7. Method 2: valuation based on the cons7. Method 2: valuation based on the consideration received by the supplier under the contract of sale

7. Method 2: valuation based on the consideration received by the supplier under the contract of sale

For a valuation based on the sale contract price to be an approved valuation for the purposes of Division 75, that valuation must be made in accordance with the following requirements:

(1) the valuation must be made by adopting as the valuation the consideration received under the contract for the sale of the real property that has been executed or exchanged before the valuation date;

(2) the parties to the contract must be dealing at arm’s length; and

(3) the valuation must be made by the time specified in section 10 below.

Method 2 is not available if:

(4) the interest, unit or lease has been supplied by the Commonwealth, a State or a Territory;

(5) the supplier has held the interest, unit or lease since before 1 July 2000;

(6) there were no improvements on the land or premises in question as at 1 July 2000; and

(7) there are improvements on the land or premises in question on the day on which the taxable supply takes place.