7Imposition of duty on certain transactions concerning dutiable property

7 Imposition of duty on certain transactions concerning dutiable property (1) This Chapter charges duty on— (a) a transfer of dutiable property; and (b) the following transactions— (i) a declaration of trust relating to dutiable property the specification of which forms part of the declaration of trust or part of the transaction constituted by the declaration of trust; S. 7(1)(b)(ii) substituted by No. 39/2009 s. 4(1). (ii) a surrender of dutiable property; S. 7(1)(b)(iia) inserted by No. 71/2004 s. 5. (iia) a disclaimer of an interest or a right in respect of dutiable property (other than dutiable property referred to in section 10(1)(b) or section 10(1)(c)) under the will or codicil of a deceased person or in or under the estate of a deceased person, irrespective of whether the will, codicil or estate has been fully administered; S. 7(1)(b)(iib) inserted by No. 71/2004 s. 5. (iib) a vesting of land in Victoria by, or expressly authorised by, statute law of this or another jurisdiction, whether in or outside Australia; (iii) a vesting of dutiable property by a court order or an order of the Registrar of Titles; (iv) the enlargement of a term into a fee‑simple under section 153 of the **Property Law Act 1958**; or S. 7(1)(b)(v) substituted by No. 39/2009 s. 4(2). (v) the granting of a lease for which any consideration other than rent reserved is paid or agreed to be paid, either in respect of the lease or in respect of— (A) a right to purchase the land or a right to a transfer of the land; (B) an option to purchase the land or an option for the transfer of the land; (C) a right of first refusal in respect of the sale or transfer of the land; (D) any other lease, licence, contract, scheme or arrangement by which the lessee, or an associated person of the lessee, obtains any right or interest in the land that is the subject of the lease other than the leasehold estate; S. 7(1)(b)(va) inserted by No. 39/2009 s. 4(2). (va) the transfer or assignment of a lease for which any consideration is paid or agreed to be paid, either in respect of the transfer or assignment or in respect of— (A) a right to purchase the land or a right to a transfer of the land; (B) an option to purchase the land or an option for the transfer of the land; (C) a right of first refusal in respect of the sale or transfer of the land; (D) any other lease, licence, contract, scheme or arrangement by which the transferee or assignee, or an associated person of the transferee or assignee, obtains any right or interest in the land that is the subject of the lease other than the leasehold estate; S. 7(1)(b)(vi) amended by No. 30/2002 s. 4(a), substituted by No. 58/2003 s. 4(1). (vi) any other transaction that results in a change in beneficial ownership of dutiable property (other than an excluded transaction). (2) Such a transfer or transaction is a ***dutiable transaction*** for the purposes of this Act. S. 7(2A) inserted by No. 58/2003 s. 4(2). (2A) Despite subsection (1)(b)(vi), an excluded transaction that results in a change in beneficial ownership of dutiable property is a dutiable transaction if it is part of a scheme or arrangement that, in the Commissioner's opinion, was made with a collateral purpose of reducing the duty otherwise chargeable under this Chapter. S. 7(3) amended by No. 39/2009 s. 4(3). (3) Despite subsection (1), the assignment of a term referred to in section 153 of the **Property Law Act 1958** is not a dutiable transaction unless it is a transaction referred to in subsection (1)(b)(va). S. 7(3AA) inserted by No. 39/2009 s. 4(4). (3AA) Despite subsection (1), the granting, transfer, assignment or surrender of a lease creating or giving rise to a residency right in a retirement village within the meaning of the **Retirement Villages Act 1986** is not a dutiable transaction. S. 7(3AAB) inserted by No. 39/2009 s. 4(4). (3AAB) Despite subsection (1), the granting of a lease is not a dutiable transaction if the lease was granted as a result of the exercise of an option for a further term where— (a) the option was provided for by a lease which was granted before 21 November 2008; and (b) the lease referred to in paragraph (a) required the payment of consideration for the exercise of the option. S. 7(3A) inserted by No. 48/2001 s. 6(1), amended by No. 29/2002 s. 3. (3A) Despite subsection (1), a transfer of marketable securities, or a transaction referred to in subsection (1)(b) in respect of marketable securities, that takes place or occurs on or after 1 July 2002 is not a dutiable transaction. (4) In this Chapter— S. 7(4) def. of *beneficial ownership* inserted by No. 39/2009 s. 4(5). ***beneficial ownership*** includes, but is not limited to, ownership of dutiable property by a person as trustee of a trust; S. 7(4) def. of *change in beneficial ownership* inserted by No. 39/2009 s. 4(5). ***change in beneficial ownership*** includes, but is not limited to— (a) the creation of dutiable property; (b) the extinguishment of dutiable property; (c) a change in equitable interests in dutiable property; (d) dutiable property becoming the subject of a trust; (e) dutiable property ceasing to be the subject of a trust; ***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 persons, 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; S. 7(4) def. of *excluded transaction* inserted by No. 58/2003 s. 4(3), substituted by No. 39/2009 s. 4(6). ***excluded transaction*** means— (a) the purchase, gift, allotment or issue of a unit in a unit trust scheme; (b) the cancellation, redemption or surrender of a unit in a unit trust scheme; (c) the abrogation or alteration of a right pertaining to a unit in a unit trust scheme; (d) the payment of an amount owing for a unit in a unit trust scheme; (e) any combination of the transactions referred to in paragraphs (a), (b), (c) and (d). S. 7A inserted by No. 71/2004 s. 6.