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Exemptions from landholder duty

If certain requirements are met, your relevant acquisition in a landholder may be exempt from landholder duty:

  • when certain transfer duty exemptions would apply (such as a distribution in the estate of a deceased person) if marketable securities were subject to transfer duty
  • on the initial allotment of
    • shares on the registration of a corporation, if the corporation already owns the land
    • units on the establishment of a listed unit trust, if the trust already owns the land
  • when it is for the sole purpose of changing a trustee
  • when it is made solely in your capacity as liquidator
  • when it is made solely because of an arrangement with creditors approved under Part 5.1 of the Corporations Act 2001 (Cwlth), where the Commissioner of State Revenue is satisfied that there is no intention to avoid duty
  • if it is an acquisition of a security interest
  • when it is a restructure of stapled securities
  • on certain transfers of marketable securities
  • if the land-holdings could have been acquired without incurring a transfer duty liability, other than as a corporate reconstruction or an arrangement to avoid landholder duty.

See sections 189 to 196 of the Duties Act 2001 for more information on exemptions from landholder duty.

Example - deceased estate

Beryl acquires a 30% interest in a private landholder under the will of a deceased person. One year later, Beryl increases her interest in the private landholder by a further 50%.

The 30% interest is an exempt acquisition because Beryl acquired this under a will. Landholder duty is then only payable on the acquisition of the 50% interest in the private landholder.

Deductions

If certain requirements are met, the landholder duty payable may be reduced for transactions where duty is paid or payable in relation to:

  • corporate trustee duty
  • a trust acquisition
  • a dutiable transaction involving marketable securities
  • mortgage duty.

See sections 185 to 188 of the Duties Act for more information on deductions from landholder duty.

Also consider...

Contact

Office of State Revenue

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