DUTIES ACT 2001 - SECT 123 Exemption—particular distribution of dutiable property to a beneficiary

DUTIES ACT 2001 - SECT 123

123 Exemption—particular distribution of dutiable property to a beneficiary

(1) Transfer duty is not imposed on a dutiable transaction that is the transfer, or agreement for the transfer, of dutiable property to a beneficiary, or the surrender of a trust interest of a beneficiary, to the extent it represents the beneficiary’s trust interest on a distribution by the trustee under a trust.

(2) However, subsection (1) applies only if the commissioner is satisfied—

(a) the dutiable property being distributed to the beneficiary—

(i) is the same property held on trust at the time the beneficiary acquired the beneficiary’s trust interest; or

(ii) represents the proceeds of re-investment of property held on trust when the beneficiary acquired the beneficiary’s trust interest in the trust; and

(b) under this chapter—

(i) transfer duty imposed has been paid for the dutiable transactions that are the creation of a trust of the dutiable property or the trust acquisition of the beneficiary’s trust interest; or

(ii) the transactions are exempt from transfer duty.

(3) The trust acquisition of a beneficiary’s trust interest is not exempt from transfer duty for the purposes of subsection (2) (b) (ii) if transfer duty is not imposed on the acquisition because of the operation of section 66 (2) .

(4) Also, subsection (1) applies only to the extent transfer duty is paid for the distribution of the dutiable property if—

(a) a concession for transfer duty has been provided under part 10 for the dutiable property; and

(b) any of the following applies—

(i) if the property of the trust is business property used to carry on a business of primary production—the beneficiary is not a defined relative of the person who created the trust;

(ii) if the property of the trust is business property used to carry on a prescribed business—the beneficiary is not a descendant of the person who created the trust;

(iii) the property of the trust is not, at the time of the distribution, business property or the business is not intended to be carried on by the beneficiary, whether alone or with others.