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S. 32V(2B) inserted by No. 28/2017 s. 6(1), repealed by No. 22/2018 s. 18(2), new s. 32V(2B) inserted by No. 22/2021 s. 7.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.