How transfer duty applies to farm-in agreements

A farm-in agreement is a dutiable transaction under the Duties Act 2001 that provides concessions for certain types of eligible farm-in agreements, subject to certain conditions.

The following table explains how transfer duty normally applies and the different rules for farm-in agreement concessions.

General transfer duty rules Transfer duty farm-in concession rules

Dutiable value of a transaction is the greater of the consideration for the transaction or the unencumbered value of the dutiable property

Parties to the transaction may need to provide evidence of value to confirm the unencumbered value

The dutiable value for a farm-in agreement is limited to the consideration for the agreement
‘Consideration’ generally refers to what is received to transfer the property (usually a monetary amount) Exploration amounts are excluded. Transfer duty applies to any other consideration for the farm-in agreement, regardless of what it is for
Transfer duty is assessed on the dutiable value when the agreement is entered into Some parts of the consideration are not assessed with duty until interests in the exploration authority are transferred or retained under deferred or upfront farm-in agreements

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