115HExemptions—ch 3 transactions

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