274Transfer of certain business property between family members

274 Transfer of certain business property between family members

274 Transfer of certain business property between family members

(1) Duty under this Act is not chargeable in relation to a transfer of land used for primary production, together with other property that is an integral part of the business of primary production, if the Chief Commissioner is satisfied of all the matters specified in subsections (2)–(4).

(2) Firstly, the Chief Commissioner must be satisfied that the transferor, or the person directing the transferor, is a member of the family of—

(a) the transferee, or

(b) the person directing the transferee.

(3) Secondly, the Chief Commissioner must be satisfied that the land was, immediately before the transfer or the date of first execution of the instrument of transfer, land used for primary production in connection with a business carried on, whether alone or with others, by—

(a) the transferee, or a member of the family of the transferee, or

(b) the person directing the transferee, or a member of the family of the person directing the transferee.

(4) Thirdly, the Chief Commissioner must be satisfied that the business will continue to be carried on, whether alone or with others, by—

(a) the transferee, or

(b) the person directing the transferee.

(4A) For the purposes of this section, the person directing a transferor or transferee is—

(a) for a transferor or transferee acting in the capacity of—

(i) executor of a deceased estate—the deceased person, or

(ii) trustee of a bare trust—a person who is a named beneficiary of the trust, or

(iii) trustee of a self managed superannuation fund—a person who is a member of the fund, or

(b) for a transferor or transferee acting in the capacity of trustee of a discretionary trust—a person or persons who are entitled, as takers in default of appointment, to not less than a 25% interest in the capital of the trust, being an entitlement—

(i) for a transferor—that existed for at least 3 years before the date of the transfer or that existed from the date of establishment of the trust, or