DUTIES ACT 2008 - SECT 39
DUTIES ACT 2008 - SECT 39
39 . Partitions of property, dutiable values in case of
(1) For the purposes
of this section, a partition occurs when property (some or all of which is
dutiable property) that is held by persons jointly (as joint tenants or
tenants in common) and beneficially is transferred or agreed to be transferred
to one or more of those persons.
(2) The dutiable value
of a partition is to be determined in accordance with the following formula
— 
where —
DV is the dutiable
value;
A is the greater of
the following amounts —
(i)
the sum of the amounts by which the unencumbered value of
the property transferred or agreed to be transferred to a person exceeds the
unencumbered value of the interest held by the person in all of the property
immediately before the partition; or
(ii)
the sum of any consideration for the partition paid by
any of the parties;
X is the unencumbered
value of all dutiable property the subject of the partition;
Y is the unencumbered
value of all property the subject of the partition.
(3) The minimum amount
of duty payable on a transaction that effects a partition is the amount of
nominal duty.
Note for this section:
For example, A and B
own lot 1 which has an unencumbered value of $400 000 and a boat that has an
unencumbered value of $300 000.
The total value of the
property being partitioned is $700 000 and A and B are each entitled to $350
000.
A is taking lot 1 by
way of partition and the value of that lot exceeds A’s entitlement by
$50 000.
A’s duty
assessment:
$50 000 (excess
entitlement) x $400 000 (value of dutiable property)
$700 000 (value of all property)
The dutiable value for
the transfer of land to A is $28 571.
(4) This section does
not apply to a transaction if section 78 or 78A applies to the transaction or
if the transaction is a subsequent transfer referred to in section 120A.
[Section 39 amended: No. 12 of 2019 s. 17.]