 14
(1) For a trust acquisition, the beneficiary acquiring the trust interest is 15
the party to the dutiable transaction. 16
(2) For a trust surrender, the trustee and the beneficiary whose trust 17
interest is surrendered are the parties to the dutiable transaction. 18
19
Note--
20
Under section 17, the parties to a dutiable transaction are liable to pay transfer duty
21
imposed on the transaction.
Division 7--Public unit trusts 22
Subdivision 1--Preliminary 23
68 What is a "public unit trust" 24
A "public unit trust" is-- 25
(a) a listed unit trust; or 26
(b) a widely held unit trust; or 27
(c) a wholesale unit trust; or 28
(d) a pooled public investment unit trust; or 29
s 69 68 s 70
Duties Bill 2001
(e) a declared public unit trust. 1
Subdivision 2--Basic concepts about listed unit trusts 2
69 What is a "listed unit trust" 3
A "listed unit trust" is a unit trust the units in which are quoted on the 4
market operated by a recognised stock exchange. 5
Subdivision 3--Basic concepts about widely held unit trusts 6
70 What is a "widely held unit trust" 7
(1) A "widely held unit trust" is a unit trust, other than a listed unit 8
trust, that is a registered managed investment scheme for which-- 9
(a) units in the trust have been issued to the public; and 10
(b) 50 or more persons are beneficially entitled to the units in the 11
trust; and 12
(c) more than 20 persons are beneficially entitled to at least 75% of 13
the total units in the trust. 14
15
Note--
16
Also, under section 71, the commissioner may treat a unit trust as a widely held unit
17
trust.
(2) However, for a trust acquisition or trust surrender of a trust interest in 18
a trust, a unit trust is not a widely held unit trust if subsection (1)(b) and (c) 19
is not satisfied before and after the trust acquisition or trust surrender. 20
(3) For subsection (2), a trust acquisition or trust surrender of a trust 21
interest in a unit trust includes a series of trust acquisitions or trust 22
surrenders under an arrangement. 23
(4) If subsection (2) applies to a unit trust, the trust is not a widely held 24
unit trust from immediately before the trust acquisition or trust surrender or 25
the first acquisition or surrender under the arrangement. 26
(5) For subsection (1), a person is taken to be beneficially entitled to all 27
units held by the person and related persons of the person. 28
s 71 69 s 72
Duties Bill 2001
71 When unit trust may be treated as widely held unit trust 1
(1) This section applies if the commissioner is satisfied-- 2
(a) units in a unit trust (the "start up units") will be issued to the 3
public to an extent and with the entitlements mentioned in 4
section 70(1) within 1 year after the first issue of units to the 5
public; and 6
(b) the start up units are the only units in the unit trust to be issued 7
from and including the first issue to the public until the unit trust 8
becomes a widely held unit trust (the "start-up period"). 9
(2) The commissioner may treat the unit trust as a widely held unit trust 10
for the start-up period. 11
(3) However, if the start-up units are not issued in the way mentioned in 12
subsection (1)(a) or are not the only units issued in the unit trust in the 13
start-up period (the "disqualifying circumstances")-- 14
(a) the trustee must, within 28 days after the disqualifying 15
circumstances happen, give the commissioner notice about the 16
disqualifying circumstances; and 17
(b) the unit trust is taken not to have been a widely held unit trust in 18
the start-up period; and 19
(c) the commissioner must make an assessment for transfer duty for 20
each trust acquisition or trust surrender in the start-up period as if 21
the trust were not a widely held unit trust in the period; and 22
(d) the start date for the Administration Act, section 54(4), is 61 days 23
after the relevant trust acquisition or trust surrender. 24
Subdivision 4--Basic concepts about wholesale unit trusts 25
72 What is a "wholesale unit trust" 26
(1) A "wholesale unit trust" is a unit trust, other than a listed unit 27
trust-- 28
(a) that is established and managed by a funds manager; and 29
(b) the units in which are predominantly acquired by, for or on 30
account of, wholesale investors. 31
s 73 70 s 73
Duties Bill 2001
(2) A "wholesale unit trust" includes a unit trust that holds land in 1
Queensland, or has an indirect interest in land in Queensland, only if the 2
trust was established, and continues, solely for the investment of funds 3
placed with it by wholesale investors using the funds manager's funds 4
management and investment services. 5
(3) However, for a trust acquisition or trust surrender of a trust interest in 6
a trust, a unit trust is not a wholesale unit trust if-- 7
(a) the trust is established or managed for a particular person; or 8
(b) subsection (1)(b) or if applicable subsection (2) is not satisfied 9
before and after the trust acquisition or trust surrender. 10
(4) For subsection (3), a trust acquisition or trust surrender of a trust 11
interest in a unit trust includes a series of trust acquisitions or trust 12
surrenders under an arrangement. 13
(5) If subsection (3) applies to a unit trust, the trust is not a wholesale 14
unit trust from immediately before the trust acquisition or trust surrender or 15
the first acquisition or surrender under the arrangement. 16
73 What is a "funds manager" 17
(1) A "funds manager" is-- 18
(a) a body corporate that provides funds management and 19
investment services to wholesale investors as its principal 20
business if-- 21
(i) the body corporate manages funds of more than 22
$500 000 000 invested with it; and 23
(ii) the business is not conducted to provide the services only to 24
particular wholesale investors; and 25
(iii) the body corporate is recognised by other funds managers as 26
a competitor with them for the services; or 27
(b) a body corporate that is a member of a corporate group of a 28
financial institution or an insurer whose principal business is 29
providing funds management and investment services to 30
wholesale investors if-- 31
(i) the body corporate or the corporate group manages funds of 32
more than $500 000 000 invested with it by wholesale 33
investors; and 34
s 74 71 s 74
Duties Bill 2001
(ii) the business is not conducted to provide the services only to 1
particular wholesale investors; and 2
(iii) the body corporate is recognised by other funds managers as 3
a competitor with them for the services. 4
(2) Subsection (3) applies if the commissioner is satisfied a body 5
corporate or corporate group will provide funds management and 6
investment services to wholesale investors to the extent mentioned in 7
subsection (1)(a) or (b) within the start-up period. 8
(3) The commissioner may treat the body corporate as a funds manager 9
for the start-up period. 10
(4) However, if the body corporate or corporate group does not provide 11
funds management and investment services as mentioned in subsection (1) 12
in the start-up period-- 13
(a) the body corporate must, within 28 days after the end of the 14
start-up period, give the commissioner notice of that fact; and 15
(b) the body corporate is taken not to have been a funds manager in 16
the start-up period; and 17
(c) the commissioner must make an assessment for transfer duty for 18
each trust acquisition or trust surrender in the start-up period as if 19
the body corporate were not a funds manager in the period; and 20
(d) the start date for the Administration Act, section 54(4), is 61 days 21
after the relevant trust acquisition or trust surrender. 22
(5) In this section-- 23
"start-up period", for a body corporate, means 1 year after the first 24
acquisition by a wholesale investor of a trust interest in a unit trust 25
established and managed by the body corporate. 26
74 Who is a "wholesale investor" 27
A "wholesale investor" in a wholesale unit trust is-- 28
(a) a funds manager, other than the funds manager that established 29
and manages the trust, investing funds of another wholesale unit 30
trust managed by the funds manager; or 31
(b) the trustee of another wholesale unit trust investing funds of 32
another wholesale unit trust managed by the trustee; or 33
s 75 72 s 75
Duties Bill 2001
(c) the trustee of a superannuation fund under the Superannuation 1
Industry (Supervision) Act 1993 (Cwlth) having more than 2
$10 000 000 in assets; or 3
(d) a person who has more than $10 000 000 invested in wholesale 4
unit trusts. 5
Subdivision 5--Basic concepts about pooled public investment unit trusts 6
75 What is a "pooled public investment unit trust" 7
(1) A "pooled public investment unit trust" is a unit trust, other than a 8
listed unit trust, widely held unit trust, wholesale unit trust or declared 9
public unit trust, that is a registered managed investment scheme or exempt 10
managed investment scheme for which-- 11
(a) either of the following apply-- 12
(i) units in the trust have been issued to the public; 13
(ii) at least 75% of the total units in the trust are held by 2 or 14
more large qualified holders; and 15
(b) at least 50 persons are entitled to units in the trust; and 16
(c) more than 20 persons are entitled to at least 75% of the total units 17
in the trust.10 18
(2) However, for a trust acquisition or trust surrender of a trust interest in 19
a trust, a unit trust is not a pooled public investment unit trust unless-- 20
(a) if subsection (1)(a)(i) applies--subsection (1)(b) and (c) is 21
satisfied before and after the trust acquisition or trust surrender; 22
or 23
(b) if subsection (1)(a)(ii) applies--subsection (1)(a)(ii), (b) and (c) 24
is satisfied before and after the trust acquisition or trust surrender. 25
(3) For subsection (2), a trust acquisition or trust surrender of a trust 26
interest in a unit trust includes a series of trust acquisitions or trust 27
surrenders under an arrangement. 28
10 See sections 77 (Who is holder of units in pooled public investment unit trust) and
78 (Who is entitled to units in pooled public investment unit trust).
s 76 73 s 77
Duties Bill 2001
(4) If subsection (2) applies to a unit trust, the trust is not a pooled public 1
investment unit trust from immediately before the trust acquisition or trust 2
surrender or the first acquisition or surrender under the arrangement. 3
76 Who is a "qualified holder" and a "large qualified holder" 4
(1) A "qualified holder" of units in a unit trust is-- 5
(a) the trustee of a listed unit trust, widely held unit trust, wholesale 6
unit trust or declared public unit trust; or 7
(b) the trustee of a complying superannuation fund; or 8
(c) the trustee of a complying approved deposit fund; or 9
(d) a life company if the units held represent an investment of its 10
statutory funds maintained by it under the Life Insurance Act 11
1995 (Cwlth). 12
(2) A "large qualified holder" of units in a unit trust is a qualified 13
holder with more than 50 members. 14
77 Who is holder of units in pooled public investment unit trust 15
(1) For section 75, a qualified holder is taken to hold the units in a unit 16
trust held for the holder by a custodian. 17
(2) For section 75(1)(b) and (c)-- 18
(a) a trustee of a complying superannuation fund that has invested in 19
a pooled superannuation trust is taken to hold the number of units 20
in a unit trust held by the trustee of the pooled superannuation 21
trust that is worked out by applying the fund's interest in the 22
pooled superannuation trust to the units held by the trustee; and 23
(b) a member of a pooled public investment unit trust is taken to hold 24
the number of units in a unit trust held by the trustee of the 25
pooled public investment unit trust that is worked out by 26
applying the member's interest in the pooled public investment 27
unit trust to the units held by the trustee. 28
(3) For subsection (2)(a), a complying superannuation fund's interest in 29
a pooled superannuation trust is the proportion that the fund's investment 30
bears to the total of all investments in the trust expressed as a percentage. 31
(4) For subsection (2)(b), a member's interest in a pooled public 32
investment unit trust is the proportion that the value of the member's 33
s 78 74 s 80
Duties Bill 2001
entitlement as a member bears to the value of the entitlements of all 1
members in the trust expressed as a percentage. 2
78 Who is entitled to units in pooled public investment unit trust 3
(1) For section 75(1)(b) and (c)-- 4
(a) a member of a large qualified holder of units in a unit trust is 5
taken to be entitled to the number of units in the trust that is 6
worked out by applying the member's interest in the holder to the 7
units in the trust held by the holder; and 8
(b) another holder of units in the trust is entitled to the units held. 9
(2) For subsection (1)(a), a member's interest in a large qualified holder 10
is the proportion that the value of the member's entitlement as a member 11
bears to the value of the entitlements of all members in the holder 12
expressed as a percentage. 13
(3) For section 75, a person who is entitled to units in the unit trust is 14
taken to be entitled to all units that, under subsection (1)(a) and (b), the 15
person and related persons of the person are entitled. 16
Subdivision 6--Basic concepts about declared public unit trusts 17
79 What is a "declared public unit trust" 18
A "declared public unit trust" is a unit trust declared under a 19
regulation to be a public unit trust for this division. 20
Subdivision 7--Majority trust acquisitions in land holding trusts 21
80 What is a "majority trust acquisition" 22
A person who makes a trust acquisition in a land holding trust makes a 23
"majority trust acquisition" if-- 24
(a) the person, or the person and related persons of the person 25
(whether alone or jointly), acquire a trust interest in the trust of 26
more than 50%; or 27
(b) the person, or related persons of the person (whether alone or 28
jointly), acquire a trust interest in the trust that, when aggregated 29
s 81 75 s 82
Duties Bill 2001
with trust interests already held by the person and related persons 1
of the person (whether alone or jointly), is more than 50%. 2
81 Interpretation for majority trust acquisitions 3
(1) This section applies for imposing transfer duty on majority trust 4
acquisitions. 5
(2) An indirect trust interest in a land holding trust being acquired by a 6
person is taken to be a trust interest in the trust. 7
(3) Also, an indirect trust interest in a land holding trust already held by 8
an acquirer or related person of the acquirer is taken to be a trust interest in 9
the trust. 10
(4) For an indirect trust interest in a land holding trust taken to be a trust 11
interest under subsection (2) or (3), the acquirer and any related persons of 12
the acquirer are taken to be beneficiaries. 13
(5) An indirect trust acquisition is taken to be a trust acquisition in the 14
land holding trust in which the indirect trust interest is acquired. 15
82 Deduction--transfer duty for majority trust acquisition 16
(1) This section applies if-- 17
(a) transfer duty has been paid or is payable on a dutiable transaction 18
that is a majority trust acquisition; and 19
(b) transfer duty or land rich duty is imposed or has been paid on 20
indirect trust acquisitions and trust acquisitions relating to the 21
majority trust acquisition. 22
(2) The duty mentioned in subsection (1)(b) must be reduced by the 23
amount of the transfer duty paid or payable under subsection (1)(a) to the 24
extent that the indirect trust interests and trust interests were included in 25
working out the dutiable value of the majority trust acquisition. 26
s 83 76 s 84
Duties Bill 2001
Subdivision 8--Indirect trust interests 1
83 Person's indirect trust interest is proportionate to land holding 2
trust's dutiable property 3
A person's indirect trust interest in a land holding trust is the proportion 4
that the unencumbered value of the person's entitlement in the land holding 5
trust bears to the unencumbered value of dutiable property held by the land 6
holding trust expressed as a percentage. 7
84 What is the value of person's entitlement in land holding trust 8
(1) The unencumbered value of a person's entitlement in a land holding 9
trust is the amount worked out by-- 10
(a) if the person has a subordinate interest in an entity (the "first 11
beneficiary") that is a beneficiary of the land holding trust-- 12
(i) first applying to the unencumbered value of the dutiable 13
property held by the land holding trust, the first 14
beneficiary's trust interest in the land holding trust; and 15
(ii) applying to the amount worked out under subparagraph (i), 16
the person's subordinate interest in the first beneficiary; or 17
(b) if paragraph (a) does not apply-- 18
(i) first applying to the unencumbered value of the dutiable 19
property held by the land holding trust, the subordinate 20
interest of the entity (also the "first beneficiary") that is a 21
beneficiary of the land holding trust; and 22
(ii) applying to the amount worked out under subparagraph (i), 23
the subordinate interest of the next entity in the series of 24
entities that is a shareholder, partner or beneficiary of the 25
first beneficiary connecting the land holding trust to the 26
person; and 27
(iii) applying the calculation in subparagraph (ii) for each of the 28
other entities in the series until the person's subordinate 29
interest is applied to the amount worked out under the 30
application of subparagraph (ii) for the entity in which the 31
person's subordinate interest is held. 32
(2) For subsection (1)(b)(iii)-- 33
s 85 77 s 86
Duties Bill 2001
(a) the reference in subsection (1)(b)(ii) to the amount worked out 1
under subsection (1)(b)(i) is a reference to the amount worked 2
out under the previous application of subsection (1)(b)(ii); and 3
(b) the reference to the first beneficiary is a reference to the next 4
shareholder, partner or beneficiary in the series for which 5
subsection (1)(b)(ii) is being applied. 6
PART 9--CONCESSIONS FOR HOMES 7
Division 1--Preliminary 8
85 Purpose of pt 9 9
The purpose of this part is to provide for concessions for transfer duty 10
for a dutiable transaction that is the transfer, or agreement for the transfer, 11
of a home or first home. 12
Division 2--Some basic concepts about concessions for homes 13
86 What is a "home" and a "first home" 14
(1) A residence is a person's "home" if the person's occupation date for 15
the residence is within 1 year after the person's transfer date for the 16
residential land. 17
18
Note--
19
For transfer duty to be imposed for residential land, it must be in Queensland, see
20
section 10(1)(a).11
(2) A person's home is the person's "first home" if, before acquiring 21
the home, the person did not hold and never before held, an interest in other 22
residential land in Queensland or elsewhere other than-- 23
11 Section 10 (What is "dutiable property")
s 87 78 s 91
Duties Bill 2001
(a) as trustee for another person; or 1
(b) as lessee; or 2
(c) as the holder of a security interest. 3
87 What is a "residence" 4
A "residence" is a building, or part of a building, that is-- 5
(a) fixed to land; and 6
(b) designed, or approved by a local government, for human 7
habitation by a single family unit; and 8
(c) used for residential purposes. 9
88 What is a person's "occupation date" for a residence 10
A person's "occupation date" for a residence is the date the person, as 11
owner of the residence, starts occupying it as the person's principal place of 12
residence. 13
89 What is a person's "transfer date" for residential land 14
A person's "transfer date" for residential land is the date the person is 15
entitled to possession of the land under the dutiable transaction that is the 16
transfer, or agreement for the transfer, of the land. 17
90 What is the "dutiable value" of residential land 18
The "dutiable value" of residential land the subject of a dutiable 19
transaction that is a transfer, or agreement for the transfer, of land is the 20
part of the dutiable value of the transaction that is attributable to the 21
residential land. 22
Division 3--Concessions for homes and first homes 23
91 Concession for transfer duty--home 24
(1) This section applies if-- 25
s 92 79 s 92
Duties Bill 2001
(a) a dutiable transaction is the transfer, or agreement for the 1
transfer, of residential land; and 2
(b) either of the following apply-- 3
(i) the transferees are individuals and are not trustees and the 4
residence will be their home; 5
(ii) the transferees are trustees of a trust, other than a 6
discretionary or unit trust, the beneficiaries are individuals 7
all of whom are under a legal disability and the residence 8
would be the home of all the beneficiaries if they were the 9
transferees of the land. 10
(2) The transfer duty imposed on the dutiable transaction is the amount 11
worked out under subsection (3) or (5). 12
(3) If the dutiable value of the residential land is not more than $250 000, 13
the transfer duty is the total of-- 14
(a) $1 for each $100, or part of $100, of the dutiable value of the 15
land; and 16
(b) the amount worked out by deducting, from transfer duty on the 17
dutiable value of the dutiable transaction, the amount worked out 18
by applying the relevant rate to the dutiable value of the 19
residential land. 20
(4) For subsection (3), the relevant rate is the rate of transfer duty stated 21
in schedule 3, column 2, opposite the part of the dutiable value of the 22
dutiable transaction attributable to the dutiable value of the residential land 23
stated in schedule 3, column 1. 24
(5) If the dutiable value of the residential land is more than $250 000, the 25
transfer duty is the total of-- 26
(a) $2 500; and 27
(b) the amount worked out by deducting, from transfer duty on the 28
dutiable value of the dutiable transaction, the amount worked out 29
by applying the relevant rate to $250 000. 30
(6) For subsection (5), the relevant rate is the rate of transfer duty stated 31
in schedule 3, column 2, for $250,000. 32
92 Concession for transfer duty--first home 33
(1) This section applies if-- 34
s 93 80 s 93
Duties Bill 2001
(a) a dutiable transaction is the transfer, or agreement for the 1
transfer, of residential land; and 2
(b) either of the following apply-- 3
(i) the transferees are individuals and are not trustees and the 4
residence will be their first home; 5
(ii) the transferees are trustees of a trust, other than a 6
discretionary or unit trust, the beneficiaries are individuals 7
all of whom are under a legal disability and the residence 8
would be the first home of all the beneficiaries if they were 9
the transferees of the land and other residential land 10
previously the subject of a trust of which they were 11
beneficiaries; and 12
(c) the consideration for the transfer of the dutiable property the 13
subject of the transaction is at least the unencumbered value of 14
the dutiable property. 15
(2) The transfer duty imposed on the dutiable transaction is the amount 16
of transfer duty worked out under section 91 less the following amount-- 17
(a) if the dutiable value of the residential land is not more than 18
$80 000--$800; 19
(b) if the dutiable value of the residential land is more than $80 000 20
but not more than $150 000--$500; 21
(c) if the dutiable value of the residential land is more than $150 000 22
but not more than $155 000--$300; 23
(d) if the dutiable value of the residential land is more than $155 000 24
but not more than $160 000--$200. 25
26
93 Concession for transfer duty--mixed and multiple claims for 27
homes and first homes for individuals 28
(1) This section applies if-- 29
(a) a dutiable transaction is the transfer, or agreement for the 30
transfer, of residential land; and 31
(b) there is more than 1 transferee of the dutiable property the 32
subject of the transaction; and 33
(c) the residence is-- 34
s 93 81 s 93
Duties Bill 2001
(i) the home or first home of all the transferees (the "relevant 1
transferees"); or 2
(ii) the home or first home of 1 or more of the transferees (also 3
the "relevant transferees") but not all transferees; and 4
(d) the relevant transferees are individuals. 5
(2) Also, this section applies if-- 6
(a) a dutiable transaction is the transfer, or agreement for the 7
transfer, of residential land on which more than 1 residence is 8
constructed; and 9
(b) 1 or more of the residences is, for 1 or more of the transferees 10
(also the "relevant transferees"), a home or first home; and 11
(c) the relevant transferees are individuals. 12
(3) In addition, this section applies if a dutiable transaction is the 13
transfer, or agreement for the transfer, of a part interest in residential land 14
that, if it were a transfer, or agreement for the transfer, of the whole interest 15
in the land, would be a dutiable transaction to which this section applies 16
under subsection (1) or (2), other than the requirement for more than 17
1 transferee. 18
(4) The transfer duty imposed on a dutiable transaction to which this 19
section applies under subsection (1)(c)(i) or (2) is the total of-- 20
(a) for each relevant transferee, the amount worked out by applying 21
the transferee's interest to the concessional duty; and 22
(b) the amount worked out by deducting, from transfer duty on the 23
dutiable value of the transaction, the amount (the "deduction 24
amount") worked out by applying the relevant rate to the lesser 25
of the following-- 26
(i) the total of the value of each relevant transferee's interest; 27
(ii) $250 000. 28
(5) The transfer duty imposed on a dutiable transaction to which this 29
section applies under subsection (1)(c)(ii) or (3) is the total of-- 30
(a) for each relevant transferee, the amount worked out by applying 31
the transferee's interest to the concessional duty; and 32
(b) the amount worked out by deducting, from transfer duty on the 33
dutiable value of the transaction, the amount (also the 34
s 93 82 s 93
Duties Bill 2001
"deduction amount") worked out by applying the relevant rate 1
to the lesser of the following-- 2
(i) the total of the value of each relevant transferee's interest; 3
(ii) the total of the relevant transferees' interests multiplied by 4
$250 000. 5
(6) For subsections (4) and (5)-- 6
(a) the concessional duty is the transfer duty that-- 7
(i) if section 91 were to apply to the dutiable 8
transaction--would be equal to the amount worked out 9
under section 91(3)(a) or the amount stated in 10
section 91(5)(a); or 11
(ii) if section 92 were to apply to the dutiable 12
transaction--would be equal to the amount worked out 13
under section 91(3)(a) or the amount stated in 14
section 91(5)(a) less the amount of the deduction under 15
section 92(2); and 16
(b) the relevant transferee's interest is the proportion that the share of 17
the transferee in the whole dutiable property bears to the total of 18
the shares of-- 19
(i) for a dutiable transaction to which this section applies under 20
subsection (3)--all the co-owners, or the owner, on 21
completion of the transaction; or 22
(ii) for another dutiable transaction--all the transferees; and 23
(c) the value of a relevant transferee's interest is worked out by 24
applying the transferee's interest to the dutiable value of the 25
residential land; and 26
(d) the relevant rate is the rate of transfer duty stated in schedule 3, 27
column 2, opposite the part of the dutiable value of the dutiable 28
transaction attributable to the deduction amount as stated in 29
schedule 3, column 1. 30
(7) For a relevant transferee under subsection (2), the residential land 31
mentioned in subsection (6)(c) is the part of the residential land relating to 32
the transferee's home or first home. 33
s 94 83 s 96
Duties Bill 2001
94 Concession for transfer duty--mixed and multiple claims for 1
homes and first homes 2
(1) This section applies if-- 3
(a) a dutiable transaction is the transfer, or agreement for the 4
transfer, of residential land; and 5
(b) the transferee is a trustee of a trust, other than a discretionary or 6
unit trust; and 7
(c) the beneficiaries of the trust are individuals all of whom are 8
under a legal disability. 9
(2) Section 93 applies to the transaction as if the beneficiaries are the 10
transferees of the residential land. 11
95 Application for concession for transfer duty for home or first 12
home 13
An application for a concession for transfer duty on a dutiable 14
transaction that is the transfer, or agreement for the transfer, of a home or 15
first home must be made in the approved form. 16
PART 10--CONCESSIONS FOR DUTIABLE 17
TRANSACTIONS FOR PARTICULAR FAMILY 18
BUSINESSES 19
Division 1--Preliminary 20
96 Purpose of pt 10 21
The purpose of this part is to provide concessions for transfer duty on 22
particular dutiable transactions by way of gift of dutiable property used to 23
carry on particular family businesses of primary production and prescribed 24
businesses. 25
s 97 84 s 98
Duties Bill 2001
97 Dutiable transactions to which pt 10 applies 1
(1) This part applies to each of the following dutiable transactions if the 2
conditions applying to the transaction are satisfied-- 3
(a) the transfer, or agreement for the transfer, of business property; 4
(b) a partnership acquisition if property of the partnership includes 5
business property; 6
(c) a trust acquisition, other than a trust acquisition on the creation of 7
a trust or a trust acquisition for a unit trust, if property of the trust 8
includes business property; 9
(d) the creation of a trust, or trust acquisition on the creation of a 10
trust, of-- 11
(i) business property; or 12
(ii) an indirect interest in dutiable property if the dutiable 13
property includes business property; or 14
(iii) dutiable property that is a Queensland marketable security 15
of a family company that holds business property; 16
(e) a trust acquisition for a unit trust if the property of the trust 17
includes business property; 18
(f) the transfer, or agreement for the transfer, of a marketable 19
security in a corporation if the property of the corporation 20
includes business property. 21
(2) For subsection (1)(d)(ii), an indirect interest in dutiable property is a 22
partnership or trust interest in a family partnership, family trust or family 23
unit trust that holds the dutiable property. 24
98 Conditions for transfer or agreement for transfer of business 25
property 26
(1) The conditions applying to a dutiable transaction mentioned in 27
section 97(1)(a) are as follows-- 28
(a) the transferor or person directing the transfer is an ancestor of the 29
transferee; 30
(b) the transferee does not acquire the business property as-- 31
(i) trustee, other than as trustee of a trust for the beneficiaries 32
mentioned in subsection (2); or 33
s 99 85 s 99
Duties Bill 2001
(ii) agent or nominee of another person; 1
(c) the business for which the business property is used is carried on 2
by the ancestor, whether alone or with others; 3
(d) the business is intended to be carried on by the transferee, 4
whether alone or with others. 5
(2) For subsection (1)(b)(i)-- 6
(a) the beneficiary of the trust is-- 7
(i) a descendant of the person creating the trust; and 8
(ii) a minor; and 9
(b) there are no other beneficiaries of the trust, other than a person 10
who would become a beneficiary of the trust on the death of the 11
beneficiary mentioned in paragraph (a). 12
99 Conditions for partnership acquisitions 13
(1) The conditions applying to a dutiable transaction mentioned in 14
section 97(1)(b) are as follows-- 15
(a) the partnership is a family partnership for the acquirer; 16
(b) the transferor or person directing the acquisition is an ancestor of 17
the acquirer; 18
(c) the acquirer does not acquire the partnership interest as-- 19
(i) trustee, other than as trustee of a trust for the beneficiaries 20
mentioned in subsection (2); or 21
(ii) agent or nominee of another person; 22
(d) the business for which the business property is used is carried on 23
by the ancestor with the other partners; 24
(e) the business is intended to be carried on by the acquirer, whether 25
alone or with other partners. 26
(2) For subsection (1)(c)(i)-- 27
(a) the beneficiary of the trust is-- 28
(i) a descendant of the person creating the trust; and 29
(ii) a minor; and 30
s 100 86 s 101
Duties Bill 2001
(b) there are no other beneficiaries of the trust, other than a person 1
who would become a beneficiary of the trust on the death of the 2
beneficiary mentioned in paragraph (a). 3
100 Conditions for particular trust acquisitions 4
(1) The conditions applying to a dutiable transaction mentioned in 5
section 97(1)(c) are as follows-- 6
(a) the trust is a family trust for the acquirer; 7
(b) the person disposing of the interest or directing the acquisition is 8
an ancestor of the acquirer; 9
(c) the acquirer does not acquire the interest as-- 10
(i) trustee, other than as trustee of a trust for the beneficiaries 11
mentioned in subsection (2); or 12
(ii) agent or nominee of another person; 13
(d) the business for which the business property is used is carried on 14
by the ancestor, whether alone or with others; 15
(e) the business is intended to be carried on by the acquirer, whether 16
alone or with others. 17
(2) For subsection (1)(c)(i)-- 18
(a) the beneficiary of the trust is-- 19
(i) a descendant of the person creating the trust; and 20
(ii) a minor; and 21
(b) there are no other beneficiaries of the trust, other than a person 22
who would become a beneficiary of the trust on the death of the 23
beneficiary mentioned in paragraph (a). 24
101 Conditions for creation of trusts and particular trust acquisitions 25
The conditions applying to a dutiable transaction mentioned in 26
section 97(1)(d) are as follows-- 27
(a) the trust is a family trust for the acquirer; 28
(b) the beneficiary of the trust is-- 29
(i) a descendant of the person creating the trust; and 30
s 102 87 s 102
Duties Bill 2001
(ii) a minor; 1
(c) there are no other beneficiaries of the trust other than a person 2
who would become a beneficiary of the trust on the death of the 3
beneficiary mentioned in paragraph (b); 4
(d) the acquirer does not acquire the interest as agent or nominee of 5
another person; 6
(e) the business for which the business property is used is carried on 7
by the person creating the trust, whether alone or with others; 8
(f) the business is intended to be carried on for the beneficiary, 9
whether alone or with others. 10
102 Conditions for acquisitions of interest in family unit trusts 11
(1) The conditions applying to a dutiable transaction mentioned in 12
section 97(1)(e) are as follows-- 13
(a) the trust is a family unit trust for the acquirer; 14
(b) the person disposing of the interest or directing the acquisition is 15
an ancestor of the acquirer; 16
(c) the acquirer does not acquire the interest as-- 17
(i) trustee, other than as trustee of a trust for the beneficiaries 18
mentioned in subsection (2); or 19
(ii) agent or nominee of another person; 20
(d) the business for which the business property is used is carried on 21
by the ancestor, whether alone or with others; 22
(e) the business is intended to be carried on by the acquirer, whether 23
alone or with others. 24
(2) For subsection (1)(c)(i)-- 25
(a) the beneficiary of the trust is-- 26
(i) a descendant of the person creating the trust; and 27
(ii) a minor; and 28
(b) there are no other beneficiaries of the trust, other than a person 29
who would become a beneficiary of the trust on the death of the 30
beneficiary mentioned in paragraph (a). 31
s 103 88 s 104
Duties Bill 2001
103 Conditions for transfer or agreement for transfer of Queensland 1
marketable security 2
(1) The conditions applying to a dutiable transaction mentioned in 3
section 97(1)(f) are as follows-- 4
(a) the corporation is a family company for the transferee; 5
(b) the transferor or person directing the transfer is an ancestor of the 6
transferee; 7
(c) the transferee does not acquire the Queensland marketable 8
security as-- 9
(i) trustee, other than as trustee of a trust for the beneficiaries 10
mentioned in subsection (2); or 11
(ii) agent or nominee of another person; 12
(d) the business for which the business property is used is carried on 13
by the ancestor whether alone or with others; 14
(e) the business is intended to be carried on by the transferee, 15
whether alone or with others. 16
(2) For subsection (1)(c)(i)-- 17
(a) the beneficiary of the trust is-- 18
(i) a descendant of the person creating the trust; and 19
(ii) a minor; and 20
(b) there are no other beneficiaries of the trust, other than a person 21
who would become a beneficiary of the trust on the death of the 22
beneficiary mentioned in paragraph (a). 23
104 Dutiable transactions by way of gift 24
For this part, a dutiable transaction is by way of gift if there is no 25
consideration or the unencumbered value of the dutiable property is greater 26
than the consideration for the transaction. 27
s 105 89 s 106
Duties Bill 2001
Division 2--Concessions for transfer duty for dutiable transactions 1
105 How transfer duty is assessed on dutiable transaction 2
(1) This section applies for assessing transfer duty on a dutiable 3
transaction to which this part applies to the extent it is by way of gift. 4
(2) The unencumbered value of the business property is-- 5
(a) if the business is a primary production business--taken to be nil; 6
or 7
(b) if the business is a prescribed business--limited to the amount by 8
which the value exceeds $500 000. 9
(3) Also, the family company is taken to have no liabilities. 10
(4) In addition, if the dutiable property the subject of the dutiable 11
transaction includes residential land adjacent to land used to carry on the 12
business and the business is a primary production business, the 13
unencumbered value of the residential land is taken to be nil. 14
(5) Subsection (2)(b) has effect subject to section 106. 15
106 Special provision for assessing transfer duty if total gifts of 16
property used for prescribed business exceed $500 000 17
(1) This section applies to a dutiable transaction to which this part 18
applies if-- 19
(a) business property to which the transaction relates is used to carry 20
on a prescribed business; and 21
(b) the transferee or acquirer has, since 12 December 1984, been 22
gifted business property, a partnership interest, a trust interest or 23
a marketable security; and 24
(c) the gift was made by or at the direction of the ancestor of the 25
transferee or acquirer; and 26
(d) the ancestor was a party to, or directed, the transaction; and 27
(e) the gifted business property or the business property of the 28
partnership, trust or corporation to which the gifted interest or 29
security relates is also used to carry on the prescribed family 30
business. 31
s 107 90 s 108
Duties Bill 2001
(2) The unencumbered value of the business property to which the 1
transaction relates is limited to the amount by which the total value of the 2
property mentioned in subsection (1)(a) and (e) exceeds $500 000. 3
107 Application for concession for transfer duty under pt 10 4
An application for a concession for transfer duty on a dutiable 5
transaction under this part must-- 6
(a) be made in the approved form; and 7
(b) be lodged when the instrument that effects or evidences the 8
transaction or transfer duty statement for the transaction is 9
lodged for assessment. 10
PART 11--CONCESSIONS FOR SUPERANNUATION 11
108 Dutiable transactions to which pt 11 applies 12
(1) This part applies to the following dutiable transactions-- 13
(a) a transfer of dutiable property between superannuation funds to 14
effect a merger of 2 or more superannuation funds or the splitting 15
of a superannuation fund into 2 or more superannuation funds, if 16
the trustees of the funds declare the new fund or funds will be 17
complying superannuation funds within 1 year after the merger 18
or split; 19
(b) the creation of a trust of dutiable property because of the 20
variation or reconstitution of a superannuation fund if the trustees 21
of the fund declare that the fund, after the variation or 22
reconstitution, will be a complying superannuation fund within 23
1 year after the creation of the trust. 24
(2) However, this part does not apply if the dutiable transaction is part of 25
an arrangement the sole or dominant purpose of which is to avoid duty on 26
the disposition of dutiable property of, or to, a superannuation fund. 27
s 109 91 s 111
Duties Bill 2001
109 Concession for transfer duty 1
Transfer duty imposed on a dutiable transaction to which this part 2
applies is $20. 3
110 Documents to accompany application 4
An application for an assessment of duty under this part must be 5
accompanied by the following-- 6
(a) an explanation of the background to the dutiable transaction and 7
the entitlements, if any, to be extinguished or created; 8
(b) copies of the governing rules of the superannuation funds and 9
any proposed amendments of the rules; 10
(c) a statement of the dutiable property the subject of the transaction; 11
(d) a copy of each instrument relating to the transaction; 12
(e) a statutory declaration from a trustee of each of the 13
superannuation funds concerned stating that, in the trustee's 14
opinion, the fund will be a complying superannuation fund 15
within 1 year after the transaction. 16
PART 12--CONCESSIONS FOR PARTICULAR 17
INVESTMENT SCHEMES 18
111 Dutiable transactions to which pt 12 applies 19
This part applies to each of the following dutiable transactions if the 20
conditions applying to the transaction are satisfied-- 21
(a) a transfer, or agreement for the transfer, of dutiable property from 22
a retiring trustee of a prescribed interest scheme to the entity that 23
will, after the transition of the prescribed interest scheme to a 24
registered managed investment scheme, be the custodian of the 25
responsible entity for the registered managed investment scheme; 26
(b) a transfer, or agreement for the transfer, of dutiable property of a 27
registered managed investment scheme from the responsible 28
entity of the scheme to the custodian of the responsible entity; 29
s 112 92 s 114
Duties Bill 2001
(c) the creation of a trust of dutiable property by a custodian acting 1
as a trustee; 2
(d) a trust acquisition or trust surrender made because of-- 3
(i) the creation of a trust by a custodian acting as a trustee; or 4
(ii) the appointment of a custodian. 5
112 Conditions for concession 6
For section 111, the conditions are-- 7
(a) the dutiable transaction must be made for giving effect to the 8
conversion of a prescribed interest scheme to a registered 9
managed investment scheme; and 10
(b) the transaction must be entered into in the conversion period; and 11
(c) the persons who are members of the registered managed 12
investment scheme must have the same beneficial interest in the 13
property of the scheme immediately before the transaction was 14
entered into as they had immediately after the transaction was 15
entered into. 16
113 Concession for conversion of interests in prescribed interest 17
schemes 18
Transfer duty imposed on a dutiable transaction to which this part 19
applies is $100. 20
114 Expiry of pt 12 21
This part expires 1 year after the end of the conversion period. 22
s 115 93 s 115
Duties Bill 2001
PART 13--EXEMPTIONS FOR TRANSFER DUTY 1
Division 1--Exemptions for cancelled agreements and particular 2
agreements entered into before registration of companies 3
115 Exemption--cancelled agreements 4
(1) Transfer duty is not imposed on a dutiable transaction that is an 5
agreement for the transfer of dutiable property (the "cancelled 6
agreement") if-- 7
(a) the agreement is ended because of a breach of it by a party to it; 8
or 9
(b) the agreement is ended because of non-fulfilment of a condition 10
of it; or 11
(c) the agreement is brought to an end by frustration; or 12
(d) the agreement is ended with the consent of the parties to it and 13
there is no resale agreement. 14
(2) For subsection (1)(d), an agreement is a resale agreement if-- 15
(a) under the agreement, any of the dutiable property the subject of 16
the cancelled agreement is or will be transferred or is agreed to 17
be transferred; and 18
(b) the transferee under the cancelled agreement receives, or will 19
receive, directly or indirectly a financial benefit other than-- 20
(i) being released from the transferee's obligation under the 21
cancelled agreement; or 22
(ii) an interest in the dutiable property to the extent that the 23
unencumbered value of the interest does not represent a 24
profit for the transferee because of the resale agreement. 25
(3) If, on an assessment, transfer duty has been paid on an agreement 26
that is not liable to transfer duty because of this section, the commissioner 27
must make a reassessment if an application is made within 6 months after 28
the agreement is ended or within the longer period the commissioner 29
allows. 30
(4) The applicant must lodge the cancelled agreement with the 31
application. 32
s 116 94 s 116
Duties Bill 2001
116 Exemption--particular agreements entered into before 1
registration of company 2
(1) Subsection (2) applies if-- 3
(a) a transferee enters into an agreement (the "first agreement") for, 4
or for the benefit of, a company proposed to be registered under 5
the Corporations Act; and 6
(b) the company is named in the first agreement; and 7
(c) the company, or a company that is reasonably identifiable with it, 8
is registered under the Corporations Act; and 9
(d) the first agreement is ended so that the company can enter into an 10
agreement as the transferee of the dutiable property. 11
(2) Transfer duty is not imposed on the dutiable transaction that is the 12
first agreement for the transfer of the dutiable property. 13
(3) Subsection (4) applies if-- 14
(a) a transferee enters into an agreement for, or for the benefit of, a 15
company proposed to be registered under the Corporations Act; 16
and 17
(b) the company is named in the agreement; and 18
(c) the company, or a company that is reasonably identifiable with it, 19
is registered under the Corporations Act; and 20
(d) under the Corporations Act, section 131, the company ratifies the 21
agreement after it is registered. 22
(4) Transfer duty is not imposed on the dutiable transaction that is the 23
transfer of the dutiable property to the company if transfer duty imposed on 24
the agreement is paid. 25
(5) If, on an assessment, transfer duty has been paid on a dutiable 26
transaction that is not liable to transfer duty because of this section, the 27
commissioner must make a reassessment if an application is made within 6 28
months after the agreement is ended or ratified or the longer period the 29
commissioner allows. 30
(6) The applicant must lodge the first agreement or transfer with the 31
application. 32
s 117 95 s 118
Duties Bill 2001
Division 2--Exemptions for trusts 1
117 Exemption--change of trustee 2
Transfer duty is not imposed on a dutiable transaction for the sole 3
purpose of giving effect to a change of a trustee if-- 4
(a) the transaction is not part of an arrangement-- 5
(i) involving a change in the rights or interest of a beneficiary 6
of the trust; or 7
(ii) terminating the trust; and 8
(b) transfer duty has been paid on all trust acquisitions for which 9
transfer duty is imposed for the trust before the transaction. 10
118 Exemption--trust acquisition or surrender in family trust 11
(1) Transfer duty is not imposed on a dutiable transaction that is a trust 12
acquisition or trust surrender of a trust interest if-- 13
(a) the commissioner is satisfied the trust is established as a 14
discretionary trust primarily for the benefit of the members of a 15
particular family or family company; and 16
(b) the person acquiring or surrendering the trust interest is a 17
member of the family who, or is a family company that, does not 18
benefit in the capacity of trustee. 19
(2) Also, transfer duty is not imposed on a dutiable transaction that is a 20
trust acquisition or trust surrender if the commissioner is satisfied-- 21
(a) the trust is established primarily for the benefit of the members of 22
a particular family or family company; and 23
(b) the trust acquisition or trust surrender is a result of-- 24
(i) a member of the family becoming or ceasing to be a 25
member of a class of beneficiaries of the trust because of the 26
birth or death of the member; or 27
(ii) the person becoming or ceasing to be a member of a class of 28
beneficiaries of the trust comprising the children, 29
stepchildren or grandchildren of a named member or 30
members of the family. 31
s 119 96 s 120
Duties Bill 2001
(3) The commissioner may be satisfied of the matter mentioned in 1
subsection (1)(a) or (2)(a), even if an exempt institution is the last taker in 2
default of an appointment by the trustee of the trust. 3
(4) In this section-- 4
"family company", for a trust, means a corporation in which all directors 5
and shareholders are members of the particular family for which the 6
trust is established. 7
119 Exemption--trust acquisition or surrender in superannuation 8
fund 9
Transfer duty is not imposed on a dutiable transaction that is a trust 10
acquisition or trust surrender of a trust interest-- 11
(a) of a member in a superannuation fund if the transaction is for the 12
sole purpose of providing superannuation benefits for the 13
member; or 14
(b) to the extent the transaction gives effect to a distribution of 15
benefits of a person who was a member of a superannuation fund 16
on the person's death. 17
120 Exemption--trust acquisition or surrender for membership of 18
particular unincorporated association 19
(1) Transfer duty is not imposed on a dutiable transaction that is a trust 20
acquisition or trust surrender of a trust interest of a member of an 21
unincorporated association to which this section applies if-- 22
(a) the transaction is solely the result of a person becoming a 23
member of the association for the sole purpose of enjoying the 24
benefits of membership and no consideration is paid or payable 25
by the person other than membership fees; or 26
(b) the transaction is solely the result of a person ceasing to be a 27
member of the association and no consideration is received by 28
the person other than a refund of membership fees. 29
(2) This section applies to an unincorporated association that-- 30
(a) has at least 7 members; and 31
(b) is not formed or carried on for providing financial gain for its 32
members; and 33
s 121 97 s 122
Duties Bill 2001
(c) does not have as its main purpose the holding of property-- 1
(i) in which its members have a disposable interest; or 2
(ii) that the members have a right to divide between all or some 3
of them; or 4
(iii) for use by some or all of its members or among persons 5
claiming through, or nominated by, some or all of its 6
members; or 7
(iv) for distribution, or for distribution of the income from it, 8
among some or all of its members or among persons 9
claiming through, or nominated by, some or all of its 10
members; and 11
(d) does not have an object of raising a fund by subscription of its 12
members to make loans to them. 13
(3) For subsection (2)(b), an association is not formed or carried on for 14
providing financial gain for its members merely because 1 or more of the 15
circumstances mentioned in the Associations Incorporation Act 1981, 16
section 4, apply to it. 17
121 Exemption--trust acquisition or surrender for dutiable property 18
comprising only existing rights 19
Transfer duty is not imposed on a dutiable transaction that is a trust 20
acquisition or trust surrender of a trust interest if-- 21
(a) the only dutiable property of the trust are existing rights of the 22
holder of a mortgage, charge, bill of sale or other security over 23
dutiable property located in Queensland; and 24
(b) the existing rights have been given in favour of the trustee for the 25
sole purpose of being held for the benefit of the beneficiaries of 26
the trust who have provided, or will from time to time provide, 27
financial accommodation. 28
122 Exemption--mortgage-backed securities 29
Transfer duty is not imposed on a dutiable transaction that-- 30
(a) is the creation of a trust of dutiable property or a trust 31
acquisition; and 32
s 123 98 s 123
Duties Bill 2001
(b) is required to give effect to the acquisition of a mortgage-backed 1
security. 2
123 Exemption--particular distribution of dutiable property to a 3
beneficiary 4
(1) Transfer duty is not imposed on a dutiable transaction that is the 5
transfer, or agreement for the transfer, of dutiable property to a beneficiary, 6
or the surrender of a trust interest of a beneficiary, to the extent it 7
represents the beneficiary's trust interest on a distribution by the trustee 8
under a trust. 9
(2) However, subsection (1) applies only if the commissioner is 10
satisfied-- 11
(a) the dutiable property being distributed to the beneficiary-- 12
(i) is the same property held on trust at the time the beneficiary 13
acquired the beneficiary's trust interest; or 14
(ii) represents the proceeds of re-investment of property held on 15
trust when the beneficiary acquired the beneficiary's trust 16
interest in the trust; and 17
(b) under this chapter-- 18
(i) transfer duty imposed has been paid for the dutiable 19
transactions that are the creation of a trust of the dutiable 20
property or the trust acquisition of the beneficiary's trust 21
interest; or 22
(ii) the transactions are exempt from transfer duty. 23
(3) Also, subsection (1) applies only to the extent transfer duty is paid for 24
the distribution of the dutiable property if-- 25
(a) a concession for transfer duty has been provided under part 10 26
for the dutiable property; and 27
(b) either of the following apply-- 28
(i) the beneficiary is not a descendant of the person who 29
created the trust; or 30
(ii) the property is not, at the time of the distribution, business 31
property or the business is not intended to be carried on by 32
the beneficiary, whether alone or with others. 33
s 124 99 s 126
Duties Bill 2001
124 Exemption--deceased person's estate 1
Transfer duty is not imposed on the following dutiable transactions12-- 2
(a) a transfer, or agreement for the transfer, of dutiable property to 3
the extent that it gives effect to a distribution in the estate of a 4
deceased person; 5
(b) the creation of a trust of dutiable property to the extent that it 6
gives effect to a distribution in the estate of a deceased person; 7
(c) a transfer, or agreement for the transfer, of dutiable property to 8
the extent that it gives effect to a court order under the Succession 9
Act 1981, part 4. 10
125 Exemption--particular vestings of dutiable property 11
Transfer duty is not imposed on a dutiable transaction that is, or arises 12
from-- 13
(a) a vesting of dutiable property on a statutory trust for sale or 14
partition under the Property Law Act 1974, part 5; or 15
(b) a vesting of dutiable property in a receiver or trustee in 16
bankruptcy or a retransfer of the property to the bankrupt on the 17
bankrupt's discharge from bankruptcy. 18
126 Exemption--transactions for trust created for person under legal 19
disability 20
Transfer duty is not imposed on a dutiable transaction that is-- 21
(a) the transfer, or agreement for the transfer, of dutiable property 22
from the trustee of a trust created under the Public Trustee Act 23
1978, section 59,13 to the beneficiary of the trust; or 24
(b) the surrender of a trust interest of the beneficiary as a result of the 25
transfer or agreement for the transfer. 26
12 Also, see section 66 (When no transfer duty on trust acquistion or trust surrender).
13 Public Trustee Act 1978, section 59, (Compromise of actions by or on behalf of
persons under a legal disability claiming moneys or damages valid only with
sanction of court or public trustee)
s 127 100 s 129
Duties Bill 2001
127 Exemption--declaration of charitable trust 1
Transfer duty is not imposed on a dutiable transaction that is-- 2
(a) the creation of a trust, that is a charitable trust only, of dutiable 3
property; or 4
(b) a trust acquisition in a trust that is a charitable trust only. 5
128 Exemption--community purpose associations 6
Transfer duty is not imposed on a dutiable transaction that is the creation 7
of a trust of dutiable property or a trust acquisition for which details of the 8
trust are required to be registered under the Land Title Act 1994 if-- 9
(a) the association of persons for which the property is held on trust 10
is formed for providing recreation or amusement, promoting 11
religion, charity, patriotism or the arts or achieving another 12
object that, in the commissioner's opinion, is useful to the 13
community; and 14
(b) the association's constitution provides for the application of its 15
funds to its objects and prohibits the distribution of any part of its 16
funds or profits to its members. 17
Division 3--Exemptions for particular investment schemes 18
129 Exemption--transfer by direction to primary custodian for 19
responsible entity of registered managed investment scheme 20
(1) Transfer duty is not imposed on a transfer of dutiable property from a 21
person as vendor to another person as primary custodian for the responsible 22
entity of a registered managed investment scheme. 23
(2) However, subsection (1) applies only if-- 24
(a) the transfer is made under a dutiable transaction that is the 25
agreement for the transfer of the property entered into between 26
the person as vendor and the responsible entity as purchaser; and 27
(b) the property is acquired by the responsible entity as scheme 28
property; and 29
(c) transfer duty imposed on the transaction has been paid. 30
s 130 101 s 131
Duties Bill 2001
130 Exemption--other transfers of scheme property of registered 1
managed investment scheme 2
(1) Transfer duty is not imposed on a transfer, or agreement for the 3
transfer, of scheme property of a registered managed investment scheme 4
from-- 5
(a) the responsible entity of the scheme to a person as primary 6
custodian for the responsible entity; or 7
(b) a person as primary custodian for the responsible entity of the 8
scheme to the responsible entity. 9
(2) However, subsection (1) does not apply if the transfer or agreement is 10
part of an arrangement under which-- 11
(a) the scheme property, or an interest in the scheme property, ceases 12
to be scheme property; or 13
(b) the persons who are members of the registered managed 14
investment scheme do not have the same trust interest in the 15
scheme property after the property is transferred or agreement is 16
made as they had immediately before the arrangement was 17
entered into. 18
Division 4--Exemptions for dealings under particular Acts 19
131 Exemption--dealings under Aboriginal and Torres Strait Islander 20
Land Acts 21
Transfer duty is not imposed on the following dutiable transactions-- 22
(a) the issue, under the Aboriginal Land Act 1991 or Torres Strait 23
Islander Land Act 1991, of a deed of grant in fee simple; 24
(b) the issue of-- 25
(i) an Aboriginal lease under the Aboriginal Land Act 1991 or a 26
lease prepared for section 83 or 136 of that Act; or 27
(ii) a Torres Strait Islander lease under the Torres Strait Islander 28
Land Act 1991 or a lease prepared for section 80 or 133, of 29
that Act; 30
(c) a surrender, under or for the Aboriginal Land Act 1991 or Torres 31
Strait Islander Land Act 1991, of a deed of grant or lease 32
mentioned in paragraph (a) or (b); 33
s 132 102 s 133
Duties Bill 2001
(d) the acquisition of an interest in land because the Aboriginal Land 1
Act 1991, section 84, or the Torres Strait Islander Land Act 1991, 2
section 81, ceases to apply to the land. 3
132 Exemption--vesting under boundary adjustment plans 4
Transfer duty is not imposed on the vesting of land because of the 5
registration of-- 6
(a) a boundary adjustment plan under the Integrated Resort 7
Development Act 1987, part 5, division 4, subdivision B; or 8
(b) a boundary adjustment plan under the Mixed Use Development 9
Act 1993, part 5, division 11; or 10
(c) a stratum boundary adjustment plan under the Mixed Use 11
Development Act 1993, part 6, division 2; or 12
(d) a boundary adjustment plan under the South Bank Corporation 13
Act 1989, section 25A. 14
133 Exemption--building units and group titles plans and community 15
titles schemes 16
Transfer duty is not imposed on the following dutiable transactions-- 17
(a) a transfer, or agreement for the transfer, of a lot under a building 18
units or group titles plan registered under the Building Units and 19
Group Titles Act 1980 if-- 20
(i) the transferor is a corporation (the "transferor 21
corporation"); and 22
(ii) when the plan was registered, the transferor corporation 23
held the fee simple of the land in the plan; and 24
(iii) the transferee held shares in the transferor corporation that 25
were surrendered to obtain the transfer of the lot from the 26
transferor corporation; and 27
(iv) the separate area that the lot comprises corresponds with the 28
separate area the transferee had a right to occupy 29
immediately before surrendering the transferee's shares; 30
and 31
(v) the separate area that the lot comprises has been used for 32
residential purposes immediately before the transferee 33
s 134 103 s 135
Duties Bill 2001
surrendered the transferee's shares and will, after 1
registration of the plan and the transfer of the lot to the 2
transferee, be used for residential purposes; 3
(b) a transfer, or agreement for the transfer, of a lot that, under the 4
Body Corporate and Community Management Act 1997, is a lot 5
included in a community titles scheme if-- 6
(i) the transferor is a corporation (the "transferor 7
corporation"); and 8
(ii) under that Act, the transferor corporation is the original 9
owner for the scheme; and 10
(iii) the transferee held shares in the transferor corporation that 11
were surrendered to obtain the transfer of the lot from the 12
transferor corporation; and 13
(iv) the separate area that the lot comprises corresponds with the 14
separate area the transferee had a right to occupy 15
immediately before surrendering the transferee's shares; 16
and 17
(v) the separate area that the lot comprises has been used for 18
residential purposes immediately before the transferee 19
surrendered the transferee's shares and will, after 20
registration of the plan and the transfer of the lot to the 21
transferee, be used for residential purposes. 22
134 Exemption--forfeiture orders 23
Transfer duty is not imposed on a dutiable transaction that is the transfer, 24
or agreement for the transfer, of dutiable property under-- 25
(a) the Crimes (Confiscation) Act 1989, section 28, 29 or 33; or 26
(b) the Drugs Misuse Act 1986, section 39(4). 27
135 Exemption--industrial organisations 28
Transfer duty is not imposed on a dutiable transaction that is-- 29
(a) the vesting of dutiable property in an industrial organisation 30
under the Industrial Relations Act 1999, chapter 12, part 15; or 31
s 136 104 s 137
Duties Bill 2001
(b) the transfer, or agreement for the transfer, of dutiable property 1
from trustees of an industrial organisation under the Industrial 2
Relations Act 1999 to the organisation. 3
136 Exemption--dealings under Land Act 4
Transfer duty is not imposed on the following dutiable transactions-- 5
(a) a grant under the Land Act 1994, in fee simple in trust, of 6
unallocated State land for a community purpose under that Act; 7
(b) a grant under the Land Act 1994, in fee simple, of land comprised 8
in any of the following to a person who held a right to acquire the 9
fee simple-- 10
(i) a grazing homestead freeholding lease under that Act; 11
(ii) an agricultural farm, grazing homestead freeholding lease or 12
perpetual lease selection issued under the Land Act 1962; 13
(c) a grant under the Land Act 1994, section 506H, in fee simple, of 14
land comprised in a purchase lease; 15
(d) a surrender under the Land Act 1994 of land held in fee simple to 16
the State; 17
(e) a transfer, or agreement for the transfer, of a road licence issued 18
under the Land Act 1994, section 103, if the value of the licence 19
is not more than $200; 20
(f) a transfer, or agreement for the transfer, of a pastoral lease under 21
the Land Act 1994, other than a preferential pastoral holding 22
issued under the Land Act 1962, from the mortgagee to the 23
mortgagor having the effect of a release of the mortgage; 24
(g) the acquisition of a new right that is a change of tenure under the 25
Land Act 1994, section 504 or 505; 26
(h) the acquisition of a new right that is a lease, licence or permit 27
issued under the Land Act 1994. 28
137 Exemption--mining and petroleum legislation 29
(1) Transfer duty is not imposed on a dutiable transaction that is a 30
transfer, or agreement for the transfer, of a mining claim, or a share in a 31
mining claim, under the Mineral Resources Act 1989 if the consideration is 32
not more than $100. 33
s 138 105 s 138
Duties Bill 2001
(2) Transfer duty is not imposed on a dutiable transaction that is-- 1
(a) the grant of a tenure under the Offshore Minerals Act 1998; or 2
(b) the transfer, or agreement for the transfer, of a tenure or interest 3
in a tenure, under that Act. 4
(3) Transfer duty is not imposed on a dutiable transaction that is the 5
grant of a sublease under a unitisation arrangement under the Petroleum Act 6
1923, section 62. 7
(4) Transfer duty is not imposed on a dutiable transaction that is-- 8
(a) the grant of an access authority, licence, permit or pipeline 9
licence under the Petroleum (Submerged Lands) Act 1982; or 10
(b) the transfer, agreement for the transfer or surrender, of-- 11
(i) an authority, licence or permit mentioned in paragraph (a); 12
or 13
(ii) an interest in an authority, licence or permit mentioned in 14
paragraph (a). 15
138 Exemption--mobile homes 16
(1) Transfer duty is not imposed on any of the following dutiable 17
transactions-- 18
(a) a transfer, or agreement for the transfer, of a mobile home 19
positioned on a site under a relevant agreement; 20
(b) a transfer, or agreement for the transfer, of a mobile home not 21
positioned on a site if-- 22
(i) the mobile home is acquired for positioning on a site under 23
a relevant agreement; and 24
(ii) the transfer or agreement is not part of a transaction 25
involving the transferor's agreement for the transfer of 26
ownership of land; 27
(c) a transfer, or agreement for the transfer, of a person's rights and 28
obligations as occupier of a mobile home under a relevant 29
agreement for the home. 30
(2) In this section-- 31
"mobile home" see the Mobile Homes Act 1989, section 3. 32
s 139 106 s 141
Duties Bill 2001
"relevant agreement" see the Mobile Homes Act 1989, section 3.14 1
"site" see the Mobile Homes Act 1989, section 3.15 2
139 Exemption--dealings under South Bank Corporation Act 3
Transfer duty is not imposed on a dutiable transaction that is-- 4
(a) the transfer, or agreement for the transfer, of dutiable property for 5
which no fee or charge is payable under the South Bank 6
Corporation Act 1989, section 15; or 7
(b) the determination or partial determination of a lease under the 8
South Bank Corporation Act 1989, schedule 7, part 2 or 3. 9
140 Exemption--particular water entitlements 10
Transfer duty is not imposed on a dutiable transaction that is the grant of 11
a water entitlement to the extent that it replaces and represents-- 12
(a) a water entitlement held by the grantee; or 13
(b) an authority to take water under the repealed Water Resources 14
Act 1989 held by the grantee immediately before the repeal of 15
that Act. 16
141 Exemption--particular statutory bodies 17
(1) Transfer duty is not imposed on a dutiable transaction that is the 18
transfer, or agreement for the transfer, of dutiable property to any of the 19
following bodies-- 20
(a) the Library Board of Queensland constituted under the Libraries 21
and Archives Act 1988; 22
14 Mobile Homes Act 1989, section 3--
"relevant agreement" means an agreement under which a person is entitled--
(a) to position a mobile home on a site; and
(b) to occupy the mobile home as the person's only or principal place of
residence.
15 Mobile Homes Act 1989, section 3--
"site" means land made available for positioning of mobile homes under relevant
agreements and includes every part of such land.
s 142 107 s 142
Duties Bill 2001
(b) The National Trust of Queensland constituted under the National 1
Trust of Queensland Act 1963; 2
(c) the Queensland Art Gallery Board of Trustees constituted under 3
the Queensland Art Gallery Act 1987; 4
(d) the Queensland Museum Board of Trustees constituted under the 5
Queensland Museum Act 1970; 6
(e) the Queensland Performing Arts Trust constituted under the 7
Queensland Performing Arts Trust Act 1977; 8
(f) the Raine Island Corporation constituted under the Meaker Trust 9
(Raine Island Research) Act 1981; 10
(g) the Royal Queensland Theatre Company constituted under the 11
Royal Queensland Theatre Company Act 1970. 12
(2) Transfer duty is not imposed on a dutiable transaction that is a gift of 13
dutiable property under the Queensland Institute of Medical Research Act 14
1945, section 14, to the Council of the Queensland Institute of Medical 15
Research constituted under that Act. 16
Division 5--Miscellaneous exemptions 17
142 Exemption--exempt institutions 18
(1) Transfer duty is not imposed on a transfer, or agreement for the 19
transfer, of dutiable property to-- 20
(a) an exempt institution to conduct an art union, if the prize for the 21
art union is to be represented wholly or partly by the dutiable 22
property transferred; or 23
(b) the winner of a prize in the art union; 24
(2) In this section-- 25
"art union" see the Charitable and Non-Profit Gaming Act 1999, 26
section 6. 27
"exempt institution" does not include an exempt institution under 28
section 459(2)(a). 29
s 143 108 s 148
Duties Bill 2001
143 Exemption--change of tenure 1
Transfer duty is not imposed on a transfer, or the agreement for the 2
transfer, effecting a change in the registered ownership of property from 3
joint tenants to tenants in common or vice versa, if the value of the 4
co-owners' interests at the time of the transaction is not changed. 5
144 Exemption--joint tenancy 6
Transfer duty is not imposed on a dutiable transaction that arises by 7
operation of law because of the death of a joint tenant. 8
145 Exemption--transfer to State for public or community purpose 9
Transfer duty is not imposed on a dutiable transaction that is a transfer of 10
land to the State for-- 11
(a) a public purpose under the Acquisition of Land Act 1967; or 12
(b) a community purpose under the Land Act 1994. 13
146 Exemption--lease duty 14
Transfer duty is not imposed on an acquisition of a new right that is a 15
lease of land in Queensland that is exempt from lease duty.16 16
147 Exemption--surrender of lease 17
Transfer duty is not imposed on a dutiable transaction that is a surrender 18
of a lease of land in Queensland if-- 19
(a) there is no premium, fine or other consideration paid or payable 20
for the surrender; or 21
(b) any premium, fine or other consideration paid or payable for the 22
surrender is paid by the lessor. 23
148 Exemption--marketable securities etc. 24
(1) Transfer duty is not imposed on any of the following dutiable 25
transactions-- 26
16 See section 244 (Exemption--particular residences).
s 149 109 s 149
Duties Bill 2001
(a) a transfer, or agreement for the transfer, of stock, debentures or 1
bonds of an authority established under a State Act or an Act of 2
another State; 3
(b) a transfer, or agreement for the transfer, of a corporate debt 4
security; 5
(c) a transfer, or agreement for the transfer, of a Queensland 6
marketable security to or from a corporation that is-- 7
(i) a financial institution; or 8
(ii) trustee company under the Trustee Companies Act 1968; or 9
(iii) a related body corporate of the corporation; or 10
(iv) a corporation of a class prescribed under a regulation; 11
(d) a transfer, or agreement for the transfer, of an Exchanging 12
Instalment Note Series 2 issued under the deed poll signed by the 13
State on 8 October 1998. 14
(2) However, subsection (1)(c) applies only if the corporation's principal 15
business is to hold property as trustee or nominee for another person and-- 16
(a) for a transfer to the corporation--the property is to be held on 17
trust solely for the transferor and the transfer is not part of 18
arrangement under which the security will be held on trust for 19
another person; or 20
(b) for a transfer from the corporation--the transfer is a retransfer to 21
the owner in the same capacity as the security was previously 22
held by the owner. 23
149 Exemption--debt factoring agreements 24
(1) Transfer duty is not imposed on a transfer, or agreement for the 25
transfer, of a business asset that is a book debt if the transaction is part of a 26
debt factoring agreement between the parties. 27
(2) In this section-- 28
"debt factoring agreement" means an agreement for purchasing, 29
acquiring or factoring a book debt for providing finance to the 30
transferor of the book debt. 31
s 150 110 s 152
Duties Bill 2001
150 Exemption--particular chattels 1
(1) Transfer duty is not imposed on a dutiable transaction that is the 2
transfer, or agreement for the transfer, of any of the following chattels taken 3
under a statutory licence, profit a prendre, sharefarming agreement or other 4
similar arrangement if the condition in subsection (2) for the chattel is 5
complied with-- 6
(a) standing timber; 7
(b) gas, petroleum or mineral; 8
(c) gravel, rock, stone, sand, clay, earth or soil; 9
(d) primary produce; 10
(e) fish or livestock; 11
(f) water. 12
(2) For subsection (1), the condition is-- 13
(a) for a chattel mentioned in paragraphs (a) to (d)--it must be 14
severed or released, and taken, from land in Queensland by the 15
transferee; or 16
(b) for a chattel mentioned in paragraph (e) or (f)--it must be taken 17
from land in Queensland by the transferee. 18
151 Exemption--particular residences 19
Transfer duty is not imposed on a dutiable transaction that is the transfer, 20
or agreement for the transfer, by way of gift, from 1 party to a subsisting 21
marriage or de facto relationship to the other party to the marriage or 22
de facto relationship, of an interest in residential land if-- 23
(a) after the transfer, the residential land will be owned by the parties 24
as joint tenants or tenants in common in equal shares; and 25
(b) the residence will be the principal residence of the parties. 26
152 Exemption--to correct error in previous dutiable transaction 27
Transfer duty is not imposed on a dutiable transaction to correct an error 28
in a previous dutiable transaction about the same property if-- 29
(a) no additional consideration is paid or payable; and 30
s 153 111 s 153
Duties Bill 2001
(b) the beneficial interests in the property change only to the extent 1
necessary to correct the error. 2
PART 14--REASSESSMENTS FOR TRANSFER DUTY 3
Division 1--Reassessments for concessions for homes 4
153 Reassessment--noncompliance with occupancy requirements 5
after occupation date for residence 6
(1) This section applies if-- 7
(a) transfer duty on a dutiable transaction that is the transfer, or 8
agreement for the transfer, of residential land is assessed on the 9
basis of a concession under section 91, 92 or 93; and 10
(b) a transferee, within the year after the transferee's occupation date 11
for the residence, disposes of the land by-- 12
(i) transferring part or all of it; or 13
(ii) leasing or otherwise granting exclusive possession of part or 14
all of it to another person. 15
(2) The commissioner must make a reassessment to impose further 16
transfer duty on the dutiable transaction worked out using the following 17
formula-- 18
C × ( 365 OD )
TD = --------------------------------------
-
365
where-- 19
"C" means the difference between the transfer duty that would have been 20
imposed on the dutiable transaction if the concession had not applied 21
to the transferee and transfer duty assessed on the dutiable transaction. 22
"OD" means the number of days between the transferee's occupation date 23
for the residence and the date of disposal of the residential land, both 24
days inclusive. 25
"TD" means the further transfer duty payable on the reassessment. 26
s 154 112 s 155
Duties Bill 2001
154 Reassessment--other noncompliance with occupancy 1
requirements 2
(1) This section applies if-- 3
(a) transfer duty on a dutiable transaction that is the transfer, or 4
agreement for the transfer, of residential land is assessed on the 5
basis of a concession under section 91, 92 or 93; and 6
(b) before the occupation date, a transferee disposes of the land or, 7
other than because of an intervening event, a transferee's 8
occupation date for the residence on the land is not within the 9
year after the transfer date for the land. 10
(2) For subsection (1)(b), a transferee disposes of land if the transferee 11
transfers, leases or otherwise grants exclusive possession of, part or all of 12
the land, to another person, other than if-- 13
(a) another person (the "occupier") has exclusive possession of the 14
land before the occupation date; and 15
(b) the occupier-- 16
(i) is the transferor of the land; or 17
(ii) has exclusive possession of the land under a lease granted 18
by the transferor of the land before the transfer date; and 19
(c) the occupier-- 20
(i) if paragraph (b)(i) applies--vacates the land as soon as 21
reasonably practicable or within 6 months after the transfer 22
date, whichever is the earlier; or 23
(ii) if paragraph (b)(ii) applies--vacates the land on the 24
termination of the current term of the lease, or within 25
6 months after the transfer date, whichever is the earlier. 26
(3) The commissioner must make a reassessment to impose transfer duty 27
on the dutiable transaction as if the concession had never applied to the 28
transferee. 29
155 When transferees must give notice for reassessment 30
(1) This section applies if a notifiable event happens after an assessment, 31
on the basis of a concession under section 91, 92 or 93, of transfer duty on 32
a dutiable transaction that is the transfer, or agreement for the transfer, of 33
residential land. 34
s 156 113 s 156
Duties Bill 2001
(2) Within 28 days after the notifiable event happens, each transferee to 1
the transfer or agreement must-- 2
(a) give notice in the approved form to the commissioner; and 3
(b) ensure the instruments required for the assessment of duty for the 4
transaction are lodged for a reassessment of transfer duty on the 5
transaction. 6
7
Note--
8
Failure to give the notice is an offence under the Administration Act, section 120.
(3) In this section-- 9
"notifiable event", for residential land, means-- 10
(a) the transfer, lease or otherwise granting of exclusive possession 11
of all or part of the land within 1 year after the transferee's 12
occupation date for the residence on the land; or 13
(b) failure to comply with the occupancy requirement for the 14
residence on the land. 15
Division 2--Reassessments for concessions for superannuation 16
156 Reassessment--noncomplying superannuation fund 17
(1) This section applies if-- 18
(a) transfer duty has been assessed on a dutiable transaction on the 19
basis of a concession under section 109; and 20
(b) at the first anniversary of the transaction the superannuation 21
funds created by the split, merger, variation or reconstitution are 22
not complying superannuation funds. 23
(2) Within 28 days after the first anniversary, the trustees of the funds 24
mentioned in subsection (1)(b) must-- 25
(a) give notice in the approved form to the commissioner; and 26
(b) ensure the instruments required for the assessment of duty for the 27
transaction are lodged for a reassessment of transfer duty on the 28
transaction. 29
30
Note--
31
Failure to give the notice is an offence under the Administration Act, section 120.
s 157 114 s 158
Duties Bill 2001
(3) The commissioner must make a reassessment to impose transfer duty 1
on the transaction as if the concession had never applied. 2
CHAPTER 3--LAND RICH DUTY AND 3
CORPORATE TRUSTEE DUTY 4
PART 1--LAND RICH DUTY 5
Division 1--Preliminary 6
157 Imposition of land rich duty 7
(1) This part imposes duty ("land rich duty") on relevant acquisitions. 8
9
Note--
10
Exemptions for land rich duty are dealt with in division 5. Also, particular acquisitions
11
relating to corporate reconstructions are exempt from land rich duty under chapter 10,
12
part 1.
(2) Land rich duty is imposed on the dutiable value of a relevant 13
acquisition. 14
Division 2--Some basic concepts for land rich duty 15
Subdivision 1--Some basic concepts about acquiring interests in 16
corporations 17
158 What is a "relevant acquisition" 18
(1) A person makes a "relevant acquisition" if-- 19
(a) the person acquires a majority interest in a land rich corporation; 20
or 21
(b) the person acquires an interest in a corporation and, when the 22
following are aggregated, the aggregation results in a majority 23
interest in a land rich corporation-- 24
s 159 115 s 160
Duties Bill 2001
(i) interests acquired by the person in the land rich corporation 1
in the preceding 3 years; 2
(ii) interests acquired by related persons of the person in the 3
land rich corporation if the interests were acquired in the 4
preceding 3 years; 5
(iii) interests held by related persons of the person in the land 6
rich corporation if the person and the related persons 7
became related persons in the preceding 3 years; or 8
(c) having acquired a majority interest in a land rich corporation 9
under paragraph (a) or (b) for which land rich duty was imposed, 10
the person's interest in the corporation increases. 11
(2) Subsection (3) applies if-- 12
(a) a person acquires an interest in a land rich corporation (the 13
"preliminary acquisition"); and 14
(b) within 3 years before or after the preliminary acquisition the 15
person or a related person of the person, either alone or together, 16
became entitled to a right to acquire an interest in the corporation 17
(an "option"); and 18
(c) the option is exercised. 19
(3) For subsection (1)(b), a person is taken to acquire the interest 20
acquired because of the exercise of the option within 3 years after the 21
preliminary acquisition. 22
159 What are "interests" and "majority interests" in a corporation 23
(1) A person has an "interest" in a corporation if the person has an 24
entitlement as a shareholder to a distribution of the corporation's property 25
on its winding up. 26
(2) A person has a "majority interest" in a corporation if the person has 27
an interest in the corporation of more than 50%. 28
160 Interest in corporation is percentage of distributable property on 29
winding up 30
A person's interest in a corporation is the person's entitlement expressed 31
as a percentage of the value of all of the corporation's property that would 32
s 161 116 s 161
Duties Bill 2001
be distributed if the corporation were to be wound up immediately after the 1
person acquires the interest. 2
161 Entitlement on distribution of corporation's property 3
(1) The entitlement of a person on a distribution of a corporation's 4
property is the greater of the entitlement of the person as a shareholder, 5
based on a distribution carried out-- 6
(a) under the corporation's constitution and the Corporations Act; or 7
(b) after the person or the person's representative, has, to maximise 8
the person's entitlement, exercised all powers and discretions 9
to-- 10
(i) effect or compel a change of the corporation's constitution; 11
or 12
(ii) vary the rights conferred by the shares in the corporation; or 13
(iii) pay up any uncalled amount owing to the corporation for the 14
shares; or 15
(iv) satisfy conditions in the corporation's constitution relating 16
to the shares; or 17
(v) effect or compel the substitution or replacement of shares in 18
the corporation with other shares in the corporation. 19
(2) However, the commissioner may decide the entitlement be based on 20
a distribution carried out under subsection (1)(a) if the commissioner 21
considers the application of subsection (1)(b) would be inequitable. 22
(3) Also, if a person makes a relevant acquisition because interests are 23
aggregated under section 158(1)(b)(ii) or (iii), the entitlements under 24
subsection (1)(b) of the person and the related persons of the person must 25
not be more than 100%. 26
(4) In this section-- 27
"representative", of another person, means someone who is accustomed, 28
or under an obligation, or reasonably expected to act under the 29
directions, instructions or wishes of the other person. 30
s 162 117 s 164
Duties Bill 2001
162 Acquiring an interest in a corporation 1
(1) A person acquires an interest in a corporation if the person obtains an 2
interest, or the person's interest increases, in the corporation regardless of 3
how it is obtained or increased. 4
(2) Without limiting subsection (1), a person may acquire an interest in a 5
corporation in the following ways-- 6
(a) the purchase, gift, allotment or issue of a share; 7
(b) the cancellation, redemption or surrender of a share; 8
(c) the abrogation or alteration of a right for a share; 9
(d) the payment of an amount owing for a share. 10
(3) To remove any doubt, it is declared that an acquisition of shares is 11
not necessary to acquire an interest in a corporation. 12
163 When is an interest in a corporation acquired 13
(1) A person acquires an interest in a corporation-- 14
(a) if there is an agreement to acquire the interest, whether 15
conditional or not, and paragraph (b) does not apply--when the 16
agreement is made; or 17
(b) if there is an agreement to acquire the interest, whether 18
conditional or not, and the corporation is not a land rich 19
corporation when the agreement is made but is a land rich 20
corporation when the agreement is completed--when the 21
agreement is completed; or 22
(c) otherwise--when the interest is acquired. 23
(2) Also, if a person holds a security interest in a corporation, the 24
acquisition of which was an exempt acquisition under section 190 and the 25
person later acquires the interest free from any interest or equity of the 26
previous holder of the interest (the "later acquisition"), the person 27
acquires an interest in the corporation at the time of the later acquisition. 28
164 Who is a "related person" 29
(1) A person is a "related person" of another person if-- 30
(a) for individuals--they are members of the same family; or 31
s 165 118 s 165
Duties Bill 2001
(b) for an individual and a corporation--the person or a member of 1
the person's family is a majority shareholder, director or 2
secretary of the corporation or a related body corporate of the 3
corporation, or has a majority interest in it; or 4
(c) for an individual and a trustee--the person or a related person 5
under another provision of this section is a beneficiary of the 6
trust; or 7
(d) for corporations--they are related bodies corporate; or 8
(e) for a corporation and a trustee--the corporation or a related 9
person under another provision of this section is a beneficiary of 10
the trust; or 11
(f) for trustees-- 12
(i) there is a person who is a beneficiary of both trusts; or 13
(ii) a person is beneficiary of 1 trust and a related person under 14
another provision of this section is a beneficiary of the other 15
trust. 16
(2) Also, a person is a "related person" of another person if the persons 17
acquire interests in a corporation and the acquisitions form, evidence, give 18
effect to or arise from what is substantially 1 arrangement. 19
(3) However, a person is not a "related person" of another person under 20
subsection (1) if the commissioner is satisfied -- 21
(a) for an acquisition that is a relevant acquisition because of the 22
aggregation of an interest mentioned in 23
section 158(1)(b)(iii)--the interests of the persons will be used 24
independently and will not be used for a common purpose; or 25
(b) for another acquisition--the interests of the persons were 26
acquired independently and were not acquired for a common 27
purpose. 28
Subdivision 2--Some basic concepts about land rich corporations, 29
subsidiaries and their land-holdings and property 30
165 What is a "land rich corporation" 31
(1) A "land rich corporation" is an unlisted corporation that-- 32
s 166 119 s 166
Duties Bill 2001
(a) has land-holdings in Queensland, the unencumbered value of 1
which are $1 000 000 or more; and 2
(b) has land-holdings, whether within or outside of Australia, 3
comprising 80% or more of the unencumbered value of all of its 4
property. 5
(2) Also, an unlisted corporation is a "land rich corporation" if it 6
would satisfy the criteria in subsection (1) if the land-holdings and property 7
of its subsidiaries were disregarded. 8
166 What is a "subsidiary" of a corporation 9
(1) An unlisted corporation is a "subsidiary" of another corporation if, 10
under the Corporations Act, it is a subsidiary of the other corporation. 11
(2) Also, each of the following is a "subsidiary" of the other 12
corporation-- 13
(a) a trustee of a trust if the other corporation or a subsidiary of it, 14
whether under this or another subsection, is a beneficiary of the 15
trust (a "relevant trust"); 16
(b) an unlisted corporation in which-- 17
(i) the trustee of a relevant trust has a majority interest; or 18
(ii) a majority interest is held on trust and the trustee of a 19
relevant trust is a beneficiary of that trust. 20
21
Example for subsections (1) and (2)--
22
A Pty Ltd has a 51% shareholding in B Pty Ltd. B Pty Ltd has a trust interest in the C
23
Trust of which C Pty Ltd acts as trustee. C Pty Ltd as trustee of the C trust has a 51%
24
shareholding in D Pty Ltd.
25
Under subsection (1), B Pty Ltd is the subsidiary of A Pty Ltd because, under the
26
Corporations Act, it is a subsidiary of A Pty Ltd.
27
Under subsection (2)(a), C Pty Ltd is the subsidiary of A Pty Ltd because B, a
28
subsidiary of A Pty Ltd, is a beneficiary of the trust.
29
Under subsection (1), D Pty Ltd is the subsidiary of C Pty Ltd because, under the
30
Corporations Act, it is a subsidiary of C Pty Ltd.
31
Under subsection (2)(b)(i), D Pty Ltd is the subsidiary of A Pty Ltd because C Pty Ltd,
32
a relevant trust, has a majority interest in D Pty Ltd.
(3) In addition, an unlisted corporation or trustee is a "subsidiary" of 33
the other corporation if, under subsection (1) or (2), it is a subsidiary of a 34
subsidiary of the other corporation. 35
s 167 120 s 168
Duties Bill 2001
167 What are a corporation's "land-holdings" 1
(1) A corporation's "land-holdings" means the following-- 2
(a) the corporation's interest17 in land and anything fixed to the land 3
that may be separately owned from the land, other than-- 4
(i) a security interest; or 5
(ii) an interest in a trust; 6
(b) rights held by the corporation that-- 7
(i) relate to, or affect, the use of the corporation's land and 8
other land; and 9
(ii) enhance the value of the corporation's land; 10
(c) an interest in land, and anything fixed to the land, that is the 11
subject of a purchase agreement or sale agreement made by the 12
corporation. 13
(2) Also, a corporation's "land-holdings" includes the land-holdings, 14
under subsection (1), of a subsidiary of the corporation as if a reference in 15
the subsection to a corporation were a reference to the subsidiary. 16
(3) However, a corporation's land-holdings do not include land-holdings 17
held on trust by the corporation or a subsidiary of it unless the corporation 18
or any subsidiary of it is a beneficiary of the trust. 19
168 What is a corporation's "property" 20
(1) A corporation's "property" means the corporation's interest in any 21
property other than a security interest or interest in a trust. 22
(2) Also, a corporation's "property" includes any property under 23
subsection (1) of a subsidiary of the corporation as if a reference in the 24
subsection to a corporation were a reference to the subsidiary. 25
(3) However, the corporation's property does not include property held 26
on trust by the corporation or a subsidiary of it unless the corporation or 27
any subsidiary of it is a beneficiary of the trust. 28
17 Acts Interpretation Act 1954, section 36--
"interest", in relation to land or other property, means--
(a) a legal or equitable estate in the land or other property; or
(b) a right, power or privilege over, or in relation to, the land or other property.
s 169 121 s 172
Duties Bill 2001
Subdivision 3--Some basic concepts about unencumbered values of 1
land-holdings and property 2
169 Application of sdiv 3 3
This subdivision applies for determining whether a corporation is a land 4
rich corporation. 5
170 Value of co-owned land-holdings 6
(1) If a corporation's land-holdings include land-holdings in which it has 7
an interest as co-owner, the unencumbered value of the interests of all 8
co-owners in the land-holdings must be included in working out the 9
unencumbered value of the corporation's land-holdings. 10
11
Note--
12
Even though the unencumbered value of the interests of all co-owners of the
13
land-holdings is included for determining whether a corporation is a land rich
14
corporation, only the unencumbered value of the corporation's interest in the
15
land-holdings is used under division 4 for working out land rich duty imposed on the
16
dutiable value of a relevant acquisition, see section 184.
(2) However, subsection (1) does not apply if the commissioner is 17
satisfied that the co-ownership is not intended to avoid the imposition of 18
land rich duty. 19
171 Value of land-holdings in uncompleted agreement for transfer 20
included 21
To remove any doubt, it is declared that the unencumbered value of the 22
land the subject of a purchase agreement or sale agreement made by the 23
corporation or a subsidiary of the corporation must be included in working 24
out the unencumbered value of a corporation's land-holdings. 25
172 Value of particular property disregarded 26
(1) For working out the unencumbered value of a corporation's property, 27
the following kinds of property must be disregarded-- 28
(a) cash; 29
(b) money on deposit with any person; 30
(c) negotiable instruments; 31
s 173 122 s 175
Duties Bill 2001
(d) loans to associated persons of the corporation; 1
(e) loans that are to be repaid on demand or within 1 year after the 2
money is lent; 3
(f) amounts paid or payable to the corporation or a subsidiary of the 4
corporation under a sale agreement for land made by the 5
corporation or subsidiary; 6
(g) amounts owing to the corporation or a subsidiary of the 7
corporation for shares issued by the corporation or subsidiary; 8
(h) the corporation's shareholding in a subsidiary of the corporation; 9
(i) the shareholding of a subsidiary of the corporation in another 10
subsidiary of the corporation. 11
(2) Also, property must be disregarded, if the commissioner is satisfied 12
the reason for the corporation's ownership of the property is to avoid the 13
imposition of land rich duty. 14
173 Value of land-holdings and property--business property 15
disregarded 16
For an acquisition of an interest in a corporation that is a dutiable 17
transaction to which chapter 2, part 10, applies, business property taken to 18
have no value under the part must be disregarded in working out the 19
unencumbered value of the land-holdings or property of the corporation. 20
Division 3--Liability for land rich duty 21
174 When liability for land rich duty arises 22
A liability for land rich duty imposed on a relevant acquisition arises 23
when the acquisition is made. 24
175 Who is liable to pay land rich duty 25
(1) Land rich duty imposed on a relevant acquisition must be paid by the 26
acquirer. 27
(2) However, if a person makes a relevant acquisition because interests 28
are aggregated under section 158(1)(b)(ii) or (iii), the person and the 29
s 176 123 s 179
Duties Bill 2001
related persons of the person are jointly and severally liable for the 1
payment of the land rich duty. 2
176 Rate of land rich duty 3
The rate of land rich duty imposed on the dutiable value of a relevant 4
acquisition stated in schedule 3, column 1, is stated opposite the value in 5
schedule 3, column 2. 6
177 Land rich duty statement 7
The acquirer under a relevant acquisition, or for a relevant acquisition 8
mentioned in section 175(2), the acquirer or the related persons of the 9
acquirer must within 30 days after the acquisition is made, lodge a 10
statement in the approved form (a "land rich duty statement"). 11
Maximum penalty--40 penalty units. 12
178 Effect of lodging land rich duty statement by acquirer or related 13
person 14
The lodging, under section 177, of a land rich duty statement by the 15
acquirer or a related person of the acquirer relieves the other person from 16
complying with the section. 17
Division 4--Dutiable value of relevant acquisitions 18
179 Working out dutiable value of relevant acquisition 19
(1) The dutiable value of a relevant acquisition is the unencumbered 20
value of all Queensland land-holdings of the land rich corporation at the 21
time of the relevant acquisition multiplied by the interest in, or total of 22
interests in, the corporation constituting the relevant acquisition.18 23
(2) Subsection (3) applies to the following relevant acquisitions-- 24
(a) a relevant acquisition mentioned in section 158(1)(c); 25
(b) a relevant acquisition made by a person in the following 26
circumstances-- 27
18 See section 14 (What is the "unencumbered value" of property).
s 180 124 s 180
Duties Bill 2001
(i) the person together with related persons of the person had a 1
majority interest in the land rich corporation immediately 2
before the relevant acquisition; 3
(ii) the interests of the person and related persons were 4
previously aggregated so that duty under subsection (1) was 5
paid for a relevant acquisition in the land rich corporation; 6
(iii) since the relevant acquisition mentioned in 7
subparagraph (ii), no other related person of the person has 8
acquired an interest in the corporation. 9
(3) For applying subsection (1) to a relevant acquisition mentioned in 10
subsection (2), the interest is the increased interest in the land rich 11
corporation that is acquired by the person by the relevant acquisition. 12
13
Examples for subsections (2) and (3)--
14
1. A and B are related persons. A holds a 30% interest in a land rich corporation. B
15
acquires a 25% interest and, when aggregated with A's interest, a majority interest.
16
If A acquires another 5% bringing its interest to 35%, for working out the dutiable
17
value, the interest constituting the relevant acquisition is 5%.
18
2. A and B are related persons. A holds a 30% interest in a land rich corporation. B
19
acquires a 25% interest and, when aggregated with A's interest, a majority interest.
20
If A acquires B's 25% interest, for working out the dutiable value, the interest
21
constituting the relevant acquisition is 25%.
(4) For applying subsection (1) to a relevant acquisition, the interest 22
mentioned in section 409(2) must be disregarded. 23
24
Note--
25
Under section 409(2), land rich duty is not imposed on particular interests acquired
26
under a corporate reconstruction.
(5) This section has effect subject to a deduction allowed under 27
sections 185 to 188. 28
180 Aggregation of particular relevant acquisitions 29
(1) This section applies for aggregating relevant acquisitions that 30
together form, evidence, give effect to or arise from what is, substantially 31
1 arrangement if a person makes a relevant acquisition mentioned in 32
section 179(2). 33
(2) For assessing land rich duty on each of the relevant acquisitions, the 34
acquisitions must be aggregated and treated as a single relevant acquisition. 35
(3) For subsection (1), all relevant circumstances relating to the relevant 36
acquisitions must be taken into account in deciding whether they together 37
s 180 125 s 180
Duties Bill 2001
form, evidence, give effect to or arise from what is, substantially 1
1 arrangement. 2
(4) For subsection (3), relevant circumstances include the following-- 3
(a) whether any of the acquisitions are conditional on entry into, or 4
completion of, any of the other acquisitions; 5
(b) whether the parties to any of the acquisitions are the same; 6
(c) whether any party to an acquisition is a related person of another 7
party to any of the other acquisitions; 8
(d) the time over which the acquisitions take place; 9
(e) whether, after the acquisitions take place, the acquirers' interests 10
will be used together or dependently with one another; 11
(f) whether, before the acquisitions take place, the interests were 12
used together or dependently with one another. 13
(5) Land rich duty imposed on the relevant acquisition aggregated under 14
this section must-- 15
(a) be assessed on the total of the dutiable values of the acquisitions 16
when the liability for land rich duty for each of the acquisitions 17
arose; and 18
(b) be apportioned between the acquisitions as decided by the 19
commissioner. 20
(6) The acquirer must, when lodging the land rich duty statement 21
relating to the acquisition, give notice to the commissioner stating details 22
known to the acquirer about-- 23
(a) all of the interests of the acquirer and related persons of the 24
acquirer included or to be included in the arrangement mentioned 25
in subsection (1); and 26
(b) the dutiable value of each relevant acquisition. 27
28
Note--
29
Under the Administration Act, the requirement under this subsection is a lodgment
30
requirement for which a failure to comply is an offence under section 121 of that Act.
s 181 126 s 182
Duties Bill 2001
181 Unencumbered value of Queensland land-holdings of land rich 1
corporation 2
(1) For section 179, the unencumbered value of the Queensland 3
land-holdings of a land rich corporation at the date of a relevant acquisition 4
is-- 5
(a) for a corporation that is a land rich corporation under 6
section 165(1)--the unencumbered value of the corporation's 7
land-holdings in Queensland at the date of the relevant 8
acquisition; or 9
(b) for a corporation that is a land rich corporation under 10
section 165(2)--the unencumbered value of the corporation's 11
land-holdings in Queensland other than the land-holdings 12
mentioned in section 165(2), at the date of the relevant 13
acquisition. 14
(2) This section has effect subject to sections 182 to 184. 15
182 Unencumbered value of land-holdings of subsidiary of land rich 16
corporation 17
(1) Subsection (2) applies for working out the unencumbered value of 18
the Queensland land-holdings of a land rich corporation mentioned in 19
section 181(1)(a) to the extent that the land-holdings comprise 20
land-holdings of a subsidiary of the corporation. 21
(2) The unencumbered value of the Queensland land-holdings of the 22
corporation is the proportion of the unencumbered value of the 23
land-holdings in Queensland of all the subsidiaries to which the 24
corporation would be entitled if they were wound up at the same time 25
without regard to their liabilities. 26
(3) For subsection (2), if the subsidiary is a trustee of a trust, the 27
unencumbered value of the Queensland land-holdings of the corporation 28
on the winding up of all the subsidiaries is the greatest proportion of the 29
unencumbered value of the land-holdings in Queensland of the trust that 30
the corporation could derive at any time from the trust without regard to the 31
liabilities of any of the subsidiaries. 32
(4) Without limiting subsection (3), land-holdings may be derived by-- 33
(a) the fulfilment of a condition; or 34
(b) the outcome of a contingency; or 35
s 183 127 s 185
Duties Bill 2001
(c) the exercise or non-exercise of a power or discretion. 1
(5) To remove any doubt it is declared that land-holdings may be derived 2
by the corporation even if a subsidiary of the corporation is a beneficiary of 3
a trust. 4
(6) If there is more than 1 subsidiary of the corporation that is a 5
beneficiary of a trust, for subsection (2), the proportion of the 6
unencumbered value of the Queensland land-holdings that may be derived 7
from the trust must not be more than the whole. 8
183 Land transferred for shares to be disregarded 9
(1) This section applies if the relevant acquisition is the issue of shares to 10
a person in the following circumstances-- 11
(a) the shares are issued to the person in consideration of a transfer 12
of land to the corporation by the person; 13
(b) transfer duty is paid for the transfer; 14
(c) the land is not the only land of the corporation; 15
(d) the person is not the only shareholder of the corporation. 16
(2) In working out the unencumbered value of the Queensland 17
land-holdings of a land rich corporation, the value of the land must be 18
disregarded. 19
184 Value of co-owned land-holdings 20
The value of land-holdings in which a corporation has an interest as 21
co-owner, is the unencumbered value of the corporation's interest in the 22
land-holdings. 23
185 Deduction--corporate trustee duty 24
(1) This section applies if-- 25
(a) corporate trustee duty has been paid or is payable on a relevant 26
acquisition under part 2; and 27
(b) land in which the corporate trustee, or relevant corporation for a 28
corporate trustee, has an interest at the time of the relevant 29
acquisition under part 2, has been included in working out the 30
dutiable value of a relevant acquisition under this part; and 31
s 186 128 s 187
Duties Bill 2001
(c) the relevant acquisitions are part of the 1 arrangement. 1
(2) Land rich duty imposed on the relevant acquisition must be reduced 2
by the amount of corporate trustee duty paid or payable for the land to the 3
extent that the land was included in working out the dutiable value of the 4
relevant acquisition under this part. 5
186 Deduction--transfer duty for particular trusts 6
(1) This section applies if-- 7
(a) transfer duty has been paid or is payable on a dutiable transaction 8
that is a trust acquisition for a trust, other than a discretionary 9
trust; and 10
(b) land held by the trustee as trustee of the trust at the time of the 11
transaction has been included in working out the dutiable value 12
of the relevant acquisition under this part; and 13
(c) the acquisitions are part of the 1 arrangement. 14
(2) Land rich duty imposed on the relevant acquisition must be reduced 15
by the amount of transfer duty paid or payable for the land to the extent that 16
the land was included in working out the dutiable value of the relevant 17
acquisition under this part. 18
187 Deduction--transfer duty for marketable securities 19
(1) This section applies if-- 20
(a) transfer duty is paid or payable for marketable securities the 21
subject of a dutiable transaction or an equivalent duty in another 22
State is paid or payable for the marketable securities; and 23
(b) the dutiable transaction is a relevant acquisition. 24
(2) Land rich duty imposed on the relevant acquisition must be reduced 25
by an amount worked out using the following formula-- 26
LV × TD
R = ----------------------
PV
where-- 27
s 188 129 s 188
Duties Bill 2001
"LV" means the unencumbered value of all Queensland land-holdings of 1
the land rich corporation at the time of the relevant acquisition under 2
section 181. 3
"PV" means the unencumbered value of all the property of the land rich 4
corporation at the time of the relevant acquisition. 5
"R" means the amount of the reduction. 6
"TD" is the transfer or equivalent duty paid or payable for the marketable 7
securities. 8
188 Deduction--mortgage duty 9
(1) This section applies if-- 10
(a) mortgage duty has been paid on a transfer, or agreement for the 11
transfer, of shares by way of security; and 12
(b) afterwards, the transferee acquires ownership of the shares free 13
from any interest or equity of the previous holder of the shares; 14
and 15
(c) the transferee and related persons of the transferee were to newly 16
acquire all of the shares they hold in the corporation at the time 17
of the acquisition mentioned in paragraph (b), the acquisition 18
would be a relevant acquisition. 19
(2) Also, this section applies if-- 20
(a) mortgage duty has been paid on a transfer, or agreement for the 21
transfer, of shares by way of security; and 22
(b) the commissioner is not satisfied of the matter mentioned in 23
section 190; and 24
(c) the acquisition mentioned in paragraph (a) is a relevant 25
acquisition. 26
(3) For subsection (1), the transferee is taken to have made a relevant 27
acquisition of the shares owned by the transferee and related persons of the 28
transferee. 29
(4) Land rich duty imposed on the relevant acquisition must be reduced 30
by the mortgage duty paid. 31
s 189 130 s 190
Duties Bill 2001
Division 5--Exempt acquisitions 1
189 Exemption--particular share issues 2
(1) Land rich duty is not imposed on an acquisition by a person of an 3
interest on the initial allotment of shares on the registration of a 4
corporation. 5
(2) Also, land rich duty is not imposed on an acquisition by a person if-- 6
(a) the interest was acquired on the issue of shares to a person in 7
consideration of a transfer of land to the corporation by the 8
person; and 9
(b) transfer duty is paid or payable for the acquisition of the land by 10
the corporation; and 11
(c) the land is the only land of the corporation; and 12
(d) the person is the only shareholder of the corporation. 13
(3) In addition, land rich duty is not imposed on an acquisition by a 14
person if-- 15
(a) the interest is acquired on a dealing in shares for all of the 16
shareholders of the corporation; and 17
(b) the interests of the shareholders after the dealing are, as near as 18
practicable, the same as the proportions in which they held the 19
shares before the dealing; and 20
(c) the rights among the shareholders have not changed significantly 21
because of the dealing in the shares. 22
(4) In this section-- 23
"dealing", for shares, means the issue, cancellation, redemption or 24
buy-back of the shares. 25
190 Exemption--security interests 26
Land rich duty is not imposed on an acquisition of a security interest if 27
the commissioner is satisfied the interest was not acquired with the 28
intention of avoiding the imposition of land rich duty. 29
s 191 131 s 194
Duties Bill 2001
191 Exemption--change of trustee 1
Land rich duty is not imposed on a relevant acquisition for the sole 2
purpose of giving effect to a change of a trustee if-- 3
(a) the acquisition is not part of an arrangement-- 4
(i) involving a change in the rights or interest of a beneficiary 5
of the trust; or 6
(ii) terminating the trust; and 7
(b) the acquisition is not part of an arrangement to avoid the 8
imposition of duty; and 9
(c) transfer duty has been paid on all trust acquisitions for which 10
transfer duty is imposed for the trust before the acquisition. 11
192 Exemption--acquisition by liquidator 12
Land rich duty is not imposed on a relevant acquisition by a person if the 13
interest was acquired solely in the person's capacity as a liquidator. 14
193 Exemption--compromise or arrangements 15
Land rich duty is not imposed on a relevant acquisition by a person if-- 16
(a) the interest was acquired solely because of the making of a 17
compromise or arrangement with creditors approved under the 18
Corporations Act, part 5.1; and 19
(b) the commissioner is satisfied the compromise or arrangement 20
was not made with the intention of avoiding the imposition of 21
land rich duty. 22
194 Exemption--if transfer duty not imposed 23
Land rich duty is not imposed on a relevant acquisition that is a dutiable 24
transaction on which transfer duty is not imposed because of an exemption 25
under any of the following provisions-- 26
s 195 132 s 196
Duties Bill 2001
· sections 123 to 126 1
· sections 129 and 130 2
· sections 134 and 135 3
· section 141 4
· section 143 5
· section 148(1)(c).19 6
195 Exemption--no liability for transfer duty on acquisition in other 7
way 8
Land rich duty is not imposed on an acquisition by a person if-- 9
(a) the land-holdings of a corporation could have been acquired by 10
the person without incurring a liability to pay transfer duty for 11
the acquisition of land other than under chapter 10, part 1;20 and 12
(b) the commissioner is satisfied the acquisition would not have been 13
part of an arrangement to avoid the imposition of land rich duty. 14
196 Interests acquired under exempt acquisitions disregarded for 15
particular purposes 16
An interest acquired under an exempt acquisition, other than an exempt 17
acquisition under section 195, must be disregarded as an interest in a land 18
rich corporation when-- 19
19 Sections 123 (Exemption--particular distribution of dutiable property to a
beneficiary), 124 (Exemption--deceased person's estate), 125
(Exemption--particular vestings of dutiable property), 126
(Exemption--transactions for trust created for person under legal disability), 129
(Exemption--transfer by direction to primary custodian for responsible entity of
registered managed investment scheme), 130 (Exemption--other transfers of
scheme property of registered managed investment scheme), 134
(Exemption--forfeiture orders), 135 (Exemption--industrial organisations), 141
(Exemption--particular statutory bodies), 143 (Exemption--change of tenure) and
148(1)(c) (Exemption--marketable securities etc.)
20 Chapter 10 (General exemptions), part 1 (Exemptions for particular duties for
corporate reconstruction)
s 197 133 s 197
Duties Bill 2001
(a) deciding whether a person has, under section 158(1)(b)(i) or (ii), 1
acquired an interest in the corporation; or 2
(b) aggregating interests under section 158(1)(b)(i) or (ii). 3
Division 6--Reassessments for land rich duty 4
197 When commissioner must make reassessment 5
(1) The commissioner must make a reassessment of land rich duty 6
imposed for a relevant acquisition if-- 7
(a) at the time of the relevant acquisition, the corporation's 8
land-holdings included land the subject of-- 9
(i) a sale agreement that was later completed; or 10
(ii) a purchase agreement that was not completed; and 11
(b) the commissioner is satisfied the agreement was not made or was 12
not part of an arrangement made for the purpose of avoiding the 13
imposition of land rich duty. 14
(2) Also, the commissioner must make a reassessment of land rich duty 15
imposed for a relevant acquisition if at the time of the relevant acquisition a 16
person is taken to have acquired an interest in a corporation under an 17
agreement to acquire the interest but the agreement is not completed. 18
(3) When reassessing land rich duty under subsection (1), the 19
commissioner must disregard the land mentioned in the subsection in-- 20
(a) deciding whether the corporation is a land rich corporation; and 21
(b) working out the dutiable value of the relevant acquisition. 22
(4) When reassessing the land rich duty under subsection (2), the 23
commissioner must disregard the interest mentioned in the subsection. 24
(5) For a reassessment under subsection (1) or (2), the acquirer under the 25
relevant acquisition must lodge the land rich duty statement for the 26
acquisition. 27
(6) Subsection (1) or (2) applies to the reassessment despite the 28
limitation period under the Administration Act for reassessments.21 29
21 See the Administration Act, part 3, (Assessments of tax), division 3
(Reassessments).
s 198 134 s 199
Duties Bill 2001
Division 7--Enforcement 1
Subdivision 1--Charges 2
198 Registration of charge over land for unpaid land rich duty 3
(1) This section applies if land rich duty is not paid by the date by which 4
the duty must be paid.22 5
(2) The liability to pay the outstanding amount of land rich duty is a 6
charge on land owned by the land rich corporation concerned in the 7
relevant acquisition for which the land rich duty is payable and any 8
subsidiary of the corporation. 9
(3) The commissioner may lodge a request with the registrar that the 10
charge be registered over stated land owned by the corporation or its 11
subsidiary. 12
(4) The request must be in the appropriate form. 13
(5) The registrar must register the charge over the land on lodgment of-- 14
(a) the request; and 15
(b) a certificate of the commissioner stating there is a charge over the 16
land under this section for the outstanding amount of land rich 17
duty. 18
199 Release of charge 19
(1) This section applies if-- 20
(a) the outstanding amount of land rich duty is paid; or 21
(b) under a reassessment, no land rich duty is payable. 22
(2) The commissioner must, as soon as practicable after payment of the 23
outstanding amount of land rich duty or the reassessment, lodge with the 24
registrar a request to release the charge in the appropriate form. 25
(3) The registrar must register the release of the charge over the land. 26
(4) This section does not prevent the commissioner requesting the 27
release of the charge in other circumstances. 28
22 See the Administration Act, section 32 (Time for payment of other amounts)
s 200 135 s 202
Duties Bill 2001
Subdivision 2--Power of sale 1
200 Commissioner may apply to Supreme Court for order to sell 2
(1) This section applies if-- 3
(a) under subdivision 1, a charge has been registered over land; and 4
(b) the outstanding amount of land rich duty has not been paid 5
within 18 months after registration. 6
(2) The commissioner may apply to the Supreme Court for an order to 7
sell the land stated in the application. 8
(3) At least 6 months before making the application, the commissioner 9
must give notice to the person liable to pay the land rich duty and the 10
owner of the land of the commissioner's intention to apply to the Supreme 11
Court for an order to sell the land unless the outstanding amount of land 12
rich duty is paid within 6 months after the date of the notice. 13
201 When court must order sale of land 14
(1) The court must order the sale of the land if it is satisfied-- 15
(a) proper notice of the application for the order was given under 16
section 200; and 17
(b) there is an outstanding amount of land rich duty payable to the 18
State. 19
(2) However, the court may make an order only for the land the court 20
considers is sufficient to realise proceeds to pay the amounts mentioned in 21
section 202(a) to (d). 22
202 Application of proceeds of sale 23
The proceeds of the sale of land sold under the order must be applied as 24
follows-- 25
(a) first, in payment of the commissioner's expenses on the 26
application to the court for the order; 27
(b) second, in payment of expenses properly incurred by the 28
commissioner on the sale or any attempted sale; 29
s 203 136 s 204
Duties Bill 2001
(c) third, in payment of amounts secured by a security interest or 1
charge on the land recorded before the charge, unless the land is 2
sold subject to the security interest or charge; 3
(d) fourth, in payment of the outstanding amount of land rich duty 4
under the Administration Act, section 42;23 5
(e) fifth, any balance must be applied as the court orders. 6
203 Registration of transfer 7
(1) If land is sold under the order to sell, the person stated in the order 8
for this section must-- 9
(a) sign a transfer in the appropriate form in favour of the purchaser; 10
and 11
(b) lodge the transfer with the registrar. 12
(2) The registrar must register the transfer as if it had been signed by the 13
registered owner of the land. 14
(3) Subsection (2) applies despite non-production of the relevant 15
instrument of title. 16
204 Corporation or subsidiary may recover proceeds of sale as debt 17
(1) The amount equal to the proceeds of the sale of land under the order 18
less an amount paid under section 202(c) is a debt payable to the 19
corporation or subsidiary that previously owned the land by the persons 20
liable to pay the land rich duty for which the order was made. 21
(2) The corporation or subsidiary may recover the debt in a court of 22
competent jurisdiction. 23
23 Administration Act, section 42 (Application of payments to assessment liability)
s 205 137 s 208
Duties Bill 2001
PART 2--CORPORATE TRUSTEE DUTY 1
Division 1--Preliminary 2
205 Imposition of corporate trustee duty 3
(1) This part imposes duty ("corporate trustee duty") on relevant 4
acquisitions. 5
6
Note--
7
Exemptions for corporate trustee duty are dealt with in division 6.
(2) Corporate trustee duty is imposed on the dutiable value of a relevant 8
acquisition. 9
206 Interpretation for property held by partnership or trust 10
A reference to a partnership or trust holding property is a reference to the 11
holding of the property by the partners for the partnership or trustees for 12
the trust. 13
Division 2--Some basic concepts for corporate trustee duty 14
207 What is a "relevant acquisition" 15
A person makes a "relevant acquisition" if-- 16
(a) the person acquires a share interest in a corporate trustee or 17
relevant corporation for a corporate trustee; and 18
(b) the acquisition is part of an arrangement under which any person 19
obtains, directly or indirectly, a benefit relating to the property 20
held by the corporate trustee on trust. 21
208 What is a "share interest" 22
A "share interest" is a person's interest as a shareholder in a corporate 23
trustee or relevant corporation for a corporate trustee. 24
s 209 138 s 212
Duties Bill 2001
209 What is a "corporate trustee" 1
A "corporate trustee" is an unlisted corporation, other than an 2
authorised trustee corporation, that is the trustee of a discretionary trust 3
that-- 4
(a) holds dutiable property on trust for the discretionary trust; or 5
(b) has an indirect interest in dutiable property and that interest is 6
held on trust for the discretionary trust. 7
210 What is a corporate trustee's "indirect interest" in dutiable 8
property 9
A corporate trustee has an "indirect interest" in dutiable property if it-- 10
(a) has a partnership interest or trust interest in an ultimate entity; or 11
(b) through a series of partnership interests or trust interests, or a 12
combination of any of them, there is a connection between the 13
corporate trustee and dutiable property of a partnership or trust in 14
the series. 15
211 What is a "relevant corporation" for a corporate trustee 16
(1) A corporation is a "relevant corporation" for a corporate trustee if 17
the corporation is an unlisted corporation that has an interest in the 18
corporate trustee. 19
(2) For subsection (1), a corporation has an interest in a corporate trustee 20
if-- 21
(a) it has a share interest in the corporate trustee; or 22
(b) it has a share interest in a corporation that has a share interest in 23
the corporate trustee. 24
212 Acquiring share interest in corporation 25
(1) A person acquires a share interest in a corporate trustee or relevant 26
corporation for a corporate trustee if-- 27
(a) the person becomes a shareholder of the corporate trustee or 28
relevant corporation; or 29
(b) being a shareholder, the person's share interest increases. 30
s 213 139 s 215
Duties Bill 2001
(2) However, the acquisition of a share interest by a beneficiary from the 1
personal representative in the administration of the estate of a deceased 2
person is not an acquisition for this part. 3
213 Contracted property 4
(1) For a corporate trustee or relevant corporation for a corporate trustee, 5
contracted property is taken to be dutiable property held by the corporate 6
trustee or relevant corporation. 7
(2) For determining the dutiable value of a relevant acquisition-- 8
(a) a sale agreement made by the corporate trustee or relevant 9
corporation is taken not to have been made; and 10
(b) a purchase agreement made by the corporate trustee or relevant 11
corporation is taken to have been completed. 12
(3) If contracted property is included in determining the dutiable value 13
of a relevant acquisition and the sale agreement for the property is later 14
completed or the purchase agreement for the property is later rescinded, the 15
commissioner must make a reassessment as if the contracted property were 16
never held by the corporate trustee or relevant corporation. 17
(4) For the reassessment, the acquirer under the relevant acquisition must 18
lodge the corporate trustee duty statement for the acquisition. 19
20
Division 3--Liability for corporate trustee duty 21
214 When liability for corporate trustee duty arises 22
A liability for corporate trustee duty imposed on a relevant acquisition 23
arises when the acquisition is made. 24
215 Who is liable to pay corporate trustee duty 25
Corporate trustee duty imposed on a relevant acquisition must be paid by 26
the acquirer. 27
s 216 140 s 218
Duties Bill 2001
216 Rate of corporate trustee duty 1
The rate of corporate trustee duty imposed on the dutiable value of a 2
relevant acquisition is-- 3
(a) for dutiable property that is a Queensland marketable 4
security--60c for each $100, or part of $100, of the dutiable 5
value relating to the security; and 6
(b) for other dutiable property--stated in schedule 3, column 2, 7
opposite the dutiable value relating to the property in schedule 3, 8
column 1. 9
217 Corporate trustee duty statement 10
The acquirer under a relevant acquisition, must within 30 days after the 11
acquisition is made, lodge a statement in the approved form (a "corporate 12
trustee duty statement"). 13
Maximum penalty--40 penalty units. 14
Division 4--Apportionment of unencumbered value for particular 15
relevant acquisitions 16
218 Apportionment--head office or principal place of business in 17
Queensland 18
(1) This section applies for determining the unencumbered value of 19
dutiable property that is a Queensland business asset, other than a debt or 20
personal property, of a Queensland business that has its head office or 21
principal place of business in Queensland if, at any time during the 3 22
financial years preceding the relevant acquisition concerned-- 23
(a) a supply or provision of services has been made by the business 24
to customers outside Queensland; or 25
(b) the asset has been used, exploited or exercised in, or relates to, a 26
place outside Queensland. 27
s 219 141 s 219
Duties Bill 2001
(2) A reference in this chapter to the unencumbered value of the property 1
is taken to be a reference to the amount (the "apportioned amount") 2
worked out using the following formula-- 3
( TS OS )
AA = UV × -------------------------
-
TS
where-- 4
"AA" means the apportioned amount. 5
"OS" means the gross amount of the supplies and provision of services 6
made by the business to its customers in other States during the 3 7
completed financial years preceding the relevant acquisition. 8
"TS" means the gross amount of supplies and provision of services made 9
by the business to all its customers during the 3 completed financial 10
years preceding the relevant acquisition. 11
"UV" means the unencumbered value of the Queensland business asset 12
mentioned in subsection (1). 13
(3) However, the commissioner may decide the unencumbered value of 14
the dutiable property on another basis if the commissioner is satisfied the 15
other basis would be more appropriate in particular circumstances. 16
219 Apportionment--head office or principal place of business in 17
another State 18
(1) This section applies for determining the unencumbered value of 19
dutiable property that is a Queensland business asset, other than a debt or 20
personal property, of a Queensland business that does not have its head 21
office or principal place of business in Queensland if, at any time during the 22
3 financial years preceding the relevant acquisition concerned-- 23
(a) a supply or provision of services has been made by the business 24
to customers in Queensland; or 25
(b) the asset has been used, exploited or exercised in, or relates to, 26
Queensland. 27
s 220 142 s 220
Duties Bill 2001
(2) A reference in this chapter to the unencumbered value of the property 1
is taken to be a reference to the amount (the "apportioned amount") 2
worked out using the following formula-- 3
QS
AA = UV × -------
-
TS
where-- 4
"AA" means the apportioned amount. 5
"QS" means the gross amount of the supplies and provision of services 6
made by the business to its Queensland customers during the 3 7
completed financial years preceding the relevant acquisition. 8
"TS" means the gross amount of supplies and provision of services made 9
by the business to all its customers during the 3 completed financial 10
years preceding the relevant acquisition. 11
"UV" means the unencumbered value of the Queensland business asset 12
mentioned in subsection (1). 13
(3) However, the commissioner may decide the unencumbered value of 14
the dutiable property on another basis if the commissioner is satisfied the 15
other basis would be more appropriate in particular circumstances. 16
220 Apportionment of particular acquisitions relating to existing 17
rights 18
(1) This section applies for determining the unencumbered value of 19
dutiable property that is an existing right if the right is exercisable or relates 20
to the conduct of a business or an activity outside Queensland. 21
(2) A reference in this chapter to the unencumbered value of the right is 22
taken to be a reference to the amount that represents the same proportion of 23
the unencumbered value that the unencumbered value of the right to the 24
extent it is exercisable or relates to the conduct of a business or activity in 25
Queensland bears to the total unencumbered value of the right. 26
(3) However, the commissioner may decide the unencumbered value of 27
the right on another basis if the commissioner is satisfied the other basis 28
would be more appropriate in particular circumstances. 29
s 221 143 s 221
Duties Bill 2001
Division 5--Dutiable value of relevant acquisitions 1
221 Acquirer's share interest is proportionate to shares in corporate 2
trustee or relevant corporation 3
(1) For a relevant acquisition that is an acquisition of a share interest in a 4
corporate trustee, the acquirer's share interest is the proportion that the 5
number of shares the acquirer has bears to the total issued shares in the 6
corporate trustee expressed as a percentage. 7
(2) For a relevant acquisition that is an acquisition of a share interest in a 8
relevant corporation for a corporate trustee if the relevant corporation has 9
an interest in the corporate trustee as mentioned in section 211(2)(a), the 10
acquirer's share interest is worked out by applying the acquirer's share 11
interest in the relevant corporation to the relevant corporation's share 12
interest in the corporate trustee. 13
(3) For a relevant acquisition that is an acquisition of a share interest in a 14
relevant corporation for a corporate trustee if the relevant corporation has 15
an interest in the corporate trustee as mentioned in section 211(2)(b), the 16
acquirer's share interest is worked out by applying-- 17
(a) the acquirer's share interest in the relevant corporation to the 18
relevant corporation's share interest in the other relevant 19
corporation; and 20
(b) the result worked out under paragraph (a) to the other relevant 21
corporation's share interest in the corporate trustee. 22
(4) For subsections (2) and (3)-- 23
(a) the acquirer's share interest in the relevant corporation is the 24
proportion that the number of shares the acquirer acquires bears 25
to the total issued shares in the relevant corporation expressed as 26
a percentage; and 27
(b) the relevant corporation's share interest in the corporate trustee is 28
the proportion that the number of shares the relevant corporation 29
holds bears to the total issued shares in the corporate trustee 30
expressed as a percentage. 31
(5) Also, for subsection (3), the relevant corporation's share interest in 32
the other relevant corporation is the proportion that the number of shares 33
the relevant corporation holds bears to the total issued shares in the other 34
relevant corporation expressed as a percentage. 35
s 222 144 s 222
Duties Bill 2001
(6) However, if the commissioner is satisfied the acquirer's share 1
interest worked out under subsection (1), (2) or (3) does not accurately 2
represent the acquirer's rights and obligations as a shareholder when 3
compared with the rights and obligations of the other shareholders, the 4
commissioner may decide the acquirer's share interest. 5
(7) For applying subsection (1), (2) or (3) to a relevant acquisition that is 6
an increase in the acquirer's share interest, the acquirer's share interest is 7
taken to be the increase in the acquirer's share interest. 8
222 What is the dutiable value of a relevant acquisition 9
(1) The dutiable value of the relevant acquisition is the total of the 10
amounts worked out by applying the acquirer's share interest to the 11
unencumbered value, when the liability for corporate trustee duty arises, 12
of-- 13
(a) the dutiable property held on trust by the corporate trustee;24 and 14
(b) any indirect interest in dutiable property held on trust by the 15
corporate trustee. 16
17
Note--
18
Under section 213(1), dutiable property includes contracted property.
(2) For subsection (1)(b), the unencumbered value of an indirect interest 19
of a corporate trustee under section 210(a) is the amount worked out by 20
applying to the unencumbered value of the dutiable property held by the 21
entity in which the corporate trustee has a trust interest or partnership 22
interest the corporate trustee's trust interest or partnership interest in the 23
entity. 24
(3) For subsection (1)(b), the unencumbered value of an indirect interest 25
of a corporate trustee under section 210(b) is the amount worked out by-- 26
(a) first applying to the unencumbered value of the dutiable property 27
held by the ultimate entity, the trust interest or partnership 28
interest of the trust or partnership (the "last beneficiary or 29
partner") that is a beneficiary or partner of the ultimate entity; 30
and 31
(b) applying to the amount worked out under paragraph (a), and the 32
unencumbered value of any dutiable property held by the last 33
24 See section 14 (What is the "unencumbered value" of property).
s 223 145 s 223
Duties Bill 2001
beneficiary or partner, the trust interest or partnership interest of 1
the next trust or partnership in the series of trusts or partnerships 2
that is a beneficiary or partner of the last beneficiary or partner; 3
and 4
(c) applying the calculation in paragraph (b) for each of the other 5
trusts or partnerships in the series until the first entity's trust 6
interest or partnership interest is used in the calculation; and 7
(d) applying to the amount last worked out under paragraph (c) and 8
the unencumbered value of any dutiable property held by the first 9
entity, the trust interest or partnership interest of the corporate 10
trustee. 11
(4) Schedule 4 contains an example of how the dutiable value of a 12
relevant acquisition is worked out. 13
(5) If the corporate trustee is trustee of more than 1 discretionary trust, 14
the unencumbered value of the dutiable property of each trust and each 15
indirect interest held on trust by the corporate trustee must be aggregated in 16
working out the dutiable value of the relevant acquisition. 17
223 Aggregation of particular relevant acquisitions 18
(1) This section applies for aggregating relevant acquisitions that 19
together form, evidence, give effect to or arise from what is, substantially 1 20
arrangement. 21
(2) For assessing corporate trustee duty on each of the relevant 22
acquisitions, the acquisitions must be aggregated and treated as a single 23
relevant acquisition. 24
(3) For subsection (1), all relevant circumstances relating to the relevant 25
acquisitions must be taken into account in deciding whether they together 26
form, evidence, give effect to or arise from what is, substantially 27
1 arrangement. 28
(4) For subsection (3), relevant circumstances include the following-- 29
(a) whether any of the acquisitions are conditional on entry into, or 30
completion of, any of the other acquisitions; 31
(b) whether the parties to any of the acquisitions are the same; 32
(c) whether any party to an acquisition is a related person of another 33
party to any of the other acquisitions; 34
(d) the time over which the acquisitions take place; 35
s 224 146 s 224
Duties Bill 2001
(e) whether, after the acquisitions take place, the acquirers' interests 1
will be used together or dependently with one another; 2
(f) whether, before the acquisitions take place, the interests were 3
used together or dependently with one another. 4
(5) Corporate trustee duty imposed on the relevant acquisition 5
aggregated under this section must-- 6
(a) be assessed on the total of the dutiable values of the acquisitions 7
when the liability for corporate trustee duty for each of the 8
acquisitions arose; and 9
(b) be apportioned between the acquisitions as decided by the 10
commissioner. 11
(6) The acquirer must, when lodging the corporate trustee duty statement 12
relating to the acquisition, give notice to the commissioner stating details 13
known to the acquirer about-- 14
(a) all of the interests of the acquirer and related persons of the 15
acquirer included or to be included in the arrangement mentioned 16
in subsection (1); and 17
(b) the dutiable value of each relevant acquisition. 18
19
Note--
20
Under the Administration Act, the requirement under this subsection is a lodgment
21
requirement for which a failure to comply is an offence under section 121 of that Act.
Division 6--Exempt acquisitions 22
224 Exemption--change of trustee 23
Corporate trustee duty is not imposed on a relevant acquisition for the 24
sole purpose of giving effect to a change of a trustee if-- 25
(a) the acquisition is not part of an arrangement-- 26
(i) involving a change in the rights or interest of a beneficiary 27
of the trust; or 28
(ii) terminating the trust; and 29
(b) the acquisition is not part of an arrangement to avoid the 30
imposition of duty; and 31
s 225 147 s 227
Duties Bill 2001
(c) transfer duty has been paid on all trust acquisitions for which 1
transfer duty is imposed for the trust before the acquisition. 2
225 Exemption--relevant acquisition in family trust 3
(1) Corporate trustee duty is not imposed on a relevant acquisition if-- 4
(a) the commissioner is satisfied the trust of which the corporate 5
trustee is trustee is established primarily for the benefit of the 6
members of a particular family or family company; and 7
(b) the acquirer under the relevant acquisition is a member of the 8
family who, or is a family company that, does not hold the shares 9
acquired as trustee. 10
(2) The commissioner may be satisfied of the matter mentioned in 11
subsection (1)(a), even if an exempt institution is the last taker in default of 12
an appointment by the trustee of the trust. 13
(3) In this section-- 14
"family company", for a trust, means a corporation in which all directors 15
and shareholders are members of the particular family for which the 16
trust is established. 17
226 Exemption--if transfer duty not imposed 18
Corporate trustee duty is not imposed on a relevant acquisition that is a 19
dutiable transaction on which transfer duty is not imposed because of an 20
exemption under sections 123 to 126.25 21
Division 7--Deductions and reassessments 22
227 Deduction--transfer duty for marketable securities 23
(1) This section applies if-- 24
25 Sections 123 (Exemption--particular distribution of dutiable property to a
beneficiary), 124 (Exemption--deceased person's estate), 125
(Exemption--particular vestings of dutiable property) and 126
(Exemption--transactions for trust created for person under legal disability)
s 228 148 s 229
Duties Bill 2001
(a) transfer duty is paid or payable for a transfer, or agreement for 1
the transfer, of shares of a corporate trustee or relevant 2
corporation for a corporate trustee or an equivalent duty in 3
another State is paid or payable for the transfer or agreement; and 4
(b) the transfer or agreement is a relevant acquisition. 5
(2) Corporate trustee duty imposed on the relevant acquisition must be 6
reduced by the amount of transfer or equivalent duty paid or payable. 7
228 Deduction--transfer duty for trust acquisition 8
(1) This section applies if-- 9
(a) a person makes a trust acquisition for which transfer duty is paid 10
or payable; and 11
(b) the acquisition is a relevant acquisition. 12
(2) Corporate trustee duty imposed on the relevant acquisition must be 13
reduced by the amount of transfer duty paid or payable. 14
229 When commissioner must make reassessment 15
(1) The commissioner must make a reassessment of corporate trustee 16
duty imposed for a relevant acquisition if at the time of the relevant 17
acquisition a person is taken to have acquired a share interest in a 18
corporation under an agreement to acquire the interest but the agreement is 19
not completed. 20
(2) When reassessing the corporate trustee duty under subsection (1), the 21
commissioner must disregard the interest mentioned in the subsection. 22
(3) For the reassessment, the acquirer under the relevant acquisition must 23
lodge the corporate trustee duty statement for the acquisition. 24
s 230 149 s 232
Duties Bill 2001
CHAPTER 4--LEASE DUTY 1
PART 1--PRELIMINARY 2
230 Imposition of duty 3
(1) This chapter imposes duty ("lease duty") on instruments that are-- 4
(a) leases; or 5
(b) occupancy rights. 6
7
Note--
8
Exemptions for lease duty are dealt with in part 4. Also, other exemptions are dealt with
9
in chapter 10.
(2) Lease duty is imposed on the cost of a lease or occupancy right. 10
PART 2--SOME BASIC CONCEPTS ABOUT LEASES 11
AND OCCUPANCY RIGHTS 12
231 What is a "lease" 13
A "lease" is-- 14
(a) a lease, or agreement for lease, of land in Queensland; or 15
(b) an offer for the grant of exclusive possession of land in 16
Queensland. 17
232 What is an "occupancy right" 18
(1) An "occupancy right", is an agreement granting, or an offer for the 19
grant of, a right to occupy premises in Queensland for a term of more than 20
1 month if-- 21
(a) the occupier intends to use the premises for conducting a 22
business; and 23
(b) the occupier does not obtain a right to exclusive possession but 24
the occupier's use and enjoyment of the premises as a place of 25
s 233 150 s 234
Duties Bill 2001
business is not adversely affected by the absence of the right to 1
exclusive possession. 2
(2) In deciding whether the occupier's use and enjoyment of the 3
premises is adversely affected, the following must be taken into account-- 4
(a) the periods the occupier's right to occupation is not exclusive; 5
(b) the times when the occupier's right to occupy may be interrupted 6
or denied. 7
233 What is the "cost" of a lease 8
(1) The "cost" of a lease is the rent payable for the lease. 9
(2) However, the rent payable for the lease does not include the 10
following-- 11
(a) amounts paid for reasonable outgoings for the lease; 12
(b) penal rent, or increased rent in the nature of penal rent, payable 13
for the lease; 14
(c) amounts paid in consideration of the termination or surrender of 15
an existing lease or agreement relating to the leased premises; 16
(d) premiums, fines or other consideration payable for the grant of 17
the lease; 18
(e) consideration paid for, or the value of, any moveable chattels 19
taken over by the lessee from the lessor or outgoing lessee; 20
(f) if, on the leased premises, a business is to be carried on and an 21
amount in excess of what would be the rent if a business was not 22
carried on is charged for the lease--the excess amount. 23
234 What is the "cost" of an occupancy right 24
(1) The "cost" of an occupancy right is the consideration payable for the 25
right. 26
(2) However, the term does not include an amount payable for 27
reasonable outgoings. 28
s 235 151 s 239
Duties Bill 2001
235 Cost of lease or occupancy right variable 1
If the cost of a lease or occupancy right may vary up to a maximum 2
amount, the maximum amount is the cost of the lease or right. 3
236 Cost of lease or occupancy right paid in goods or services 4
(1) If the cost of a lease or occupancy right includes the provision of 5
goods or services, the value of the goods or services is included in the cost. 6
(2) If the lease or occupancy right provides that the value of the goods or 7
services must be at least, or must not be more than, a stated amount, or 8
provides a conversion rate, the amount, or the amount worked out using the 9
conversion rate, is the value of the goods or services for subsection (1). 10
PART 3--LIABILITY FOR, PAYMENT AND 11
REASSESSMENTS OF LEASE DUTY 12
237 When liability for lease duty arises 13
(1) A liability for lease duty arises for a lease or occupancy right when 14
the lessee or grantee takes possession of the leased premises in accordance 15
with the lease or right. 16
(2) Also, if the lessee or grantee continues in possession of the leased 17
premises after the lease or right ends, a liability for lease duty arises when 18
the continued possession starts. 19
238 Who is liable to pay lease duty 20
Lease duty imposed on a lease or occupancy right must be paid by the 21
lessor and lessee of the lease or the grantor and grantee of the right. 22
239 Rate of lease duty 23
The rate of lease duty imposed on a lease or occupancy right is 35c for 24
each $100, or part of $100, of the cost of the lease or right. 25
s 240 152 s 241
Duties Bill 2001
240 Lodging instrument 1
The lessor of a lease or grantor of an occupancy right must, within 2
30 days after the liability for lease duty arises, lodge the lease or right. 3
241 Lodging statements and payment of lease duty 4
(1) If, when the liability for lease duty arises, the cost of the lease or 5
occupancy right, or part of the cost, is ascertainable (the "ascertainable 6
amount"), the lessor or grantor must, within 30 days after the liability 7
arises, lodge a statement in the approved form stating the ascertainable 8
amount. 9
(2) If, when the liability for lease duty arises, other than a liability 10
mentioned in section 237(2), the cost of the lease or occupancy right, or 11
part of the cost, is not ascertainable (the "unascertainable amount"), the 12
lessor or grantor must, within the time stated in subsection (3)-- 13
(a) lodge the lease or right and a statement in the approved form 14
stating the unascertainable amount; and 15
(b) pay to the commissioner the amount of lease duty to the extent it 16
relates to the unascertainable amount and any assessed interest 17
and penalty tax. 18
(3) For subsection (2), the stated time is 30 days after-- 19
(a) if possession or occupation of the leased premises is terminated 20
within the term of the lease or right--the end of possession; or 21
(b) if paragraph (a) does not apply--the final rent review carried out 22
under the lease or right or, if no rent review is carried out, the end 23
of the lease. 24
(4) If, when the liability for lease duty mentioned in section 237(2) 25
arises, the cost of the lease or occupancy right, or part of the cost, is not 26
ascertainable (also the "unascertainable amount"), the lessor or grantor 27
must, within the time stated in subsection (5)-- 28
(a) lodge the lease or right and a statement in the approved form 29
stating the unascertainable amount; and 30
(b) pay to the commissioner the amount of lease duty to the extent it 31
relates to the unascertainable amount and any assessed interest 32
and penalty tax. 33
(5) For subsection (4), the stated time is 30 days after-- 34
s 242 153 s 242
Duties Bill 2001
(a) the first anniversary of the liability arising and each later 1
anniversary; and 2
(b) the continued possession ceases. 3
(6) However, the lessor or grantor does not have to comply with 4
subsection (2) or (4) if the unascertainable amount is not more than 5
$10 000. 6
(7) If a lease or occupancy right contains an option for a further period-- 7
(a) lease duty is only assessed under subsections (1) and (2) on the 8
cost of the term of the lease or right; and 9
(b) if the option is exercised, liability to lease duty under 10
subsections (1) and (2) for the further period arises when the 11
option is exercised. 12
(8) If during the term of a lease or occupancy right the cost of the lease is 13
increased by agreement, other than under the terms of the lease, liability for 14
the increased cost arises when the agreement is made. 15
(9) For this section, the cost of a lease or occupancy right, or part of the 16
cost, is ascertainable if the lease or right states the amount or provides how 17
it is to be worked out and all factors necessary to work out the amount are 18
known when the liability for lease duty arises. 19
(10) For the Administration Act,26 a statement under subsection (2) or (4) 20
is taken to be a return for a self assessment for the cost of the lease or 21
occupancy right. 22
242 Reassessment of lease duty for particular earlier termination of 23
lease or occupancy right 24
(1) This section applies if the commissioner is satisfied a lease or 25
occupancy right is terminated because-- 26
(a) the leased premises are destroyed during its term; or 27
(b) the lessee or grantee dies. 28
(2) The commissioner must make a reassessment of lease duty on 29
application made by-- 30
(a) the lessor or grantor and lessee or grantee; or 31
26 See the Administration Act, section 32 (Time for payment of other amounts).
s 243 154 s 244
Duties Bill 2001
(b) the lessor or grantor and personal representative of the lessee or 1
grantee. 2
(3) In making the reassessment, the cost of the lease or right relating to 3
the unexpired term of the lease or right must be disregarded. 4
(4) The application must be made within 6 months after the termination 5
of the lease or right. 6
(5) The applicant must lodge the lease or right with the application. 7
(6) Subsection (2) applies to the reassessment despite the limitation 8
period under the Administration Act for reassessments.27 9
243 Credit for lease duty paid 10
(1) This section applies if a lease or occupancy right is terminated and a 11
replacement lease or occupancy right is entered into or granted in either of 12
the following circumstances-- 13
(a) the real property description of the leased premises changes 14
because of a strata title or group title plan being registered over 15
the land comprising the leased premises; 16
(b) the lessee takes a new lease or the grantee is granted a new 17
occupancy right over premises in the same building because of 18
the refurbishment of the leased premises. 19
(2) In assessing the lease duty on the replacement instrument, a credit 20
must be allowed for the amount of lease duty paid to the extent that it 21
relates to the unexpired term of the original lease or occupancy right. 22
PART 4--EXEMPTIONS FOR LEASE DUTY 23
244 Exemption--particular residences 24
Lease duty is not imposed on the following instruments if the leased 25
premises are not used for carrying on a business or commercial venture-- 26
(a) a lease of a dwelling house; 27
27 See the Administration Act, part 3, (Assessments of tax), division 3
(Reassessments).
s 245 155 s 247
Duties Bill 2001
(b) a relevant agreement as defined in the Mobile Homes Act 1989, 1
section 3. 2
245 Exemption--leases under Land Act 3
Lease duty is not imposed on a lease issued under the Land Act 1994. 4
246 Exemption--National Trust leases and occupancy rights 5
Lease duty is not imposed on a lease, or grant of an occupancy right, to 6
The National Trust of Queensland constituted under the National Trust of 7
Queensland Act 1963. 8
CHAPTER 5--MORTGAGE DUTY 9
PART 1--PRELIMINARY 10
247 Imposition of mortgage duty 11
(1) This chapter imposes duty ("mortgage duty") on instruments that 12
are mortgages, particular caveats claiming an interest under mortgages and 13
particular releases of mortgages. 14
15
Note--
16
Concessions and exemptions for mortgage duty are dealt with in parts 6 and 7. Also,
17
other exemptions are dealt with in chapter 10.
(2) Mortgage duty is imposed on the amount secured by a mortgage.28 18
28 See part 4 (Amount secured by a mortgage).
s 248 156 s 249
Duties Bill 2001
PART 2--SOME BASIC CONCEPTS FOR MORTGAGE 1
DUTY 2
248 What is a "mortgage" 3
(1) An instrument is a "mortgage" if it is-- 4
(a) a security by way of mortgage or charge over property wholly or 5
partly in Queensland; or 6
(b) a security by way of a transfer of property wholly or partly in 7
Queensland to a trustee, to be sold or otherwise converted into 8
money, redeemable before the sale or conversion, other than if 9
the transfer is made for the benefit of creditors who accept the 10
transfer in full satisfaction of debts owed to them; or 11
(c) any transfer, or agreement for the transfer, of property wholly or 12
partly in Queensland that is apparently absolute but is intended 13
only as security;29 or 14
(d) an instrument that, on the deposit of instruments of title to 15
property wholly or partly in Queensland, becomes a mortgage or 16
evidences the terms of a mortgage. 17
(2) However, for this chapter, an instrument mentioned in 18
subsection (1)(a) is a mortgage only if it is a security by way of mortgage 19
or charge over property wholly or partly in Queensland at the liability date. 20
(3) For sections 262, 268, 269, 276 and 281,30 a reference to a mortgage 21
or previous mortgage includes a reference to a mortgage first signed before 22
the repeal of the repealed Act. 23
249 What is an "advance" 24
(1) An "advance" is the provision or obtaining of funds by way of 25
financial accommodation by-- 26
(a) a loan; or 27
29 See section 32 (Transfer by way of security-- land).
30 Sections 262 (Collateral mortgage), 268 (Caveats), 269 (Releases of mortgages),
276 (What is a "home refinance mortgage") and 281 (Further concession for
particular home refinance mortgages)
s 250 157 s 251
Duties Bill 2001
(b) a bill facility that is 1 or more agreements, understandings or 1
arrangements as a consequence of which a bill of exchange or 2
promissory note-- 3
(i) is drawn, accepted, endorsed or made; or 4
(ii) is held, negotiated or discounted. 5
(2) Subsection (1)(b) applies whether or not the funds are obtained 6
from-- 7
(a) the person who draws, accepts, endorses or makes the bill of 8
exchange or promissory note; or 9
(b) a person who is a party to any of the agreements, understandings 10
or arrangements. 11
(3) An "advance" includes a contingent liability under section 259. 12
(4) However, the term does not include an amount provided or obtained 13
on the security of a mortgage for-- 14
(a) insurance of the secured property against fire; or 15
(b) keeping or effecting a policy of life insurance; or 16
(c) payment of duty for the security or any loan other than a current 17
account secured by the mortgage. 18
250 What is a "loan" 19
Each of the following is a "loan"-- 20
(a) an advance of money; 21
(b) the payment of money for or on account of, or at the request of, 22
any person; 23
(c) a forbearance to require the payment of money owing on any 24
account; 25
(d) any transaction, whatever its terms or form, that in substance 26
effects a loan of money. 27
251 Location of property 28
For this chapter, the following property is taken to be located in the place 29
stated-- 30
s 252 158 s 253
Duties Bill 2001
(a) marketable securities of a company--in the State the company is 1
taken to be registered under the Corporations Act; 2
(b) units in a unit trust--in the place where the register on which the 3
units are registered is kept or, if the register is not kept in 4
Australia, in the place of residence of the manager or responsible 5
entity of the unit trust; 6
(c) debt securities of a government of a State--in that State. 7
PART 3--LIABILITY FOR MORTGAGE DUTY 8
252 When liability for mortgage duty arises 9
(1) A mortgage is liable to mortgage duty when it is first signed. 10
(2) A mortgage is liable to mortgage duty on the making of an advance 11
or further advance that results in the total amount secured by the mortgage 12
exceeding the amount secured by it for which it has been properly stamped, 13
or is exempt from duty, under this or a corresponding Act. 14
(3) Subsection (4) applies if an instrument of security that does not affect 15
property in Queensland when it is first signed-- 16
(a) affects any property that is specifically identified, whether or not 17
in the instrument, when it is first signed and, under an 18
arrangement, the property is intended to be secured by the 19
security; or 20
(b) affects land, other than a security interest, in Queensland within 1 21
year after it is first signed. 22
(4) The instrument of security is liable for mortgage duty when it first 23
affects the property or land unless it is stamped with, or is exempt from, 24
similar duty under a corresponding Act. 25
(5) An instrument that, on the deposit of instruments of title to property 26
in Queensland, becomes a mortgage or evidences the terms of a mortgage 27
is liable to mortgage duty on the deposit of the instruments. 28
253 Who is liable to pay mortgage duty 29
Mortgage duty imposed on a mortgage must be paid by the mortgagor. 30
s 254 159 s 258
Duties Bill 2001
254 Rate of mortgage duty 1
The rate of mortgage duty imposed on a mortgage is 40c for each $100, 2
or part of $100, of the amount secured by the mortgage as determined 3
under part 4. 4
255 Lodging mortgage 5
The mortgagor or mortgagee under a mortgage must, within 30 days 6
after the liability for mortgage duty arises, lodge the mortgage. 7
256 Effect of lodging mortgage by mortgagor or mortgagee 8
The lodging, under section 255, of a mortgage by the mortgagor or 9
mortgagee relieves the other person from complying with the section. 10
257 Stamping before advance 11
(1) A mortgage may be stamped before an advance whether or not an 12
earlier advance has been made. 13
(2) A mortgage mentioned in section 260 or 261 may be stamped to 14
secure any amount exceeding that to which it is already stamped based on 15
the dutiable proportion for the mortgage when it is stamped. 16
PART 4--AMOUNT SECURED BY A MORTGAGE 17
258 What is the amount secured by a mortgage 18
(1) The amount secured by a mortgage is the amount of advances 19
actually secured by it and recoverable under it. 20
(2) However, if-- 21
(a) a mortgage has been properly stamped, or is exempt from duty, 22
under this or a corresponding Act for an amount of advances 23
secured by the mortgage; and 24
(b) a further advance secured by the mortgage is made; and 25
s 259 160 s 260
Duties Bill 2001
(c) the total amount secured by the mortgage exceeds the amount for 1
which the mortgage has been properly stamped; 2
the amount secured by the mortgage is, for section 247(2), the excess 3
amount mentioned in paragraph (c). 4
259 Contingent liabilities 5
(1) This section applies to a mortgage securing or capable of securing, 6
whether directly or indirectly, an amount contingently payable (the 7
"secured amount") in connection with an advance (the "primary 8
advance")-- 9
(a) by a guarantor or indemnifying party under a guarantee or 10
indemnity; or 11
(b) by another party under another type of instrument. 12
(2) Mortgage duty must be assessed on the secured amount as if it were a 13
separate advance secured by the mortgage. 14
(3) For subsection (2), the contingent liability is limited to the amount of 15
the primary advance. 16
(4) This section-- 17
(a) does not apply if the commissioner is satisfied there is no 18
connection between the mortgage and the primary advance; and 19
(b) does not require mortgage duty to be paid more than once for an 20
advance. 21
260 Mortgage over property not wholly in Queensland 22
(1) Mortgage duty must be assessed for a mortgage over property that is 23
partly in and partly outside Queensland as if the amount secured by it were 24
only the dutiable proportion. 25
(2) For subsection (1), the dutiable proportion is the proportion of the 26
amount secured by the mortgage on which mortgage duty is imposed that, 27
at the liability date, the value of property in Queensland affected by the 28
mortgage bears to the value of all property affected by it, other than 29
property located outside Australia or in a Territory. 30
(3) The dutiable proportion must be worked out by reference to the 31
property values according to a referable point. 32
s 261 161 s 261
Duties Bill 2001
(4) For subsection (3), a referable point is any of the following prepared 1
in the year before the liability date for the mortgage-- 2
(a) an independent valuation of the secured property; 3
(b) a statement of the mortgagee based on information obtained by 4
the mortgagee in deciding to make the advance to the mortgagor; 5
(c) property valuations used by the mortgagor in preparing an annual 6
return to be lodged under the Corporations Act; 7
(d) a financial report of the mortgagor, certified by an independent 8
auditor as presenting a true and fair view of a corporation's 9
financial position; 10
(e) agreed property valuations that form the basis of the mortgagor's 11
insurance policies; 12
(f) another document the commissioner considers to be appropriate 13
for working out the dutiable proportion. 14
(5) However, if there is more than 1 referable point for a mortgage, the 15
referable point is the later or latest of the referable points. 16
(6) Also, the acceptable referable point must be the same acceptable 17
referable point used to determine liability to duty under a corresponding 18
Act. 19
261 Advances secured by mortgage package 20
(1) If-- 21
(a) at a liability date, 2 or more security instruments secure or partly 22
secure the same amount; and 23
(b) at least 1 of the instruments is a security affecting property 24
wholly or partly outside Queensland; and 25
(c) at least 1 of the instruments is a mortgage; 26
the instruments are a "mortgage package". 27
(2) Also, a "mortgage package" includes-- 28
(a) a mortgage signed after the liability date if the commissioner is 29
satisfied the mortgage was intended to be part of the package; 30
and 31
(b) a mortgage previously collateral to an earlier advance under 1 or 32
more of the other mortgages in the package. 33
s 262 162 s 263
Duties Bill 2001
(3) Mortgage duty must be assessed under this part on the mortgage 1
package as if the instruments comprising the mortgage package were 2
1 mortgage, first signed on the day the last of the signed instruments was 3
signed. 4
(4) One of the mortgages in the mortgage package must be stamped with 5
the mortgage duty paid in Queensland for the mortgage package and all 6
other mortgages in the mortgage package must be stamped as a collateral 7
mortgage. 8
262 Collateral mortgage 9
(1) Mortgage duty is not imposed on the part of the amount secured by a 10
collateral mortgage that is secured by-- 11
(a) a mortgage or security instrument that is properly stamped under 12
this Act or a corresponding Act; or 13
(b) a mortgage package that has been properly stamped under 14
section 261 or a corresponding Act. 15
(2) A collateral mortgage that no longer secures an amount secured by a 16
mortgage, instrument or mortgage package mentioned in subsection (1) is 17
not security for another advance unless mortgage duty for the amount of 18
the other advance is paid. 19
263 Extent mortgage is enforceable 20
(1) A mortgage or mortgage package for which mortgage duty is 21
imposed or a similar duty is chargeable under a corresponding Act is 22
enforceable only to the extent of the amount secured by the mortgage or 23
mortgage package for which duty has been paid, or the mortgage or 24
mortgage package is exempt from duty, under this Act or the 25
corresponding Act. 26
(2) For subsection (1), mortgage duty has been paid on a mortgage or 27
mortgage package affecting property that is partly in and partly outside 28
Queensland if-- 29
(a) duty has been paid on the total advances under the mortgage or 30
mortgage package when the mortgage duty paid is taken with the 31
duty paid under a corresponding Act; and 32
(b) the dutiable proportion of the mortgage or mortgage package is 33
not incorrect by more than 5%. 34
s 264 163 s 265
Duties Bill 2001
1
Note--
2
Under section 260(3), the dutiable proportion must be worked out by reference to
3
property values according to a referable point.
264 Limit on security provided by stamped and collateral mortgages 4
(1) A stamped or collateral mortgage that was, but is no longer, part of 5
the same mortgage package and no longer secures the same amount 6
secured by the package is not security for another advance unless mortgage 7
duty for the amount of the other advance is paid. 8
9
Example for subsection (1)--
10
A has property in 5 States, each valued at $150 000. A borrows $100 000 secured by a
11
mortgage package comprising 5 mortgages. The mortgages secure the full $100 000
12
and are stamped under this Act and the corresponding Acts of the other States on the
13
basis that the dutiable proportion for each mortgage is $20 000.
14
Under a restructure of the loans, the Queensland mortgage no longer secures the
15
$100 000 which remains secured by the other mortgages on which duty has been paid
16
in the other States.
17
Under this subsection, if A takes out a new loan, the Queensland mortgage is not
18
security for the new loan unless mortgage duty imposed on it is paid.
(2) The fact that the stamped or collateral mortgage is no longer part of 19
the mortgage package does not affect the amounts for which the remaining 20
mortgages in the mortgage package provide security. 21
265 Multi-jurisdictional statement 22
(1) If mortgage duty is imposed on the dutiable proportion of a 23
mortgage, (whether for a mortgage over property not wholly in 24
Queensland, a mortgage package or on original or subsequent advances), 25
the mortgagor or mortgagee must make a statement in the approved form 26
about the location and value of the secured property. 27
Maximum penalty--40 penalty units. 28
(2) The making of a statement under subsection (1) by the mortgagor or 29
mortgagee relieves the other person from complying with the subsection. 30
(3) The statement may be taken to be the mortgage, or mortgages 31
comprising the mortgage package. 32
s 266 164 s 267
Duties Bill 2001
PART 5--MORTGAGE DUTY ON PARTICULAR 1
DEBENTURE ISSUES, CAVEATS AND RELEASES OF 2
MORTGAGES 3
266 Mortgage duty associated with particular debenture issues 4
(1) This section applies if-- 5
(a) a corporation offers debentures to the public for subscription; and 6
(b) the corporation is a party to an instrument of trust relating to the 7
debentures; and 8
(c) a mortgage secures the repayment of debentures issued by the 9
corporation. 10
(2) Mortgage duty must be assessed on the mortgage for the offer of 11
debentures as if it were a mortgage securing the payment of an amount 12
equal to the total amount of debentures, other than exempt short-term 13
debentures, subscribed for by the public in Queensland from time to time. 14
(3) On or before 31 July in each year, the trustee under the instrument of 15
trust must-- 16
(a) lodge a statutory declaration stating the total amount subscribed 17
for in Queensland for the corporation's debentures and exempt 18
short-term debentures in the year ending on the previous 30 June; 19
and 20
(b) pay to the commissioner mortgage duty on the amount 21
subscribed for in the year for the debentures, other than exempt 22
short-term debentures. 23
(4) If mortgage duty is paid under subsection (3), the instrument of trust 24
and debentures are not liable to duty under this Act. 25
(5) In this section, a reference to an amount subscribed for relating to 26
debentures does not include an amount represented by debentures issued 27
on the conversion or renewal of an existing holding of debentures or other 28
marketable securities. 29
267 What is an "exempt short-term debenture" 30
(1) A debenture issued by a public company is an "exempt short-term 31
debenture" if-- 32
s 268 165 s 269
Duties Bill 2001
(a) the amount repayable under the debenture is repayable within 1
6 months after it is issued or is not repayable within a fixed or 2
certain period but the amount is later paid or repaid within 3
6 months after it is issued; and 4
(b) the debenture is not part of an arrangement, the effect of which is 5
to extend the period for repayment of an amount to more than 6
6 months after it is issued. 7
(2) If a debenture is reissued or renewed, the combined terms of 8
debentures is taken into account when deciding when the amount under the 9
debenture is repayable for subsection (1). 10
(3) Also, for subsection (1), debentures subscribed for by a corporation 11
include debentures subscribed for by a related body corporate unless the 12
commissioner decides otherwise. 13
268 Caveats 14
(1) Mortgage duty is imposed on a caveat claiming an interest in land, or 15
a water allocation, under a mortgage if mortgage duty is imposed, but not 16
paid, on the mortgage. 17
(2) The amount of mortgage duty imposed on the caveat is the amount of 18
mortgage duty that would be imposed on the mortgage. 19
(3) The mortgagor must pay the duty as if it were assessed on the 20
mortgage. 21
(4) To the extent that mortgage duty is paid on the caveat, mortgage duty 22
is not imposed on the mortgage. 23
269 Releases of mortgages 24
(1) Mortgage duty is imposed on a release of mortgage to the extent that 25
mortgage duty is imposed, but not paid, on the mortgage. 26
(2) Immediately after the release, the mortgagor must-- 27
(a) lodge a statement in the approved form; and 28
(b) pay the duty as if it were assessed on the mortgage. 29
s 270 166 s 273
Duties Bill 2001
PART 6--CONCESSIONS FOR HOME MORTGAGES 1
AND FIRST HOME MORTGAGES 2
Division 1--Preliminary 3
270 Purpose of pt 6 4
The purpose of this part is to provide for concessions for mortgage duty 5
on home mortgages and home refinance mortgages. 6
Division 2--Concessions for mortgage duty for home mortgages 7
Subdivision 1--Some basic concepts about concessions for mortgage 8
duty for home mortgages 9
271 What is a "home mortgage" 10
(1) A "home mortgage" is a mortgage given by a person to the extent 11
that the mortgage secures an advance to the person to finance the purchase 12
or construction of the person's home or a further interest in the person's 13
home. 14
(2) A home mortgage or, if there is more than 1 home mortgage, at least 15
1 of them, must be over the residential land. 16
272 What is a "home" and "first home" for div 2 17
(1) For this division, a residence that is to be constructed is the person's 18
"home" or "first home" if, when constructed, it will be the person's home 19
or first home under section 86. 20
(2) For subsection (1), section 86 applies as if the person's transfer date 21
for the residential land were the date the mortgage was first signed. 22
273 Who is a "home borrower" and a "first home borrower" 23
(1) A person is a "home borrower" if the person is the mortgagor under 24
a home mortgage. 25
s 274 167 s 274
Duties Bill 2001
(2) A home borrower is a "first home borrower" if the borrower's 1
home mortgage secures an advance to the borrower to finance the purchase 2
or construction of the borrower's first home. 3
Subdivision 2--Concessions for home mortgages 4
274 Concession for mortgage duty--home mortgage 5
(1) If all owners of a home are home borrowers, mortgage duty is not 6
imposed on the part of the amount secured by the home mortgage that is 7
the lesser of the following-- 8
(a) the qualifying amount; 9
(b) if-- 10
(i) all the owners are first home borrowers--$100 000; or 11
(ii) all the owners are not first home borrowers--$70 000. 12
(2) For owners who are home borrowers to which subsection (1) does 13
not apply, mortgage duty is not imposed on the part of the amount secured 14
by the home mortgage that is the lesser of the following-- 15
(a) the total of-- 16
(i) for each home borrower--the borrower's interest multiplied 17
by $70 000; and 18
(ii) for each first home borrower--the borrower's interest 19
multiplied by $100 000; 20
(b) the qualifying amount. 21
(3) The total amount of concessions for mortgage duty on all home 22
mortgages must not be more than the maximum amount of concessions 23
applicable to the borrowers under subsection (1)(b) or (2)(a). 24
(4) For subsection (2), a home borrower or first home borrower's 25
interest is the proportion that the value of the borrower's interest in the 26
residential land bears to the value of the land. 27
(5) Also, for subsections (1) and (2), the qualifying amount is the 28
proportion of-- 29
(a) for a home mortgage to which section 260 applies or a mortgage 30
package--the dutiable proportion; or 31
s 275 168 s 275
Duties Bill 2001
(b) for another home mortgage--the amount secured by the 1
mortgage; 2
that corresponds to the part of the advances secured by the mortgage that 3
are used or to be used to finance the purchase or construction of the home 4
by the borrowers to whom the concession relates. 5
(6) For subsection (4), advances used to refinance an existing home 6
mortgage for the home must be disregarded in working out the advances 7
that are used or to be used to finance the purchase or construction of the 8
home. 9
275 Concession for mortgage duty--particular trusts 10
(1) This section applies if-- 11
(a) the trustee of a trust, other than a discretionary or unit trust, gives 12
a mortgage to secure an advance to the trustee to finance the 13
purchase or construction of a home or a further interest in a 14
home; and 15
(b) the beneficiaries are individuals all of whom are under a legal 16
disability; and 17
(c) the residence is the home of all or some of the beneficiaries. 18
(2) This division applies as if-- 19
(a) the mortgage were a home mortgage; and 20
(b) the beneficiaries were the home borrowers or first home 21
borrowers under it; and 22
(c) the beneficiaries were the owners of the home. 23
s 276 169 s 279
Duties Bill 2001
Division 3--Concessions for mortgage duty for home refinance 1
mortgages 2
Subdivision 1--Some basic concepts about concessions for mortgage 3
duty for home refinance mortgages 4
276 What is a "home refinance mortgage" 5
(1) A "home refinance mortgage" is a mortgage securing advances to 6
the person, all or part of which are used or to be used to repay the balance 7
outstanding under a previous mortgage over the person's home. 8
(2) A home refinance mortgage, or if there is more than 1 home refinance 9
mortgage, at least 1 of them must be over the person's home. 10
277 What is a "home" for div 3 11
For this division, a person's "home" is a residence the person has 12
occupied as the person's principal place of residence for whichever is the 13
shorter of the following-- 14
(a) 6 months before signing the home refinance mortgage; 15
(b) since the borrower has owned the residence. 16
278 Who is a "home refinance borrower" 17
A person is a "home refinance borrower" if the person is the 18
mortgagor under a home refinance mortgage. 19
Subdivision 2--Concessions for home refinance mortgages 20
279 Concession for mortgage duty--home refinance mortgage 21
(1) If all of the owners of a home are home refinance borrowers, 22
mortgage duty is not imposed on the part of the amount secured by the 23
home refinance mortgage that is the lesser of the following-- 24
(a) the refinance qualifying amount; 25
(b) $100 000. 26
s 280 170 s 280
Duties Bill 2001
(2) If all of the owners of a home are not home refinance borrowers, 1
mortgage duty is not imposed on the part of the amount secured by the 2
home refinance mortgage up to the amount that is the lesser of the 3
following-- 4
(a) home refinance borrowers' interests multiplied by $100 000; 5
(b) the refinance qualifying amount. 6
(3) The total amount of concessions for mortgage duty on all home 7
refinance mortgages must not be more than the maximum amount of 8
concessions applicable to the borrowers under subsection (1)(b) or (2)(a). 9
(4) For subsection (2), a home refinance borrower's interest is the 10
proportion that the value of the home refinance borrower's interest in the 11
residential land bears to the value of the land. 12
(5) Also, for subsections (1) and (2), the refinance qualifying amount is 13
the proportion of-- 14
(a) for a home refinance mortgage to which section 260 applies or a 15
mortgage package--the amount of the dutiable proportion; or 16
(b) for another home refinance mortgage--the amount secured or to 17
be secured by the home refinance mortgage; 18
that corresponds to the part of the advances secured by the mortgage that 19
are used or to be used to repay the balance outstanding on the previous 20
mortgage by the borrowers to whom the concession relates. 21
(6) For subsection (5), advances used to finance the acquisition of a 22
home or first home must be disregarded in working out the advances that 23
are used or to be used to repay the balance outstanding under the previous 24
mortgage. 25
280 Concession for mortgage duty--particular trusts 26
(1) This section applies if-- 27
(a) the trustee of a trust, other than a discretionary or unit trust, gives 28
a mortgage to secure an advance to the trustee, all or part of 29
which is used, or to be used, to repay the balance outstanding 30
under a previous mortgage over a home; and 31
(b) the beneficiaries are individuals all of whom are under a legal 32
disability; and 33
(c) the residence is the home of all or some of the beneficiaries. 34
s 281 171 s 281
Duties Bill 2001
(2) This division applies as if-- 1
(a) the mortgage were a home refinance mortgage; and 2
(b) the beneficiaries were the home refinance borrowers under it; and 3
(c) the beneficiaries were the owners of the home. 4
Division 4--Miscellaneous provisions 5
281 Further concession for particular home refinance mortgages 6
(1) This section applies if the amount secured by a home refinance 7
mortgage, or the dutiable proportion of a home refinance mortgage, is more 8
than-- 9
(a) the amount determined under section 279(1) or (2); or 10
(b) if there is also a home borrower for the mortgage--the total of 11
the amount determined under section 279(2) and any amount 12
determined under section 274(2) for the borrower. 13
(2) The non-concessional balance for the home refinance mortgage is 14
reduced by the amount by which the amount secured for which duty has 15
been paid in Queensland under the previous mortgage is more than-- 16
(a) for a mortgage or mortgage package to which section 260 or 261 17
applies--the balance outstanding under the previous mortgage 18
multiplied by the dutiable proportion; or 19
(b) for another mortgage--the balance outstanding under the 20
previous mortgage. 21
(3) For subsection (2), the non-concessional balance for the home 22
refinance mortgage is-- 23
(a) the part of the amount secured by the mortgage for which a 24
concession for mortgage duty is not given under section 279; or 25
(b) if there is also a home borrower for the mortgage--the total of 26
the amount mentioned in paragraph (a) and the part of the 27
amount secured by the mortgage for which a concession for 28
mortgage duty is not given under section 274. 29
s 282 172 s 283
Duties Bill 2001
282 Application for concession for mortgage duty 1
An application for a concession for mortgage duty on a home mortgage 2
or home refinance mortgage must be made in the approved form. 3
PART 7--EXEMPTIONS FOR MORTGAGE DUTY 4
Division 1--Particular debentures and instruments of trust, transfer of 5
land by security and mortgages under particular Acts 6
283 Exemption--particular debentures and instruments of trust 7
(1) Mortgage duty is not imposed on an exempt short-term debenture. 8
(2) Mortgage duty is not imposed on a mortgage that is-- 9
(a) a debenture issued by a financial corporation or related 10
corporation of a financial corporation under an instrument of 11
trust-- 12
(i) to which the financial corporation or related corporation is a 13
party; and 14
(ii) that protects the interests of the holders of the debentures; or 15
(b) a debenture issued by a financial corporation or related 16
corporation of a financial corporation, the repayment for which is 17
secured by a mortgage given by the financial corporation or 18
related corporation; or 19
(c) an instrument of trust-- 20
(i) to which a financial corporation or related corporation of a 21
financial corporation is a party; and 22
(ii) that protects the interests of the holders of debentures issued 23
under the instrument of trust. 24
(3) Mortgage duty is not imposed on a mortgage given by a financial 25
corporation or a related corporation of a financial corporation to secure the 26
repayment of debentures issued by the financial corporation or related 27
corporation. 28
s 284 173 s 285
Duties Bill 2001
(4) This section applies to debentures issued, a mortgage given or an 1
instrument of trust signed, by a related corporation of a financial 2
corporation only so far as the debentures are issued, the mortgage is given 3
or the instrument of trust is signed, for raising funds to be used by the 4
financial corporation. 5
(5) In this section-- 6
"financial corporation" means a corporation whose sole or principal 7
business is providing finance to the public. 8
"related corporation", of a financial corporation, means a corporation 9
that is a related body corporate of the financial corporation. 10
284 Exemption--transfer of land by way of security 11
Mortgage duty is not imposed on a mortgage that is a transfer of land by 12
way of security if transfer duty is paid on the dutiable transaction that is the 13
transfer. 14
285 Exemption--mortgages under particular Acts 15
Mortgage duty is not imposed on the following instruments-- 16
(a) a mortgage given to secure an advance to a cooperative registered 17
under the Cooperatives Act 1997 whose members are primary 18
producers, if the mortgage secures advances to finance-- 19
(i) the acquisition of primary produce; or 20
(ii) payments to suppliers on account of primary produce 21
marketed for the suppliers; or 22
(iii) working or other expenses, other than capital expenses, 23
incidental to the acquisition, processing or marketing of 24
primary produce; 25
(b) a mortgage given to secure an advance to a parents and citizens 26
association formed under the Education (General Provisions) Act 27
1989; 28
(c) a mortgage given by a society registered as a cooperative housing 29
society under the Financial Intermediaries Act 1996 to secure-- 30
(i) an advance made, or to be made to the society, by the 31
Treasurer; or 32
s 286 174 s 286
Duties Bill 2001
(ii) an advance guaranteed by the Treasurer and made, or to be 1
made, to the society by-- 2
(A) a financial institution; or 3
(B) another entity prescribed under a regulation; 4
(d) a mortgage given to secure an advance made by the Brigalow 5
Corporation under the Land Act 1994, chapter 8, part 7A; 6
(e) a mortgage given to secure an advance to The National Trust of 7
Queensland constituted under the National Trust of Queensland 8
Act 1963; 9
(f) a mortgage of a tenure, or interest in a tenure, under the Offshore 10
Minerals Act 1998; 11
(g) a mortgage of, or a mortgage of an interest in, an access 12
authority, licence, permit or pipeline licence under the Petroleum 13
(Submerged Lands) Act 1982. 14
Division 2--Mortgage-backed securities 15
Subdivision 1--Some basic concepts for mortgage-backed securities 16
286 What is a "mortgage-backed security" 17
(1) A "mortgage-backed security" is-- 18
(a) an entitlement or interest of a person in-- 19
(i) an entitlement of a mortgagee or another entitlement for a 20
mortgage or pool of mortgages; or 21
(ii) amounts payable by a mortgagor under a mortgage or pool 22
of mortgages whether or not on the same conditions 23
applying under the mortgage and whether or not the person 24
is entitled to a transfer of the mortgage or pool of 25
mortgages; or 26
(b) a debenture, promissory note, bill of exchange, stock, bond, note 27
or other security creating, evidencing or acknowledging 28
indebtedness issued or made by a corporation if the payments 29
under the security are received by the corporation-- 30
s 287 175 s 289
Duties Bill 2001
(i) substantially from the receipts, whether of capital or 1
income, from a mortgage or pool of mortgages; or 2
(ii) if another extent is prescribed under a regulation--to the 3
extent prescribed, from the receipts, whether of capital or 4
income, from a mortgage or pool of mortgages; or 5
(c) a security by which an interest in, or mortgage or charge over, an 6
entitlement, interest or security mentioned in paragraph (a) or (b) 7
is created. 8
(2) However, the term does not include-- 9
(a) a mortgage, other than a mortgage mentioned in 10
subsection (1)(c); or 11
(b) a transfer of a mortgage. 12
287 What is a "mortgage" 13
A "mortgage" is a mortgage of, or charge over, land regardless of 14
whether the land is situated in Queensland or elsewhere. 15
288 What is