DUTIES ACT 2001 - SECT 46 What is the value of a partnership acquisition—general

DUTIES ACT 2001 - SECT 46

46 What is the value of a partnership acquisition—general

(1) Subject to subsections (5) and (6) , the value of a partnership acquisition is the total of the amounts worked out by applying the partner’s partnership interest to the unencumbered value, when the liability for transfer duty arises, of—

(a) the dutiable property held by the partnership (the
"relevant partnership" ); and

(b) any indirect interest in dutiable property held by the relevant partnership.

(2) For subsection (1) (b) , the unencumbered value of an indirect interest under section 43 (a) of the relevant partnership is the amount worked out by applying to the unencumbered value of the dutiable property held by the entity in which the relevant partnership has a partnership or trust interest, the partnership or trust interest of the relevant partnership in that entity.

(3) For subsection (1) (b) , the unencumbered value of an indirect interest under section 43 (b) of the relevant partnership is the amount worked out by—

(a) first applying to the unencumbered value of the dutiable property held by the ultimate entity, the partnership or trust interest of the partnership or trust (the
"last partner or beneficiary" ) that is a partner or beneficiary of the ultimate entity; and

(b) applying to the amount worked out under paragraph (a) , and the unencumbered value of any dutiable property held by the last partner or beneficiary, the partnership or trust interest of the next partnership or trust in the series of partnerships or trusts that is a partner or beneficiary of the last partner or beneficiary; and

(c) applying the calculation in paragraph (b) for each of the other partnerships or trusts in the series until the first entity’s partnership interest or trust interest is used in the calculation; and

(d) applying to the amount last worked out under paragraph (c) and the unencumbered value of any dutiable property held by the first entity, the partnership or trust interest of the relevant partnership.

(4) Schedule 4 contains an example of how the value of a partnership acquisition is worked out.

(5) For determining the value of a new partner’s partnership acquisition on formation of a partnership, the value of any dutiable property the partner contributed to the partnership on its formation must be disregarded.

(5A) For subsection (5) , a person is a new partner only if—

(a) the person was not in partnership with any partners of the partnership immediately before its formation; or

(b) on the person’s partnership acquisition, the person becomes a partner in an additional partnership to a partnership in which the person is a partner with any partners of the additional partnership immediately before its formation.

(5B) However, subsection (5A) (b) does not apply to a person who makes a partnership acquisition in a partnership that was formed because of a change in the membership of the partners of another partnership (the
"old partnership" ) if the person had a partnership interest in the old partnership.

(6) For determining the value of a partner’s partnership acquisition that is an increase in the partner’s partnership interest, the partner’s partnership interest is taken to be the increase in the partner’s partnership interest.