32VProvisions for determining consideration

32V Provisions for determining consideration (1) This section applies for the purpose of determining— (a) in Division 2 or 3— (i) the consideration given or agreed to be given under a sale contract; (ii) the consideration given or agreed to be given to obtain a transfer right under a subsequent transaction; S. 32V(1)(b) amended by No. 28/2017 s. 37(a). (b) in Division 3A or 4— (i) the consideration that would need to be given to complete the sale or transfer contemplated by an option; S. 32V(1)(b)(ii) amended by No. 28/2017 s. 37(b). (ii) the consideration given or agreed to be given to obtain or assume a transfer right under a subsequent transaction. (2) The consideration is taken to include the amount or value of all encumbrances, whether certain or contingent, subject to which the property would be transferred in accordance with, or as contemplated by, the relevant transaction. S. 32V(2A) inserted by No. 28/2017 s. 6(1), amended by No. 22/2018 s. 18(1). (2A) The consideration for a transaction under this Part is to be adjusted under subsection (3) or (4) only for the following purposes— (a) calculating duty under section 57J, if that section applies by operation of section 32G, 32N, 32OE or 32U; (b) applying an exemption or a concession under section 57JA that applies by operation of section 32G, 32N, 32OE or 32U. S. 32V(2B) inserted by No. 28/2017 s. 6(1), repealed by No. 22/2018 s. 18(2), new s. 32V(2B) inserted by No. 22/2021 s. 7. (2B) Despite subsection (2A) but subject to subsection (2C), the consideration for a transaction under this Part is also to be adjusted under subsection (3) or (4) if— (a) the adjustment would result in the consideration being not more than $1 000 000; and (b) the transfer meets all the requirements to receive a concessional rate of duty under section 57J other than the requirement that the dutiable value of the dutiable property is not more than $550 000; and (c) the contract for purchase of the dutiable property is entered into on or after 1 July 2021 but before 1 July 2023. S. 32V(2C) inserted by No. 22/2021 s. 7. (2C) Subsection (2B) does not apply if the Commissioner determines that the contract for purchase of the dutiable property replaces a previous contract for the purchase of the same property entered into before 1 July 2021. S. 32V(3) amended by No. 28/2017 s. 6(2). (3) The consideration is to be adjusted to exclude any amount paid or payable in respect of the construction of a building to be constructed on land on or after the date of the relevant transaction. S. 32V(4) amended by Nos 31/2008 s. 6(1)(a), 28/2017 s. 6(3). (4) The consideration in relation to land that is a lot on a plan of subdivision within the meaning of the **Subdivision Act 1988** is to be adjusted to exclude an amount, attributable to that lot, in respect of refurbishment of that lot carried out on or after the date of the relevant transaction and before the date of the transfer of the land if— (a) the transferor was a first registered proprietor within the meaning of the **Transfer of Land Act 1958** of that lot; and (b) the sale of that lot to the transferee is the first sale of the lot after registration of the plan of subdivision; and S. 32V(4)(c) amended by No. 31/2008 s. 6(1)(b). (c) the transferee has not entered into a contract for refurbishment of the lot, other than in respect of the refurbishment referred to above. S. 32V(4)(d) repealed by No. 31/2008 s. 6(1)(c). S. 32V(4A) inserted by No. 31/2008 s. 6(2). (4A) Subsection (3) or (4) does not apply unless the transfer, when presented to or lodged with the Commissioner, is accompanied by— (a) a copy of the building permit, or building approval or permit; and (b) a copy of the contract with the transferee for the construction or refurbishment; and S. 32V(4A)(c) amended by Nos 37/2009 s. 4, 28/2017 s. 21(1). (c) information in the approved form given by the transferor as to (but not limited to) whether or not the transferor has entered into any agreement with the transferee in respect of works (other than construction or refurbishment) to be undertaken in relation to the land or the lot before the transfer; and S. 32V(4A)(d) amended by No. 28/2017 s. 21(1). (d) if the Commissioner requires, information in the approved form given by the transferee declaring that the transferee has not entered any contract, other than the contract referred to in paragraph (b), for the construction of the building or refurbishment of the lot; and S. 32V(4A)(e) amended by No. 28/2017 s. 21(1). (e) if the Commissioner requires, information in the approved form given by the person that issued the building permit or building approval or permit. Note to s. 32V(4A) inserted by No. 28/2017 s. 21(2). S. 32V(4B) inserted by No. 31/2008 s. 6(2), amended by No. 28/2017 s. 21(3). (4B) Sections 21A to 21E apply to information given under subsection (4A) as if a reference in those sections to subsections (3), (4) and (4A) of section 21 were a reference to subsections (3), (4) and (4A) of this section. S. 32V(4C) inserted by No. 26/2015 s. 21. (4C) Subsection (3) or (4) does not apply when determining the duty chargeable at the rate set out in section 18A or 28A. (5) For the purposes of this section, the date of a relevant transaction is— (a) for an option—the date on which the option was granted; (b) for a sale contract or subsequent transaction—the date on which the contract or transaction was entered into. ***refurbishment*** means building work for which a building permit has been issued under the **Building Act 1993**, being work for the conversion of an existing building for which such a permit or approval is required; ***relevant transaction*** means— (a) an option; (b) a sale contract; (c) a subsequent transaction. S. 32W inserted by No. 36/2005 s. 10, substituted by No. 84/2008 s. 7.