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.