How to apply for farm-in agreement concessions

You will need to lodge the signed farm-in agreement with a dutiable transaction statement (Form D2.2) for assessment to claim the concessions. You may also need to submit other documents for assessment at a later time if further interests are transferred or when exploration amounts are spent.

Instructions

The following instructions explain how to apply for farm-in agreement concessions for particular transactions:

  • entering into a farm-in agreement
  • initial transfer of an interest in an exploration authority under an upfront farm-in agreement.

Who needs to notify OSR

The farmor or farmee

Notification or lodgement due

30 days after farm-in agreement is entered into

What to lodge

How duty will be assessed

Where the concessions apply, transfer duty will be assessed on any consideration for entering into the agreement.

Where the concessions do not apply, transfer duty will be assessed on the greater of the consideration for the agreement or the unencumbered value of the dutiable property.

Who needs to notify OSR

The farmor or farmee

Notification or lodgement due

30 days after the transfer is signed by the farmor

What to lodge

How duty will be assessed

No duty will apply to the transfer. The transfer will be stamped with 'nil duty' so that it can be lodged for registration.

The following requirements apply to each interest under the agreement.

Who needs to notify OSR

The farmee

Notification or lodgement due

14 days after spending the exploration amount for the interest

What to lodge

  • Written notice
  • Original stamped upfront farm-in agreement

How duty will be assessed

The farm-in agreement will be reassessed for transfer duty.

Where a farm-in agreement involves transfers of interests across multiple stages, duty will be reassessed on all of the consideration paid or payable up to the lodgement date for the relevant stage.

Exploration amounts will be excluded from the reassessment of duty. A credit will apply to transfer duty previously paid for the agreement.

Who needs to notify OSR

The farmee

Notification or lodgement due

30 days after the expenditure completion date

The farmor and farmee may agree to change the expenditure completion date. If this occurs, the farmee must notify the Commissioner of State Revenue by lodging the required documents. Notification is required within 30 days of the expenditure completion date last given to the Commissioner.

What to lodge

  • Written notice
  • Original stamped upfront farm-in agreement

How duty will be assessed

If the farmee transfers the interest in the exploration authority back to the farmor within 30 days of the expenditure completion date (or date as varied and notified to the Commissioner), the re-transfer of the interest from the farmee to the farmor will be exempt from transfer duty.

If the farmee does not retransfer the interest in the exploration authority back to the farmor within 30 days of the expenditure completion date (or date as varied and notified to the Commissioner):

  • the agreement will be reassessed as if it were not a farm-in agreement.
  • transfer duty will apply to the greater of the consideration for the agreement (including exploration amounts) or the unencumbered value of the dutiable property agreed to be transferred.

Who needs to notify OSR

The farmor or farmee

Notification or lodgement due

30 days after the transfer is signed by the farmor

What to lodge

How duty will be assessed

The farm-in agreement will be reassessed for transfer duty.

Where a farm-in agreement involves transfers of interests across multiple stages, duty will be reassessed on all of the consideration paid or payable up to the lodgement date of the relevant stage.

Exploration amounts will be excluded from the reassessment of duty. A credit will apply to transfer duty previously paid for the agreement.

Use our online enquiry form or call 1300 300 734 (select option 2) if you have any questions.

Contact

Office of State Revenue

  • Call 1300 300 734 (Australia) or
    +61 7 3179 2500 (overseas)
  • Send an email using our online enquiry form.