Section 147 exemption - surrender of lease procedure

Follow this procedure to help you lodge a surrender of a lease where a lessee does not pay a premium, fine or other consideration for the surrender, using OSRconnect.

If a lessee is paying for the surrender, see the procedure for land interest surrender of lease.

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 Transfer of non-residential land as the Transaction class.
  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?
    If Yes, more questions will appear.
  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 Transferors from 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 15 to 18.

  1. Click Transferees from the Document details list.
  2. Answer the question: Are any of the transferor/s and transferee/s related?
  3. Select the Transferee type from the drop-down list.

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

  1. 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 / Unencumbered value of ENTIRE property.
    This is $0.00 for an exemption claim.

Evidence of value is generally not required for an exemption claim under section 147.

  1. Select Yes to the question: Is an exemption being claimed?
  2. Select s. 147 Exemption surrender of lease from the Exemption type drop-down list.

This exemption only applies to transactions where the lessee or tenant is not liable to pay any premium, fine or other consideration for the surrender.

  1. Answer No to the question: Does this transaction form part of an arrangement that includes other dutiable transactions (Section 30)?
  2. Click Next.

The duty is calculated as $0.00 for an exemption claim.

  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 by using the Filter & Searchfunction in the Lodgement Obligations tab.
    • Save to save this transaction as a draft (click the X to close) - you can then view this in Lodgement Obligations.