13BCalculation of total value of transaction for purposes of eligibility cap

#### 13B Calculation of total value of transaction for purposes of eligibility cap 13B Calculation of total value of transaction for purposes of eligibility cap > > (1) For the purposes of this Act, the total value of a transaction is— > > > > > (a) in the case of a contract for the purchase of a home—the greater of the following— > > > > > > > (i) the consideration for the eligible transaction, > > > > > > > (ii) the unencumbered value, at the commencement date, of the property the subject of the transaction, or > > > > > (b) in the case of a comprehensive home building contract—the amount calculated by adding together— > > > > > > > (i) the consideration for the eligible transaction, and > > > > > > > (ii) the value, at the commencement date, of the relevant interest in the land on which the home is to be built, or > > > > > (c) in the case of the building of a home by an owner builder—the amount calculated by adding together— > > > > > > > (i) the unencumbered value, at the date the transaction is completed, of the home, and > > > > > > > (ii) the value, at the date the transaction is completed, of the relevant interest in the land on which the home is built. > > > (2) The value of the relevant interest in land on which a home is to be built is the greater of the following— > > > > > (a) the consideration paid or payable for the interest, > > > > > (b) the unencumbered value of the interest. > > > (3) The unencumbered value of the property is the value of the property determined without regard to— > > > > > (a) any encumbrance to which the property is subject, whether contingently or otherwise, or > > > > > (b) any arrangement that results in the reduction of the value of the property, if the parties to the arrangement are not dealing with each other at arm’s length, or > > > > > (c) any scheme or arrangement that, in the opinion of the Chief Commissioner, was entered into, made or carried out by a party to the scheme or arrangement for the sole or dominant purpose of reducing the value of the property, or > > > > > (d) if the property is held by a person on trust as guardian for another person who is under a legal disability—any liabilities of the trust, including the liability to indemnify the trustee. > > > (4) For the purposes of subsection (3) (c), the Chief Commissioner may have regard to— > > > > > (a) the duration of the scheme or arrangement before the commencement date of the transaction to which the property relates, and > > > > > (b) whether there is any commercial efficacy to the making of the scheme or arrangement other than to reduce the value of the property, and > > > > > (c) any other matters the Chief Commissioner considers relevant. > > **s 13B:** Ins 2009 No 51, Sch 3 \[7\]. Am 2017 No 33, Sch 1.2 \[6\].