Part 4BAcquisition of economic entitlements in relation to relevant land

Part 4B—Acquisition of economic entitlements in relation to relevant land

S. 32XA inserted by No. 17/2019 s. 10.

32XA Application of Part

This Part applies if a person acquires an economic entitlement in relation to relevant land other than by a transaction that is a dutiable transaction apart from this Part.

S. 32XB inserted by No. 17/2019 s. 10.

32XB Definition

In this Part—

relevant land means dutiable property referred to in section 10(1)(a), (ab), (ac) or (ad).

S. 32XC inserted by No. 17/2019 s. 10.

32XC What is an economic entitlement?

(1) For the purposes of this Part, a person acquires an economic entitlement if—

(a) an arrangement is made in relation to relevant land that has an unencumbered value that exceeds $1 000 000; and

(b) under that arrangement the person is or will be entitled, whether directly or through another person, to any one or more of the following—

(i) to participate in the income, rents or profits derived from the relevant land;

(ii) to participate in the capital growth of the relevant land;

(iii) to participate in the proceeds of sale of the relevant land;

(iv) to receive any amount determined by reference to subparagraphs (i), (ii) or (iii);

(v) to acquire any entitlement described in subparagraph (i), (ii), (iii) or (iv).

(2) It is immaterial whether or not the person who acquires the economic entitlement is a party to the arrangement by which it is acquired.

(3) For the avoidance of doubt, a person may acquire an economic entitlement by any means, including, but not limited to, the creation of the economic entitlement or the transfer of the economic entitlement to the person.

S. 32XD inserted by No. 17/2019 s. 10.

32XD Economic entitlement taken to be beneficial ownership of relevant land

(1) A person who acquires an economic entitlement in relation to relevant land is taken to have acquired beneficial ownership of the relevant land and, subject to this Part, duty is chargeable under this Chapter accordingly.

(2) For the purposes of subsection (1), the beneficial ownership of the relevant land that a person is taken to have acquired is a percentage determined under section 32XE.

S. 32XE inserted by No. 17/2019 s. 10.

32XE Calculation of percentage of beneficial ownership taken to have been acquired