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Land interest - surrender of lease procedure

Follow this procedure to help you lodge a surrender of a lease where a lessee pays a premium, fine or other consideration for the surrender, using OSRconnect

If a lessee is not paying for the surrender, see the procedure for a section 147 exemption surrender of lease for instructions.

Use the surrender of leases toolkit for more information.

Note: The fields marked with an asterisk (*) are mandatory.

On the Lodgement Obligations tab:

  1. Select Transfer Duty from the Create return/transaction drop-down list.
  2. Select Create to start the transaction.
  1. You can enter your own reference (optional).
  2. Select the applicable Transaction class from the drop-down list (e.g. Transfer of non-residential land).
  3. Select Surrender of land in Qld / Site area as the Type of dutiable transaction.
  4. Select Land in Queensland as the Type of dutiable property.
  5. Enter the Transaction/Document date using the calendar or text field (dd/mm/yyyy).
  6. Answer the question: Is there an agreement in writing?
    Select No if the Form 8 surrender of lease is not accompanied by an agreement.
  7. Click Next.

The Property section will display first. Make sure you complete this stage following our data entry standards.

  1. Enter the lot number in the Lot from field.
  2. Select the Plan type from the drop-down list.
  3. Enter the Plan number.
  4. Enter the Title reference (if applicable).
  5. Click Add to register these details.

To add more properties, repeat steps 10 to 14.

  1. Select Transferor from the Document details list.

For lease surrenders, the transferor is the lessee or tenant.

  1. Select the Transferor type from the drop-down list.
  2. Enter the transferor details.
  3. Click Add to register these details.

To add more transferors, repeat steps 16 to 18.

  1. Select Transferee from the Document details list.
  2. Answer the question: Are any of the transferor/s and transferee/s related?
    If Yes, you must hold evidence of value on file.

For lease surrenders, the transferee is the lessor or landlord.

  1. Select the Transferee type from the drop-down list.
  2. Enter the transferee details.

You need to enter an ABN or ACN for a company, and a date of birth for an individual.

  1. Enter the Interest acquired by the transferee as a fraction.
    For a surrender of lease, this will generally be 11.
  2. Complete the transferee contact details.
  3. Click Add to register these details.

To add more transferees, repeat steps 21 to 25.

  1. Click Next.
  1. Answer the question: Is the consideration less than the unencumbered value of the property included in this transaction?
  2. Enter the consideration paid for the surrender in Consideration / Unencumbered value of ENTIRE property.
  3. Select No to the question: Is an exemption being claimed?
  4. Select No to the question: Does this transaction form part of an arrangement that includes other dutiable transactions (Section 30)?
  5. Click Next.

The amount of duty payable is displayed, with interest (if applicable).

  1. Click Save to validate your data.
    The status message advises of any errors in the form.

A transaction number is created, and the transaction is saved in draft. (The transaction number will be displayed in a pop-up box that you can then close by clicking the X button.)

  1. Click Summary.
  2. Click Print for a hard copy.
  3. Click the X to close the summary.
  4. Click Next.
  1. Enter your full Name and contact details.
  2. Check the box to complete your acknowledgement.
  3. Click either:
    • Submit to lodge this transaction - you can then view this in Payment Obligations.
    • Save to save this transaction as a draft (click the X to close) - you can then view this in Lodgement Obligations.

You must lodge (submit) the transaction within 30 days of the liability date to avoid unpaid tax interest (UTI). Transactions with a liability amount owing must be paid within 14 days of being lodged.

If UTI was owed at the time of lodgement, it will continue to accrue until the outstanding amount is paid.