Duties Act 1999

252 Objections 131 252AA Review of decisions by ACAT 133 252AB Determination of fees 133 253 Regulation-making power 133 Dictionary 134 1 About the endnotes 148 2 Abbreviation key 148 3 Legislation history 149 4 Amendment history 160 5 Earlier republications 209 6 Expired transitional or validating provisions 217

An Act to create and charge various duties

1 Name of Act This Act is the Duties Act 1999.

2A Dictionary The dictionary at the end of this Act is part of this Act. Note 1 The dictionary at the end of this Act defines certain terms used in this Act, and includes references (signpost definitions) to other terms defined elsewhere in this Act or other legislation. For example, the signpost definition ‘Crown lease—see the Land Titles Act 1925, dictionary.’ means that the term ‘Crown lease’ is defined in that dictionary and the definition applies to this Act. Note 2 A definition in the dictionary applies to the entire Act unless the definition, or another provision of the Act, provides otherwise or the contrary intention otherwise appears (see Legislation Act, s 155 and s 156 (1)).

2B Notes A note included in this Act is explanatory and is not part of this Act. Note See the Legislation Act, s 127 (1), (4) and (5) for the legal status of notes.

Preliminary Chapter 1

2C Offences against Act—application of Criminal Code etc Other legislation applies in relation to offences against this Act. Note 1 Criminal Code The Criminal Code, ch 2 applies to all offences against this Act (see Code, pt 2.1). The chapter sets out the general principles of criminal responsibility (including burdens of proof and general defences), and defines terms used for offences to which the Code applies (eg conduct, intention, recklessness and strict liability). Note 2 Penalty units The Legislation Act, s 133 deals with the meaning of offence penalties that are expressed in penalty units.

3 Incorporation of Taxation Administration Act The Taxation Administration Act is incorporated and is to be read as one with this Act.

4 Territory not liable for payment of duty The Territory is not liable to pay duty under this Act. Note Prescribed territory entities are not exempt from paying duty (see Taxation (Government Business Enterprises) Act 2003, s 9).

5 Duty a debt payable to Territory A duty payable under this Act is, when a liability to pay the duty is created, a debt due to the Territory.

Chapter 2 Transactions concerning

6 Definitions—ch 2 In this chapter: cancelled— (a) means rescinded, annulled or otherwise terminated without completion; and (b) includes abandoned. commercial lease means a lease granted for— (a) commercial purposes only; or (b) more than 1 purpose including commercial purposes. commercial lease with premium—see section 6A. commercial purposes does not include residential purposes or the purposes of primary production. Examples—commercial purposes • industrial use • business use • retail use declaration of trust means any declaration (other than by a will or testamentary instrument) that any identified property vested or to be vested in the person making the declaration is or is to be held in trust for the person or people, or the purpose or purposes, mentioned in the declaration although the beneficial owner of the property, or the person entitled to appoint the property, may not have joined in or assented to the declaration.

market rent, in relation to a commercial lease, means the rent (worked out as at the date the lease was granted) that would be charged by the lessor if the land the subject of the lease was leased by a willing lessor to a willing lessee— (a) dealing with each other at arm’s length; and (b) each of whom had acted knowledgeably, sensibly and without compulsion. premium, in relation to a commercial lease, means any consideration (being the amount of a monetary consideration or the value of a non-monetary consideration) that is paid or agreed to be paid in relation to the lease, other than rent reserved. primary production means— (a) production resulting directly from— (i) cultivation of land; or (ii) keeping animals for their sale, their bodily produce or natural increase; or (iii) fishing operations; or (iv) forest operations; and (b) the manufacture of dairy produce by the person who produced the raw material used in that manufacture. rent reserved, in relation to a commercial lease, means— (a) the rent paid or payable during the term of the lease that is market rent; and

(b) any reasonable amount paid or payable for the right to use the land under the lease. Examples—payments for right to use land under commercial lease • rates • maintenance and repairs • services and utilities • legal costs payable by lessee on behalf of lessor in relation to grant of lease • insurance premiums • car park contributions • turnover rent • fit-out costs • security • land rent • gardening and landscaping • lifts • administration

6A Meaning of commercial lease with premium—ch 2 (1) In this chapter: commercial lease with premium means a commercial lease in relation to which there is a premium that is more than the amount (if any) determined by the commissioner. (2) A determination is a disallowable instrument.

7 Imposition of duty on certain transactions concerning (1) This chapter charges duty on— (a) a transfer of dutiable property; and (b) the following transactions: (i) an agreement for the sale or transfer of dutiable property;

(ii) a declaration of trust over dutiable property; (iii) a grant of a Crown lease; (iv) a grant of a declared land sublease; (v) a grant of a commercial lease with premium. (2) A transfer or transaction mentioned in subsection (1) is a dutiable transaction for this Act. grant— (a) of a Crown lease over land, includes the grant of a new lease following the surrender or determination of the Crown lease over land that includes part or all of the land over which the new lease is granted; and (b) of a declared land sublease, includes the grant of a new land sublease following the surrender or determination of the sublease over land that includes part or all of the land over which the new sublease is granted. transfer does not include a transaction treated as a transfer by chapter 3. Note Ch 3 treats certain transactions as transfers (eg, acquiring an interest in a landholder—see s 85 and s 86). Duty may be payable under ch 3 on those transfers. These may involve the vesting of property under a court order, which would otherwise be a transfer for s (1) (a) or (b) (i) (see dict, def transfer, par (a) (v)).

8 Imposition of duty on dutiable transactions that are not transfers (1) The duty payable under this chapter on a dutiable transaction mentioned in section 7 (1) (b) is payable as if each such dutiable transaction were a transfer of dutiable property.

(2) For the purpose of paying duty under this chapter, in relation to a dutiable transaction mentioned in column 2 of an item in table 8: (a) the property mentioned in the item, column 3 is taken to be the property transferred (and a reference in this Act to property transferred includes a reference to such property); (b) a person mentioned in the item, column 4 is taken to be the transferee of the dutiable property (and a reference in this Act to a transferee includes a reference to such a person); (c) the transfer of the dutiable property is taken to have happened at the time mentioned in the item, column 5 (and a reference in this Act to the time when a transfer occurs includes a reference to such a time). Table 8 column 1 item column 2 dutiable transaction column 3 transferred column 4 transferee column 5 when transfer happens 1 agreement for sale or transfer the property agreed to be sold or transferred the purchaser or transferee when the agreement is entered into 2 declaration of trust the property vested or to be vested in the declarant the person declaring the trust when the declaration is made 3 grant of a Crown lease (or declared land sublease) the leasehold interest the lessee (or for a declared land sublease, the sublessee) when the lease (or declared land sublease) is 4 grant of a commercial lease with premium the leasehold interest the lessee when the lease is

9 Form of a dutiable transaction It is immaterial whether or not a dutiable transaction is effected by an instrument or by any other means, including electronic means.

10 Dutiable property (1) Dutiable property is any of the following: (a) land in the ACT; (b) a Crown lease; (c) a declared land sublease; (d) a land use entitlement; (e) a commercial lease with premium; (f) an interest in a partnership that holds dutiable property mentioned elsewhere in this section (a partnership interest); (g) goods in the ACT, if the subject of an arrangement that includes a dutiable transaction over any dutiable property (other than intellectual property) elsewhere mentioned in this section, not including the following: (i) goods that are stock-in-trade; (ii) material held for use in manufacture; (iii) goods under manufacture; (iv) goods held or used in connection with land used for primary production; (v) livestock; (vi) a registered motor vehicle; (vii) a ship or vessel; (h) an option to purchase land in the ACT or a Crown lease or declared land sublease over land in the ACT;

(i) an interest in any dutiable property mentioned in paragraphs (a) to (h), except to the extent that— (i) it is, or is attributable to, an option over dutiable property; or (ii) it is an interest under a commercial lease or a sublease of a commercial lease, other than a commercial lease with premium. holds—a partnership holds dutiable property if (but not only if)— (a) the partners hold the property for the partnership; or (b) the partnership has an indirect interest in the property. indirect interest—a partnership has an indirect interest in dutiable property if— (a) through a partnership interest or trust interest there is a connection between the partnership and dutiable property of the other partnership or trust; or (b) through a series of partnership interests or trust interests, or a combination of any of them, there is a connection between the partnership and dutiable property of a partnership in the series. intellectual property means–– (a) a business name, trading name, trade mark, industrial design, patent, registered design or copyright; or (b) a right to use or exploit— (i) a business name, trading name, trade mark or industrial design; or (ii) a thing, system or process that is the subject of a patent, registered design or copyright (or an adaptation or modification of such a thing, system or process).

11 When does a liability for duty arise? (1) A liability for duty payable under this chapter arises— (a) when a transfer of dutiable property occurs; or (b) if a transfer of dutiable property is effected by an instrument— when the instrument is first executed. (2) However, a liability for duty payable under this chapter must not be paid until it becomes payable under section 16 (When does duty become payable?). (3) To remove any doubt, the commissioner may assess the liability for duty payable under this chapter before the duty becomes payable under section 16.

12 Who is liable to pay the duty? Duty payable under this chapter is payable by the transferee, unless this chapter requires another person to pay the duty.

13 Liability of joint tenants For the purpose of assessing duty payable under this chapter, joint tenants of dutiable property are taken to hold the dutiable property as tenants in common in equal shares.

14 Necessity for written instrument or written statement (1) If a dutiable transaction that is liable to ad valorem duty under this chapter is not effected by an instrument, the transferee must make a written statement. (2) The statement must be made within 90 days after the liability arises.

(3) If a dutiable transaction is completed or evidenced by an instrument within 90 days after the day when the dutiable transaction happens, the requirement to lodge a statement and pay duty in respect of the statement may be satisfied by the lodgment of and payment of duty on the instrument within 90 days after the day when the dutiable transaction happens.

15 Lodging instrument etc with commissioner (1) A transferee who is liable to pay duty in relation to a dutiable transaction must, within 90 days after the day the liability arises lodge with the commissioner— (a) the instrument that effects the dutiable transaction or, if there is more than 1 instrument that effects the transaction, each of them; or (b) the written statement made in accordance with section 14. (2) Subsection (1) does not apply in relation to a dutiable transaction if— (a) the registrar-general must tell the commissioner about the transaction under the Land Titles Act 1925, section 178B (Registrar-general must give information about certain transactions and instruments to revenue commissioner); or (b) an electronic application for assessment of duty in relation to the transaction is lodged with the commissioner by a person approved under section 239 (Electronic assessment and payment of duty) within the 90-day period. (3) If an agreement for the sale or transfer of dutiable property is cancelled to give effect to a subsale, the purchaser or transferee must, within 14 days after the date the agreement is cancelled (or any longer time determined by the commissioner), lodge with the commissioner the instrument effecting the cancelled agreement. (4) A determination is a notifiable instrument.

16 When does duty become payable? (1) The duty payable under this chapter in relation to a dutiable transaction mentioned in column 2 of an item in table 16 becomes payable at the time mentioned in the item, column 3. Table 16 column 1 item column 2 dutiable transaction column 3 when duty becomes payable column 4 period within which duty must be paid 1 transfer of dutiable property, other than mentioned in s 10 (1) (h) when the transfer is registered with the registrar-general 2 transfer of dutiable property mentioned in s 10 (1) (h) when the option to purchase is 90 days 3 agreement for sale or transfer when the transfer is registered with the registrar-general after the agreement is completed 4 declaration of trust when the declaration is made 90 days 5 grant of a Crown lease (or declared land sublease) when the lease (or sublease) is registered with the registrar- general 6 grant of a commercial lease with premium when the lease is granted 90 days 7 cancelled agreement for which duty is payable under s 50 when the cancelled agreement is lodged with the commissioner under s 15 (3) Note Liability for duty payable under pt 3.2 arises when a relevant acquisition is made (see s 85). Duty must be paid within 90 days after the relevant acquisition is made (see s 88).

(2) A tax default does not happen for the Taxation Administration Act if duty payable under this chapter in relation to a dutiable transaction mentioned in column 2 of an item in table 16 is paid within the period mentioned in column 4 of the item, or any longer time determined by the commissioner, after the duty becomes payable. (3) A determination is a notifiable instrument.

17 No double duty (1) If a dutiable transaction is effected by more than 1 instrument, duty under this chapter— (a) is payable in relation to the first executed instrument effecting the transaction; but (b) is not payable in relation to the other instruments. (2) Duty under this chapter is not payable in relation to a transfer of dutiable property made in conformity with an agreement for the sale or transfer of the property. (3) Subsection (4) applies if— (a) a transfer of dutiable property is not made in conformity with an agreement for the sale or transfer of the property; and (b) the transfer would be in conformity with the agreement if the transferee was the purchaser under the agreement; and (c) the purchaser under the agreement and the transferee under the transfer were related people at the time the agreement was entered into. (4) Duty under this chapter— (a) is payable in relation to the agreement for the sale or transfer of the dutiable property; but (b) is not payable in relation to the transfer of the dutiable property.

(5) Duty under this chapter is not payable in relation to a transfer to a trustee of dutiable property subject to a declaration of trust if ad valorem duty has been paid on the declaration of trust in relation to the same dutiable property. (6) Duty under this chapter is not payable in relation to a declaration of trust that declares the same trusts as those on and subject to which the same dutiable property was transferred to the person declaring the trust if ad valorem duty has been paid on the transfer. (7) A dutiable transaction in respect of an interest in a landholder conferring a land use entitlement is taken to be a dutiable transaction in respect of the land use entitlement only and, if duty has been paid on the dutiable transaction in accordance with a law of another Australian jurisdiction, the duty payable under this chapter on the dutiable transaction is to be reduced by the amount of the duty so paid. (8) This section does not apply to a personal relationship financial agreement if— (a) the agreement provides for a transfer of dutiable property; and (b) the transfer is not exempt from duty under any of the following: (i) section 232G (Transactions under Family Law Act 1975 (Cwlth), s 90B, s 90C or s 90D financial agreements); (ii) section 232H (Transactions under Family Law Act 1975 (Cwlth), pt 8AB financial agreements); (iii) section 232I (Transactions under Domestic Relationships Act 1994, s 33 (1) (d)). (9) In this section: personal relationship financial agreement means— (a) a financial agreement made under the Family Law Act 1975 (Cwlth), section 90B, section 90C or section 90D that is binding on the parties under that Act; or

(b) a part 8AB financial agreement made under the Family Law Act 1975 (Cwlth), section 90UB, section 90UC or section 90UD that is binding on the parties under that Act; or (c) a domestic relationship agreement or termination agreement related person—see section 77A (3).

18 Rate of duty Duty is payable on the dutiable value of the dutiable property subject to the dutiable transaction at the relevant rate set out in part 2.3. Note Exemptions from duty payable under this chapter are dealt with in pt 2.5.

20 What is the dutiable value of dutiable property? (1) The dutiable value of dutiable property that is subject to a dutiable transaction is the greater of— (a) the consideration (if any) for the dutiable transaction (being the amount of a monetary consideration or the value of a non-monetary consideration); and (b) whichever of the following applies: (i) for a land rent lease—the amount that would be the unencumbered value of the lease if it were a Crown lease that is not a land rent lease; (ii) for any other dutiable property—the unencumbered value of the dutiable property. (2) The dutiable value of a dutiable transaction that is the transfer of a commercial lease with premium is the amount of the premium. (3) However, if the lease is granted for more than 1 purpose including commercial purposes, the dutiable value is worked out as follows: PxDV DV means the dutiable value mentioned in subsection (2). P means the percentage of the land the subject of the lease, determined by the commissioner, that is used for commercial purposes. (5) The dutiable value of a partnership interest mentioned in section 28 is to be determined in accordance with that section. land rent lease—see the Land Rent Act 2008, dictionary.

21 What is the consideration for the transfer of dutiable property? (1) The consideration for the transfer of dutiable property is taken to include the amount or value of all encumbrances, whether certain or contingent, subject to which the dutiable property is transferred. (2) The consideration for the transfer of the interest of a transferee under an uncompleted agreement for the sale or transfer of dutiable property is taken to include the balance of the amount or value of the consideration that would be required from the transferee under the agreement to complete it in accordance with its terms. (3) If a Crown lease, or declared land sublease, is granted subject to a requirement that the lessee, or sublessee, carry out, or cause to be carried out, works on land other than the land the subject of the lease, or sublease, the cost of carrying out the works is taken to form part of the consideration for the lease or sublease. (4) If a Crown lease is granted— (a) for an initial term; and (b) subject to a right provided by the lease for the lessee to be granted a further term (whether or not the exercise of that right is subject to conditions); the lease is taken to be granted for a term equal to the aggregate of the initial term and the further term, up to a maximum of 99 years, and the consideration for the lease is taken to be the aggregate of— (c) any lump sum paid for the grant of the lease; and (d) any lump sum payable for renewal of the lease; and (e) the rent payable under the lease during the term for which it is taken to have been granted; and (f) any costs that are taken to form part of the consideration under subsection (3).

22 What is the unencumbered value of dutiable property? (1) The unencumbered value of dutiable property is the value of the property determined without regard to any encumbrance to which the property is subject. (2) If, before land is transferred to a transferee, the transferee has made improvements to the land, the unencumbered value of the land is to be determined as if those improvements had not been made. (3) The unencumbered value of a Crown lease at the time it is granted is, for this chapter, taken to be the amount determined by the granting body to be that value. (4) However, if the commissioner is not satisfied with the amount determined by the granting body of a Crown lease to be the unencumbered value of the lease, the commissioner may— (a) have the Crown lease valued as at the time it was granted; and (b) determine the unencumbered value of the lease in accordance with the valuation. (5) If the granting body of a Crown lease did not determine the value of the lease at the time it was granted, the commissioner may— (a) have the Crown lease valued as at the time it was granted; and (b) determine the unencumbered value of the lease in accordance with the valuation. (6) In determining the unencumbered value of a Crown lease at the time it is or was granted, the granting body or a person making a valuation of the lease under subsection (4) (a) or (5) (a) must assume— (a) that the consideration for the lease is or was to be paid as a lump sum; and (b) that the lessee is not obliged by the lease to carry out any works, or to cause any works to be carried out, on the land leased or elsewhere.

(7) The commissioner may recover from the lessee under a Crown lease— (a) the cost of getting a valuation under subsection (4) if the value of the Crown lease shown by the valuation was more than the value of the lease determined by the granting authority; or (b) the cost of getting a valuation under subsection (5). (8) In this section: grant, of a Crown lease over a parcel of land, includes the grant of a second or subsequent lease over the same parcel. granting body, in relation to a Crown lease, means the administrative unit or other entity responsible for arranging the grant.

23 Arrangements that reduce dutiable value If any arrangement affecting the dutiable value of dutiable property that was entered into within 12 months before a dutiable transaction was brought about by any person with the intention of reducing the dutiable value of the dutiable property, the commissioner may— (a) cause a valuation of the dutiable property to be made; and (b) direct the valuer to disregard the arrangement for the purposes of the valuation; and (c) assess duty on the basis of the valuation carried out in accordance with the direction.

24 Aggregation of dutiable transactions (1) Dutiable transactions relating to separate items of dutiable property, or separate parts of, or interests in, dutiable property are to be aggregated and treated as a single dutiable transaction if— (a) they occur within 12 months; and

(b) the transferee is the same or the transferees are associated people; and (c) the dutiable transactions together form, evidence, give effect to or arise from what is, substantially, 1 arrangement relating to all of the items or parts of, or interests in, the dutiable property. (2) Dutiable transactions are not to be aggregated under this section if the commissioner is satisfied— (a) that the transactions are for the purpose of acquiring 2 or more blocks of land in the same subdivision for the purpose of developing the blocks for resale; or (b) that the transactions are for the purpose of purchasing 2 or more units in the same units plan under the Unit Titles Act 2001 for the purpose of investment; or (c) that the transactions are for the purpose of acquiring 2 or more parcels of shares in a company or 2 or more parcels of units in a units trust scheme which parcels either alone or together with a lease or licence give an entitlement to occupy 2 or more areas that are on a single parcel of land; or (d) that it would not be just and reasonable for the transactions to be so aggregated. (3) The dutiable value of aggregated dutiable property is the sum of the dutiable values of the items or parts of, or the interests in, the dutiable property as at the time when each dutiable transaction occurs. (4) The amount of duty payable in accordance with this section is to be reduced by the amount of any ad valorem duty paid on a prior dutiable transaction that is, or prior dutiable transactions that are, aggregated in accordance with this section. (5) Duty may be apportioned to the instruments effecting or evidencing the dutiable transactions, or may be payable in accordance with section 17 (1), as determined by the commissioner.

25 Value of goods in certain transactions also involving other property The commissioner, if satisfied that it would not be just and reasonable in the circumstances to charge duty on the dutiable value of all the dutiable property in a dutiable transaction involving goods and other property, may disregard the value of the goods, or any of them, in determining the dutiable value of the property involved.

26 Apportionment—dutiable property and other property (1) If a dutiable transaction relates to dutiable property and property that is not dutiable property, duty is payable under this chapter in relation to the dutiable transaction only to the extent that it relates to dutiable property. (2) If a dutiable transaction relates to different types of dutiable property for which different rates of duty are payable under this chapter, duty is payable under this chapter in relation to the dutiable transaction as if a separate dutiable transaction had occurred in relation to each such type of dutiable property.

28 Partnership interests The dutiable value of a partnership interest (DV) is to be determined in accordance with the following formula: DV = A × X Y A means the value of the partnership interest, or so much of the consideration for the dutiable transaction as relates to the partnership interest, whichever is the greater. X means the unencumbered value of all dutiable property of the partnership. Y means the unencumbered value of all assets of the partnership.

29 Partitions (1) For this section, a partition occurs when property (some or all of which is dutiable property) that is held by people jointly (as joint tenants or tenants in common) and beneficially is transferred or agreed to be transferred to 1 or more of those people. (2) For this section, section 15 and section 17, a partition is taken to be a single dutiable transaction. (3) The dutiable value of a partition (DV) is to be determined in accordance with the following formula: DV = A × X Y A means 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 that property immediately before the partition, or the sum of any consideration for the partition paid by any of the parties, whichever is the greater. X means the unencumbered value of all dutiable property the subject of the partition. Y means the unencumbered value of all property the subject of the partition. (4) Duty payable under this section is payable by the people making the partition or any 1 or more of them.

30 Effect of alteration in purchase price (1) If after an agreement for the sale or transfer of dutiable property is entered into and before the property is transferred— (a) the consideration under the agreement is reduced and the reduced consideration is not less than the unencumbered value of the dutiable property when the consideration was reduced; or

(b) the consideration under the agreement is reduced because the parties have agreed not to transfer some of the dutiable property previously agreed to be transferred and the reduced consideration is not less than the unencumbered value of the dutiable property that remained to be transferred when the consideration was reduced; or (c) the consideration under the agreement is increased and the dutiable value when the consideration was increased is greater than the dutiable value when the agreement was entered into; the commissioner must assess or reassess the liability to duty of the agreement in accordance with the change in the consideration. (2) The liability to pay additional duty arising from an increase in the consideration occurs on the day when the consideration is agreed to be increased.

Rates of duty Part 2.3

31 General rate Except as provided by this chapter, duty at the determined rate is payable on a dutiable transaction.

33 Certain business assets (1) Duty is payable at the determined rate on a dutiable transaction so far as it is in relation to— (a) a partnership interest so far as it is not— (i) an interest in property mentioned in section 10 (1) (a), (b) or (d); or (ii) an interest in property mentioned in section 10 (1) (i) that is dutiable property mentioned in section 10 (1) (a), (b) or (d); or (b) an interest in property mentioned in section 10 (1) (i), other than an interest in dutiable property mentioned in section 10 (1) (a), (b), or (d). (2) The proportion of the dutiable value of a partnership interest for which duty is payable under subsection (1) (a) is— (a) if no interest in property of a kind mentioned in subsection (1) (a) (i) or (ii) is transferred as a result of the transfer of the partnership interest—the whole of the value of the partnership interest; or

(b) if an interest in property of a kind mentioned in either of those subparagraphs is transferred as a result of the transfer of the partnership interest—the proportion of the value of the partnership interest that is equal to the proportion of so much of the unencumbered value of all the dutiable assets of the partnership as is not constituted by the unencumbered value of the dutiable assets of the partnership that are property of a kind mentioned in either of those subparagraphs.

Special provisions Part 2.4

50 Cancelled agreements Duty under this chapter is payable in relation to an agreement for the sale or transfer of dutiable property that is cancelled only if the agreement was cancelled to give effect to a subsale.

50A Cancelled transfer of dutiable property (1) Duty under this chapter is not payable in relation to a transfer of dutiable property by instrument if the commissioner is satisfied that— (a) the transfer instrument is cancelled and the dutiable property is not transferred to the transferee; and (b) the transfer was not cancelled to give effect to a subsale. (2) The commissioner must reassess and refund duty paid on a transfer of dutiable property if— (a) duty under this chapter is not payable in relation to the transfer because of this section; and (b) an application for a refund is made within 5 years after the initial assessment. (3) The transfer instrument must be surrendered to the commissioner unless the commissioner dispenses with that requirement.

51 Grant of certain Crown leases on surrender of development leases (1) Duty under this chapter is not payable on the grant of a Crown lease (the new lease) on the surrender of a development lease if— (a) the new lease is granted to the person who was the lessee under the development lease at the time of its surrender; and

(b) the whole of the land comprised in the new lease is land that was comprised in the development lease. (2) If— (a) a Crown lease (the new lease) is granted on the surrender of a development lease; and (b) the new lease is granted to the person who was the lessee under the development lease at the time of its surrender; and (c) only part of the land comprised in the new lease is land that was comprised in the development lease; the duty payable on the new lease is the amount of duty that would have been payable on the new lease under part 2.3 less the amount of duty that would have been payable under part 2.3 on the grant of a Crown lease over the land that was comprised in the development lease, if the Crown lease had been granted on the same terms as the new lease. (3) This section applies to a declared land sublease as if it were a Crown development lease means a Crown lease or declared land sublease that is expressed to be granted for the purpose of developing the land comprised in the lease or sublease for subdivision and resale.

52 Refund if Crown lease surrendered (a) an amount of duty has been paid on a grant of a Crown lease; and (b) the lease is surrendered or terminated; and

Special provisions Part 2.4 (c) part or all of the amount paid in relation to the grant of the lease is refunded under the Planning Act 2023, section 364 (Refund on lease surrender or termination). (2) An amount calculated in accordance with the following formula must be refunded to the person who paid the duty: D × R P (3) In subsection (2): D means the amount of duty. R means the amount that would be refundable under the Planning Act 2023, section 364 if no deduction were made for administrative expenses. P means the amount paid for the grant of the lease. (4) However, a refund of duty is payable to a person only if the person applies to the commissioner for the refund. (5) An application for a refund of duty must— (a) be in writing; and (b) be made not later than 1 year after the refund mentioned in subsection (1) (c) is made; and (c) contain the information the commissioner requires to allow the amount of the refund to be worked out. (6) This section applies to a declared land sublease as if— (a) it were a Crown lease; and (b) any amount paid to the sublessee by the sublessor under the terms of the sublease because of the surrender or termination of the sublease were an amount refunded under the Planning Act 2023, section 364.

53 Transfers arising from mortgages of land (1) The mortgagor and the mortgagee are jointly and severally liable to pay the duty payable on a transfer by way of mortgage of dutiable property that is territory land. (2) If the commissioner is satisfied that— (a) duty has been paid in accordance with this section on a transfer of dutiable property to which this section applies; and (b) the dutiable property has been re-transferred to the mortgagor (or a person to whom the land has been transmitted by death or bankruptcy) and the mortgagor (or person) is the registered proprietor of the land; the commissioner must refund the ad valorem duty paid on the

54 Change in trustees (1) In this section: new trustee means a trustee appointed in substitution for a trustee or a trustee appointed in addition to a trustee or trustees. (2) Duty under this chapter is not payable in relation to a transfer of dutiable property to a person as a consequence of the retirement of a trustee or the appointment of a new trustee, if the commissioner is satisfied that, as the case may be— (a) except for a responsible entity of a managed investment scheme—none of the continuing trustees remaining after the retirement of a trustee is or can become a beneficiary under the trust; and (b) except for a responsible entity of a managed investment scheme—none of the trustees of the trust after the appointment of a new trustee is or can become a beneficiary under the trust; and (c) except if a responsible entity of a managed investment scheme acquires a beneficial interest in the managed investment scheme solely as a consequence of its appointment as the responsible entity—the transfer is not part of a scheme for conferring an interest, in relation to the trust property, on a new trustee or any other person, whether as a beneficiary or otherwise, to the detriment of the beneficial interest or potential beneficial interest of any person; and

(d) the transfer is not made in connection with a tax avoidance scheme; and, if the commissioner is not so satisfied, the same duty is payable in relation to the transfer as a transfer to a beneficiary under and in conformity with the trusts subject to which the property is held. (3) Duty under this chapter is not payable in relation to a transfer of dutiable property to a responsible entity if the commissioner is satisfied that the transfer is necessary to enable an undertaking that existed before 1 July 1998 to become a registered scheme. (4) Duty under this chapter is also not payable in relation to a transfer of dutiable property to a person as a consequence of the retirement of a trustee or the appointment of a new trustee for a self managed superannuation fund within the meaning of the Superannuation Industry (Supervision) Act 1993 (Cwlth).

55 Transfer to custodian of managed investment scheme Duty under this chapter is not payable in relation to a transfer of dutiable property if the commissioner is satisfied that the transfer is— (a) from a responsible entity of a managed investment scheme or a trustee of the responsible entity; and (b) to a custodian or agent of the responsible entity.

55A Transfers in relation to managed investment schemes Duty under this chapter is not payable in relation to a transfer of dutiable property if the commissioner is satisfied that the transfer is— (a) from the responsible entity of a managed investment scheme to a custodian or agent of the responsible entity as custodian or agent of the scheme; or (b) from a custodian or agent of the responsible entity of a managed investment scheme as custodian or agent of the scheme to the responsible entity.

55B Transfers in relation to registered schemes (1) Duty under this chapter is not payable in relation to a transfer of dutiable property if the commissioner is satisfied that the transfer is by a trustee of a registered scheme to a custodian or agent of the responsible entity of the scheme as custodian or agent of the scheme. (2) However, subsection (1) only applies if the commissioner is satisfied that— (a) before 1 July 1998 the scheme was a prescribed interest scheme; and (b) when the scheme became a registered scheme the trustee held the dutiable property as a trustee of the scheme.

56 Property vested in apparent purchaser (1) Duty under this chapter is not payable in relation to— (a) a declaration of trust made by an apparent purchaser in relation to identified dutiable property if the commissioner is satisfied— (i) that the property is vested in the apparent purchaser on trust for the real purchaser who provided the money for the purchase of the dutiable property; or (ii) that— (A) the property is to be vested in the apparent purchaser on trust for the real purchaser; and (B) the money for the purchase of the dutiable property has been or will be provided by the real purchaser; or (b) a transfer of dutiable property from an apparent purchaser to the real purchaser if the commissioner is satisfied that the dutiable property is vested in an apparent purchaser on trust for the real purchaser who provided the money for the purchase of the dutiable property.

purchase includes an allotment.

57 Transfers back from trustee (1) If— (a) dutiable property that was transferred to a person to be held by that person as trustee for the transferor is transferred back to the transferor by the trustee for no consideration; and (b) no person other than the transferor has had a beneficial interest in the dutiable property (other than the trustee’s right of indemnity) between its transfer to the trustee and its transfer back to the transferor; duty under this chapter is not payable in relation to the transfer of the dutiable property back to the transferor. (2) If duty is not payable under subsection (1) on the transfer of dutiable property back from the trustee to the transferor— (a) duty is not payable in relation to the initial transfer from the transferor to the trustee; and (b) the commissioner must reassess the initial transfer and refund any duty paid on application for a refund made within 5 years after the initial assessment, or 12 months after the transfer back to the transferor, whichever is later. trustee includes a trustee appointed in substitution for a trustee or a trustee appointed in addition to a trustee or trustees.

58 Property passing to beneficiaries (1) Duty under this chapter is not payable in relation to a transfer for no consideration of dutiable property to a beneficiary made under and in conformity with the trusts contained in a declaration of trust.

(2) However, subsection (1) applies— (a) only to the extent that the property being transferred is property that the commissioner is satisfied is— (i) wholly or substantially the same as the dutiable property the subject of the declaration and that— (A) duty payable under this Act has been paid in relation to the declaration of trust over that property; or (B) duty is not payable under this Act in relation to the declaration of trust; or (ii) dutiable property representing the proceeds of reinvestment of property mentioned in paragraph (a); or (iii) property to which both paragraphs (a) and (b) apply; and (b) only if the commissioner is satisfied that the transferee was a beneficiary when the liability for duty in relation to the declaration of trust arose.

60 Declaration of trust relating to managed investment scheme Duty under this chapter is not payable in relation to a declaration of trust if the commissioner is satisfied that the declaration is made— (a) by a trustee in relation to dutiable property that, immediately before the trust is declared, is held by the trustee as trustee of the responsible entity of a managed investment scheme; and (b) for the purpose of holding the dutiable property on trust for the responsible entity of the managed investment scheme.

62 Transfer of property from one superannuation fund to another (1) This section applies to the transfer of dutiable property from one superannuation fund to another for no consideration if the (a) the transfer is made from a complying superannuation fund or from a fund that was a complying superannuation fund within the 12 month period before the transfer was made; and (b) the transfer is made to a complying superannuation fund or to a superannuation fund that, in the opinion of the trustees, will be a complying superannuation fund within 12 months after the transfer is made; and (c) the transfer occurs in connection with a person’s ceasing to be a member of, or otherwise ceasing to be entitled to benefits in respect of, the fund from which the dutiable property is transferred and the person’s becoming a member of, or otherwise becoming entitled to benefits in respect of, the fund to which the dutiable property is transferred. (2) Duty under this chapter is not payable in relation to a transfer to which this section applies.

63 Transfers between trustees and custodians of superannuation funds or trusts (1) Duty under this chapter is not payable in relation to the following transactions: (a) a transfer of, or an agreement to transfer, dutiable property from a trustee of a relevant fund or trust to a custodian of the trustee of the fund or trust, if the commissioner is satisfied that there is no change in the beneficial ownership of the property;

Superannuation Division 2.5.2 (b) a transfer of, or an agreement to transfer, dutiable property from a custodian of a trustee of a relevant fund or trust to a trustee of the fund or trust, if the commissioner is satisfied that there is no change in the beneficial ownership of the property; (c) a transfer of, or an agreement to transfer, dutiable property from a custodian of a trustee of a relevant fund or trust to another custodian of the trustee of the fund or trust, if the commissioner is satisfied that there is no change in the beneficial ownership of the property. pooled superannuation trust means an entity that is a pooled superannuation trust under the Superannuation Industry (Supervision) Act 1993 (Cwlth), section 44. relevant fund or trust, in relation to the transfer of dutiable property, means— (a) a complying superannuation fund; or (b) a pooled superannuation trust; or (c) a fund or trust that, in the trustees’ opinion, will be a complying superannuation fund or a pooled superannuation trust within 12 months after the day the transfer takes effect.

64 Meaning of financial institution—div 2.5.2A financial institution means— (a) an authorised deposit-taking institution; or (b) a co-operative under the Co-operatives National Law (ACT); or (c) a body prescribed by regulation. Note The Co-operatives National Law (ACT) Act 2017, s 7 applies the Co-operatives National Law set out in the Co-operatives (Adoption of National Law) Act 2012 (NSW), appendix as if it were an ACT law called the Co-operatives National Law (ACT).

64A Land transferred to financial institution and individual then leased and transferred to individual (a) a person transfers land in the ACT to the individual and the financial institution as co-owners (the first transfer); and (b) at the time of the first transfer, the financial institution leases the land to the individual for a fixed period; and (c) the financial institution transfers the land to the individual (the second transfer) at the end of— (i) the fixed period; or (ii) another period agreed by the financial institution and the individual. (2) Duty under this chapter is not payable in relation to the second

Alternative finance transactions Division 2.5.2A

64B Land transferred to financial institution then transferred to individual (a) the individual, acting as an agent for the financial institution, enters into a contract of sale for land in the ACT with another person; and (b) the other person transfers the land to the financial institution under the contract (the first transfer); and (c) at the time of the first transfer, the individual enters into a contract of sale for the land with the financial institution; and (d) the financial institution transfers the land to the individual under the contract mentioned in paragraph (c) (the second transfer). (2) Duty under this chapter is not payable in relation to the second

64C Land transferred to financial institution then leased and transferred to individual (a) the individual, acting as an agent for the financial institution, enters into a contract of sale for land in the ACT with another person; and (b) the other person transfers the land to the financial institution under the contract (the first transfer); and (c) at the time of the first transfer, the financial institution leases the land to the individual for a fixed period under an agreement— (i) between the financial institution and the individual; and

(ii) that gives an option to the individual to purchase the land at the end of the fixed period or another period agreed by the parties to the agreement; and (d) at the end of the period— (i) the individual exercises the option to purchase the land under the agreement; and (ii) the financial institution transfers the land to the individual for consideration agreed by the parties to the agreement (the second transfer). (2) Duty under this chapter is not payable in relation to— (a) the agreement; or (b) the second transfer.

64D Land transferred to individual with beneficial interest transferred to financial institution (a) a person transfers land in the ACT to the individual (the first transfer); and (b) at the time of the first transfer— (i) the individual declares a trust in favour of the financial institution in relation to the individual’s beneficial interest in the land; and (ii) the financial institution leases the beneficial interest to the individual for a fixed period; and (c) at the end of the fixed period or another period agreed by the individual and the financial institution, the beneficial interest is transferred to the individual (the second transfer).

Alternative finance transactions Division 2.5.2A (2) Duty under this chapter is not payable in relation to— (a) the declaration of trust; or (b) the second transfer.

64E Change of financial institution (a) an individual and a financial institution enter into a scheme in relation to land in the ACT under section 64A, section 64B, section 64C or section 64D; and (b) the financial institution transfers the land to another financial institution (the first transfer) on the condition that the other financial institution will transfer the land to the individual in accordance with the scheme; and (c) the other financial institution transfers the land to the individual in accordance with the scheme (the second transfer). (2) Duty under this chapter is not payable in relation to the first transfer or second transfer.

64F Individual dies before arrangement completed (a) an individual and a financial institution enter into a scheme in relation to land in the ACT under section 64A, section 64B, section 64C or section 64D; and (b) the individual dies before a transfer could take place under— (i) section 64A (1) (c); or (ii) section 64B (1) (d); or (iii) section 64C (1) (d) (ii); or (iv) section 64D (1) (c).

(2) Duty under this chapter is not payable in relation to the transfer of any interest in the land under the scheme from the individual or financial institution to another individual— (a) in conformity with the trusts contained in the will of the individual or arising on an intestacy; or (b) because of a right of survivorship; or (c) under the Administration and Probate Act 1929— (i) section 38A (Estate to vest in public trustee and guardian until grant); or (ii) section 39 (Real and personal estate to vest in executor or administrator).

65 Transfer of land under Fair Work (Registered Organisations) Act 2009 (Cwlth) Duty under this chapter is not payable in relation to a transfer of land if the commissioner is satisfied that the transfer is made in accordance with the Fair Work (Registered Organisations) Act 2009 (Cwlth), section 82.

66 Conveyances to prescribed people Duty under this chapter is not payable in relation to a grant or transfer of land to a person if the commissioner is satisfied that the person is a prescribed person.

67 Conversion of property to unit title Duty under this chapter is not payable in relation to the transfer of a unit within the meaning of the Unit Titles Act 2001 if the (a) the transferee, immediately before registration of the units plan, held a land use entitlement in respect of the land or part of the land the subject of the units plan; and (b) the transfer is part of an arrangement under which the transferee will take an interest in the unit similar in effect to and in substitution for the interest the transferee had under the land use entitlement immediately before registration of the units plan.

68 Surrender and regrant of Crown lease (1) Duty under this chapter is not payable for the grant of a new Crown lease to the lessee under a previous Crown lease because of the surrender of the previous lease if the commissioner is satisfied that the surrender was only for 1 or more of the following purposes: (a) changing the purpose for which the land comprised in the lease may be used; (b) granting the lessee a longer leasehold interest in the land comprised in the lease; (c) reducing rent to not more than 5 cents a year; (d) correcting errors or omissions. (2) Duty under this chapter is not payable for the grant of new Crown leases to a lessee under a previous Crown lease because of the surrender of the previous lease if the commissioner is satisfied that the surrender was only for— (a) subdividing the land comprised in the surrendered lease; or (b) that purpose and 1 or more of the purposes mentioned in subsection (1) (a) to (d).

(3) Duty under this chapter is not payable for the grant of a new Crown lease to a lessee under 2 or more previous Crown leases because of the surrender of the previous leases if the commissioner is satisfied that the surrender was only for— (a) consolidating the land comprised in the surrendered leases; or (b) that purpose and 1 or more of the purposes mentioned in subsection (1) (a) to (d). (4) This section applies to a declared land sublease as if it were a Crown

68A Regrant of lease with additional land (1) If— (a) a Crown lease is granted to a lessee under a previous Crown lease because of the surrender of the previous lease; and (b) the land comprised in the new lease is all or part of the land comprised in the surrendered lease and additional land; duty is payable only on the transfer of the interest in the additional land. (2) This section applies to a declared land sublease as if it were a Crown

71 Bankruptcy or insolvency Duty under this chapter is not payable in relation to a dutiable transaction if the commissioner is satisfied that— (a) it occurs as a consequence of the appointment of a receiver or trustee in bankruptcy; or (b) it occurs as a consequence of the appointment of a liquidator; or (c) it is a transfer of dutiable property for no consideration to a former bankrupt from the estate of the former bankrupt.

72 Transfer to partner of interest in principal place of residence (1) Duty under this chapter is not payable in relation to a transfer by someone to the person’s partner of dutiable property consisting of an interest in property if the commissioner is satisfied that, at the date of transfer of the interest, the property is used as their principal place of residence. Note The dictionary defines partner as a person’s spouse or someone with whom the person has a domestic relationship. Domestic relationship is defined in the dictionary to have the same meaning as in the Domestic Relationships Act 1994, s 3. (2) However, subsection (1) only applies if the transfer results in the property being held by the partners as— (a) joint tenants; or (b) tenants in common in equal shares; or (c) tenants in common in shares that are proportionate to the contributions of the partners towards the purchase and improvement of the property; or (d) tenants in common in shares that are in proportions prescribed by regulation.

73A Transfers etc to entities for community housing (1) Duty under this chapter is not payable in relation to a dutiable transaction that is a transfer or grant of a residential lease if— (a) the transfer or grant is to an entity declared by the Minister; and (b) the commissioner is satisfied that the property the subject of the transfer or grant is to be used for community housing. (2) A declaration is a disallowable instrument. (3) The Minister may declare an entity only if satisfied that the entity is a provider of community housing in the ACT.

community housing means housing provided for— (a) people on low and moderate incomes or with special needs; or (b) nonprofit community organisations.

73B Transfers etc to special disability trusts Duty under this chapter is not payable in relation to a dutiable transaction that is a transfer or grant of a residential lease if— (a) the transfer or grant is to a special disability trust; and (b) the commissioner is satisfied that the property the subject of the transfer or grant is to be used as the principal place of residence of the beneficiary of the trust.

74 Transfers relating to mortgages (1) Duty under this chapter is not payable in relation to a dutiable transaction if it is— (a) a dutiable transaction over dutiable property arising from the discharge or transfer of a mortgage or declaration of trust over a mortgage; or (b) a dutiable transaction comprising— (i) a transfer by way of discharge of mortgage; or (ii) a transfer by way of mortgage (other than a transfer by way of mortgage of land, or an estate or interest in land, under the Land Titles Act 1925).

mortgage means any charge on dutiable property created merely for securing a debt.

74A Financial and other agreements Duty under this chapter is not payable in relation to— (a) a financial agreement made under the Family Law Act 1975 (Cwlth), section 90B, section 90C or section 90D that is binding on the parties under that Act; or (b) a part 8AB financial agreement made under the Family Law Act 1975 (Cwlth), section 90UB, section 90UC or section 90UD that is binding on the parties under that Act; or (c) a domestic relationship agreement, or a termination agreement,

Division 2.6A.1 First home owner grant scheme and home buyer concession scheme Division 2.6A.1 First home owner grant scheme and home buyer concession scheme 75 Definitions—div 2.6A.1 deferral arrangement—see section 75AC (2). eligible person means a person who— (a) is an eligible home buyer under the home buyer concession scheme; or (b) is eligible for a first home owner grant under the First Home Owner Grant Act 2000; or (c) would be eligible for a first home owner grant under the First Home Owner Grant Act 2000 apart from the person’s home not being a new home under that Act, section 12B. made or in force under the Act, including any regulation (see eligible property—see section 75A (1). home buyer concession scheme means a home buyer concession scheme determined under the Taxation Administration Act, section 139 (Determination of amounts payable under tax laws).

75A Meaning of eligible property—div 2.6A.1 (1) In this division: eligible property means— (a) for a home buyer concession scheme—property determined under the scheme as eligible property for the scheme; or

First home owner grant scheme and home buyer concession scheme Division 2.6A.1 (b) in any other case—a residential lease with a value not more than— (i) $750 000; or (ii) if another amount is determined by the Minister—the amount determined. (2) A determination under subsection (1) (b) (ii) is a disallowable instrument. 75AB Application to defer payment of duty (1) An eligible person may apply to the commissioner to defer payment of duty payable by the person on a dutiable transaction that is— (a) the transfer of an eligible property; or (b) an agreement for the sale or transfer of an eligible property. (2) The application must be made at the same time as the instrument effecting the dutiable transaction is lodged with the registrar-general under the Land Titles Act 1925, section 47C (Registration of instruments effecting dutiable transaction). (3) If there is more than 1 transferee or purchaser of the property, each transferee or purchaser must be an eligible person. (4) An applicant must provide the commissioner with any information the commissioner reasonably requires to decide the application. 75AC Approval to defer payment of duty (1) The commissioner must, on receipt of an application under section 75AB, approve the deferral of payment of duty payable by the applicant if— (a) the applicant is an eligible person; and (b) the duty is, or would be, payable on— (i) the transfer of an eligible property; or

Division 2.6A.1 First home owner grant scheme and home buyer concession scheme (ii) an agreement for the sale or transfer of an eligible property. (2) However, an approval under subsection (1) is subject to the person entering into an arrangement with the commissioner under the Taxation Administration Act, section 52 (Arrangements for payment of tax) about payment of the amount of deferred duty and interest (a deferral arrangement). 75AD Conditions of deferral arrangement (1) The conditions of a deferral arrangement include the following: (a) that payment, or the first instalment of payment, of the duty may be deferred for not more than 5 years after the day duty becomes payable in relation to the dutiable transaction; (b) that the duty, and any accrued interest, must be paid not later than 10 years after the day duty becomes payable in relation to the dutiable transaction; (c) that the amount of duty deferred must be at least— (i) $1 000; or (ii) if a greater amount is declared under subsection (2) (b)— the amount declared; (d) any other condition determined under subsection (2). (2) The Minister may determine other conditions, consistent with subsection (1) (a) to (c), to which a deferral arrangement is subject, including conditions to fix— (a) the rate of interest charged on the amount payable under the arrangement; and (b) an amount for subsection (1) (c) (ii). (3) A determination is a disallowable instrument.

Other duty deferral schemes Division 2.6A.2 (4) This section does not limit the Taxation Administration Act, section 52 but any arrangement under that section about deferred payment of duty under this division must not be inconsistent with conditions under subsection (1). 75AE Unpaid duty and interest a debt and charge on property (1) The amount payable under a deferral arrangement is a debt owing to the Territory. (2) The liability of a person under a deferral arrangement is a first charge on the person’s interest in the property to which the deferred payment of duty relates. 75AF Definitions—div 2.6A.2 deferral arrangement—see section 75AI (2). duty deferral scheme—see section 75AG (1). eligible person, for a duty deferral scheme—see section 75AG (2) (a). eligible transaction, for a duty deferral scheme—see section 75AG (2) (b). 75AG Duty deferral schemes—determination (1) The Minister may determine a scheme for deferring duty (a duty deferral scheme). (2) A duty deferral scheme must identify the following: (a) who is eligible to participate in the scheme (an eligible person); (b) the dutiable transactions on which duty may be deferred under the scheme (an eligible transaction).

(3) A duty deferral scheme may provide for— (a) how applications for duty deferral are to be made under the scheme; and (b) conditions to which a deferral arrangement may be subject, including conditions to fix— (i) the rate of interest charged on the amount payable under the arrangement; and (ii) an amount for section 75AJ (1) (a) (ii). 75AH Duty deferral schemes—application to defer payment of duty (1) An eligible person for a duty deferral scheme may apply to the commissioner to defer payment of duty payable by the person on an eligible transaction for the scheme. (2) The application must be made— (a) in accordance with any requirements under the duty deferral scheme; and (b) at the same time as the instrument effecting the dutiable transaction is lodged with the registrar-general under the Land Titles Act 1925, section 47C (Registration of instruments effecting dutiable transaction). (3) The eligible person must provide the commissioner with any information the commissioner reasonably requires to decide the application.

Other duty deferral schemes Division 2.6A.2 75AI Duty deferral schemes—approval to defer payment of duty (1) The commissioner must approve an application under section 75AH if— (a) the applicant is an eligible person for a duty deferral scheme; and (b) duty is, or would be, payable on the eligible transaction for the (2) However, an approval under subsection (1) is subject to the applicant entering into an arrangement under the Taxation Administration Act, section 52 (Arrangements for payment of tax) about payment of the amount of the deferred duty and interest (a deferral arrangement). 75AJ Duty deferral schemes—conditions of deferral arrangement (1) The conditions of a deferral arrangement include the following: (a) that the amount of duty deferred must be at least— (i) $1 000; or (ii) if a greater amount is required under the duty deferral scheme—the amount required; (b) any other condition required under the duty deferral scheme. (2) This section does not limit the Taxation Administration Act, section 52 (Arrangements for payment of tax), but any arrangement under that section about deferred payment of duty under this division must not be inconsistent with conditions under subsection (1).

75AK Duty deferral schemes—unpaid duty and interest a debt and charge on property (1) The amount payable under a deferral arrangement is a debt owing to the Territory. (2) The liability of a person under a deferral arrangement is a first charge on the person’s interest in the property to which the deferred payment of duty relates.

Preliminary Part 3.1 Chapter 3 Certain transactions treated as transfers Part 3.1 Preliminary 76 Meaning of chapter 3 transaction In this Act: chapter 3 transaction means— (a) an acquisition of an interest in a landholder under part 3.2; or (b) an acquisition of a land use entitlement under part 3.4; or (c) a voluntary transfer of a business under part 3.6.

76A Definitions—ch 3 In this chapter: acquisition statement—see section 87 (1). chapter 3 property, in relation to a chapter 3 transaction, means— (a) for an acquisition of an interest in a landholder—the interest in a landholder; or (b) for an acquisition of a land use entitlement—the land use entitlement; or (c) for a voluntary transfer of business—the business.

77 Imposition of duty Duty is payable under this chapter in relation to certain transactions that are not dutiable transactions to which chapter 2 applies.

Part 3.2 Acquisition of interests in certain landholders

77A Meaning of associated person (1) For this Act, an associated person means a person who is associated with another person in accordance with any of the following: (a) people are associated people if they are related people; (b) individuals are associated people if they are partners in a partnership to which the Partnership Act 1963 applies; (c) private companies are associated people if— (i) any majority shareholder, or a related person of the shareholder, is a majority shareholder of each company; or (ii) there are minority shareholders common to each company who, if their interests in each company were aggregated, would be a majority shareholder of each company; (d) trustees of trusts are associated people if any person is a beneficiary common to the trusts (not including a public unit trust scheme); (e) a private company and a trustee of a trust are associated people if a related body corporate of the company is a beneficiary of the trust (not including a public unit trust scheme). (2) Also, a person (person A) is an associated person of another person (person B) if, under subsection (1)— (a) person A is an associated person of another person (person C); and

Preliminary Division 3.2.1 (b) person B is also an associated person of person C. LMN Pty Ltd is the majority shareholder of XYZ Pty Ltd. John is a director of XYZ Pty Ltd. John is a related person, and hence an associated person, of XYZ Pty Ltd under s (1) (a). Under s (2), John is also an associated person of LMN Pty Ltd. minority shareholder, in relation to a private company, means a shareholder of the company that is not a majority shareholder. related body corporate—see the Corporations Act, section 9. related person means a person who is related to another person in accordance with any of the following: (a) individuals are related people if— (i) they are partners, or they have been partners and the partnership has ended (whether in Australia or elsewhere); or (ii) the relationship between them is that of parent and child, brothers, sisters, or brother and sister; (b) private companies are related people if they are related bodies corporate; (c) an individual and a private company are related people if the individual is a majority shareholder or director of the company or of another private company that is a related body corporate of the company; (d) an individual and a trustee of a trust are related people if the individual is a beneficiary of the trust (other than a public unit trust scheme); (e) a private company and a trustee of a trust are related people if the company, or a majority shareholder or director of the company, is a beneficiary of the trust (other than a public unit trust scheme).

78 Definitions—pt 3.2 acquires, an interest in a landholder—see section 84. entity—see section 78A. interest, in a landholder—see section 83. land—see section 80A. landholding—see section 80. relevant acquisition, in relation to a person—see section 86. relevant period, for a relevant acquisition, means— (a) the 3-year period before the relevant acquisition; or (b) if a person makes a relevant acquisition because the person acquires an interest by exercising a right to acquire the interest— the 3-year period before the person or an associated person acquired the right to acquire the interest and ending on the date of the relevant acquisition. significant interest, in a landholder—see section 83.

78A Meaning of entity—pt 3.2 (1) In this part: entity means— (a) a private company; or (b) a private unit trust scheme. Note Private company—see the dictionary.

private unit trust scheme means a unit trust scheme that is not a public unit trust scheme.

79 Meaning of landholder For this Act, a landholder is an entity that has a landholding in the ACT.

80 Meaning of landholding—pt 3.2 (1) For this part, a landholding is any interest in land, other than the interest of a mortgagee, chargee or other secured creditor or a profit à prendre. Note Interest—see the dictionary. (2) However, an interest in land is not a landholding of— (a) a private company unless the interest of the company is a beneficial interest; or (b) a private unit trust scheme unless the interest is held by the trustees in their capacity as trustees of the scheme. (3) This section is in aid of, but does not limit, the operation of any provision of this part providing for constructive ownership of interests. (4) For this part, the vendor and the purchaser under an uncompleted agreement for the sale of land are taken to be separately entitled to the whole of the land. (5) To remove any doubt, an agreement for the sale of land includes an agreement under which a Crown lease is granted to the purchaser.

80A Meaning of land—pt 3.2 (1) For this part, land includes anything attached to the land, whether or not the thing— (a) is a fixture under a law in force in the ACT; or (b) is owned separately from the land; or (c) appears, or is considered to be, separate from the land under a law in force in the ACT. (2) Without limiting subsection (1), a thing is attached to the land if the thing is— (a) attached directly to the land itself; or (b) attached to a permanent structure on the land. (3) However, land does not include a thing— (a) that is temporarily attached to the land to be used only for construction; or (b) if the thing is not a fixture under a law in force in the ACT— (i) that is held or used in relation to primary production; or (ii) that is— (A) a relocatable home attached to a site in a residential park; or (B) attached to the relocatable home or the site for the use or enjoyment of the occupier of the relocatable home; or (c) determined by the Minister. (4) A determination under subsection (3) (c) is a disallowable instrument.

primary production—see section 6. relocatable home means any of the following that can be parked or erected in a residential park: (a) a manufactured home under the Residential Tenancies Act 1997; (b) a mobile home under the Residential Tenancies Act 1997; (c) any other habitable structure. residential park— (a) means a residential park under the Residential Tenancies Act 1997; and (b) includes a mobile home park under the Residential Tenancies Act 1997.

81 Constructive ownership of landholdings—linked bodies (1) For this part, an entity is taken to hold an interest in land held by a linked body of the entity (a deemed interest) if, on the winding-up of all linked bodies of the entity— (a) the entity would be entitled to a distribution of any of the property held by any of the linked bodies; and (b) either or both of the following apply: (i) any linked body would be entitled to receive at least 50% of the unencumbered value of all the property held by any other linked body; (ii) if the unencumbered value of all the property held by each linked body were aggregated, the entity would be entitled to receive at least 50% of the aggregated unencumbered value.

(2) An entity’s deemed interest in land is in addition to any interest in land that the entity holds in its own right. (3) In working out duty payable under this part, the value of an entity’s deemed interest in land held by a linked body is the portion of the unencumbered value of the property held by the linked body to which the entity would be entitled to receive on the winding-up of all linked bodies of the entity. (4) In working out the value of property held by a body that an entity or linked body is entitled to receive, any liabilities of the first body must be disregarded. body— (a) includes— (i) an entity; and (ii) a partnership; and (iii) a trust; but (b) does not include— (i) a discretionary trust; or (ii) an individual; or (iii) a listed company; or (iv) a public unit trust scheme. entitled—an entity or linked body that is a trust or partnership is taken to be entitled to receive property if— (a) for a trust—a trustee of the trust is entitled to receive the property as a trustee; and (b) for a partnership—a partner in the partnership is entitled to receive the property as a partner.

linked—a body is linked to another body if, on the winding-up of the first body, the other body would be entitled to receive the first body’s property (disregarding any liabilities of the first body). linked body, of an entity, means a body which is part of a chain of bodies— (a) that includes the entity; and (b) in which each body is linked to the next body in the chain. winding-up, of a linked body, means— (a) any process in which any property held by the body is distributed; and (b) if the linked body is a trust—the vesting of the trust’s property in its beneficiaries. Note For working out the entitlement of a person to participate in a distribution of the property of a landholder, see s 92 (Maximisation of entitlements on distribution of property).

82 Constructive ownership of landholdings and other property—discretionary trusts (1) For this section, a person is a beneficiary of a discretionary trust if the person is a person, or a member of a class of people, in whose favour, by the terms of the trust, capital the subject of the trust may be applied in the event— (a) of the exercise of a power or discretion in favour of the person or class; or (b) that a discretion conferred under the trust is not exercised. Note Discretionary trust—see the dictionary. (2) A beneficiary of a discretionary trust is taken to own or to be otherwise entitled to the property the subject of the trust.

(3) For this part, any property that is the subject of a discretionary trust (the primary trust) is taken to be the subject of any other discretionary trust— (a) that is a beneficiary of the primary trust; or (b) any trustee of which (in the capacity of trustee) is a beneficiary of the primary trust. (4) Subsection (3) extends to apply to property that is the subject of a discretionary trust only by the operation of that subsection. (5) However, subsection (2) or (3) does not apply in a particular case if the commissioner— (a) is satisfied that the application of the subsection would be inequitable; and (b) determines, in writing, that the subsection does not apply. person includes an entity. Note Entity—see s 78A.

83 Interest and significant interest in landholders—pt 3.2 (1) For this part, a person has an interest in a landholder if the person has an entitlement (otherwise than as a creditor or other person to whom the landholder is liable) to a distribution of property from the landholder on a winding-up of the landholder or otherwise. (2) A person who, under subsection (1), has an interest in a landholder has a significant interest in the landholder if the person, in the event of a distribution of all the property of the landholder immediately after the interest was acquired, would be entitled to at least 50% of the property distributed.

person includes an entity. Note Entity—see s 78A.

84 How person acquires an interest in a landholder—pt 3.2 (1) For this part, a person acquires an interest in a landholder if the person obtains an interest, or the person’s interest increases, in the landholder regardless of how it is obtained or increased. (2) Without limiting subsection (1), a person may acquire an interest in a landholder— (a) by any of the following: (i) purchase, gift, allotment, issue or transfer of a share or unit in the landholder; (ii) variation, abrogation or alteration of a right attaching to any such share or unit; (iii) cancellation, redemption or surrender of any such share or unit; (iv) variation, abrogation or alteration of a right of a holder of any such share or unit; (v) payment of an amount owing for any such share or unit; or (b) by any combination of the means mentioned in paragraph (a); or (c) if the person holds an interest in the landholder (whether or not as trustee) and the capacity in which the person holds the interest changes (including if there is a change in the beneficial ownership of an interest held by a person as trustee). Example—par (c) a person who holds a unit in the landholder declares a trust in relation to the unit

(3) If an acquisition arises from an agreement to purchase, allot or issue a unit or share, the acquisition is made— (a) if, at any time after the agreement is entered into, the company or unit trust scheme whose share or unit is being purchased, allotted or issued ceases to be a landholder—on the day the agreement is entered into; or (b) in any other case—on the earliest of the following: (i) the day the necessary transfer or title documents are delivered to the person acquiring the unit or share; (ii) the day the consideration for the purchase, allotment or issue is paid in full; (iii) the day a benefit is received under the agreement; (iv) the last day of— (A) the 12-month period beginning on the day the agreement is first executed; or (B) if the commissioner approves a longer period—the longer period; (v) the day, in the commissioner’s opinion, the agreement is completed. (4) For subsection (3), it does not matter whether or not the acquisition or interest acquired is registered. (5) To remove any doubt, a person may acquire an interest in a landholder without acquiring shares or units in the landholder.

85 When does liability for duty arise? A liability for duty payable under this part arises when a relevant acquisition is made.

86 What is a relevant acquisition?—pt 3.2 (1) For this part, a person makes a relevant acquisition if— (a) the person acquires an interest in a landholder that— (i) is of itself a significant interest in the landholder; or (ii) when aggregated with other interests in the landholder held by the person or an associated person, results in an aggregation that amounts to a significant interest in the landholder; or (iii) when aggregated with other interests in the landholder acquired by the person or other people in an associated transaction, results in an aggregation that amounts to a significant interest in the landholder; or (b) the person or an associated person— (i) has an interest in a landholder mentioned in paragraph (a); and (ii) acquires a further interest in the landholder. Example—relevant acquisition—par (a) (ii) and (b) Jason and Tom are brothers. On 1 January 2021, Jason acquires a 20% interest in a landholder. On 1 October 2021, Tom acquires a 40% interest in the landholder. Tom makes a relevant acquisition under s 86 (1) (a) (ii) as, when aggregated with Jason’s earlier interest, the total interest in the landholder is 60%. On 1 June 2022, Jason acquires a further 20% interest in the landholder. Jason, as an associated person of Tom, makes a relevant acquisition under s 86 (1) (b).

associated transaction, in relation to the acquisition of an interest in a landholder by a person, means an acquisition of an interest in the landholder by another person in circumstances in which— (a) those people are acting in concert; or (b) the acquisitions form, are evidence of, give effect to or arise from substantially 1 arrangement, 1 transaction or 1 series of transactions.

87 Acquisition statements (1) If a person makes a relevant acquisition, the person must prepare a statement in relation to the relevant acquisition (an acquisition statement). (2) However, subsection (1) does not apply to a relevant acquisition prescribed by regulation. (3) The person must give the commissioner the acquisition statement not later than 90 days after the relevant acquisition is made. (4) The acquisition statement must include the following: (a) the name, address and any email address of the person who made the relevant acquisition; (b) the day the person made the relevant acquisition; (c) details of the interest in the landholder acquired by the person as part of the relevant acquisition; (d) details of the total interest in the landholder held by the person and any associated person on the day the relevant acquisition is made; (e) the unencumbered value of all landholdings in the ACT of the landholder on— (i) the day the relevant acquisition is made; and

(ii) if available—the day any other interest in the landholder is acquired within the relevant period for the relevant acquisition; (f) any valuation report or other evidence of the unencumbered value of all landholdings in the ACT of the landholder on a day mentioned in paragraph (e); (g) details of any amount of duty paid under this Act in relation to any other acquisition mentioned in paragraph (e) (ii); (h) the unencumbered value of the property of the landholder on the day the person made the relevant acquisition; (i) if the person is applying for an exemption from paying duty in relation to the relevant acquisition—evidence of the person’s eligibility for the exemption; (j) anything else required by the commissioner. valuation report—see section 90C (4).

88 When must duty be paid? A tax default does not happen for the Taxation Administration Act if duty is paid within 90 days after the liability to pay it arises.

89 Who is liable to pay duty on relevant acquisition? (1) Duty payable for a relevant acquisition is jointly and severally payable by— (a) the person who made the relevant acquisition; and (b) the landholder in which the interest is acquired by the making of the relevant acquisition; and

(c) if the relevant acquisition is made because of an aggregation of interests under section 86 (1) (a) (ii)—each person whose interest is included in the aggregation; and (d) if the relevant acquisition is made under section 86 (1) (b)— each person who has an interest mentioned in that provision. landholder, for a private unit trust scheme, includes a trustee of the

90 Duty payable on relevant acquisitions—single interest (b) the person makes a relevant acquisition under section 86 (1) (a) (i) because the interest is a significant interest in the landholder; and (c) within the relevant period for the relevant acquisition, no other interests in the landholder were acquired by— (i) the person; or (ii) an associated person; or (iii) any other person in an associated transaction. (2) The amount of duty payable in relation to the relevant acquisition is (a) work out the amount (the dutiable amount) as follows: UVL × relevant interest (b) multiply the dutiable amount by the relevant rate.

relevant interest, for a relevant acquisition, means the interest in a landholder acquired by a person through the relevant acquisition expressed as a percentage of the total interest in the landholder. relevant rate, for a relevant acquisition, means the determined rate in force on the day the relevant acquisition is made. UVL, for a landholder in relation to a relevant acquisition, means the unencumbered value of all landholdings in the ACT of the landholder on the day the relevant acquisition is made.

90A Duty payable on relevant acquisitions—aggregated interests (b) when the interest is aggregated with at least 1 other interest in the landholder, the person makes a relevant acquisition under section 86 (1) (a) (ii) or (iii). (2) The amount of duty payable in relation to the relevant acquisition is (a) work out the amount as follows: UVL × relevant interest (b) for each other interest in the landholder acquired within the relevant period for the relevant acquisition (another acquisition)—work out the amount as follows: UVL × other interest (c) work out the amount (the dutiable amount) by adding together the amounts worked out under paragraphs (a) and (b);

(d) multiply the dutiable amount by the relevant rate; (e) subtract any duty paid or payable under this division in relation to each other acquisition from the amount worked out under paragraph (d). (3) To remove any doubt, if another acquisition is made on the same day as a relevant acquisition, the other acquisition is made within the relevant period for the relevant acquisition, regardless of the time on the day at which the other acquisition is made. (4) In working out the dutiable amount, the commissioner may decide not to include an interest of an associated person as another acquisition under subsection (2) (b) if the commissioner is satisfied that the associated person acquired their interest independently and for no common purpose. other interest, for another acquisition, means the interest in a landholder acquired by a person in the other acquisition expressed as a percentage of the total interest in the landholder. relevant interest, for a relevant acquisition—see section 90 (3). relevant rate—see section 90 (3). unencumbered value determination, in relation to another acquisition—see section 90C (2). UVL, for a landholder, means the unencumbered value of all landholdings in the ACT of the landholder— (a) for a relevant acquisition—on the day the relevant acquisition is made; or (b) for another acquisition— (i) on the day the relevant acquisition is made; or

(ii) if the commissioner makes an unencumbered value determination in relation to the other acquisition—on the day the other acquisition is made.

90B Duty payable on relevant acquisitions—further interest (a) a person makes a relevant acquisition under section 86 (1) (a) by acquiring an interest in a landholder (the initial acquisition); and (b) the person or an associated person makes a relevant acquisition under section 86 (1) (b) because the person or an associated person acquires a further interest in the landholder (the further acquisition). (2) The amount of duty payable in relation to the further acquisition is— (a) if the initial acquisition is made within the relevant period for the further acquisition—the amount worked out in accordance with the following steps: (i) work out the dutiable amount for the initial acquisition (A) if the initial acquisition is an acquisition mentioned in section 86 (1) (a) (i)—section 90 (2) (a); or (B) if the initial acquisition is an acquisition mentioned in section 86 (1) (a) (ii) or (iii)—section 90A (2) (a) to (c); Note In working out the dutiable amount under s 90A, the commissioner may decide not to include an interest of an associated person if satisfied that the associated person acquired their interest independently and for no common purpose (see s 90A (4)).

(ii) work out the amount as follows: UVL × further interest (iii) add together the amounts worked out under subparagraphs (i) and (ii); (iv) multiply the amount worked out under subparagraph (iii) by the relevant rate; (v) subtract any duty paid or payable under this division in relation to the initial acquisition from the amount worked out under subparagraph (iv); or (b) if the initial acquisition is not made within the relevant period for the further acquisition—the amount worked out in accordance with the following steps: (i) work out the amount as follows: UVL × further interest (ii) multiply the amount worked out under subparagraph (i) by the relevant rate. further interest, for a further acquisition, means the interest in a landholder acquired by a person in the further acquisition expressed as a percentage of the total interest in the landholder. relevant rate, for a further acquisition, means the determined rate as in force on the day the further acquisition is made. UVL, for a landholder in relation to a further acquisition, means the unencumbered value of all landholdings in the ACT of the landholder on the day the further acquisition is made.

90C Unencumbered value determination (1) This section applies in relation to working out the duty payable for a relevant acquisition under section 90A in relation to an interest in a landholder. Note This section may also apply in relation to working out the amount of duty payable in relation to a further acquisition under s 90B if s 90B (2) (a) (i) (B) applies. (2) The commissioner may determine, in writing, the unencumbered value of all landholdings in the ACT of the landholder on the day another acquisition is made (an unencumbered value determination). (3) The commissioner may make an unencumbered value determination only if the commissioner is satisfied that the unencumbered value of all landholdings in the ACT of the landholder on the day the other acquisition is made is supported by— (a) a valuation report prepared by an accredited valuer not more than 12 months after the day the other acquisition is made; or (b) any other evidence. accredited valuer—see the Planning Act 2023, dictionary. another acquisition—see section 90A (2) (b). valuation report, in relation to an interest in a landholder, means a document setting out the unencumbered value of landholdings in the ACT of the landholder on a stated day.

90D Duty payable on relevant acquisitions—combined acquisitions (a) a person acquires an interest in a landholder that is a relevant acquisition (the previous acquisition); and

(b) the person or an associated person acquires an interest in at least 1 other landholder that is also a relevant acquisition (the later acquisition); and (c) the later acquisition is made within 12 months of the previous acquisition; and (d) together, the relevant acquisitions form, provide evidence of, give effect to or arise from a single arrangement to gain effective ownership of a landholding (the combined acquisition). (2) The amount of duty payable in relation to the combined acquisition is (a) work out the amount for each of the relevant acquisitions (i) if the relevant acquisition is an acquisition mentioned in section 86 (1) (a) (i)—section 90 (2) (a); or (ii) if the relevant acquisition is an acquisition mentioned in section 86 (1) (a) (ii) or (iii)—section 90A (2) (a) to (c); (b) add together each of the amounts worked out under paragraph (a); (c) multiply the resulting amount worked out under paragraph (b) by the determined rate as in force on the day— (i) the later acquisition was made; or (ii) if there are 2 or more later acquisitions—the last of the later acquisitions was made; (d) subtract any duty paid or payable under this division in relation to the relevant acquisitions from the amount worked out under paragraph (c).

General and supplemental Division 3.2.4 UVL, for a landholder, in relation to a relevant acquisition that is part of a combined acquisition, means the unencumbered value of all landholdings in the ACT of the landholder on the day— (a) the later acquisition is made; or (b) if there are 2 or more later acquisitions—the last of the later acquisitions is made.

92 Maximisation of entitlements on distribution of property (1) This section applies to any calculation, for this part, of the entitlement of a person (the interested person) to participate in a distribution of the property of a landholder, whether on a winding-up of the landholder or otherwise. (2) A calculation is to be made based, firstly, on a distribution carried out in accordance with the constitution of the landholder, and with any law relevant to the distribution, as in force at the time of distribution, and the entitlement of the interested person is to be evaluated accordingly. (3) Next, a calculation is to be made based on a distribution carried out after the interested person, and any other person whom the interested person has power to direct for such a distribution or who is, in relation to the interested person, an associated person, had exercised all powers and discretions exercisable by them because of having acquired an interest in the landholder concerned— (a) to effect or compel an alteration to the constitution of the landholder; and (b) to vary the rights conferred by shares or units in the landholder; and

(c) to effect or compel the substitution or replacement of shares or units in the landholder with other shares or units in it; in such a way as would maximise the value of the entitlement, and the entitlement of the interested person is to be evaluated accordingly. (4) The results obtained by an evaluation of the interested person’s entitlement in accordance with subsections (2) and (3) are then to be compared, and whichever evaluation results in a greater entitlement is the correct evaluation, for this part, of the entitlement. (5) However, subsection (4) does not apply in a particular case if the commissioner— (a) is satisfied that the application of the subsection would be inequitable; and (b) determines, in writing, that the subsection does not apply.

93 Valuation of property (1) The provisions of this Act that apply to the ascertainment of the value of transfers in relation to which ad valorem duty is payable apply in the same way to a relevant acquisition under this part and the unencumbered value of landholdings mentioned in it. (2) If any arrangement affecting the unencumbered value of landholdings that was entered into within 12 months before a relevant acquisition was brought about by any person with the intention of reducing the unencumbered value of the landholdings, the commissioner may— (a) cause a valuation of the landholding to be made; and (b) direct the valuer to disregard the arrangement for the purposes of the valuation; and (c) assess duty on the basis of the valuation carried out in accordance with the direction.

General and supplemental Division 3.2.4

94 Uncompleted agreements for sale or conveyance of land (b) the person makes a relevant acquisition; and (c) at the time the relevant acquisition was made, either— (i) both of the following apply: (A) the landholder was the vendor under an uncompleted agreement for the sale or conveyance of land; (B) the commissioner is satisfied that the agreement is subsequently completed; or (ii) both of the following apply: (A) the landholder was the purchaser under an uncompleted agreement for the sale or conveyance of land; (B) the commissioner is satisfied that the agreement is subsequently rescinded or terminated. (2) The commissioner must assess or reassess the duty payable in relation to the relevant acquisition as though the land the subject of the agreement was not, at the time the acquisition was made, a landholding of the landholder. landholder includes a linked body of the landholder. linked body—see section 81 (5).

94A Uncompleted agreements for purchase, allotment or issue of shares or units in landholder (a) a person makes a relevant acquisition; and (b) at the time of the relevant acquisition— (i) there is an uncompleted agreement for the purchase, allotment or issue of a share or unit in a landholder; and (ii) the person is the purchaser or person to whom a share or unit was to be allotted or issued under the agreement; and (c) the commissioner is satisfied that the agreement is subsequently rescinded or terminated within 3 years after the relevant acquisition; and (d) the person does not receive any benefit under the agreement. (2) The commissioner must assess or reassess the duty payable in relation to the relevant acquisition as though, at the time of the acquisition, the person did not purchase, or was not allotted or issued, the share or unit. landholder includes a linked body of the landholder. linked body—see section 81 (5).

Part 3.4 Acquisition of land use entitlements by allotment of shares or issue of units

103 When does liability for duty arise? (1) A liability for duty payable under this part arises when a land use entitlement is acquired by an allotment of shares or an issue of units to anyone otherwise than in circumstances to which subsection (2) applies. (2) This subsection applies to an allotment of shares by a territory company that is a private company— (a) at another person’s direction; and (b) in discharge of an obligation to the other person, whether the obligation arises as consideration for the purchase of property by the company or otherwise. territory company means–– (a) a company incorporated (or taken to be incorporated) under the Corporations Act that is taken to be registered in the ACT; or (b) a corporation that is incorporated under a territory Act.

104 When must duty be paid? A tax default does not happen for the Taxation Administration Act if duty is paid within 90 days after the liability to pay it arises.

Part 3.4 Acquisition of land use entitlements by allotment of shares or issue of

105 Who is liable to pay duty? Duty payable under this part is payable by the person who acquires the land use entitlement.

106 Acquisition of land use entitlement (1) A person who acquires a land use entitlement by an allotment of shares or an issue of units must lodge with the commissioner a statement of the entitlement. (2) The statement must be lodged within 90 days after the entitlement is so acquired.

107 What statement under s 106 must contain A statement under section 106 must contain the following information: (a) the name and address of the person; (b) the name of the relevant company or unit trust; (c) the date when the land use entitlement was acquired; (d) the consideration paid by the person for the relevant shares or units; (e) the other information that may be required by the commissioner.

108 Assessment of duty Duty is payable in relation to the share allotment or unit issue by which a person acquires a land use entitlement at the general rate of duty determined for section 31 on the dutiable value of the land use entitlement.

109 Disability exemption (1) Duty under this part is not payable by a person who acquires a land use entitlement by an allotment of shares or an issue of units if— (a) each of the following applies: (i) the person receives an NDIS amount as a participant under the National Disability Insurance Scheme Act 2013 (Cwlth) or someone else receives the NDIS amount on the person’s behalf; (ii) the person receives or holds 1 of the following and has done so for at least 1 year immediately before the date of the acquisition of the land use entitlement: (A) an age pension under the Social Security Act 1991 (Cwlth); (B) an age service pension under the Veterans’ Entitlements Act 1986 (Cwlth); (C) a disability support pension under the Social Security Act 1991 (Cwlth); (D) a current gold card; (iii) the commissioner is satisfied that the land the subject of the land use entitlement is to be used as the principal place of residence of the person; or (b) the land use entitlement— (i) is acquired by a special disability trust; and (ii) the commissioner is satisfied that the land the subject of the land use entitlement is to be used as the principal place of residence of the beneficiary of the trust.

Part 3.4 Acquisition of land use entitlements by allotment of shares or issue of (2) For subsection (1)— (a) the shares allotted or units issued for the land use entitlement must be in a corporation or trust that is— (i) a charitable organisation for a tax law, registered as a charity under the Australian Charities and Not-for-profits Commission Act 2012 (Cwlth); or (ii) a not-for-profit housing corporation; and (b) the land the subject of the land use entitlement must be used for supportive housing; and (c) any other criteria determined under subsection (3) must be satisfied. (3) The Minister may determine other criteria for an exemption from duty under this section, including criteria relating to the purpose of the land use entitlement under subsection (2) (b). charitable organisation, for a tax law—see section 232. gold card means a card known as the Repatriation Health Card—For All Conditions that evidences a person’s eligibility, under the Veterans’ Entitlements Act 1986 (Cwlth) or the Military Rehabilitation and Compensation Act 2004 (Cwlth), to be provided with treatment for all injuries or diseases. NDIS amount—see the National Disability Insurance Scheme Act 2013 (Cwlth), section 9. not-for-profit housing corporation—see the Land Tax Act 2004, section 11 (2). retirement village—see the Retirement Villages Act 2012, section 10.

supportive housing— (a) means premises used to provide residential accommodation for people with physical or intellectual disability; but (b) does not include a retirement village or premises used for student accommodation. Example—par (a) housing for people with intellectual disability that fosters independent living

Part 3.6 Voluntary transfers under Financial Sector (Transfer and Restructure) Part 3.6 Voluntary transfers under Financial Sector (Transfer and Restructure) Act 1999 (Cwlth)

115A Definitions—pt 3.6 asset—see the FS (TR) Act, section 4 (1). business—see the FS (TR) Act, section 4 (1). FS (TR) Act means the Financial Sector (Transfer and Restructure) Act 1999 (Cwlth). receiving body—see the FS (TR) Act, section 4 (1). voluntary transfer means a transfer under the FS (TR) Act, part 3.

115B Declaration required if business transferred (1) This section applies to the voluntary transfer of business if the transfer of the assets of the business would be dutiable under this Act. Note The effect of the FS (TR) Act, s 22 is that a voluntary transfer of business, in itself, is not dutiable under this Act. (2) The receiving body must, within 14 days after the voluntary transfer, give the commissioner a declaration about the transfer. Note For how documents may be given to the commissioner, see the Taxation Administration Act, s 127. (3) The declaration must state— (a) the names, addresses and capacities of the parties to the transfer; and (b) the reason for the transfer; and

Voluntary transfers under Financial Sector (Transfer and Restructure) Part 3.6 (c) a description of the dutiable property transferred; and (d) the market value of the property (including the unencumbered value of any land transferred) on the date when the applicable certificate under the FS (TR) Act, section 18 comes into force under that section. (4) The commissioner may require a receiving body that gives a declaration under subsection (2), or that the commissioner believes is liable to give a declaration under that subsection, to give to the commissioner, within 14 days or any longer period allowed by the commissioner, a statement giving specified information about the Note It is an offence to give false or misleading information to the commissioner, or to fail to give a declaration or statement required under this section (see Taxation Administration Act, s 66 and s 67).

115C When does liability for duty arise? A liability for duty payable under this part arises when a voluntary transfer of business is made to a receiving body.

115D When must duty be paid? There is no tax default for the Taxation Administration Act if duty is paid within 90 days after the liability to pay it arises.

115E Who is liable to pay duty? Duty payable under this part is payable by the receiving body.

Part 3.6 Voluntary transfers under Financial Sector (Transfer and Restructure)

115F Assessment of duty (1) Duty is payable in relation to a declaration to the commissioner under section 115B (2) at the determined rate on the value of the transferred property stated in the declaration. (2) For this section, the commissioner may— (a) treat a declaration as having been varied or supplemented by a statement to the commissioner for section 115B (4) in relation to the declaration; or (b) if a declaration has not been given to the commissioner under section 115B (2)—treat a statement to the commissioner for section 115B (4) as a declaration.

115G Exemptions from duty (1) The Minister may determine guidelines for exempting from the assessment of duty under this part property that is the subject of a voluntary transfer. (2) Section 115F does not apply to property transferred to a receiving body if, under the guidelines, the transfer is to be exempt from duty under this part. (3) Section 115F does not apply to property transferred to a receiving body unless the transfer would have given rise to a liability to duty under this Act if it had not been a voluntary transfer. (4) A determination under subsection (1) is a disallowable instrument.

Division 3.7.1 Exemptions—ch 3 transactions generally

115H Exemptions—ch 3 transactions (1) Duty under this chapter is not payable in relation to a chapter 3 transaction if— (a) a person is liable to pay duty under this chapter in relation to the transaction; and (b) the person applies to the commissioner for an exemption from duty under this division in relation to the transaction; and (c) the commissioner exempts the transaction from duty. (2) An application for exemption from duty must— (a) be in writing; and (b) be made not later than— (i) 90 days after the day the chapter 3 transaction is made; or (ii) if the commissioner approves, in writing, a longer period— the end of the longer period; and (c) state the exemption under this division that is being applied for; and (d) include any other information required by the commissioner. Note A person may apply to extend the time by which an application for exemption from duty must be made (see Taxation Administration Act, s 40).

(3) The commissioner must exempt a chapter 3 transaction from duty if the commissioner is satisfied an exemption under this division applies to the transaction. 115HA Exemption—relevant acquisitions to secure finance (a) a person makes a relevant acquisition by acquiring an interest in a landholder; and (b) the person is providing finance to the person from whom the interest is acquired (the borrower); and (c) the interest is acquired solely as a security for the finance; and Example—finance a mortgage (d) at the time of the acquisition, the borrower intends to reacquire the interest during the applicable period. (2) Duty is not payable in relation to the relevant acquisition if the (a) the interest is acquired solely as a security for finance; and (b) at the time of the acquisition, the borrower intended to reacquire the interest during the applicable period. (3) However, duty is payable in relation to the relevant acquisition if, at the end of the applicable period, the interest is not— (a) reacquired by the borrower; or (b) for an acquisition made by way of a mortgage—transferred to another person in exercise of the mortgagee’s power of sale. (4) Also, duty is payable in relation to the relevant acquisition if the commissioner is satisfied that, at any time within the applicable period, the borrower intends not to reacquire the interest before the end of the applicable period.

(5) The borrower must give written notice of their intention to not reacquire the interest to the commissioner as soon as possible after they form the intention. Note The commissioner may require the borrower to provide information, give evidence or produce a record or other document in relation to the borrower’s intention (see Taxation Administration Act, s 82). (6) A person who reacquires an interest in a landholder under this section does not make a relevant acquisition. (7) In this section: applicable period, for a relevant acquisition, means— (a) 5 years after the day the acquisition is made; or (b) if the commissioner determines, in writing, a longer period—the longer period. 115HB Exemption—transactions made on bankruptcy or winding-up The commissioner must exempt a chapter 3 transaction from duty if satisfied that the transaction is made by operation of law on the bankruptcy of a person or the winding-up of a company. 115HC Exemption—transactions made due to change in trustees (1) This section applies if a chapter 3 transaction is made because of— (a) the retirement of a trustee; or (b) the appointment of a new trustee. (2) The commissioner must exempt the transaction from duty if— (a) the trust is a self managed superannuation fund; or (b) the commissioner is satisfied that— (i) on the retirement or appointment, there are no trustees that are, or can become, a beneficiary under the trust; and

(ii) the transaction is not made as part of a scheme to vest, in a person, an interest in a property of the trust to the detriment of any other person’s beneficial interest or potential beneficial interest; and (iii) the transaction is not made as part of, or in relation to, a tax avoidance scheme. (3) This section does not apply to a responsible entity of a managed investment scheme. new trustee means a trustee appointed— (a) in substitution for another trustee; or (b) in addition to another trustee. self managed superannuation fund—see the Superannuation Industry (Supervision) Act 1993 (Cwlth), section 10 (1). 115HD Exemption—transactions in relation to managed investment schemes The commissioner must exempt a chapter 3 transaction from duty if satisfied that— (a) the parties to the transaction are— (i) the responsible entity of a managed investment scheme; and (ii) a custodian or agent of the responsible entity acting as custodian or agent of the scheme; and (b) the beneficial owner of the chapter 3 property, transferred as part of the transaction, has not changed because of the transaction.

115HE Exemption—transactions in relation to registered schemes (1) The commissioner must exempt a chapter 3 transaction from duty if satisfied that a chapter 3 property is transferred as part of the transaction— (a) from the responsible entity of a registered scheme; and (b) to a custodian or agent of the responsible entity of the scheme acting as custodian or agent of the scheme. (2) However, subsection (1) applies only if the commissioner is satisfied that— (a) the scheme was a prescribed interest scheme before 1 July 1998; and (b) at the time the scheme became a registered scheme, the responsible entity held the chapter 3 property as a trustee of the Note The term ‘prescribed interest’ was replaced with ‘managed investment’ and the term ‘trustee’ was replaced with ‘responsible entity’ by the Managed Investments Act 1998 (Cwlth), sch 1 (repealed), which inserted new s 1465 (References to prescribed interests etc. in existing laws and documents) into the Corporations Law (Cwlth) (repealed). 115HF Exemption—ch 3 transactions made by apparent purchaser (1) The commissioner must exempt a chapter 3 transaction from duty if satisfied that— (a) a chapter 3 property is transferred as part of the transaction from an apparent purchaser to the real purchaser; and (b) the property is vested in the apparent purchaser on trust for the real purchaser; and (c) the real purchaser provided the money for the purchase of the property.

purchase includes allotment. 115HG Exemption—transactions made to return ch 3 property held by trustee (a) a chapter 3 property was transferred from a person (the transferor) to another person to be held by the other person as trustee for the transferor; and (b) the property is transferred back to the transferor by the trustee for no consideration (the chapter 3 transaction). (2) The commissioner must exempt the chapter 3 transaction from duty if satisfied that, while the trustee was holding the property for the transferor, the transferor was the only person with a beneficial interest in the property. beneficial interest does not include a trustee’s right of indemnity. trustee includes a trustee appointed— (a) in substitution for a trustee; and (b) in addition to a trustee. 115HH Exemption—transactions between superannuation funds (1) This section applies to a chapter 3 transaction that transfers a chapter 3 property from a superannuation fund to another superannuation fund for no consideration.

(2) The commissioner must exempt the transaction from duty if satisfied that the transfer is made— (a) from— (i) a complying superannuation fund; or (ii) a fund that was a complying superannuation fund within 12 months before the day the transaction is made; and (b) to vest the property in— (i) another complying superannuation fund; or (ii) a fund that, in the opinion of its trustees at the time of the transfer, will be a complying superannuation fund within 12 months after the day the transaction is made; and (c) because a person— (i) has stopped being a member of, or has otherwise stopped having a beneficial interest in, the fund mentioned in paragraph (a); and (ii) has become a member of, or has otherwise begun having a beneficial interest in, the fund mentioned in paragraph (b). 115HI Exemption—transactions between trustees and custodians of superannuation funds or trusts (1) The commissioner must exempt a chapter 3 transaction from duty if— (a) a chapter 3 property is transferred as part of the transaction— (i) between— (A) a trustee of a relevant fund or trust; and (B) a custodian of the trustee of the fund or trust; or

(ii) between— (A) a custodian of a trustee of a relevant fund or trust; and (B) another custodian of the trustee of the fund or trust; and (b) the commissioner is satisfied that the beneficial ownership of the property has not changed because of the transaction. pooled superannuation trust means an entity that is a pooled superannuation trust under the Superannuation Industry (Supervision) Act 1993 (Cwlth), section 44. relevant fund or trust, in relation to a chapter 3 transaction, means— (a) a complying superannuation fund; or (b) a pooled superannuation trust; or (c) a fund or trust that, in the opinion of its trustees, will be a complying superannuation fund or pooled superannuation trust within 12 months after the day the transaction is made. Division 3.7.2 Exemptions—‘top hatting’ arrangements

115I Definitions—div 3.7.2 exchanging members—see the Income Tax Assessment Act 1997 (Cwlth), section 124-1045 (1). interposed trust—see the Income Tax Assessment Act 1997 (Cwlth), section 124-1045 (1).

Exemptions—‘top hatting’ arrangements Division 3.7.2

115J Exemption for relevant acquisitions (1) An exchanging member who makes a relevant acquisition may apply to the commissioner for an exemption from duty under this Act on the relevant acquisition. (2) The commissioner must grant the exemption if satisfied that— (a) the relevant acquisition was made to give effect to a scheme that would qualify as a roll-over under the Income Tax Assessment Act 1997 (Cwlth), subdivision 124-Q; and Note A roll-over involves a scheme for interposing a unit trust scheme (whether a new or existing unit trust scheme) between people who have an ownership interest in 2 or more unit trust schemes, or in 1 or more companies and 1 or more unit trust schemes, and the unit trust schemes or companies in which they have an ownership interest. The interests of the unit holders or shareholders are stapled together to form stapled securities and the interposed unit trust becomes the owner of all the stapled interests. (b) when the scheme is completed, the interposed trust will be a listed trust, widely held trust or landholder; and (c) the acquisition is not part of a scheme a purpose of which is to minimise duty otherwise payable under this Act; and (d) the conditions of the exemption, if any, will be met by the applicant. (3) If duty under this chapter has been paid on the relevant acquisition, the commissioner must refund any duty paid that is not payable because of the exemption.

115K Conditions of exemption (1) An exemption granted under this division is subject to any conditions stated by the commissioner. (2) A condition of the exemption is binding on each exchanging member.

115L Revocation of exemption (1) The commissioner may revoke an exemption granted under this division if— (a) the interposed trust is not a listed trust, widely held trust or landholder when the scheme is completed; or (b) the interposed trust ceases to be a listed trust, widely held trust or landholder within 12 months after the day the scheme is completed; or (c) the commissioner is no longer satisfied of a matter mentioned in section 115J (2) (a) or (c); or (d) the decision to grant the exemption was based on false or misleading information in a material particular given to the commissioner in relation to the application; or (e) a condition of the exemption is not met. (2) If the commissioner revokes an exemption granted under this division— (a) duty is payable under this chapter on the relevant acquisition as if the exemption had never been granted; and (b) the exchanging member who made the relevant acquisition must lodge an acquisition statement with the commissioner not later than 28 days after the day the exemption is revoked; and (c) the commissioner must make an assessment of duty payable under this chapter on the relevant acquisition; and (d) a tax default happens for the Taxation Administration Act if the whole of any duty assessed under paragraph (c) is not paid to the commissioner within 90 days after the assessment.

Mortgages Chapter 7

Chapter 7 Mortgages

174 Liability for duty Duty is payable in relation to a mortgage instrument only if it is liable to duty under another chapter.

203 Meaning of dutiable value—pt 9.1 dutiable value, of a motor vehicle, means the greater of the following amounts, less any premium paid for extended warranty insurance: (a) the consideration in money (or money’s worth) given for the acquisition of the vehicle; (b) the market value of the vehicle at the time duty is payable.

203A Registration of vehicles in the name of 2 or more people (1) This section applies if a motor vehicle was, is or is to be registered in the names of 2 or more people. (2) In this chapter, a reference to a person in whose name the vehicle was, is or is to be registered includes a reference to each person in whose name the vehicle was, is or is to be registered.

204 Imposition of duty Duty is payable under this chapter in relation to an application to register a motor vehicle under the Vehicle Registration Act if— (a) the vehicle has not previously been registered under that Act or any other territory law; or (b) the person in whose name the vehicle is to be registered is not the person in whose name the vehicle was last registered.

Imposition and rates of duty Part 9.1

205 Lodgment of statement of dutiable value A person who is required by law to make an application to register a motor vehicle under the Vehicle Registration Act must lodge with the application for registration a statement of the dutiable value of the vehicle, unless no duty is payable under this chapter in relation to the application.

206 Who is liable to pay duty? Duty is payable by the applicant for registration of the motor vehicle.

207 When does duty become payable? Duty becomes payable when the motor vehicle is registered under the relevant application.

208 Rate of duty (1) Subject to subsection (2), duty in respect of an application to register a motor vehicle is payable on the dutiable value of the motor vehicle at the determined rate. (2) Duty payable on an application to register a motor vehicle is payable on the dutiable value of the vehicle at the determined rate if— (a) the vehicle has a dutiable value of at least— (i) $45 000; or (ii) if an amount is determined under the Taxation Administration Act 1999, section 139—the amount determined; and (b) the vehicle is not any of the following: (i) a motorcycle (with or without a sidecar); (ii) a large bus (seating 10 or more people, including the driver); (iii) a hearse;

(iv) an invalid conveyance; (v) a trailer; (vi) a vehicle with a gross vehicle mass more than 4.5t; (vii) plant or equipment; (viii) a vehicle prescribed by regulation. Example—par (vii) forklift (3) A determination of a determined rate for this section may apply, adopt or incorporate an instrument as in force from time to time. Example—instrument the Green Vehicle Guide for motor vehicles, a copy of which is accessible at Note 1 The text of an applied, adopted or incorporated instrument, whether applied as in force from time to time or at a particular time, is taken to be a notifiable instrument if the operation of the Legislation Act, s 47 (5) or (6) is not disapplied (see s 47 (7)). Note 2 A reference to an instrument includes a reference to a provision of an instrument (see Legislation Act, s 14 (2)).

208A Definitions—pt 9.2 demonstrator means a new motor vehicle used solely for the sale of another motor vehicle of the same kind. trading stock means a motor vehicle offered or exposed for sale by a licensed vehicle dealer in the course of the dealer’s business, other than a motor vehicle used— (a) personally by the dealer or a member of the dealer’s staff or family; or (b) for the general purposes of the dealer’s business.

209A Foreign countries (a) the applicant is a foreign country; and (b) the vehicle is for the official use of a diplomatic mission of the foreign country based in the ACT.

209B International organisations and diplomats motor vehicle if the application is exempt from duty under the International Organisations (Privileges and Immunities) Act 1963 (Cwlth) or the Diplomatic Privileges and Immunities Act 1967 (Cwlth).

209C Status of forces agreements (1) Duty under this chapter is not payable on an application to register a motor vehicle if the vehicle is subject to a status of forces agreement. status of forces agreement means an agreement between the Commonwealth and another country allowing for the importation of vehicles by visiting military personnel.

211 Certain disabled people (a) both the following paragraphs apply: (i) the applicant has served in the Defence Force or in any other armed forces of the Sovereign and who, because of that service— (A) has lost a leg or both arms or has had a leg, or both arms, rendered permanently and wholly useless; or (B) receives a pension under the Veterans’ Entitlements Act 1986 (Cwlth), part 2 and is a veteran (within the meaning of that part) to whom that Act, section 24 applies; or (C) receives a special rate disability pension under the Military Rehabilitation and Compensation Act 2004 (Cwlth) or is eligible to make a choice under that Act, section 199; (ii) the vehicle is for the applicant’s own transportation; or

(b) both the following paragraphs apply— (i) a doctor has certified that the applicant is permanently unable to use public transport because of the loss of, or loss of use of, a leg or both legs; (ii) the vehicle is for use by the person in travelling to and from gainful employment.

211A Partial exemption—modified vehicles for people with disabilities (1) This section applies to duty payable on an application to register a (a) modifications have been made to the vehicle for a person with a disability; and (b) either— (i) the applicant is a person with a disability; or (ii) the motor vehicle is to be used to transport a person with a disability. (2) For the purposes of duty payable on the application, the dutiable value of the motor vehicle is the dutiable value of the vehicle apart from this section reduced by the value of the modifications. modifications, made to a vehicle for a person with a disability, means modifications made— (a) to enable the person with a disability to drive the vehicle; or

(b) to enable someone else to transport the person with a disability in the vehicle. the addition to a vehicle of an hydraulic lift for a wheelchair person with a disability means a person who has a disability that— (a) is attributable to an intellectual, psychiatric, sensory, physical or neurological impairment, or acquired brain injury; and (b) is likely to be permanent; and (c) results in substantially reduced capacity in self-care, self-management, mobility or communication requiring significant ongoing, or long-term episodic, support. value, of modifications, means the consideration (in money or money’s worth) given for the modifications.

214 Vehicle dealers—registration of demonstrators and trading stock (1) Duty under this chapter is not payable on an application by a licensed vehicle dealer to register a motor vehicle in the dealer’s name if— (a) the vehicle is a demonstrator or trading stock; and (b) the vehicle is not registered in the name of the dealer at the time of the application. (2) However, if the dealer has not disposed of the vehicle within 12 months after its registration under this section, the dealer becomes liable to pay the duty on the application for registration that would have been payable if the exemption under this section had not applied.

215 Organisations registered under Fair Work (Registered Organisations) Act motor vehicle made by an organisation registered under the Fair Work (Registered Organisations) Act 2009 (Cwlth) if the registration is to happen in accordance with that Act, section 85.

216 Repossessed motor vehicles (a) the applicant is in the business of financing the purchase or use of motor vehicles; and (b) the vehicle was repossessed by, or voluntarily surrendered to, the applicant; and (c) the applicant, in the course of that business, does not dispose of a repossessed or surrendered vehicle except by public tender or public auction or through a person who is a licensed vehicle dealer.

217 Veteran, vintage and historic vehicles (1) Duty under this chapter is not payable on an application to register a veteran, vintage or historic vehicle if— (a) the vehicle had not been registered under the Vehicle Registration Act or a corresponding law during the 2 years immediately before the application for registration; and (b) the registration would be the first registration of the vehicle after its restoration; and (c) on registration the vehicle would be allocated numberplates that carry the words ‘veteran car’, ‘vintage car’ or ‘historic car’.

(2) If— (a) within the period of 3 years immediately following a registration in relation to which no duty is payable under subsection (1) a further application is made for registration of the relevant vehicle under the Vehicle Registration Act; and (b) the vehicle is owned by the person who owned it at the time of the registration referred to in subsection (1); and (c) on the further registration the vehicle would not be allocated numberplates that carry the words ‘veteran car’, ‘vintage car’ or ‘historic car’; there is payable, on the first such further application for registration, an amount of tax equal to the tax that would have been payable on the first application for registration of the vehicle after its restoration if subsection (1) had not been applicable. historic vehicle means a motor vehicle, other than a veteran vehicle or a vintage vehicle, built not less than 30 years before— (a) the day it was last registered; or (b) if it is unregistered and is to be registered—the date of registration. veteran vehicle means a motor vehicle built before 1919. vintage vehicle means a motor vehicle built after 1918 and before 1931.

218 Avoidance of double duty—duty paid in corresponding Australian jurisdiction Duty is not payable on an application to register a motor vehicle in the ACT if— (a) at the time the application was made, the applicant was recorded as the registered operator of the vehicle in the register of an Australian jurisdiction corresponding to the registrable vehicles register within the meaning of the Road Transport (Vehicle Registration) Act 1999; and (b) duty was paid in that jurisdiction in respect of the registration. Emmy applies to register her car in the ACT. The car is registered in Emmy’s name in Queensland. Under Queensland law, registration of Emmy’s car is exempt from duty. However, under this Act, registration of Emmy’s car is not exempt from duty. Section 218 does not apply, as Emmy has not paid duty in Queensland.

219 Reassessment of duty—repossession of stolen motor vehicle (1) Duty is not payable on an application for registration of a motor vehicle that has been repossessed from a person because, before the person acquired it, it had been stolen. (2) If requested by a person who has paid duty on an application for registration to which subsection (1) applies, the commissioner must assess or reassess the duty accordingly.

221 Prerequisites for registration (1) Despite anything in the Vehicle Registration Act, the road transport authority may register a motor vehicle under that Act only if— (a) the vehicle had previously been registered under the Vehicle Registration Act, any other territory law or a corresponding law and the last previous registration was solely in the name of the person who is applying for registration; or (b) for an application for registration that is claimed to be exempt from duty under part 9.2 (Exemptions)—the commissioner is satisfied that the application is exempt; or (c) for an application for registration that is claimed to be exempt from duty under section 214—the application is solely in the name of a person who certifies in writing that— (i) the person is carrying on business as a licensed vehicle dealer; and (ii) the vehicle is held by the person as a demonstrator vehicle or trading stock; or (d) for an application for registration that is claimed to be exempt from duty under section 217—the application is accompanied by a certificate by the owner that states— (i) whether the registration is the first registration of the vehicle after its restoration; and (ii) whether the vehicle has been registered under the Vehicle Registration Act or a corresponding law during the period of 2 years immediately before the date of the application and, if it has been, the date when the last registration expired; or

Miscellaneous Part 9.3 (e) the applicant for the registration (other than registration mentioned in subsection (2)) pays the amount of the duty payable on the application for registration, and the application is accompanied by a statement by the applicant, in writing, of— (i) the amount that, to the best of his or her knowledge and belief, is or will be the market value of the vehicle at the time the application is made; and (ii) the purchase price paid for the vehicle by the applicant; and (iii) if the stated market price differs from the purchase price— the reason for the difference. (2) The road transport authority must not— (a) register a vehicle sold by a person who is a licensed vehicle dealer if the registration would be the first registration of the vehicle after the sale; or (b) transfer the registration of a vehicle sold by a licensed vehicle dealer if the transfer would be the first transfer of the registration of the vehicle after the sale; unless the dealer’s licence code is endorsed on the application for, or for transfer of, registration. (3) A person claiming exemption of an application for the registration of a motor vehicle from duty under part 9.2 must give the road transport authority any relevant information the authority requires. demonstrator––see section 208A. trading stock––see section 208A.

223 Returns by road transport authority (1) As soon as practicable after the end of each month, the road transport authority must report to the commissioner about applications mentioned in section 221 decided in the month. (2) If required by the commissioner, the road transport authority must give the commissioner particulars of all certificates, statements and other information given for section 221 during the month.

224 Rectification of errors in registration Duty is not payable on an application to register a motor vehicle if the application is made solely to rectify an error or omission in a previous registration of the vehicle in the ACT.

225 Refund of duty on cancellation of sale If a person satisfies the commissioner— (a) that duty has been paid on an application to register a motor vehicle purchased by the person; and (b) that, after the purchase— (i) the transaction by which the purchase was made was cancelled; and (ii) the motor vehicle has been returned to the person from whom it was purchased; and (iii) all money refundable on the cancellation (other than on account of duty) has been refunded to the person who purchased the vehicle; the commissioner must refund the duty paid on the application.

Miscellaneous Part 9.3

226 Certificates as evidence A certificate of the road transport authority to the effect that a stated vehicle was or was not registered in the name of a stated person on a stated date is evidence of those matters and the facts on which they are based.

229 Minimum amount of duty (1) This section applies to an amount of duty payable under this Act, other than chapter 9 (Motor vehicle registration), in relation to a transaction or instrument. made or in force under the Act, including any regulation (see Legislation Act, s 104). (2) Despite any other provision of this Act, if the amount of duty payable under this Act in relation to a transaction or instrument would, apart from this section, be less than $20, duty under this Act is not payable.

Note The exemptions from duty provided under this chapter are in addition to the exemptions under the following provisions: (a) pt 2.5 (Exemptions); (b) pt 3.7 (Exemptions—ch 3 transactions); (c) pt 9.2 (Exemptions).

230 Inter-generational rural transfers (1) Duty under this Act is not payable on a transfer or agreement for the sale or transfer of land, a lease of land, or a transfer or assignment of a lease or permit in respect of land, used for primary production together with any other property that is an integral part of the business of primary production, if the commissioner is satisfied that— (a) the land was land used for primary production by the transferor, lessor or assignor immediately before the transaction or the date of first execution of the instrument; and (b) the land will continue to be land used for primary production by the transferee, lessee or assignee; and (c) the parties are people of a class identified in guidelines determined by the Minister; and (d) the transaction satisfies the other requirements that may be contained in the guidelines. (2) The Minister may determine guidelines for subsection (1) (c) or (d). (3) A guideline is a disallowable instrument.

231 Specialised agencies Duty under this Act is not payable on any instrument executed by or on behalf of a Specialised Agency within the meaning of the Convention on the Privileges and Immunities of the Specialised Agencies that was approved by the General Assembly of the United Nations on 21 November 1947 in respect of which instrument the Specialised Agency is the person described in this Act as the person liable to pay the duty.

232 Charitable organisations (1) Duty under this Act is not payable if the duty would be payable by a charitable organisation. charitable organisation— (a) for a tax law—see the Taxation Administration Act, section 18B; but (b) does not include an organisation that is related to an excluded organisation unless a beneficial organisation determination is in force for the excluded organisation. Note 1 Beneficial organisation determination—see the Taxation Administration Act, dictionary. Note 2 Excluded organisation and organisation—see the Taxation Administration Act, pt 3A (Charitable organisations). (3) For subsection (2), an organisation is related to an excluded organisation if— (a) the organisation holds dutiable property as trustee of a trust; and (b) the excluded organisation is a beneficiary under the trust, whether it has a vested share or is contingently entitled or is a potential beneficiary under the trust.

232A Corporate reconstruction transactions (1) Duty under this Act is not payable on a corporate reconstruction transaction that is approved by the commissioner in accordance with any guideline determined under subsection (3). (2) An approval for subsection (1) may be given subject to conditions. (3) The Minister may determine guidelines for approvals. corporate reconstruction transaction means— (a) a dutiable transaction where property is— (i) transferred (or agreed to be transferred) by a member of a group of corporations to another member of the same group; or (ii) vested in a member of the group, if the property was owned immediately before the vesting by another member of the same group; or (b) the making of a relevant acquisition, if by the acquisition property is— (i) transferred (or agreed to be transferred) by a member of a group of corporations to another member of the same group; or (ii) vested in a member of the group, if the property was owned immediately before the vesting by another member of the same group; or (c) an application to register a motor vehicle if— (i) the application is made by a member of a group of corporations; and

(ii) immediately before the application was made, the vehicle was registered in the name of another member of the same group. corporation includes a unit trust scheme. relevant acquisition, in relation to a person—see section 86.

232B Hospitals and schools (1) Duty under this Act is not payable if the commissioner is satisfied that the duty would be payable by a hospital or school or a trustee who holds property in trust for the hospital or school. Note Hospital—see the dictionary. government school—see the Education Act 2004, dictionary. property held by a trustee in trust for a hospital or school includes the following: (a) land granted or transferred to the trustee; (b) property transferred to the trustee under a chapter 3 transaction; (c) a motor vehicle for which an application to register the vehicle has been made. registered non-government school—see the Education Act 2004, dictionary. school means a government school or registered non-government school.

232C Commonwealth, States and Territories (1) Duty under this Act is not payable if the commissioner is satisfied the duty would be payable by any of the following: (a) the Commonwealth;

(b) a State or another Territory; (c) a prescribed authority of the Commonwealth, a State or another Territory; (d) a non-commercial Commonwealth authority. Note State includes the Northern Territory (see Legislation Act, dict, pt 1). non-commercial Commonwealth authority means a body corporate (other than an incorporated company, society or association) that— (a) is incorporated for a public purpose by or under a law of the Territory or the Commonwealth; and (b) does not have as its sole or principal function the carrying on of an activity in the nature of a business, whether or not for profit.

232D Deceased estates (1) Duty under this Act is not payable in relation to the following: (a) a transfer of dutiable property not made for valuable consideration by the legal personal representative of a deceased person to a beneficiary if the commissioner is satisfied that the transfer is— (i) a transfer made under and in conformity with the trusts contained in the will of the deceased person or arising on an intestacy; or (ii) a transfer of property the subject of a trust for sale contained in the will of the deceased person; (b) a consent by a legal representative of a deceased person if the commissioner is satisfied that the consent is to a transmission application by a beneficiary; (c) a transmission application to a devisee if the commissioner is satisfied the devisee is also the sole legal representative;

(d) a chapter 3 transaction made consequent on the death of a person if the transferor is the executor of the will of the deceased person, the administrator of the estate of the deceased person or a beneficiary of the will or estate of the deceased person; (e) an application to register a motor vehicle made by— (i) a person in whom an interest in the vehicle has vested as a personal representative of a deceased person in whose name the vehicle was registered in the ACT; or (ii) a person who has become beneficially entitled to the vehicle following the death of a person in whose name the vehicle was registered in the ACT; or (iii) a person who has become beneficially entitled to the vehicle by a right of survivorship following the death of a former joint owner if, at the time of the death of the former joint owner, the vehicle was registered in the ACT. (2) Subsection (3) applies to a transfer of dutiable property in relation to which duty is payable under chapter 2 (Transactions concerning dutiable property) if the commissioner is satisfied that the transfer is made under, but only partly in conformity with, a trust contained in the will of a deceased person or arising on an intestacy (the trust).

(3) The dutiable value of the property is worked out as follows: X − Y X means, if all the dutiable property were transferred in conformity with the trust, the unencumbered value of the property. Y means the unencumbered value of the express beneficial interest in the property transferred in conformity with the trust. Example—dutiable value Under a will, Brad is entitled to a 2/3 share in a house and Josh is entitled to a 1/3 share. The unencumbered value of the house is $480 000. Josh and Brad agree that Brad will buy Josh’s share in the house. With the consent of Josh and Brad, the legal personal representative of the deceased person under the will transfers the whole of the interest in the house to Brad. The commissioner determines that the unencumbered value of the express beneficial interest in the property transferred to Brad in conformity with the trust under the will is $320 000. The dutiable value of the transfer is $160 000. (4) For subsection (3), a person does not have an express beneficial interest in property the subject of a discretionary trust. interest— (a) means a proprietary interest; and (b) includes an entitlement to a proprietary interest under the will, or on the intestacy, of a deceased person.

Part 11.2 Exemptions from duty—certain personal relationships

232E Definitions—pt 11.2 de facto relationship—see the Family Law Act 1975 (Cwlth), section 4AA. motor vehicle transfer application means an application to transfer the registration of a motor vehicle. spouse party—see the Family Law Act 1975 (Cwlth), section 4. transaction means any of the following: (a) a transfer of dutiable property; (b) a motor vehicle transfer application following a transfer of property in the vehicle to the applicant; (c) a chapter 3 transaction.

232F Transactions under certain court orders Duty under this Act is not payable in relation to a transaction made (a) an order of a court under the Family Law Act 1975 (Cwlth) or the Married Persons Property Act 1986; or (b) any other order of a court for the distribution of property consequent on the end of the relationship between partners. Note The dictionary defines partner as a person’s spouse or someone with whom the person has a domestic relationship. Domestic relationship is defined in the dictionary to have the same meaning as in the Domestic Relationships Act 1994, s 3.

Exemptions from duty—certain personal relationships Part 11.2

232G Transactions under Family Law Act 1975 (Cwlth), s 90B, s 90C or s 90D financial agreements under a financial agreement made under the Family Law Act 1975 (Cwlth), section 90B, section 90C or section 90D that is binding on the parties under that Act, if— (a) the commissioner is satisfied that the transaction is consequent on the dissolution, annulment or irretrievable breakdown of a marriage; and (b) the property that is the subject of the transaction is matrimonial (c) for a transfer of dutiable property or property in a motor vehicle, (i) to the parties to the marriage, or to either of them; or (d) for a chapter 3 transaction, the parties to the transaction are— (i) the parties to the marriage, or either of them; or (2) For subsection (1) (a), in deciding whether a transaction is consequent on the irretrievable breakdown of a marriage, the commissioner must have regard to any statement made by a party to the marriage to the effect that— (a) the party intends to apply for dissolution or annulment of the marriage; or

(b) the parties to the marriage have separated, and there is no reasonable likelihood of cohabitation being resumed. Note 1 The commissioner may require a person to provide information, attend Note 2 It is an offence to make a false or misleading statement, give false or misleading information or produce a false or misleading document (see Criminal Code, pt 3.4).

232H Transactions under Family Law Act 1975 (Cwlth), pt 8AB financial agreements under, a part 8AB financial agreement made under the Family Law Act 1975 (Cwlth), section 90UB, section 90UC or section 90UD that is binding on the parties under that Act, if— (a) the commissioner is satisfied that the transaction is consequent on the end of the de facto relationship between the parties; and (b) the property that is the subject of the transaction is relationship (c) for a transfer of dutiable property or property in a motor vehicle, (i) to the parties to the relationship, or to either of them; or (d) for a chapter 3 transaction, the parties to the transaction are— (i) the parties to the relationship, or either of them; or

Exemptions from duty—certain personal relationships Part 11.2 (2) For subsection (1) (a), in deciding whether a transaction under a part 8AB financial agreement is consequent on the end of a de facto relationship, the commissioner must have regard to any separation declaration made by a spouse party to the agreement under the Family Law Act 1975 (Cwlth), section 90UF. Note The commissioner may require a person to provide information, attend

232I Transactions under Domestic Relationships Act 1994, s 33 (1) (d) under a domestic relationship agreement or termination agreement under the Domestic Relationships Act 1994, if— (a) the agreement is in writing and signed by each party; and (b) the agreement is endorsed with, or accompanied by, the certificates mentioned in that Act, section 33 (1) (d) for each party; and Note The certificates relate to independent legal advice about the agreement. (c) the commissioner is satisfied that the transaction is consequent on the end of the domestic relationship between the parties; and (d) the property that is the subject of the transaction is relationship (e) for a transfer of dutiable property or property in a motor vehicle, (i) to the parties to the relationship, or to either of them; or

(f) for a chapter 3 transaction, the parties to the transaction are— (i) the parties to the relationship, or either of them; or (2) For subsection (1) (c), in deciding whether a transaction under a domestic relationship agreement is consequent on the end of a relationship, the commissioner must have regard to any statement made by a party to the relationship to the effect that— (a) the relationship has ended; or (b) if the relationship is a civil union—the party has given, or intends to give, a termination notice to the registrar-general under the Civil Unions Act 2012; or (c) if the relationship is a civil partnership—the party has given, or intends to give, a termination notice to the registrar-general Note The commissioner may require a person to provide information, attend