66Exemptions—marketable securities

#### 66 Exemptions—marketable securities 66 Exemptions—marketable securities > > (1)–(4) (Repealed) > > > (5) Share buy-backs No duty is chargeable under this Chapter on a transfer, or an agreement for the sale or transfer, of shares comprising a buy-back of the shares in accordance with Division 2 of Part 2J.1 of the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth, unless the buy-back is effected by the purchaser pursuant to one or more agreements, understandings or arrangements that the purchaser will issue marketable securities. > > > (6) Rights to shares No duty is chargeable under this Chapter on the transfer to a person of rights to shares if an earlier transfer of the shares to the person included a right to shares and duty in respect of the rights was paid in connection with that earlier transfer or the earlier transfer was exempt from duty. > > > (7) Bonus or rights issue No duty is chargeable under this Chapter on the transfer of shares to a person (the transferee) if— > > > > > (a) as a consequence of the transfer of shares in a company— > > > > > > > (i) in respect of which ad valorem duty under this Act or a corresponding Act has been paid or that is exempt from duty, and > > > > > > > (ii) that is not registered in the share register of the company, > > > > > > the transferee is, on a bonus issue or the issue of a right to shares subsequent to the transfer, entitled to other shares registered in the name of the transferor, and > > > > > (b) the transferee pays the amount, if any, necessary to take up the other shares. > > > (8) (Repealed) > > > (8A) ADRs No duty is chargeable under this Chapter on a transfer, or an agreement for the sale or transfer, of an ADR if— > > > > > (a) the ADR relates to rights to shares that upon issue, on exercise of those rights, will be quoted on the Australian Securities Exchange or a recognised stock exchange, and > > > > > (b) the transfer, or the sale or transfer to which the agreement relates, is to— > > > > > > > (i) a foreign resident on the foreign resident’s own behalf, or > > > > > > > (ii) a foreign resident acting on behalf of a trustee for another foreign resident, and > > > > > (c) the ADR is to be registered on an overseas register of legal or beneficial title. > > > (9) Trust mergers No duty is chargeable under this Chapter on a transfer, or an agreement for the sale or transfer, of units in a qualifying unit trust scheme to the responsible entity or trustee of another qualifying unit trust scheme or a custodian or agent of the responsible entity or trustee if it is proved to the satisfaction of the Chief Commissioner that— > > > > > (a) the purpose of the transfer is to give effect to a merger of 2 qualifying unit trust schemes or a takeover of a qualifying unit trust scheme by another qualifying unit trust scheme, and > > > > > (b) the units are registered on a register kept in New South Wales, and > > > > > (c) the transfer would qualify as a roll-over under Subdivision 124-M of the [Income Tax Assessment Act 1997](http://www.legislation.gov.au/) of the Commonwealth. > > > (9A) For the purposes of subsection (9), qualifying unit trust scheme means a unit trust scheme— > > > > > (a) any of the units in which are quoted on the Australian Securities Exchange or on a recognised stock exchange, or > > > > > (b) in respect of which— > > > > > > > (i) units in the scheme have been issued to the public and 50 or more persons are beneficially entitled to units in the scheme, or > > > > > > > (ii) a majority of units in the scheme are acquired by, for or on account of, a complying superannuation fund, a pooled superannuation trust or a life company, or > > > > > (c) that, in the opinion of the Chief Commissioner, will satisfy paragraph (b) within 12 months after the Chief Commissioner gives written notice of that opinion to a person who has requested the Chief Commissioner to express that opinion in relation to the unit trust scheme. > > > (10) Mining securities No duty is chargeable under this Chapter on a transfer, or an agreement for the sale or transfer, of marketable securities in a company (wherever incorporated) whose sole business is either or both of the following activities— > > > > > (a) mining in New South Wales for minerals within the meaning of the [Mining Act 1992](/view/html/inforce/current/act-1992-029) or the [Offshore Minerals Act 1999](/view/html/inforce/current/act-1999-042), or > > > > > (b) prospecting or mining in New South Wales for petroleum within the meaning of the [Petroleum (Onshore) Act 1991](/view/html/inforce/current/act-1991-084), > > > > if the consideration for the transfer or agreement is not less than the unencumbered value of the marketable securities. > > > (11) (Repealed) > > Note. > > No duty is chargeable on transactions relating to shares or units that are quoted on the Australian Securities Exchange or a recognised stock exchange or relating to interests in such shares or units (see section 11 (2)). > > The duty on all marketable securities is to be abolished on 1 July 2016. See Part 4 of this Chapter. > > **s 66:** Am 1998 No 44, Sch 1 \[11\] \[12\]; 1998 No 104, Sch 2 \[19\]; 1999 No 10, Sch 2 \[9\]; 1999 No 42, Sch 3.5 \[1\]; 1999 No 60, Sch 2 \[4\] \[5\]; 2000 No 44, Sch 2 \[18\]–\[20\]; 2001 No 34, Sch 4.14 \[5\]; 2002 No 108, Sch 1 \[7\]; 2006 No 49, Sch 1 \[14\]; 2008 No 48, Sch 1 \[7\]; 2008 No 67, Sch 1 \[14\]; 2008 No 122, Sch 1.1 \[11\]; 2012 No 46, Sch 1.1 \[1\] \[3\]; 2012 No 76, Sch 1 \[3\]; 2013 No 50, Sch 1 \[15\]; 2014 No 37, Sch 1 \[6\].