55Equity release programs

55 Equity release programs

(1) No duty is chargeable under this Chapter in respect of a transaction if, on application, the Commissioner is satisfied that it is a transaction taking place on or after 15 June 2005 under an equity release program that results in a change in beneficial ownership of dutiable property, being—

S. 55(1)(a) amended by No. 22/2018 s. 12(1).

(a) the acquisition of a beneficial interest in the property by the permitted provider as a result of the execution of the sale contract and payment of the amount payable by the permitted provider to the homeowner on the day the sale contract is executed or within 5 business days afterwards; or

(b) the extinction of the beneficial interest, or part of the beneficial interest, in the property referred to in paragraph (a).

(2) An application for an exemption under this section—

(a) must be in the approved form; and

(b) must be accompanied by a copy of the sale contract.

(3) The Commissioner may require further information for the purposes of this section.

S. 55(3A) inserted by No. 47/2020 s. 6(1).

(3A) The Commissioner, in accordance with guidelines issued under subsection (3B), may by instrument approve a person to be a permitted provider for the purposes of this section.

S. 55(3B) inserted by No. 47/2020 s. 6(1).

(3B) The Treasurer must issue guidelines for the exercise of the Commissioner's power of approval under subsection (3A).

S. 55(3C) inserted by No. 47/2020 s. 6(1).

(3C) The Treasurer must cause guidelines issued under subsection (3B) to be published in the Government Gazette.

S. 55(4) def. of equity release program amended by No. 22/2018 s. 12(2)(b).

equity release program means an arrangement between a permitted provider and a homeowner in accordance with which the permitted provider and the homeowner enter into a contract of sale of land occupied as the homeowner's principal place of residence (the sale contract), under which—

(a) the permitted provider purchases a part interest in the land; and

(b) the permitted provider pays the homeowner an amount for that interest on the day that the sale contract is executed or within 5 business days afterwards; and

(c) subject to paragraph (d), the homeowner retains legal title to the whole of the land and the land is not mortgaged after the sale contract has come into existence; and

(d) the sale contract may be terminated only in one of the following ways—