89FDuty concession—acquisitions securing the provision of finance

89F Duty concession—acquisitions securing the provision of finance (1) Except as provided by subsection (3), a relevant acquisition is not chargeable with duty if the relevant acquisition is effected solely for the purpose of securing the provision of finance and— (a) the person acquiring the interest or economic entitlement is providing finance to the person from whom the interest or economic entitlement is acquired; and (b) the Commissioner is satisfied that the relevant acquisition is effected solely for that purpose. (2) The person lodging the acquisition statement must inform the Commissioner at the time of lodgement that the acquisition is effected solely for the purpose of the provision of finance by the person acquiring the interest to the person from whom the interest or economic entitlement is acquired. (3) The acquisition is chargeable with duty at the expiration of the period of 5 years after the date of the acquisition (or such longer period as may be determined by the Commissioner in the particular case) if the interest or economic entitlement concerned is not— (a) re-acquired by the person from whom it was acquired; or (b) in the case of an acquisition by way of mortgage, conveyed by the mortgagee to a third person in exercise of the mortgagee's power of sale, within that period (or that longer period). (4) The re-acquisition by a person of the interest or economic entitlement concerned is not a relevant acquisition for the purposes of this Part. Ch. 3 Pt 2 Div. 3A (Heading and ss 89FA–89FD) inserted by No. 16/2024 s. 41. Division 3A—Tax reform scheme land S. 89FA (Heading) amended by No. 50/2024 s. 10(1). S. 89FA inserted by No. 16/2024 s. 41. 89FA Value of certain tax reform scheme land holdings to be excluded from duty assessment S. 89FA(1) substituted by No. 50/2024 s. 10(2). (a) a relevant acquisition is made in a landholder; and (b) the land holdings of the landholder are comprised wholly or partly of an interest or estate in tax reform scheme land, other than a lease of a kind referred to in section 7(1)(b)(v) or (va); and (c) on the date of the relevant acquisition, the tax reform scheme land has a qualifying use. (2) The unencumbered value of land referred to in subsection (1) is to be excluded from any calculation under section 86 or 87 of the duty chargeable on the relevant acquisition if— S. 89FA(2)(a) substituted by No. 50/2024 s. 10(3). (a) a period of at least 3 years has elapsed between the entry date for the tax reform scheme land and the date on which a contract or other agreement or arrangement for the relevant acquisition is entered into; or (b) the entry interest for the land was a 100% interest; or (c) the entry interest and any further interest acquired before the relevant acquisition amounts to a 100% interest. (3) The unencumbered value of land referred to in subsection (1) is to be excluded from any calculation under section 86 or 87 of the duty chargeable on the relevant acquisition to the extent that the interest a person is taken to have obtained in the land under the relevant acquisition is the same or substantially the same as either or both of the following— (a) the entry interest for the land; S. 89FA(3)(b) amended by No. 24/2025 s. 12. (b) any further interest a person is taken to have obtained in the land before the relevant acquisition. (4) The Commissioner may treat the interest a person is taken to have obtained in land under a relevant acquisition as the same or substantially the same as an interest described in subsection (3) if the Commissioner is satisfied that it is appropriate to do so in the circumstances. Person A acquires a 50% interest in a landholder under a relevant acquisition which occurs on 1 September 2025. The landholder holds a 100% interest in land. This relevant acquisition amounts to an interest of 50% in the land which is a qualifying interest and the qualifying landholder transaction is an entry transaction. Person B holds the remaining 50% interest in the landholder. On 1 January 2026, Person C acquires a 100% interest in the landholder from Person A and Person B. The value of the land holding of the landholder is to be excluded from the calculation of duty to the extent that the interest acquired by Person C is the same, or substantially the same, as the entry interest for the land (50%). The value of 50% of the land is included for the purposes of assessing duty on the relevant acquisition made by Person C. (5) In this section, the interest a person is taken to have obtained in land under a relevant acquisition is the interest the person acquires in the landholder under the relevant acquisition, and on which duty would otherwise be chargeable, multiplied by the interest the landholder holds in the land at the time the relevant acquisition is made. (6) In this section, a ***further interest*** in land means an interest that is— (a) obtained under a qualifying dutiable transaction or a qualifying landholder transaction, other than the relevant entry transaction for the land; and (b) a different interest to the entry interest for the land and any other further interest obtained in the land. S. 89FAB inserted by No. 50/2024 s. 11. 89FAB Exclusion or partial exclusion of value of certain land holdings (a) a relevant acquisition is made in a landholder; and (b) the land holdings of the landholder are comprised wholly or partly of— (i) a lease of a kind referred to in section 7(1)(b)(v) or (va) over tax reform scheme land; or (ii) an interest in dutiable property referred to in section 10(1)(ad) located on tax reform scheme land; or (iii) an interest in tax reform scheme land that is taken to be beneficially owned under section 32XD; and (c) on the date of the relevant acquisition, the tax reform scheme land has a qualifying use. (2) The unencumbered value of a land holding referred to in subsection (1)(b) is to be excluded from the calculation under section 86 or 87 of the duty chargeable on the relevant acquisition if— (a) any of the following applies— (i) a period of at least 3 years has elapsed between the entry date for the tax reform scheme land and the date on which a contract or other agreement or arrangement for the relevant acquisition is entered into; or (ii) the entry interest for the tax reform scheme land was a 100% interest; or (iii) the entry interest and any further interest acquired in the tax reform scheme land before the relevant acquisition amounts to a 100% interest; and (b) the value of the tax reform scheme land, for the purposes of calculating the duty payable on the entry transaction and on the acquisition of any further interest referred to in paragraph (a)(iii)— (ii) did not exclude the value of an interest in dutiable property referred to in section 10(1)(ad) located on the land; and (3) The Commissioner may exclude or partially exclude the unencumbered value of a land holding referred to in subsection (1)(b) that is not excluded under subsection (2) from the calculation under section 86 or 87 of the duty chargeable on the relevant acquisition if the Commissioner, having regard to the matters in subsection (4), is satisfied that it is appropriate to do so. (4) For the purposes of subsection (3), the Commissioner must have regard to— (a) the quantum of the entry interest and any further interests acquired in the tax reform scheme land; and (b) the extent to which the value of the tax reform scheme land, for the purposes of calculating the duty payable on the entry transaction and on the acquisition of any further interests in the land— (i) was reduced by a lease over the land or part of the land; and (ii) excluded the value of an interest in fixtures referred to in section 10(1)(ad) located on the land; and (iii) was reduced by an economic entitlement in relation to the land; and (c) if a specified transaction occurred on or after 1 July 2024 but before the entry transaction for the land, the period of time that elapsed between the specified transaction and the entry transaction occurring; and (d) if a specified transaction occurred after the entry transaction for the land but before the relevant acquisition that is being assessed, the duty that was paid on the specified transaction; and (e) any other matter that the Commissioner considers relevant. (5) Subsections (4), (5) and (6) of section 89FA apply to this section with any necessary modifications. (6) In this section, ***specified transaction*** has the same meaning as it has in section 69AQA. S. 89FAC inserted by No. 24/2025 s. 11. 89FAC Application of Division to subdivided tax reform scheme land (1) For the purposes of this Division, if the land holdings of a landholder include tax reform scheme land that is a lot (a ***child lot***) in a registered plan of subdivision of tax reform scheme land (the ***parent lot***)— (a) the child lot is taken to have an entry interest of the same quantum as the entry interest for the parent lot; and (b) if a further interest was acquired in the parent lot, the child lot is taken to have been the subject of the acquisition of a further interest of the same quantum as the further interest in the parent lot; and (c) the entry interest and any further interest in the child lot is taken— (i) to have been subject to the same duty consequences as the entry interest or further interest in the parent lot; and (ii) to otherwise have the same characteristics, as far as practicable, as the entry interest or further interest in the parent lot. ***further interest*** has the same meaning as in section 89FA(6); S. 89FB inserted by No. 16/2024 s. 41. 89FB Liability for duty if change of land use after tax reform scheme land exemption (1) The Commissioner must determine if duty or additional duty is payable on a relevant acquisition, and assess an acquisition statement lodged under Division 2 in respect of the relevant acquisition, if— S. 89FB(1)(a) substituted by No. 50/2024 s. 12(a). (a) when the relevant acquisition was made, the land holdings of the landholder included— (i) an interest or estate in tax reform scheme land, including a lease of a kind referred to in section 7(1)(b)(v) or (va) over tax reform scheme land; or (ii) an interest in dutiable property referred to in section 10(1)(ad) located on tax reform scheme land; or (iii) an interest in tax reform scheme land that is taken to be beneficially owned under section 32XD; and S. 89FB(1)(b) amended by No. 50/2024 s. 12(b). (b) the value or part of the value of the land holdings referred to in paragraph (a) was excluded under section 89FA or 89FAB from the calculation of duty payable on the relevant acquisition; and S. 89FB(1)(c) amended by No. 50/2024 s. 12(c). (c) after the relevant acquisition was made, the tax reform scheme land has a change of use; and S. 89FB(1)(d) amended by No. 50/2024 s. 12(c). (d) as a result of the change of use, the tax reform scheme land no longer has a qualifying use; and S. 89FB(1)(e) amended by No. 50/2024 s. 12(d). (e) at the time of the change of use, the land holdings of the landholder include the land holding referred to in paragraph (a)(i), (ii) or (iii) (as the case requires); and (f) at the time of the change of use, the person who made the relevant acquisition continues to hold an interest in the landholder. (2) Duty is payable on the relevant acquisition to the extent that the interest that a person is taken to have obtained in land under the relevant acquisition is the same as the interest the person is taken to hold in the land at the time of the change of use. (3) For the purposes of subsection (2)— (a) the interest a person is taken to have obtained in land under a relevant acquisition is determined in accordance with section 89FA(5); and (b) the interest a person is taken to hold in land at the time of the change of use is the interest the person holds in the landholder multiplied by the interest the landholder holds in the land at that time. (4) The amount of duty calculated under subsection (1) is to be reduced by 10% for each calendar year that has elapsed since the date of the relevant acquisition that is being assessed for duty. (5) A liability for duty imposed under this section arises on the date of the change of use. Section 16 provides that a tax default does not occur if the duty is paid within 30 days after the liability for the duty arises. S. 89FC inserted by No. 16/2024 s. 41. 89FC Apportionment of duty imposed on change of land use if land has been subdivided (1) This section applies for the purposes of a calculation of duty imposed on a relevant acquisition under section 89FB if a plan of subdivision of land is registered in respect of the land referred to in that section (the ***parent lot***) before the date of the change of use of the land. (2) The duty chargeable on the relevant acquisition under section 89FB, to the extent that it relates to the subdivided land, is to be apportioned to each lot that has had a change of use by reference to the area that lot bears to the parent lot. S. 89FD inserted by No. 16/2024 s. 41. 89FD Duty imposed on change of land use if land has been consolidated For the purposes of the calculation of duty chargeable under section 89FB, it does not matter whether the land the subject of the interest acquired has been consolidated with other land in the period between the date of the relevant acquisition and the change of use. Division 4—Valuation and supplementary calculation provisions S. 89G substituted by No. 38/2012 s. 5.