DUTIES ACT 2001 - SECT 22 No double duty—particular dutiable transactions

DUTIES ACT 2001 - SECT 22

22 No double duty—particular dutiable transactions

(1) If transfer duty is imposed on a dutiable transaction for periodical payments of consideration, no duty is imposed under this Act on any agreement securing the periodical payments.

(2) If transfer duty imposed on a dutiable transaction that is an agreement for the transfer of dutiable property is paid, no transfer duty is imposed on the transfer of the property to the transferee under the agreement.

Note—

For a dutiable transaction that is an ELN transfer or ELN lodgement, see also part 15 , division 2 .

(2A) Also, if a payment commitment is made for a dutiable transaction that is an agreement for the transfer of dutiable property, no transfer duty is imposed on an ELN transfer of the dutiable property to the transferee under the agreement.

Notes—

1 For a dutiable transaction that is an ELN transfer, see also part 15 , division 2 .

2 See part 15 , division 3 in relation to the making of a payment commitment for an agreement for the transfer of dutiable property.

(3) If the commissioner is satisfied—

(a) a person (the
"agent" ) is appointed in writing as an agent for another person (the
"principal" ); and

(b) under the appointment, the agent enters into a dutiable transaction that is an agreement for the transfer of dutiable property from a person (the
"original transferor" ) to the agent on behalf of the principal (the
"agreement" ); and

(c) the principal provided all the consideration, including any deposit paid; and

(d) transfer duty imposed on the agreement is paid; and

(e) the dutiable property is later transferred to the principal by the original transferor or the agent (the
"agency transfer" );

no transfer duty is imposed on the agency transfer or the trust acquisition or trust surrender by the principal because of the agreement or agency transfer.

(4) For subsection (3) (a) , the commissioner must not be satisfied the person was properly appointed as agent unless the original instrument of appointment, or a copy of it, is lodged.

(5) If—

(a) there is an agreement for the transfer of dutiable property (the
"first agreement" ); and

(b) after the first agreement takes place, 1 or more agreements to transfer all or part of the dutiable property the subject of the first agreement takes place (the
"intervening agreements" ); and

(c) to give effect to the first agreement and the intervening agreements, 1 or more transfers of dutiable property (the
"transfers" ) are effected by 1 or more parties to the first agreement and the intervening agreements; and

(d) transfer duty imposed on the first agreement and the intervening agreements is paid;

no transfer duty is imposed on the transfers.

Example for subsection (5)—

On 1 July, under an agreement for transfer, A agrees to sell land in Queensland to B for $100,000. Settlement is to take place on 31 July. On 7 July, under an agreement for transfer, B agrees to sell the land to C for $120,000. Again, settlement is to take place on 31 July. Before 31 July, B directs A, that at settlement, A transfer the land to C.

The agreement between A and B is the first agreement. The agreement between B and C is the intervening agreement. No transfer duty is imposed on the transfer from A to C if transfer duty on the first and intervening agreements has been paid.