Minister: Treasurer and Minister for Trade and Investment
Agency: Queensland Treasury


Duties Act 2001


Queensland Crest
Duties Act 2001

An Act about creating and imposing duties

Chapter 1 Introduction

Part 1 Preliminary

1Short title

This Act may be cited as the Duties Act 2001 .

2Commencement

(1)This Act, other than sections 306 (2), 342(2) and 497 , commences on a day to be fixed by proclamation.
(2)Sections 306(2), 342(2) and 497 commence on the later of the following—
(a)a day to be fixed by proclamation;
(b)when an arrangement is made under the Commonwealth Places (Mirror Taxes) Act 1998 (Cwlth), section 9, for Queensland.

Part 2 Interpretation

3Definitions

(1)The dictionary in schedule 6 defines particular words used in this Act.
(2)The definition spouse in schedule 6 applies despite the Acts Interpretation Act 1954 , section 32DA(6).

s 3 amd 2002 No. 74s 90 sch

4[Repealed]

s 4 om 2006 No. 44s 11

5Relationship of Act with Administration Act

(1)This Act does not contain all the provisions about duties.
(2)The Administration Act contains provisions dealing with, among other things, the following—
(a)assessments of duty;
(b)collection and refunds of duty;
(c)imposition of interest and penalty tax;
(d)objections and appeals against, or reviews of, assessments of duty;
(e)record keeping obligations of taxpayers;
(f)investigative powers, offences, legal proceedings and evidentiary matters;
(g)service of documents;
(h)registration of charitable institutions.

Note—

Under the Administration Act, section 3 , that Act and this Act must be read together as if they together formed a single Act.

s 5 amd 2009 No. 24s 1846; 2010 No. 15s 98sch 3

Part 3 Application of Act

6Act binds all persons

(1)This Act binds all persons, including the State and, as far as the legislative power of the Parliament permits, the Commonwealth and the other States.

Note—

However, under section 426 , the State is exempt from duty unless this Act expressly provides otherwise.
(2)Nothing in this Act makes the State liable to be prosecuted for an offence.

7Extra-territorial application

This Act applies to impose duty on instruments and transactions regardless of whether they are entered into or made in or outside Queensland.

Note—

This is because instruments and transactions on which duty is imposed have a nexus to Queensland.

7ADeclaration of excluded matter for Corporations Act

An interest of a person in a registered managed investment scheme is declared to be an excluded matter for the Corporations Act, section 5F, in relation to section 1070A(1)(a), (3) and (4) of that Act.

s 7A ins 2002 No. 65s 4

Chapter 2 Transfer duty

Part 1 Preliminary

8Imposition of transfer duty

(1)This chapter imposes duty (transfer duty) on dutiable transactions.

Notes—

1Concessions and exemptions for transfer duty are dealt with in parts 8A to 13. Also, other exemptions are dealt with in chapter 10 .
2Additional foreign acquirer duty is imposed on particular dutiable transactions under chapter 4 .
(2)Transfer duty is imposed on the dutiable value of a dutiable transaction.

s 8 amd 2015 No. 4s 6; 2016 No. 37s 4

Part 2 Some basic concepts for transfer duty

9What is a dutiable transaction

(1)Each of the following is a dutiable transaction
(a)a transfer of dutiable property;
(b)an agreement for the transfer of dutiable property, whether conditional or not;
(c)a surrender of dutiable property that is land in Queensland or a transferable site area;
(d)a vesting of dutiable property—
(i)by, or expressly authorised by, statute law of this or another jurisdiction, whether inside or outside Australia; or
(ii)by a court order, of this or another jurisdiction, whether inside or outside Australia;
(e)a foreclosure of a mortgage over dutiable property;
(f)an acquisition of a new right on its creation, grant or issue;
(g)a partnership acquisition;

Note—

See chapter 2 , part 7 (Dutiable transactions relating to partnerships).
(h)the creation or termination of a trust of dutiable property;

Note—

See chapter 2 , part 8 (Dutiable transactions relating to trusts), division 3 (Creation and termination of trusts).
(i)a trust acquisition or trust surrender.

Note—

See chapter 2 , part 8 (Dutiable transactions relating to trusts), division 4 (Some basic concepts about trust acquisitions and trust surrenders).
(2)It does not matter whether a dutiable transaction—
(a)is effected by an instrument or another way; or
(b)involves 1 or more parties.
(3)Subsection (1) has effect subject to sections 21 , 29 and 37 .

Note—

Under section 21 , the commissioner must decide the applicable dutiable transaction for imposition of duty if a transaction constitutes more than 1 type of dutiable transaction mentioned in subsection (1).

Also, for when transactions for particular dutiable property are not dutiable transactions, see sections 29 and 37 .

(4)Without limiting subsection (1)(d), property is vested under statute law if the law vests property in an entity that the law states is the successor in law of, continuation of or same entity as, the entity in which the property was previously vested.
(5)However, property is not vested under statute law, on the registration of a company under the Corporations Act, chapter 5B, part 5B.1.

s 9 amd 2002 No. 56s 4; 2002 No. 65s 5; 2006 No. 44s 16; 2008 No. 75s 3 sch

10What is dutiable property

(1)Each of the following is dutiable property
(a)land in Queensland;
(b)a transferable site area;
(c)an existing right;
(d)a Queensland business asset;
(e)a chattel in Queensland.

Note—

Section 498 includes provision about references to dutiable property.
(2)A reference to property in subsection (1) includes a reference to an interest in the property, other than the following—
(a)a security interest;
(b)a partner’s interest in the partnership;
(c)a trust interest;
(d)the interest of a discretionary object of a trust that holds property mentioned in the subsection.

Note—

See the Acts Interpretation Act 1954 , schedule 1, definition interest.

s 10 amd 2006 No. 44s 17; 2008 No. 75s 18

11What is the dutiable value of a dutiable transaction

(1)The dutiable value of a statutory dutiable transaction is the amount payable for the transaction.
(2)The dutiable value of a dutiable transaction that is a partition is determined under section 31 .
(3)The dutiable value of a dutiable transaction that is the surrender of a lease of land in Queensland is the total of any premium, fine or other consideration payable for the surrender.
(4)The dutiable value of a dutiable transaction that is the acquisition of a new right that is a lease of land in Queensland is the total of any of the following amounts payable for the lease—
(a)premiums, fines or other consideration payable for the grant of the lease;
(b)consideration paid for, or the value of, any moveable chattels taken over by the lessee from the lessor or outgoing lessee;
(c)if, on the leased premises, a business is to be carried on and an amount in excess of what would be the rent if a business was not carried on is charged for the lease—the excess amount.
(5)The dutiable value of a dutiable transaction that is a partnership acquisition is determined under part 7 , division 3 .
(6)The dutiable value of a dutiable transaction that is a trust acquisition or trust surrender is determined under part 8 , division 5 .
(6A)The dutiable value of a dutiable transaction that is an agreement for the transfer of dutiable property that is a farm-in agreement is determined under part 8A .
(7)Subject to section 48 , the dutiable value of another dutiable transaction is—
(a)the consideration for the dutiable transaction; or
(b)the unencumbered value of the dutiable property or new right the subject of the transaction if—
(i)there is no consideration for the transaction; or
(ii)the consideration can not be ascertained when the liability for transfer duty arises; or
(iii)the unencumbered value is greater than the consideration for the transaction.
(8)However, the dutiable value of particular dutiable transactions is subject to apportionment under part 4 .

s 11 amd 2005 No. 60s 4; 2015 No. 4s 7

12Consideration for dutiable transactions—general

(1)The consideration for a dutiable transaction includes—
(a)the amount of any liabilities assumed under the transaction, including an obligation, whether contingent or otherwise, to pay any unpaid purchase money payable under an agreement for the transfer of dutiable property; and
(b)the amount or value of any debt to the extent it is released or extinguished under the transaction.
(2)If the consideration, or any part of the consideration, for a dutiable transaction on which duty is imposed consists of an amount payable periodically and the total amount, including any interest, to be paid can be ascertained, the consideration or part of the consideration is the total amount.

Note—

For other provisions relevant to consideration, see sections 501 to 503 .

13Consideration for dutiable transaction—transfer by way of security

The consideration for the transfer by way of security of dutiable property that is land is an amount equal to the unencumbered value of the dutiable property when the liability for transfer duty arises.

14What is the unencumbered value of property

(1)The unencumbered value of property is the value of the property determined without regard to—
(a)any encumbrance to which the property is subject, whether contingently or otherwise; or
(b)any arrangement—
(i)the parties to which are not dealing with each other at arm’s length; and
(ii)that results in the reduction of the value of the property; or
(c)any arrangement for which a significant purpose of any party to the arrangement was, in the commissioner’s opinion, the reduction of the value of the property.

Example for paragraph (c)—

A owns land that B wishes to purchase. The land is valued at $1m. Before the purchase, A grants B a 50 year lease of the land. B is not required to pay any rent under the lease. A and B then enter into an agreement to transfer the land for $50,000, being the value of A’s interest in the land taking into account that it is subject to the lease to B.

The unencumbered value of the land is determined without regard to the grant of the lease if the commissioner is of the opinion there is an arrangement under which A or B’s significant purpose in entering into it was to reduce the value of the land.

(2)Also, the unencumbered value of property held on trust or by a partnership must be determined without regard to the liabilities of the trust or partnership, including for a trust, the liability to indemnify the trustee.
(3)The unencumbered value of property that is the goodwill of a business includes the value of any restraint of trade arrangement entered into by the transferor or a related person of the transferor to protect the value of the goodwill acquired by the transferee.
(4)If, before a dutiable transaction mentioned in section 9 (1)(a), (b) or (d) for which the dutiable property is land, improvements are made to the land at the transferee’s expense, the unencumbered value of the land must be determined as if the improvements had not been made.

Note—

For provisions about the aggregate minimum value of the shares comprising all of the issued capital of a corporation or society and the unencumbered value of each of the shares, see section 504 .

s 14 amd 2008 No. 75s 14 (retro)

15When unencumbered value of property is determined

The unencumbered value of dutiable property is determined—
(a)for a dutiable transaction that is the surrender of the property—immediately before the surrender; or
(b)for another dutiable transaction—when the liability for transfer duty arises.

Part 3 Liability for transfer duty

16When liability for transfer duty arises

A liability for transfer duty imposed on a dutiable transaction in schedule 2 , column 1, arises at the time stated opposite the transaction in schedule 2 , column 2.

Note—

In relation to a dutiable transaction that is an ELN transfer, see also sections 156H and 156K.

s 16 amd 2015 No. 4s 8

17Who is liable to pay transfer duty

(1)Transfer duty imposed on a statutory dutiable transaction must be paid by the statutory entity under the transaction.
(2)Transfer duty imposed on another dutiable transaction must be paid by the parties to the transaction.

18Need for instrument, ELN transfer document or statement

If a dutiable transaction is not effected or evidenced by an instrument or ELN transfer document, the parties liable to pay transfer duty on the transaction must make a statement in the approved form (a transfer duty statement) within the time stated in section 19 for lodging the statement.

Maximum penalty—40 penalty units.

s 18 amd 2015 No. 4s 9

19Lodging instrument, ELN transfer document or statement

(1)The statutory entity under a statutory dutiable transaction must lodge—
(a)the instrument or ELN transfer document that effects or evidences the transaction; or
(b)the transfer duty statement for the transaction.
(2)The statutory entity must comply with subsection (1)—
(a)within 60 days after the liability arises to pay transfer duty on the transaction; or
(b)if the amount payable for the transaction is to be decided by a court or tribunal—within 14 days after the amount is decided.
(3)The parties liable to pay transfer duty relating to another dutiable transaction must, within 30 days after the liability arises, lodge—
(a)the instrument or ELN transfer document that effects or evidences the transaction or transfer duty statement for the transaction; and
(b)an approved form for the transaction.

s 19 amd 2015 No. 4s 10

20Effect of making or lodging instrument, ELN transfer document or statement by 1 party

The making of a transfer duty statement, or the lodging under section 19 of an instrument, ELN transfer document or transfer duty statement, by 1 of the parties to the dutiable transaction relieves the other parties to the transaction from complying with the requirement to make the statement under section 18 or lodge the instrument, ELN transfer document or transfer duty statement under section 19 .

s 20 amd 2015 No. 4s 11

21No double duty—general

(1)If a transaction for property constitutes more than 1 dutiable transaction for the property and imposition of transfer duty on all of the dutiable transactions for the property would result in transfer duty being imposed more than once on the transaction, the commissioner must decide the dutiable transaction on which transfer duty is imposed.

Notes—

1For objections and appeals against assessments of duty, see the Administration Act, part 6 .
2For a dutiable transaction that is an ELN transfer, see also part 15 , division 2 .
(2)For subsection (1), the commissioner must decide the dutiable transaction that is the most applicable dutiable transaction having regard to the provisions of this chapter and the primary purpose of the transaction.

s 21 amd 2015 No. 4s 12

22No double duty—particular dutiable transactions

(1)If transfer duty is imposed on a dutiable transaction for periodical payments of consideration, no duty is imposed under this Act on any agreement securing the periodical payments.
(2)If transfer duty imposed on a dutiable transaction that is an agreement for the transfer of dutiable property is paid, no transfer duty is imposed on the transfer of the property to the transferee under the agreement.
(2A)Also, if a payment commitment is made for a dutiable transaction that is an agreement for the transfer of dutiable property, no transfer duty is imposed on an ELN transfer of the dutiable property to the transferee under the agreement.

Notes—

1In relation to subsections (2) and (2A), for a dutiable transaction that is an ELN transfer, see also part 15 , division 2 .
2See part 15 , division 3 in relation to the making of a payment commitment for an agreement for the transfer of dutiable property.
(3)If the commissioner is satisfied—
(a)a person (the agent) is appointed in writing as an agent for another person (the principal); and
(b)under the appointment, the agent enters into a dutiable transaction that is an agreement for the transfer of dutiable property from a person (the original transferor) to the agent on behalf of the principal (the agreement); and
(c)the principal provided all the consideration, including any deposit paid; and
(d)transfer duty imposed on the agreement is paid; and
(e)the dutiable property is later transferred to the principal by the original transferor or the agent (the agency transfer);

no transfer duty is imposed on the agency transfer or the trust acquisition or trust surrender by the principal because of the agreement or agency transfer.

(4)For subsection (3)(a), the commissioner must not be satisfied the person was properly appointed as agent unless the original instrument of appointment, or a copy of it, is lodged.
(5)If—
(a)there is an agreement for the transfer of dutiable property (the first agreement); and
(b)after the first agreement takes place, 1 or more agreements to transfer all or part of the dutiable property the subject of the first agreement takes place (the intervening agreements); and
(c)to give effect to the first agreement and the intervening agreements, 1 or more transfers of dutiable property (the transfers) are effected by 1 or more parties to the first agreement and the intervening agreements; and
(d)transfer duty imposed on the first agreement and the intervening agreements is paid;

no transfer duty is imposed on the transfers.

Example for subsection (5)—

On 1 July, under an agreement for transfer, A agrees to sell land in Queensland to B for $100,000. Settlement is to take place on 31 July. On 7 July, under an agreement for transfer, B agrees to sell the land to C for $120,000. Again, settlement is to take place on 31 July. Before 31 July, B directs A, that at settlement, A transfer the land to C.

The agreement between A and B is the first agreement. The agreement between B and C is the intervening agreement. No transfer duty is imposed on the transfer from A to C if transfer duty on the first and intervening agreements has been paid.

s 22 amd 2015 No. 4s 13

23When credit to be allowed for duty paid

(1)If section 14 (1)(c) is applied to determine the value of land because of a lease or occupancy right, in assessing the transfer duty payable for the dutiable transaction that is the transfer, or agreement for the transfer, of the land, a credit must be allowed for any lease duty paid under repealed chapter 4 for the lease or right.
(2)Subsection (3) applies if—
(a)transfer duty is paid on a dutiable transaction that is an option to acquire dutiable property (the first transaction); and
(b)on the exercise of the option, transfer duty is payable on the dutiable transaction for the acquisition of the dutiable property (the later transaction); and
(c)under the option, the consideration paid for the option is part of the consideration for the later transaction.
(3)In assessing the transfer duty on the later transaction, a credit must be allowed for the transfer duty paid for the first transaction.
(4)In this section—
repealed chapter 4 means chapter 4 (Lease duty) as it was in force from time to time before its repeal by the Revenue Legislation Amendment Act 2005 .

s 23 amd 2002 No. 65 ss 6, 3(2) sch; 2005 No. 60s 5

24Rates of transfer duty

(1)The rate of transfer duty imposed on a dutiable transaction that is the transfer, or an agreement for the transfer, of an existing right of a holder of the following is $5—
(a)a mortgage, including the debt secured by the mortgage, that is solely over land in Queensland;
(b)another mortgage, including the debt secured by the mortgage, that is incidental to, and transferred in connection with, a mortgage mentioned in paragraph (a) (a primary mortgage) if the primary mortgage is the principal security held by the transferor.
(2)The rate of transfer duty imposed on another dutiable transaction is stated in schedule 3 , column 2, opposite the dutiable value of the transaction in schedule 3 , column 1.

s 24 amd 2002 No. 65s 7; 2004 No. 18s 4; 2006 No. 44s 18

25Payment of transfer duty for deeds of grant and particular freeholding leases

(1)This section applies if transfer duty is imposed on a dutiable transaction that is—
(a)a grant of land in fee simple under the Land Act 1994 ; or
(b)an acquisition of a new right that is a post-Wolfe freeholding lease under the Land Act 1994 .
(2)Within 30 days after the liability for the duty arises, the grantee or lessee must pay the duty to the chief executive of the department in which the Land Act 1994 is administered.

s 25 sub 2002 No. 65s 8

Part 4 Apportionment of consideration or unencumbered value for particular dutiable transactions

26Apportionment—head office or principal place of business in Queensland

(1)This section applies for determining the consideration for a dutiable transaction for or relating to, or the unencumbered value of, dutiable property that is a Queensland business asset, other than a debt or personal property, of a Queensland business that has its head office or principal place of business in Queensland if, at any time during the 3 financial years preceding the dutiable transaction concerned—
(a)a supply of land, money, credit or goods or any interest in them, or provision of services, has been made by the business to customers outside Queensland; or
(b)the asset has been used, exploited or exercised in, or relates to, a place outside Queensland.
(2)A reference in this chapter to consideration for the transaction or the unencumbered value of the property is taken to be a reference to the amount (the apportioned amount) worked out using the following formula—

equation

      where—
AA means the apportioned amount.
CUV means the consideration for the dutiable transaction or unencumbered value of the Queensland business asset mentioned in subsection (1).
OS means the gross amount of the supplies and provision of services made by the business to its customers in other States during the 3 completed financial years preceding the dutiable transaction.
TS means the gross amount of supplies and provision of services made by the business to all its customers during the 3 completed financial years preceding the dutiable transaction.
(3)However, the commissioner may decide the consideration for the dutiable transaction or the unencumbered value of the dutiable property on another basis if the commissioner is satisfied the other basis would be more appropriate in particular circumstances.

s 26 amd 2002 No. 65s 3(2) sch

27Apportionment—head office or principal place of business in another State

(1)This section applies for determining the consideration for a dutiable transaction for or relating to, or the unencumbered value of, dutiable property that is a Queensland business asset, other than a debt or personal property, of a Queensland business that does not have its head office or principal place of business in Queensland if, at any time during the 3 financial years preceding the dutiable transaction concerned—
(a)a supply of land, money, credit or goods or any interest in them, or provision of services, has been made by the business to customers in Queensland; or
(b)the asset has been used, exploited or exercised in, or relates to, Queensland.
(2)A reference in this chapter to consideration for the transaction or the unencumbered value of the property is taken to be a reference to the amount (the apportioned amount) worked out using the following formula—

equation

      where—
AA means the apportioned amount.
CUV means the consideration for the dutiable transaction or unencumbered value of the Queensland business asset mentioned in subsection (1).
QS means the gross amount of the supplies and provision of services made by the business to its Queensland customers during the 3 completed financial years preceding the dutiable transaction.
TS means the gross amount of supplies and provision of services made by the business to all its customers during the 3 completed financial years preceding the dutiable transaction.
(3)However, the commissioner may decide the consideration for the dutiable transaction or the unencumbered value of the dutiable property on another basis if the commissioner is satisfied the other basis would be more appropriate in particular circumstances.

s 27 amd 2002 No. 65s 3(2) sch

28Apportionment of particular dutiable transactions relating to existing and new rights

(1)This section applies for determining—
(a)the consideration for a dutiable transaction for or relating to an existing right or acquisition of a new right on its creation, grant or issue if the right is exercisable or relates to the conduct of a business or activity outside Queensland; or
(b)the unencumbered value of dutiable property that is an existing right if the right is exercisable or relates to the conduct of a business or activity outside Queensland; or
(c)the unencumbered value of a new right on its creation, grant or issue if the right is exercisable or relates to the conduct of a business or activity outside Queensland.
(2)A reference in this chapter to consideration for the transaction or the unencumbered value of the right is taken to be a reference to the amount that represents the same proportion of the consideration or unencumbered value that the unencumbered value of the right, to the extent it is exercisable or relates to the conduct of a business or activity in Queensland, bears to the total unencumbered value of the right.
(3)However, the commissioner may decide the consideration for the dutiable transaction or the unencumbered value of the right on another basis if the commissioner is satisfied the other basis would be more appropriate in particular circumstances.

Part 5 Dutiable transactions relating to dutiable property

29When transaction for chattel is not dutiable transaction

(1)If a chattel in Queensland is the subject of a transaction, the transaction is not a dutiable transaction unless—
(a)another type of dutiable property is the subject of the same transaction; or
(b)under section 30 , it is aggregated with a dutiable transaction that is not for a chattel.
(2)For subsection (1)(b), section 30 applies as if the transaction were a dutiable transaction.

30Aggregation of dutiable transactions

(1)This section applies to dutiable transactions that together form, evidence, give effect to or arise from what is, substantially 1 arrangement.
(2)For assessing transfer duty on each of the dutiable transactions, the transactions must be aggregated and treated as a single dutiable transaction.

Example for subsection (2)—

A conducts a business of manufacturing bullbars. A agrees to sell the business to B as a going concern for $50,000,000. The property included in the agreement comprises land, plant and equipment, goodwill and the business name.

The land is dutiable property being land in Queensland and each of the other assets are dutiable property being Queensland business assets.

The agreement, so far as it relates to the sale of the land, is a dutiable transaction being an agreement to transfer land in Queensland and, so far as it relates to the agreement to sell each of the business assets, is a dutiable transaction being an agreement to transfer dutiable property that is a Queensland business asset. Accordingly, there are 4 dutiable transactions under the agreement.

Because the dutiable transactions together form 1 arrangement, they must be aggregated under this section for imposing transfer duty.

(3)For subsection (1), all relevant circumstances relating to the dutiable transactions must be taken into account in deciding whether they together form, evidence, give effect to or arise from what is, substantially 1 arrangement.
(4)For subsection (3), relevant circumstances include the following—
(a)whether the transactions are contained in 1 instrument;
(b)whether any of the transactions are conditional on entry into, or completion of, any of the other transactions;
(c)whether the parties to any of the transactions are the same;
(d)whether any party to a transaction is a related person of another party to any of the other transactions;
(e)the time over which the transactions take place;
(f)whether, before the transactions take place, the dutiable property the subject of the transactions was used together, or dependently with one another, by the transferor or transferors;
(g)whether, after the transactions take place, the dutiable property the subject of the transactions will be used together, or dependently with one another, by the transferee or transferees.
(5)Transfer duty imposed on the dutiable transaction aggregated under this section must—
(a)be assessed on the total of the dutiable values of the transactions when the liability for transfer duty for each of the transactions arose; and
(b)be apportioned between the transactions as decided by the commissioner.

Example for subsection (5)—

Under 4 agreements between a builder and a developer, the builder agrees to purchase 4 lots of land from the developer for $100,000 each. The lots are dutiable property being land in Queensland and each of the agreements is a dutiable transaction being an agreement to transfer land in Queensland.

Even though the sale of the 4 lots was negotiated at the same time, the agreements were signed on different dates over a 10 month period, had different settlement dates and were not conditional on each other.

Under section 24 (Rates of transfer duty) and schedule 3 (Rates of duty on dutiable transactions and relevant acquisitions for landholder and corporate trustee duty), the agreements for lots 1 to 3 have been separately stamped for $2350 transfer duty. When the agreement for lot 4 is lodged for stamping, the commissioner decides this section applies because the transactions together formed 1 arrangement.

Accordingly, the transactions must be aggregated under this section for imposing transfer duty and the duty apportioned between them.

Under subsection (5)(a), the total of the dutiable values of the dutiable transactions on which transfer duty is imposed is $400,000, being the value of each of the lots when the liability for transfer duty arose for each of the transactions, regardless of a variation in the values since the liability arose.

Under section 24 and schedule 3 , transfer duty imposed on the aggregated transaction is $12,475.

If the commissioner decides to apportion the transfer duty equally between the dutiable transactions, the amount of transfer duty payable is $3118.75 for each transaction.

Under the Administration Act, part 3 , the commissioner will make a reassessment for the transactions for lots 1 to 3. The assessment notice must state the matters mentioned in section 26 (2) of that Act.

(6)Each party to each of the dutiable transactions must, when lodging the instrument, ELN transfer document or transfer duty statement relating to the transaction, give notice to the commissioner stating details known to the party about—
(a)all of the dutiable property included or to be included in the arrangement mentioned in subsection (1); and
(b)the dutiable value of each dutiable transaction.

Note—

Under the Administration Act, the requirement under this subsection is a lodgement requirement for which a failure to comply is an offence under section 121 of that Act.
(7)This section does not apply to a dutiable transaction to the extent that it relates to an exchange of dutiable property.

s 30 amd 2006 No. 44s 19; 2011 No. 8s 16; 2011 No. 20s 58; 2015 No. 4s 14

31Partitions

(1)This section applies to a dutiable transaction under which the following happens (the partition)—
(a)dutiable property held by persons jointly as joint tenants or tenants in common (each a co-owner) is transferred, or agreed to be transferred, to 1 or more of the co-owners;
(b)the dutiable property transferred, or agreed to be transferred, includes the interest held by the transferee in the property immediately before the transaction.
(2)The dutiable value of the dutiable transaction is the greater of the following—
(a)the amount by which the unencumbered value of the dutiable property transferred, or agreed to be transferred, is more than the unencumbered value of the interest held by the transferee in the property immediately before the transaction;
(b)the consideration paid by any party to the transaction.
(3)This section does not apply to a transaction if section 48 applies to the transaction.

s 31 amd 2011 No. 8s 17

32Transfer by way of security—land

(1)This section applies if the commissioner is satisfied—
(a)there has been a dutiable transaction that is a transfer of dutiable property by way of security (the original transfer); and
(b)the property is land; and
(c)transfer duty has been paid on the transaction; and
(d)the property has been retransferred to the person who transferred it by way of security (the retransfer) or has been transferred to a person to whom the property has been transmitted by death or bankruptcy (also the retransfer).
(2)The commissioner must make a reassessment of transfer duty paid on the original transfer to reduce the duty to the amount that would have been payable if the amount secured by the transfer had been secured by a mortgage for which mortgage duty were imposed.
(3)Transfer duty is not imposed on the dutiable transaction that is the retransfer.
(4)Subsection (2) applies to the reassessment despite the limitation period under the Administration Act for reassessments.

Note—

See the Administration Act, part 3 (Assessments of tax), division 3 (Reassessments).

33Transfer by way of security—other dutiable property

(1)Transfer duty is not imposed on a dutiable transaction if—
(a)the transaction is a transfer of dutiable property by way of security; and
(b)the property is not land.
(2)Subsection (3) applies if—
(a)after the transfer by way of security, the transferee, or the transferee’s assignee, acquires ownership of the dutiable property free from any interest of the transferor, or transferor’s assignee; and
(b)the transferee, or the transferee’s assignee, were to newly acquire the dutiable property at the time of the acquisition mentioned in paragraph (a), the acquisition would be a dutiable transaction.
(3)The acquisition of the ownership of the dutiable property by the transferee is taken to be a dutiable transaction and transfer duty imposed on the transaction must be reduced by the amount of mortgage duty, if any, paid on the transfer.

Part 6 Special provisions about dutiable transactions relating to Queensland business assets

Division 1 Some basic concepts about Queensland businesses and their assets

34What is a Queensland business asset

A Queensland business asset is a business asset of a Queensland business.

35What is a business asset

(1)Each of the following is a business asset
(a)goodwill;
(b)a statutory business licence used for carrying on a business;
(c)a right to use a statutory business licence used for carrying on a business;
(d)the business name used for carrying on a business;
(e)a right under a franchise arrangement used for carrying on a business;
(f)a debt of a business if the debtor resides in Queensland;
(g)a supply right of a business;
(h)intellectual property used for carrying on a business;
(i)personal property in Queensland of a business.
(2)For subsection (1)—
(a)a business asset mentioned in subsection (1)(b) that is issued or given under—
(i)a Queensland Act is used for carrying on a business; or
(ii)a Commonwealth Act is used for carrying on a business if it is used, exploited or exercised in Queensland; and
(b)another business asset is used for carrying on a business if it is used, exploited or exercised in Queensland.

36What is a Queensland business

A Queensland business is a business—
(a)that is conducted on or from a place in Queensland; or
(b)the conduct of which consists wholly or partly of supplying land, money, credit or goods or any interest in them, or providing any service, to Queensland customers; or
(c)that has ceased but satisfied paragraph (a) or (b) at any time in the 1 year before a dutiable transaction that is the transfer, or agreement for the transfer, of an asset of the business.

Example for paragraph (c)—

A business conducted from a place in Queensland goes into liquidation. Three months after the business stops trading, the liquidator transfers business assets of the business. For determining whether the transfer of the business assets is a dutiable transaction, the business is a Queensland business because paragraph (a) was satisfied in the 1 year before the transfer.

Division 2 Transactions for particular assets of Queensland businesses

37When transaction for particular Queensland business assets not dutiable transaction

(1)If a debt of a business that is evidenced by a negotiable instrument is the subject of a transaction, the transaction is not a dutiable transaction unless—
(a)another type of dutiable property is the subject of the same transaction or, under section 30 , it is aggregated with a dutiable transaction; or
(b)under the transaction, the negotiable instrument is or is to be transferred with all, or substantially all, of the negotiable instruments of the business.
(2)If a supply right of a business is the subject of a transaction, the transaction is not a dutiable transaction unless—
(a)another type of dutiable property is the subject of the same transaction or, under section 30 , it is aggregated with a dutiable transaction; or
(b)under the transaction, the supply right is or is to be transferred with all, or substantially all, of the supply rights of the business.
(3)If intellectual or personal property of a business is the subject of a transaction, the transaction is not a dutiable transaction unless, under section 30 , it is aggregated with 1 or more of the following—
(a)a dutiable transaction for a Queensland business asset, other than intellectual or personal property;
(b)a dutiable transaction for land in Queensland.
(4)For subsections (1)(a), (2)(a) and (3), section 30 applies as if the transaction were a dutiable transaction.

s 37 amd 2004 No. 18s 4A

38When consignment of trading stock of Queensland business is a dutiable transaction

(1)This section applies if—
(a)the owner of a Queensland business transfers or agrees to transfer a Queensland business asset, other than trading stock of the business, to a person (the new owner); and
(b)the owner places all or most of the trading stock on consignment for sale by a person, whether or not the new owner, (the consignee) in the conduct of the business by the new owner; and
(c)having regard to the terms of the consignment it is reasonable to conclude that the consignment is, or is part of, an arrangement to avoid transfer duty.
(2)Without limiting subsection (1)(c), the terms of the consignment include the following—
(a)the amount payable to the owner by the consignee and the terms of payment;
(b)the price ultimately payable to the owner for the trading stock and the way in which it is worked out;
(c)the basis of working out the consignee’s commission;
(d)the right of the consignee to mix the trading stock with other property not owned by the owner;
(e)the right of the consignee to deal with the trading stock as if it were the consignee’s or other than as agent of the owner.
(3)The placing of the trading stock on consignment is taken to be a transfer of the stock.

Note—

Accordingly, the transfer is a dutiable transaction being the transfer of a Queensland business asset because trading stock is a business asset being personal property.

39Surrender of Queensland business asset so replacement asset may be granted

(1)This section applies if a Queensland business asset is surrendered by a person (the owner) so that a similar business asset may be granted, issued, given to or obtained by another person.
(2)For imposing transfer duty—
(a)the surrender is taken to be a transfer of the business asset by the owner to the other person when the similar business asset is granted, issued, given or obtained; and
(b)the owner and other person are the parties to the dutiable transaction that is the transfer of the business asset.

Part 7 Dutiable transactions relating to partnerships

Division 1 Preliminary

40Interpretation for property held by partnership or trust

A reference to a partnership or trust holding property is a reference to the holding of the property by the partners for the partnership or trustees on trust.

Division 2 Some basic concepts about partnership acquisitions

41What is a partnership acquisition

A person makes a partnership acquisition if the person acquires a partnership interest in a partnership that—
(a)holds dutiable property; or
(b)has an indirect interest in dutiable property.

Note—

Section 498 includes provision about references to dutiable property.

s 41 amd 2008 No. 75s 19

42What is a partner’s partnership interest

(1)A partner’s partnership interest is—
(a)if the partner has a variable partnership entitlement under subsection (2)—the proportion that the value of the partner’s entitlements as a partner bears to the value of the entitlements of all partners in the partnership expressed as a percentage; or
(b)if the partner is entitled only to share in the profits of the partnership and has given or is required to give consideration, or has made or is required to make a contribution to the capital of the partnership, for the acquisition of the profit-sharing right—the partner’s profit-sharing percentage; or
(c)if paragraph (a) or (b) does not apply—the greater of the following—
(i)the percentage of the capital of the partnership the partner has contributed or is obliged to contribute;
(ii)the percentage of the losses of the partnership the partner is required to bear.
(2)For subsection (1)(a), a partner has a variable partnership entitlement in a partnership if, in the ordinary course of determining the partner’s entitlement to share in the profits or obligation to contribute to the capital or losses of the partnership, the entitlement or obligation varies or may vary from time to time.

43What is a partnership’s indirect interest in dutiable property

A partnership has an indirect interest in dutiable property if—
(a)through a partnership interest or trust interest there is a connection between the partnership and dutiable property of the other partnership or trust; or
(b)through a series of partnership interests or trust interests, or a combination of any of them, there is a connection between the partnership and dutiable property of a partnership or trust in the series.

44Acquiring a partnership interest

(1)A person acquires a partnership interest if a partnership is formed or the person’s partnership interest increases.
(2)Without limiting subsection (1)—
(a)a partnership may be formed on—
(i)a change in the membership of a partnership; or
(ii)the merger of 2 or more partnerships; or
(b)a person’s partnership interest may increase—
(i)under the terms of a partnership agreement; or
(ii)on the retirement of a partner from a partnership; or
(iii)on a change in the terms of a partnership agreement effecting a change in the interests of the partners.
(3)However, a partner’s variable partnership entitlement under section 42 does not increase if—
(a)the partner’s entitlement to share in the profits or obligation to contribute to the capital or losses of the partnership increases merely because of the partner’s performance as a partner; and
(b)there is no arrangement stating—
(i)the extent of the future variation to the partner’s entitlement or obligation; or
(ii)the consideration for the variation.

Division 3 Dutiable value of partnership acquisitions

45What is the dutiable value of a partnership acquisition

The dutiable value of a partnership acquisition is the greater of the following—
(a)the consideration for the acquisition so far as the consideration relates to dutiable property, or an indirect interest in dutiable property, held by the partnership;
(b)the value of the acquisition worked out under section 46 or 47 .

46What is the value of a partnership acquisition—general

(1)Subject to subsections (5) and (6), the value of a partnership acquisition is the total of the amounts worked out by applying the partner’s partnership interest to the unencumbered value, when the liability for transfer duty arises, of—
(a)the dutiable property held by the partnership (the relevant partnership); and
(b)any indirect interest in dutiable property held by the relevant partnership.
(2)For subsection (1)(b), the unencumbered value of an indirect interest under section 43 (a) of the relevant partnership is the amount worked out by applying to the unencumbered value of the dutiable property held by the entity in which the relevant partnership has a partnership or trust interest, the partnership or trust interest of the relevant partnership in that entity.
(3)For subsection (1)(b), the unencumbered value of an indirect interest under section 43 (b) of the relevant partnership is the amount worked out by—
(a)first applying to the unencumbered value of the dutiable property held by the ultimate entity, the partnership or trust interest of the partnership or trust (the last partner or beneficiary) that is a partner or beneficiary of the ultimate entity; and
(b)applying to the amount worked out under paragraph (a), and the unencumbered value of any dutiable property held by the last partner or beneficiary, the partnership or trust interest of the next partnership or trust in the series of partnerships or trusts that is a partner or beneficiary of the last partner or beneficiary; and
(c)applying the calculation in paragraph (b) for each of the other partnerships or trusts in the series until the first entity’s partnership interest or trust interest is used in the calculation; and
(d)applying to the amount last worked out under paragraph (c) and the unencumbered value of any dutiable property held by the first entity, the partnership or trust interest of the relevant partnership.
(4)Schedule 4 contains an example of how the value of a partnership acquisition is worked out.
(5)For determining the value of a new partner’s partnership acquisition on formation of a partnership, the value of any dutiable property the partner contributed to the partnership on its formation must be disregarded.
(5A)For subsection (5), a person is a new partner only if—
(a)the person was not in partnership with any partners of the partnership immediately before its formation; or
(b)on the person’s partnership acquisition, the person becomes a partner in an additional partnership to a partnership in which the person is a partner with any partners of the additional partnership immediately before its formation.
(5B)However, subsection (5A)(b) does not apply to a person who makes a partnership acquisition in a partnership that was formed because of a change in the membership of the partners of another partnership (the old partnership) if the person had a partnership interest in the old partnership.
(6)For determining the value of a partner’s partnership acquisition that is an increase in the partner’s partnership interest, the partner’s partnership interest is taken to be the increase in the partner’s partnership interest.

s 46 amd 2002 No. 65 ss 9, 3(2) sch

47What is the value of a partnership acquisition—merger of 2 or more partnerships

(1)This section applies if—
(a)a person (the partner) first makes a partnership acquisition (the new partnership acquisition) on the merger of 2 or more partnerships; and
(b)the person had a partnership interest (the old partnership interest) in 1 of the merging partnerships; and
(c)the partner were to make a partnership acquisition for the old partnership interest immediately before the merger, the value of the partnership acquisition would include all or part of the unencumbered value of dutiable property (the continuing property) that becomes dutiable property of the merged partnership.
(2)The value of the new partnership acquisition must be reduced by the lesser of—
(a)the amount that would be the value of the new partnership acquisition if the dutiable property of the merged partnership comprised only the continuing property; or
(b)the amount that represents the value of the partner’s partnership acquisition for the old partnership interest mentioned in subsection (1)(c) immediately before the merger worked out as if the dutiable property of the former partnership comprised only the continuing property.

Example for working out dutiable value under this section—

X is a 30% partner in the XYZ partnership that has dutiable property of $10m. The XYZ partnership merges with another partnership, to form a new partnership (the merged partnership). X has a 40% partnership interest in the merged partnership. The merged partnership has dutiable property with an unencumbered value of $12m, including $2m of the dutiable property of the XYZ partnership (the continuing property).

The value of X’s new partnership acquisition is worked out as follows—
Example

1The value of X’s interest in the merged partnership is $4.8m, being 40% (X’s partnership interest in the merged partnership) of $12m (the unencumbered value of the merged partnership’s dutiable property).
2The reduction under subsection (2)(a) is $800,000, being 40% (X’s partnership interest in the merged partnership) of $2m (the continuing property).
3The reduction under subsection (2)(b) is $600,000, being 30% (X’s partnership interest in the XYZ partnership) of $2m (the continuing property).

The value of X’s partnership acquisition is $4.2m, being $4.8m less $600,000 which is the lesser of the amounts worked out under subsection (2).

Division 4 Dutiable value of other dutiable transactions for dutiable property of partnership

48Dutiable value of dutiable transaction reduced for transfer of dutiable property to partner on retirement or dissolution

(1)This section applies if, on a person (the retiring partner) ceasing to be a partner in a partnership because of the retiring partner’s retirement from the partnership or its dissolution, dutiable property of the partnership is transferred or agreed to be transferred to the retiring partner.
(2)The dutiable value of the dutiable transaction for the transfer, or agreement for the transfer, of the dutiable property to the retiring partner must be reduced by an amount worked out by applying the retiring partner’s partnership interest in the partnership to the unencumbered value of the dutiable property immediately before the retirement or dissolution.

Example for subsection (2)—

A, B and C are in partnership in equal shares. B had a one-third partnership interest immediately before retiring. On B ceasing to be a partner, A and C transfer land to B. The dutiable value of the land acquired by B will be reduced by one-third.

Part 8 Dutiable transactions relating to trusts

Division 1 Preliminary

49Application of pt 8

(1)This part applies to all expressly or intentionally created trusts, regardless of how they are created.
(2)However, this part does not apply to a trust acquisition or trust surrender of a trust interest in a public unit trust other than a majority trust acquisition in a land holding trust.

Notes—

1For subsection (2), see division 7 (Public unit trusts), subdivisions 7 (Majority trust acquisitions in land holding trusts) and 8 (Indirect trust interests).
2An acquisition of an interest in a listed unit trust that is a landholder may be dutiable under chapter 3 , part 1 (Landholder duty).

s 49 amd 2011 No. 20s 59

50Joint trustees

If a trust has 2 or more trustees, the trustees are taken to be a single person for this chapter.

Note—

Under section 65 , trustees are jointly and severally liable for transfer duty payable.

Division 2 Some basic concepts about property

51Interpretation for property held by trust or partnership

A reference to a trust or partnership holding property is a reference to the holding of the property by the trustees on trust or the partners for the partnership.

52Contracted property and trust interests

(1)For a trust, contracted property is taken to be dutiable property held by the trust.
(1A)If a trust has made a purchase or sale agreement for a trust interest, the trust is taken to have an indirect interest in the trust-related dutiable property.
(2)For determining the dutiable value of a trust creation, trust termination, trust acquisition or trust surrender—
(a)a sale agreement made by the trustee is taken not to have been made; and
(b)a purchase agreement made by the trustee is taken to have been completed.
(3)Subsection (3A) applies if—
(a)contracted property, or an indirect interest in dutiable property mentioned in subsection (1A), is included in determining the dutiable value of a trust creation, trust termination, trust acquisition or trust surrender; and
(b)afterwards, the sale agreement for the property or trust interest is completed or the purchase agreement for the property or trust interest is not completed.
(3A)The commissioner must make a reassessment as if the contracted property or indirect interest were never held by the trust.
(4)For the reassessment, the parties liable to pay transfer duty on the trust creation, trust termination, trust acquisition or trust surrender must lodge the instruments required for the original assessment.
(5)In this section—
purchase agreement includes an uncompleted agreement, whether or not conditional, for the acquisition of a trust interest through which the trust would have, if the agreement were completed, an indirect interest in dutiable property (the trust-related dutiable property).
sale agreement includes an uncompleted agreement, whether or not conditional, for the disposal of a trust interest through which the trust has an indirect interest in dutiable property (also the trust-related dutiable property).

s 52 amd 2002 No. 65s 3(2) sch; 2010 No. 11s 10

Division 3 Creation and termination of trusts

53Creating trust of dutiable property

(1)A trust of dutiable property is created if a person, who has acquired property other than as trustee, starts to hold the property as trustee.
(2)Also, a trust of dutiable property is created if all the following apply—
(a)a person holds dutiable property on trust (trust 1);
(b)the person is also trustee of another trust (trust 2);
(c)the person ceases to hold the dutiable property as trustee of trust 1 and starts to hold the dutiable property as trustee for trust 2;
(d)when the person starts to hold the dutiable property as trustee for trust 2—
(i)a person who has a trust interest for the dutiable property under trust 2 did not have a trust interest for that property when it was held for trust 1; or
(ii)a person who has a trust interest for the dutiable property under trust 2 had a trust interest for that property when it was held for trust 1 and that person’s trust interest increases.

Note—

Section 498 includes provision about references to dutiable property.

s 53 amd 2008 No. 75s 20

54Terminating trust of dutiable property

A trust of dutiable property is terminated if a person, having held the property as trustee, starts to hold the property other than as trustee.

Division 4 Some basic concepts about trust acquisitions and trust surrenders

55What is a trust acquisition

A person makes a trust acquisition if the person acquires a trust interest in a trust that—
(a)holds dutiable property; or
(b)has an indirect interest in dutiable property.

Note—

Under section 81 , an indirect trust acquisition in a land holding trust is taken to be a trust acquisition. An indirect trust acquisition is the acquisition of an interest in a land holding trust through 1 or more corporations, partnerships or trusts, or a combination of any of them. See definitions indirect trust acquisition and indirect trust interest in the dictionary.

56What is a trust surrender

A person makes a trust surrender if the person surrenders a trust interest in a trust that holds dutiable property or has an indirect interest in dutiable property.

57What is a trust interest

(1)A trust interest is a person’s interest as a beneficiary of a trust, other than a life interest.
(2)For a trust that is a discretionary trust, only a taker in default of an appointment by the trustee can have a trust interest.
(3)Also, for a trust that is a superannuation fund, a member of the fund has a trust interest in the fund.

Note—

For exemption from transfer duty for a trust acquisition or surrender of a member’s interest in a superannuation fund, see section 119 .

58What is a trust’s indirect interest in dutiable property

A trust has an indirect interest in dutiable property if—
(a)through a trust interest or partnership interest, there is a connection between the trust and dutiable property of the other trust or partnership; or
(b)through a series of trust interests or partnership interests, or a combination of any of them, there is a connection between the trust and dutiable property of a trust or partnership in the series.

59Acquiring a trust interest

(1)A person acquires a trust interest if—
(a)the person becomes a beneficiary of a trust, whether on creation of the trust or otherwise; or
(b)being a beneficiary of a trust, the person’s trust interest increases, other than because of the surrender of another person’s trust interest in the trust for which transfer duty has been paid.
(2)If a beneficiary’s trust interest is subject to a prior life interest, the interest does not increase merely because the life tenant dies or, over time, the extent of the life interest reduces.

60Beneficiary’s trust interest is percentage of or proportionate to property held on trust

(1)A beneficiary’s trust interest is—
(a)for a beneficiary who is a taker in default under a discretionary trust—
(i)the percentage of the trust income or trust property the beneficiary would receive in default of appointment by the trustee; or
(ii)if the beneficiary would receive both trust income and trust property in default of appointment by the trustee, the greater percentage of the trust income or trust property the beneficiary would receive; or
(b)for a beneficiary of a trust, other than a discretionary trust, whose entitlement is solely to income of the property held on trust—the proportion that the value of the beneficiary’s entitlement bears to the value of the entitlements of all beneficiaries expressed as a percentage; or
(c)for another beneficiary—the proportion that the beneficiary’s entitlement under the trust bears to the unencumbered value of the property held on trust expressed as a percentage.
(2)For subsection (1)(c), the beneficiary’s entitlement under the trust is—
(a)the amount of the unencumbered value of the property held on trust that the beneficiary could receive as a result of the acquisition of the beneficiary’s trust interest determined at the time of acquisition of the interest; or
(b)the entitlement stated in subsection (3) if—
(i)the beneficiary’s entitlement under the trust is not subject to a prior life interest; and
(ii)the beneficiary’s entitlement under the trust may increase, including from nothing, on the fulfilment of any condition, contingency or the exercise or non-exercise of any power or discretion; and
(iii)the condition, contingency, power or discretion is part of an arrangement a significant purpose of which is to lessen the amount of the beneficiary’s entitlement at a particular time.
(3)For subsection (2)(b), the beneficiary’s entitlement under the trust is the maximum interest in the property held on trust that the beneficiary would have on the fulfilment of the condition or contingency or the exercise or non-exercise of the power or discretion.
(4)For a majority trust acquisition, a reference in this section to a beneficiary’s entitlement under the trust includes the entitlement under the trust of related persons of the beneficiary.

s 60 amd 2004 No. 18s 5

61Who is a related person

(1)A person is a related person of another person if—
(a)for individuals—they are members of the same family; or
(b)for an individual and a corporation—the person or a member of the person’s family is a majority shareholder, director or secretary of the corporation or a related body corporate of the corporation, or has an interest of 50% or more in it; or
(c)for an individual and a trustee—the person or a related person under another provision of this section is a beneficiary of the trust; or
(d)for corporations—they are related bodies corporate; or
(e)for a corporation and a trustee—the corporation or a related person under another provision of this section is a beneficiary of the trust; or
(f)for trustees—
(i)there is a person who is a beneficiary of both trusts; or
(ii)a person is beneficiary of 1 trust and a related person under another provision of this section is a beneficiary of the other trust.
(2)Also, a person is a related person of another person if the persons acquire trust interests in a land holding trust and the acquisitions form, evidence, give effect to or arise from what is substantially 1 arrangement.
(3)However, a person is not a related person of another person under subsection (1), other than subsection (1)(d), if the commissioner is satisfied the trust interests of the persons in a land holding trust—
(a)were acquired, and will be used, independently; and
(b)were not acquired, and will not be used, for a common purpose.

s 61 amd 2002 No. 65s 10; 2011 No. 20s 60

Division 5 Dutiable value of trust acquisitions and trust surrenders

62What is the dutiable value of a trust acquisition or trust surrender

The dutiable value of a trust acquisition or trust surrender is the greater of the following—
(a)the consideration for the acquisition or surrender so far as the consideration relates to dutiable property, or an indirect interest in dutiable property, held by the trust;
(b)the value of the acquisition or surrender worked out under section 63 .

63What is the value of a trust acquisition or trust surrender

(1)Subject to subsections (6) to (8), the value of a trust acquisition or trust surrender is the total of the amounts worked out by applying the beneficiary’s trust interest to the unencumbered value, when the liability for transfer duty arises, of—
(a)the dutiable property held by the trust (the relevant trust); and
(b)any indirect interest in dutiable property held by the relevant trust.

Note—

Under section 52 (1), dutiable property includes contracted property. Also, under section 52 (1A), the relevant trust may be taken to hold an indirect interest in dutiable property through a trust interest that is the subject of a purchase or sale agreement.
(2)For subsection (1), the beneficiary’s trust interest for a trust surrender is the beneficiary’s trust interest immediately before the surrender.
(3)For subsection (1)(b), the unencumbered value of an indirect interest under section 58 (a) of the relevant trust is the amount worked out by applying to the unencumbered value of the dutiable property held by the entity in which the relevant trust has a trust or partnership interest, the trust or partnership interest of the relevant trust in that entity.
(4)For subsection (1)(b), the unencumbered value of an indirect interest under section 58 (b) of the relevant trust is the amount worked out by—
(a)first applying to the unencumbered value of the dutiable property held by the ultimate entity, the trust or partnership interest of the trust or partnership (the last beneficiary or partner) that is a beneficiary or partner of the ultimate entity; and
(b)applying to the amount worked out under paragraph (a), and the unencumbered value of any dutiable property held by the last beneficiary or partner, the trust or partnership interest of the next trust or partnership in the series of trusts or partnerships that is a beneficiary or partner of the last beneficiary or partner; and
(c)applying the calculation in paragraph (b) for each of the other trusts or partnerships in the series until the first entity’s trust interest or partnership interest is used in the calculation; and
(d)applying to the amount last worked out under paragraph (c) and the unencumbered value of any dutiable property held by the first entity, the trust or partnership interest of the relevant trust.
(5)Schedule 4 contains an example of how the value of a trust acquisition is worked out.
(6)For determining the value of a beneficiary’s trust acquisition that is an increase in the beneficiary’s trust interest, other than a majority trust acquisition, the beneficiary’s trust interest is taken to be the increase in the beneficiary’s trust interest.
(7)Subsection (8) applies to a majority trust acquisition that is an increase in a beneficiary’s trust interest (the relevant trust acquisition) that has happened in the following circumstances—
(a)the trust interest of the beneficiary and related persons of the beneficiary was 50% or more immediately before the relevant trust acquisition;
(b)transfer duty was previously paid for a majority trust acquisition in the trust made by the beneficiary or related persons;
(c)since the majority trust acquisition mentioned in paragraph (b), no other related person of the beneficiary has made a trust acquisition in the trust.
(8)For determining the value of the beneficiary’s trust acquisition that is the relevant trust acquisition, the beneficiary’s trust interest is taken to be the increase in the beneficiary’s trust interest.

s 63 amd 2006 No. 34s 4; 2010 No. 11s 11

Division 6 Liability to transfer duty

64Liability to pay transfer duty on creation or termination of trust

(1)If a trust of dutiable property is created or terminated, the trustee of the trust is the party to the dutiable transaction that is the creation or termination of the trust.
(2)If the trustee of the trust does not pay the transfer duty, the beneficiaries of the trust are jointly and severally liable for the duty.

65Liability of joint trustees

If a trust has 2 or more trustees, the trustees are jointly and severally liable for any transfer duty imposed.

66When no transfer duty on trust acquisition or trust surrender

(1)If, because of the creation of a trust of dutiable property, a person acquires a trust interest in the property, transfer duty is not imposed on the acquisition if—
(a)transfer duty has been paid for the dutiable transaction that is the creation of the trust of the property; or
(b)the dutiable transaction that is the creation of the trust of the property is exempt from transfer duty.
(2)If, because of the acquisition of dutiable property by a trust, a person acquires a trust interest in the property, transfer duty is not imposed on the acquisition of the trust interest if—
(a)the trustee has paid transfer duty for the acquisition of the property; or
(b)the dutiable transaction that is the acquisition of the property is exempt from transfer duty; or
(c)duty is not imposed on the acquisition of the property by the trustee.
(3)If, because of the termination of a trust of dutiable property, a person surrenders a trust interest in the property, transfer duty is not imposed on the surrender if—
(a)transfer duty has been paid for the dutiable transaction that is the termination of the trust of the property; or
(b)the dutiable transaction that is the termination of the trust of the property is exempt from transfer duty.

67Parties to trust acquisition and trust surrender

(1)For a trust acquisition, the beneficiary acquiring the trust interest is the party to the dutiable transaction.
(2)For a trust surrender, the trustee and the beneficiary whose trust interest is surrendered are the parties to the dutiable transaction.

Note—

Under section 17 , the parties to a dutiable transaction are liable to pay transfer duty imposed on the transaction.

Division 7 Public unit trusts

Subdivision 1 Preliminary

68What is a public unit trust

A public unit trust is—
(a)a listed unit trust; or
(b)a widely held unit trust; or
(c)a wholesale unit trust; or
(d)a pooled public investment unit trust; or
(e)a declared public unit trust.

Subdivision 2 Basic concepts about listed unit trusts

69What is a listed unit trust

A listed unit trust is a unit trust the units in which are quoted on the market operated by a recognised stock exchange.

Notes—

1Section 498A includes provision about when the quotation of securities is suspended.
2An acquisition of an interest in a listed unit trust that is a landholder may be dutiable under chapter 3 , part 1 (Landholder duty).

s 69 amd 2008 No. 75s 21; 2011 No. 20s 61

Subdivision 3 Basic concepts about widely held unit trusts

70What is a widely held unit trust

(1)A widely held unit trust is a unit trust, other than a listed unit trust, that is a registered managed investment scheme for which—
(a)units in the trust have been issued to the public; and
(b)50 or more persons are beneficially entitled to the units in the trust; and
(c)more than 20 persons are beneficially entitled to at least 75% of the total units in the trust.

Note—

Also, under section 71 , the commissioner may treat a unit trust as a widely held unit trust.
(2)However, for a trust acquisition or trust surrender of a trust interest in a trust, a unit trust is not a widely held unit trust if subsection (1)(b) and (c) is not satisfied before and after the trust acquisition or trust surrender.
(3)For subsection (2), a trust acquisition or trust surrender of a trust interest in a unit trust includes a series of trust acquisitions or trust surrenders under an arrangement.
(4)If subsection (2) applies to a unit trust, the trust is not a widely held unit trust from immediately before the trust acquisition or trust surrender or the first acquisition or surrender under the arrangement.
(5)For subsection (1), a person is taken to be beneficially entitled to all units held by the person and related persons of the person.

71When unit trust may be treated as widely held unit trust

(1)This section applies if the commissioner is satisfied—
(a)units in a unit trust (the start up units) will be issued to the public to an extent and with the entitlements mentioned in section 70 (1) within 1 year after the first issue of units to the public; and
(b)the start up units are the only units in the unit trust to be issued from and including the first issue to the public until the unit trust becomes a widely held unit trust (the start-up period).
(2)The commissioner may treat the unit trust as a widely held unit trust for the start-up period.
(3)However, if the start-up units are not issued in the way mentioned in subsection (1)(a) or are not the only units issued in the unit trust in the start-up period (the disqualifying circumstances)—
(a)the trustee must, within 28 days after the disqualifying circumstances happen, give the commissioner notice about the disqualifying circumstances; and
(b)the unit trust is taken not to have been a widely held unit trust in the start-up period; and
(c)the commissioner must make an assessment for transfer duty for each trust acquisition or trust surrender in the start-up period as if the trust were not a widely held unit trust in the period; and
(d)the start date for the Administration Act, section 54 (4), is 61 days after the relevant trust acquisition or trust surrender.

Subdivision 4 Basic concepts about wholesale unit trusts

72What is a wholesale unit trust

(1)A wholesale unit trust is a unit trust, other than a listed unit trust—
(a)that is established and managed by a funds manager; and
(b)the units in which are predominantly acquired by, for or on account of, wholesale investors.
(2)A wholesale unit trust includes a unit trust that holds land in Queensland, or has an indirect interest in land in Queensland, only if the trust was established, and continues, solely for the investment of funds placed with it by wholesale investors using the funds manager’s funds management and investment services.
(3)However, for a trust acquisition or trust surrender of a trust interest in a trust, a unit trust is not a wholesale unit trust if—
(a)the trust is established or managed for a particular person; or
(b)subsection (1)(b) or if applicable subsection (2) is not satisfied before and after the trust acquisition or trust surrender.
(4)For subsection (3), a trust acquisition or trust surrender of a trust interest in a unit trust includes a series of trust acquisitions or trust surrenders under an arrangement.
(5)If subsection (3) applies to a unit trust, the trust is not a wholesale unit trust from immediately before the trust acquisition or trust surrender or the first acquisition or surrender under the arrangement.

73What is a funds manager

(1)A funds manager is—
(a)a body corporate that provides funds management and investment services to wholesale investors as its principal business if—
(i)the body corporate manages funds of more than $500,000,000 invested with it; and
(ii)the business is not conducted to provide the services only to particular wholesale investors; and
(iii)the body corporate is recognised by other funds managers as a competitor with them for the services; or
(b)a body corporate that is a member of a corporate group of a financial institution or an insurer whose principal business is providing funds management and investment services to wholesale investors if—
(i)the body corporate or the corporate group manages funds of more than $500,000,000 invested with it by wholesale investors; and
(ii)the business is not conducted to provide the services only to particular wholesale investors; and
(iii)the body corporate is recognised by other funds managers as a competitor with them for the services.
(2)Subsection (3) applies if the commissioner is satisfied a body corporate or corporate group will provide funds management and investment services to wholesale investors to the extent mentioned in subsection (1)(a) or (b) within the start-up period.
(3)The commissioner may treat the body corporate as a funds manager for the start-up period.
(4)However, if the body corporate or corporate group does not provide funds management and investment services as mentioned in subsection (1) in the start-up period—
(a)the body corporate must, within 28 days after the end of the start-up period, give the commissioner notice of that fact; and
(b)the body corporate is taken not to have been a funds manager in the start-up period; and
(c)the commissioner must make an assessment for transfer duty for each trust acquisition or trust surrender in the start-up period as if the body corporate were not a funds manager in the period; and
(d)the start date for the Administration Act, section 54 (4), is 61 days after the relevant trust acquisition or trust surrender.
(5)In this section—
insurer means—
(a)a person who is authorised under the Insurance Act 1973 (Cwlth) to carry on an insurance business; or
(b)a life company.
start-up period, for a body corporate, means 1 year after the first acquisition by a wholesale investor of a trust interest in a unit trust established and managed by the body corporate.

s 73 amd 2010 No. 11s 12

74Who is a wholesale investor

A wholesale investor in a wholesale unit trust is—
(a)a funds manager, other than the funds manager that established and manages the trust, investing funds of another wholesale unit trust managed by the funds manager; or
(b)the trustee of another wholesale unit trust investing funds of another wholesale unit trust managed by the trustee; or
(c)the trustee of a superannuation fund under the Superannuation Industry Act having more than $10,000,000 in assets; or
(d)a person who has more than $10,000,000 invested in wholesale unit trusts.

s 74 amd 2013 No. 28s 51sch 2 (retro)

Subdivision 5 Basic concepts about pooled public investment unit trusts

75What is a pooled public investment unit trust

(1)A pooled public investment unit trust is a unit trust, other than a listed unit trust, widely held unit trust, wholesale unit trust or declared public unit trust, that is a registered managed investment scheme, exempt managed investment scheme or pooled superannuation trust for which—
(a)either of the following applies—
(i)units in the trust have been issued to the public;
(ii)at least 75% of the total units in the trust are held by 2 or more large qualified holders; and
(b)at least 50 persons are entitled to units in the trust; and
(c)more than 20 persons are entitled to at least 75% of the total units in the trust.

Note—

See sections 77 (Who is holder of units in pooled public investment unit trust) and 78 (Who is entitled to units in pooled public investment unit trust).
(2)However, for a trust acquisition or trust surrender of a trust interest in a trust, a unit trust is not a pooled public investment unit trust unless—
(a)if subsection (1)(a)(i) applies—subsection (1)(b) and (c) is satisfied before and after the trust acquisition or trust surrender; or
(b)if subsection (1)(a)(ii) applies—subsection (1)(a)(ii), (b) and (c) is satisfied before and after the trust acquisition or trust surrender.
(3)For subsection (2), a trust acquisition or trust surrender of a trust interest in a unit trust includes a series of trust acquisitions or trust surrenders under an arrangement.
(4)If subsection (2) applies to a unit trust, the trust is not a pooled public investment unit trust from immediately before the trust acquisition or trust surrender or the first acquisition or surrender under the arrangement.

s 75 amd 2013 No. 28s 4 (retro)

76Who is a qualified holder and a large qualified holder

(1)A qualified holder of units in a unit trust is—
(a)the trustee of a listed unit trust, widely held unit trust, wholesale unit trust or declared public unit trust; or
(b)the trustee of a complying superannuation fund; or
(c)the trustee of a complying approved deposit fund; or
(d)a life company if the units held represent an investment of its statutory funds maintained by it under the Life Insurance Act 1995 (Cwlth); or
(e)a person of a class approved under section 76A ; or
(f)a person approved under section 76B .
(2)A large qualified holder of units in a unit trust is a qualified holder with more than 50 members.

s 76 amd 2008 No. 75s 12 (retro)

76AApproval of class of foreign unit holders as qualified holders

The commissioner may, by gazette notice, approve a class of persons as qualified holders of units in a unit trust if the commissioner is satisfied persons of that class hold the units in a capacity that, under the law of a foreign country or external Territory, corresponds to—
(a)an entity mentioned in section 76 (1)(a) other than the trustee of a declared public unit trust; or
(b)an entity mentioned in section 76 (1)(b) to (d).

s 76A ins 2008 No. 75s 13 (retro)

76BApproval of particular foreign unit holder as qualified holder

(1)The trustee of a unit trust may apply to the commissioner for the approval, for section 76 (1)(f), of a stated person who holds units in the trust (the unit holder).
(2)The application must—
(a)be in the approved form; and
(b)be supported by enough information to enable the commissioner to decide the application.
(3)The commissioner may approve the application if satisfied the unit holder holds the units in a capacity that, under the law of a foreign country or external Territory, corresponds to—
(a)an entity mentioned in section 76 (1)(a) other than the trustee of a declared public unit trust; or
(b)an entity mentioned in section 76 (1)(b) to (d).
(4)If the commissioner reasonably requires advice about a particular matter before deciding the application, the commissioner may refuse to deal further with the application until the applicant pays, or agrees to pay, the reasonable costs of obtaining the advice.
(5)The commissioner may give approval subject to conditions the commissioner considers appropriate.

Example—

A condition may state that the approval ends if there is a particular change in the circumstances of the person to whom the approval relates.
(6)The commissioner must give notice of the decision on the application to the applicant.
(7)If, because of the decision, the commissioner makes an assessment on the basis that a particular person is not approved, or is approved on stated conditions, an objection to the decision may be made as part of an objection to the assessment.

Note—

For objections and appeals against assessments, see the Administration Act, part 6 .
(8)An approval takes effect on the day it is given or on the later day stated in the notice of the decision to give the approval.

s 76B ins 2008 No. 75s 13 (retro)

76CApproval holders must notify commissioner of material changes

(1)This section applies to an approval in force under section 76B if there is a material change in the circumstances existing when the approval was given.
(2)Within 28 days after the approval holder becomes aware, or ought reasonably to have become aware, of the change, the approval holder must give the commissioner notice of the change.

Note—

Failure to give the notice is an offence under the Administration Act, section 120 .

s 76C ins 2008 No. 75s 13 (retro)

76DCancellation or variation of approvals

(1)The commissioner may, by notice to the holder of an approval in force under section 76B , cancel the approval or vary it in a stated way if the commissioner considers—
(a)a condition of the approval is no longer being satisfied or complied with; or
(b)there has been a material change in the circumstances existing when the approval was given.
(2)The cancellation or variation has effect on the day stated in the notice (the effective day).
(3)The effective day may be earlier than the day the notice is given but not earlier than the day the condition mentioned in subsection (1)(a) stopped being satisfied or complied with or the day of the material change in the circumstances mentioned in subsection (1)(b).
(4)If, because of the decision to cancel or vary the approval, the commissioner makes an assessment on the basis that, at a particular time, a particular person was not approved or was approved on stated conditions, an objection to the decision may be made as part of an objection to the assessment.

Note—

For objections and appeals against assessments, see the Administration Act, part 6 .

s 76D ins 2008 No. 75s 13 (retro)

77Who is holder of units in pooled public investment unit trust

(1)For section 75 , a qualified holder is taken to hold the units in a unit trust held for the holder by a custodian.
(2)For section 75 (1)(b) and (c)—
(a)a trustee of a complying superannuation fund that has invested in a pooled superannuation trust is taken to hold the number of units in a unit trust held by the trustee of the pooled superannuation trust that is worked out by applying the fund’s interest in the pooled superannuation trust to the units held by the trustee; and
(b)a member of a pooled public investment unit trust is taken to hold the number of units in a unit trust held by the trustee of the pooled public investment unit trust that is worked out by applying the member’s interest in the pooled public investment unit trust to the units held by the trustee.
(3)For subsection (2)(a), a complying superannuation fund’s interest in a pooled superannuation trust is the proportion that the fund’s investment bears to the total of all investments in the trust expressed as a percentage.
(4)For subsection (2)(b), a member’s interest in a pooled public investment unit trust is the proportion that the value of the member’s entitlement as a member bears to the value of the entitlements of all members in the trust expressed as a percentage.

78Who is entitled to units in pooled public investment unit trust

(1)For section 75 (1)(b) and (c)—
(a)a member of a large qualified holder of units in a unit trust is taken to be entitled to the number of units in the trust that is worked out by applying the member’s interest in the holder to the units in the trust held by the holder; and
(b)another holder of units in the trust is entitled to the units held.
(2)For subsection (1)(a), a member’s interest in a large qualified holder is the proportion that the value of the member’s entitlement as a member bears to the value of the entitlements of all members in the holder expressed as a percentage.
(3)For section 75 , a person who is entitled to units in the unit trust is taken to be entitled to all units that, under subsection (1)(a) and (b), the person and related persons of the person are entitled.

Subdivision 6 Basic concepts about declared public unit trusts

79What is a declared public unit trust

A declared public unit trust is a unit trust declared under a regulation to be a public unit trust for this division.

Subdivision 7 Majority trust acquisitions in land holding trusts

80What is a majority trust acquisition

A person who makes a trust acquisition in a land holding trust makes a majority trust acquisition if—
(a)the person, or the person and related persons of the person (whether alone or jointly), acquire a trust interest in the trust of 50% or more; or
(b)the person, or related persons of the person (whether alone or jointly), acquire a trust interest in the trust that, when aggregated with trust interests already held by the person and related persons of the person (whether alone or jointly), is 50% or more.

s 80 amd 2006 No. 34s 5

81Interpretation for majority trust acquisitions

(1)This section applies for imposing transfer duty on majority trust acquisitions.
(2)An indirect trust interest in a land holding trust being acquired by a person is taken to be a trust interest in the trust.
(3)Also, an indirect trust interest in a land holding trust already held by an acquirer or related person of the acquirer is taken to be a trust interest in the trust.
(4)For an indirect trust interest in a land holding trust taken to be a trust interest under subsection (2) or (3), the acquirer and any related persons of the acquirer are taken to be beneficiaries.
(5)An indirect trust acquisition is taken to be a trust acquisition in the land holding trust in which the indirect trust interest is acquired.

81AParticular trust interests disregarded for majority trust acquisitions

(1)This section applies if—
(a)under section 80 , a person would have made a majority trust acquisition in a wholesale unit trust; and
(b)all the persons who held or acquired the trust interests comprising the majority trust acquisition are group companies of a corporate group; and
(c)the funds manager of the wholesale unit trust is a group company of the corporate group; and
(d)there is no arrangement to avoid the imposition of transfer duty.
(2)For section 80 , the trust interest of a person mentioned in subsection (1)(b) who is a qualified holder must be disregarded.
(3)To remove any doubt, it is declared that section 80 applies to other trust interests, including trust interests held through the qualified holder.

s 81A ins 2002 No. 65s 11

82Deduction—transfer duty for majority trust acquisition

(1)This section applies if—
(a)transfer duty has been paid or is payable on a dutiable transaction that is a majority trust acquisition; and
(b)transfer duty or landholder duty is imposed or has been paid on indirect trust acquisitions and trust acquisitions relating to the majority trust acquisition.
(2)The duty mentioned in subsection (1)(b) must be reduced by the amount of the transfer duty paid or payable under subsection (1)(a) to the extent that the indirect trust interests and trust interests were included in working out the dutiable value of the majority trust acquisition.

s 82 amd 2011 No. 20s 62

Subdivision 8 Indirect trust interests

83Person’s indirect trust interest is proportionate to land holding trust’s dutiable property

A person’s indirect trust interest in a land holding trust is the proportion that the unencumbered value of the person’s entitlement in the land holding trust bears to the unencumbered value of dutiable property held by the land holding trust expressed as a percentage.

Note—

Section 498 includes provision about references to dutiable property.

s 83 amd 2008 No. 75s 22

84What is the value of person’s entitlement in land holding trust

(1)The unencumbered value of a person’s entitlement in a land holding trust is the amount worked out by—
(a)if the person has a subordinate interest in an entity (the first beneficiary) that is a beneficiary of the land holding trust—
(i)first applying to the unencumbered value of the dutiable property held by the land holding trust, the first beneficiary’s trust interest in the land holding trust; and
(ii)applying to the amount worked out under subparagraph (i), the person’s subordinate interest in the first beneficiary; or
(b)if paragraph (a) does not apply—
(i)first applying to the unencumbered value of the dutiable property held by the land holding trust, the subordinate interest of the entity (also the first beneficiary) that is a beneficiary of the land holding trust; and
(ii)applying to the amount worked out under subparagraph (i), the subordinate interest of the next entity in the series of entities that is a shareholder, partner or beneficiary of the first beneficiary connecting the land holding trust to the person; and
(iii)applying the calculation in subparagraph (ii) for each of the other entities in the series until the person’s subordinate interest is applied to the amount worked out under the application of subparagraph (ii) for the entity in which the person’s subordinate interest is held.
(2)For subsection (1)(b)(iii)—
(a)the reference in subsection (1)(b)(ii) to the amount worked out under subsection (1)(b)(i) is a reference to the amount worked out under the previous application of subsection (1)(b)(ii); and
(b)the reference to the first beneficiary is a reference to the next shareholder, partner or beneficiary in the series for which subsection (1)(b)(ii) is being applied.

Part 8A Concessions for farm-in agreements

pt 8A hdg ins 2015 No. 4s 15

Division 1 Some basic concepts about farm-in agreements

div 1 (ss 84A–84F) ins 2015 No. 4s 15

84AWho is a farmor

(1)A farmor is—
(a)a person to whom an exploration authority, is granted under the relevant Act for the authority, even if the person is yet to be registered as the holder of the authority under that Act; or
(b)another person to whom the exploration authority has been transferred under the relevant Act for the authority, even if the other person is yet to be registered as the holder of the authority under that Act.
(2)For subsection (1), the relevant Act for an exploration authority is the Act under which the authority is granted.

div 1 (ss 84A–84F) ins 2015 No. 4s 15

84BWhat is an upfront farm-in agreement

(1)An upfront farm-in agreement is a written agreement entered into by a farmor and another person (the farmee) in relation to an exploration authority, under which—
(a)the farmor must make 1 or more transfers to the farmee of a stated interest in the exploration authority, each interest being less than 100% of the total interest in the authority; and
(b)on the transfer of each interest, the interest is held by the farmee subject to the farmee spending a stated amount (an exploration amount) on relevant exploration or development—
(i)after the agreement is entered into; and
(ii)on or before the expenditure completion date for the amount; and
(c)the farmee must, if the obligation under the agreement mentioned in paragraph (b) is not complied with for the interest transferred, transfer the interest back to the farmor.
(2)However, if the farm-in agreement is a 100% transfer farm-in agreement, the last interest in the exploration authority to be transferred under the agreement need not be held by the farmee subject to an obligation mentioned in subsection (1)(b).

div 1 (ss 84A–84F) ins 2015 No. 4s 15

84CWhat is a deferred farm-in agreement

(1)A deferred farm-in agreement is a written agreement entered into by a farmor and another person (the farmee) in relation to an exploration authority, under which—
(a)the farmee is entitled to 1 or more transfers from the farmor of a stated interest in the exploration authority, each interest being less than 100% of the total interest in the authority; and
(b)the entitlement to each transfer arises only if the farmee spends a stated amount (an exploration amount) on relevant exploration or development—
(i)after the agreement is entered into; and
(ii)on or before the expenditure completion date for the amount.
(2)However, if the farm-in agreement is a 100% transfer farm-in agreement, the last interest in the exploration authority to be transferred under the agreement need not be subject to an obligation mentioned in subsection (1)(b).

div 1 (ss 84A–84F) ins 2015 No. 4s 15

84DWhat is a 100% transfer farm-in agreement

A 100% transfer farm-in agreement, for an exploration authority, is a deferred farm-in agreement or upfront farm-in agreement under which, on the completion of all the transfers of interests in the exploration authority that are proposed to be made by the farmor under the agreement, 100% of the interest in the exploration authority will be held by the farmee.

div 1 (ss 84A–84F) ins 2015 No. 4s 15

84EWhat is the expenditure completion date and an ECD variation

(1)The expenditure completion date for an exploration amount for the transfer of an interest in an exploration authority under a farm-in agreement is—
(a)the day stated in the agreement on or before which the exploration amount must be spent; or
(b)if the farmor and farmee agree to vary the day mentioned in paragraph (a)—the day as varied; or
(c)if the day mentioned in paragraph (b) is further varied—the day as further varied.
(2)A variation mentioned in subsection (1)(b) or (c) is an ECD variation.

div 1 (ss 84A–84F) ins 2015 No. 4s 15

84FWhat is relevant exploration or development

Exploration or development is relevant exploration or development for an exploration amount relating to an interest in an exploration authority the subject of a farm-in agreement if—
(a)the exploration or development is comprised of, or associated with, the carrying out of an activity under the exploration authority; and
(b)all of the exploration or development is carried out after the farm-in agreement is entered into.

div 1 (ss 84A–84F) ins 2015 No. 4s 15

Division 2 Transfer duty for farm-in agreements

div 2 (ss 84G–84I) ins 2015 No. 4s 15

84GFarm-in agreement is an agreement for the transfer of dutiable property

(1)A farm-in agreement is an agreement for the transfer of dutiable property mentioned in section 9 (1)(b).
(2)Section 21 does not apply in relation to the agreement.

div 2 (ss 84G–84I) ins 2015 No. 4s 15

84HExemption—particular transfers to farmor under upfront farm-in agreement

If transfer duty imposed on an upfront farm-in agreement is paid, no transfer duty is imposed on a transfer of an interest in the exploration authority from the farmee to the farmor made because of the obligation mentioned in section 84B (1)(c).

div 2 (ss 84G–84I) ins 2015 No. 4s 15

84IExclusion of s 22 (2) for particular dutiable transactions under farm-in agreement

Section 22 (2) does not apply to the transfer of an interest in an exploration authority if—
(a)both of the following apply—
(i)the transfer is made under a 100% transfer farm-in agreement; and
(ii)the transfer results in the farmee holding 100% of the interest in the exploration authority; or
(b)the interest is transferred to the farmee for a deferred farm-in agreement, even though the farmee has failed to spend all or part of the exploration amount for the transfer under the agreement in the way mentioned in section 84C (1)(b).

div 2 (ss 84G–84I) ins 2015 No. 4s 15

Division 3 Concessions for transfer duty for farm-in agreements

div 3 (s 84J) ins 2015 No. 4s 15

84JHow transfer duty is initially assessed on farm-in agreement

(1)This section applies for assessing liability for transfer duty on a farm-in agreement.
(2)The dutiable value of a farm-in agreement is the consideration paid or payable to the farmor, or a related person of the farmor, for the farmor entering into the agreement, other than an exploration amount.
(3)Section 502 (1)(a) and (b) and (2)(a)—
(a)applies in relation to the consideration mentioned in subsection (2); and
(b)does not apply in relation to any other consideration payable under the agreement.

div 3 (s 84J) ins 2015 No. 4s 15

Division 4 Lodgement and notice requirements for upfront farm-in agreements

div 4 (ss 84K–84L) ins 2015 No. 4s 15

84KLodgement requirement on expenditure of exploration amount

The farmee under an upfront farm-in agreement must, within 14 days after spending the exploration amount for each interest in the exploration authority, lodge—
(a)information, in the approved form, about the expenditure of the exploration amount; and
(b)the upfront farm-in agreement or a transfer duty statement for the agreement.

Note—

Under the Administration Act, the requirement under this section is a lodgement requirement for which a failure to comply is an offence under section 121 of that Act.

div 4 (ss 84K–84L) ins 2015 No. 4s 15

84LNotice requirement for farmee in particular circumstances

(1)This section applies if—
(a)an interest in an exploration authority is transferred to the farmee under an upfront farm-in agreement; and
(b)the farmee fails, under the agreement, to spend all or part of the exploration amount for the interest on or before the expenditure completion date for the amount.
(2)The farmee must, within 30 days after the expenditure completion date—
(a)give notice to the commissioner, in the approved form, of the matter mentioned in subsection (1)(b); and
(b)lodge the farm-in agreement or a transfer duty statement for the agreement.

Note—

Failure to give the notice mentioned in paragraph (a) is an offence under the Administration Act, section 120 . Also, the requirement under paragraph (b) is a lodgement requirement under the Administration Act for which a failure to comply is an offence under section 121 of that Act.
(3)If the original expenditure completion date is varied under the farm-in agreement, the farmee must comply with subsection (2) in relation to a failure to spend an exploration amount on or before each of the following—
(a)the original expenditure completion date for the amount;
(b)the original expenditure completion date, as varied under the agreement;
(c)each variation to the date mentioned in paragraph (b) made under the agreement.
(4)In this section—
original expenditure completion date, for an exploration amount for an interest in an exploration authority under an upfront farm-in agreement, means the day stated in the agreement on or before which the exploration amount must be spent.

div 4 (ss 84K–84L) ins 2015 No. 4s 15

Division 5 Reassessments

div 5 (ss 84M–84N) ins 2015 No. 4s 15

84MWhen commissioner must reassess transfer duty

(1)The commissioner must make a reassessment of transfer duty for a farm-in agreement if, under the agreement, either of the following events happen (each a reassessment event)—

(a)for an upfront farm-in agreement, the farmee is required to—
(i)lodge the information and farm-in agreement or a transfer duty statement for the agreement under section 84K ; or
(ii)give notice and lodge the farm-in agreement or a transfer duty statement for the agreement under section 84L (2);
(b)for a deferred farm-in agreement—an interest in an exploration authority is transferred by the farmor to the farmee.

Note—

See also section 84P for when the commissioner must make a reassessment.

(2)However, subsection (1)(a)(ii) does not apply if—
(a)the farmee transfers the interest back to the farmor under the agreement before the expiry of—
(i)the period for complying with section 84L (2); or
(ii)if the commissioner considers a longer period is appropriate—the longer period; or
(b)both of the following apply—
(i)an ECD variation has been made for the expenditure of the exploration amount;
(ii)the commissioner is satisfied the ECD variation is not part of an arrangement to avoid the imposition of transfer duty.
(3)Also, subsection (1) does not apply if—
(a)the requirement mentioned in subsection (1)(a) relates to the transfer of an interest in an exploration authority under an upfront farm-in agreement that is a 100% farm-in agreement and, on the completion of the transfer, 100% of the interest in the authority will be held by the farmee; or
(b)the transfer of an interest in an exploration authority mentioned in subsection (1)(b) is made under a deferred farm-in agreement that is a 100% farm-in agreement and, on the completion of the transfer, 100% of the interest in the authority will be held by the farmee.
(4)Subsection (1) applies despite the limitation period under the Administration Act for reassessments.

Note—

See the Administration Act, part 3 (Assessments of tax), division 3 (Reassessments).

div 5 (ss 84M–84N) ins 2015 No. 4s 15

84NHow transfer duty is reassessed on farm-in agreements

(1)Subject to subsections (3) and (4), for a reassessment under section 84M the dutiable value of the farm-in agreement includes each of the following, other than an exploration amount—
(a)the consideration paid or payable to the farmor, or a related person of the farmor, for the farmor entering into the agreement;
(b)an amount relating to the transfer of an interest in the exploration authority the subject of a reassessment event, paid or payable on or before the day the latest reassessment event happens;
(c)any other consideration under the agreement paid or payable to the farmor, or a related person of the farmor, on or before the day the latest reassessment event happens.
(2)If subsection (1) applies for a reassessment, section 502 (1)(a) and (b) and (2)(a)—
(a)applies in relation to the consideration mentioned in subsection (1); and
(b)does not apply in relation to any other consideration payable under the agreement.
(3)Subsection (4) applies to a reassessment for a reassessment event mentioned in section 84M (1)(a)(ii) in relation to an interest if the farmee has failed to transfer the interest back to the farmor under the agreement within the time mentioned in section 84M (2)(a) and—
(a)an ECD variation has not been made for the expenditure of the exploration amount; or
(b)both of the following apply—
(i)an ECD variation has been made for the expenditure of the exploration amount;
(ii)the commissioner is satisfied the variation is part of an arrangement to avoid the imposition of transfer duty.
(4)The commissioner must make the reassessment to impose transfer duty on the transaction that is the agreement mentioned in section 84M (1) as if the transaction were not a farm-in agreement under this part.
(5)This section applies despite section 84J .

div 5 (ss 84M–84N) ins 2015 No. 4s 15

Division 6 Miscellaneous

div 6 (ss 84O–84P) ins 2015 No. 4s 15

84OApplication of penalty tax under Administration Act

The Administration Act, section 58 (1)(c) does not apply in relation to a reassessment made by the commissioner under section 84M , unless—
(a)section 84N (4) applies for the reassessment; or
(b)the farmee has failed to comply with—
(i)a lodgement requirement for the reassessment event to which the reassessment relates; or
(ii)a requirement to give the commissioner notice under section 84L (2) for the reassessment event to which the reassessment relates.

div 6 (ss 84O–84P) ins 2015 No. 4s 15

84PExclusion of arrangements to avoid the imposition of transfer duty

(1)This section applies to a dutiable transaction that is a farm-in agreement if the transaction is part of an arrangement to avoid the imposition of transfer duty.
(2)The commissioner must make an assessment to impose transfer duty on the transaction as if the transaction were not a farm-in agreement under this part.
(3)Subsection (2) applies despite the limitation period under the Administration Act for reassessments.

Note—

See the Administration Act, part 3 , division 3.

div 6 (ss 84O–84P) ins 2015 No. 4s 15

Part 9 Concessions for homes

pt hdg amd 2011 No. 20s 129; 2012 No. 8s 13

Division 1 Preliminary

85Purpose of pt 9

The purpose of this part is to provide for concessions for transfer duty for a dutiable transaction that is—
(a)the transfer, or agreement for the transfer, of a home or first home or of vacant land on which a first home is to be constructed; or
(b)the acquisition, on its creation, grant or issue, of a new right that is a lease—
(i)of residential land on which a home or first home is constructed or of vacant land on which a first home is to be constructed; and
(ii)for which a premium, fine or other consideration is payable; or

Note—

In relation to paragraph (b), see also section 614 .
(c)the vesting, under section 9 (1)(d), of a home or first home or of vacant land on which a first home is to be constructed.

s 85 amd 2006 No. 44s 20; 2010 No. 11s 13; 2011 No. 8s 18; 2011 No. 20s 130; 2012 No. 8s 14

Division 2 Some basic concepts about concessions for homes

div hdg amd 2011 No. 20s 129; 2012 No. 8s 15

86What is a home and a first home

(1)A residence is a person’s home if the person’s occupation date for the residence is within 1 year after the person’s transfer date for the residential land.

Note—

For transfer duty to be imposed for residential land, it must be in Queensland, see section 10 (1)(a).
(2)A person’s home is the person’s first home if, before acquiring the home—
(a)the person did not hold, and never before held, an interest in other residential land in Queensland or elsewhere other than—
(i)as trustee for another person; or
(ii)as lessee; or
(iii)as the holder of a security interest; and
(b)the person was not, and had never been, a vacant land concession beneficiary in relation to land other than the residential land on which the home is constructed.
(3)Subsection (2)(a)(ii) does not apply to the interest in land of a lessee of a lease—
(a)of residential land on which a home or first home is constructed; and
(b)for which a premium, fine or other consideration is payable.

s 86 amd 2006 No. 44s 21; 2010 No. 11s 14

sub 2011 No. 20s 131; 2012 No. 8s 16

86AWhat is residential land

Residential land is land, or the part of land, on which a residence is constructed, and includes the curtilage attributable to the residence if the curtilage is used for residential purposes.

s 86A ins 2006 No. 44s 22

86BWhat is a first home for a residence to be constructed on vacant land

(1)A residence that is to be constructed on vacant land is a person’s first home if—
(a)the person’s occupation date for the residence is within 2 years after the person’s transfer date for the vacant land; and
(b)before acquiring the vacant land—
(i)the person did not hold, and never before held, an interest in residential land in Queensland or elsewhere other than—
(A)as trustee for another person; or
(B)as lessee; or
(C)as the holder of a security interest; and
(ii)the person was not, and had never been, a vacant land concession beneficiary in relation to land other than the vacant land on which the residence is to be constructed.
(2)Subsection (1)(b)(i)(B) does not apply to the interest in land of a lessee of a lease—
(a)of residential land on which a home or first home is constructed; and
(b)for which a premium, fine or other consideration is payable.

s 86B ins 2006 No. 44s 22

amd 2010 No. 11s 15; 2011 No. 20s 132; 2012 No. 8s 17

86CWhat is vacant land

A person’s land is vacant land if—
(a)a residence is to be constructed on the land; and
(b)when the person acquired the land, there was no building or part of a building on the land.

s 86C ins 2006 No. 44s 22

86DWhat is a vacant land concession beneficiary

(1)A person is a vacant land concession beneficiary in relation to particular land if—
(a)the person was—
(i)a transferee under a dutiable transaction that was the transfer, or agreement for the transfer, of the land; or
(ii)a lessee under a dutiable transaction that was the acquisition, mentioned in section 85 (b) , of a lease of the land; or
(iii)a vested person for the land under a dutiable transaction that was the vesting, mentioned in section 85 (c) , of the land; and
(b)under section 92 or 93A , a concession applied to the transaction; and
(c)at the time of the transaction, the land was vacant land.
(2)For subsection (1)(b), a transaction that was assessed on the basis of a concession under section 92 or 93A is taken to be a transaction to which a concession under section 92 or 93A applied even if the transaction was reassessed under section 153 or 154 .

s 86D ins 2006 No. 44s 22

amd 2010 No. 11s 16; 2011 No. 8s 19

87What is a residence

A residence is a building, or part of a building, that is—
(a)fixed to land; and
(b)designed, or approved by a local government, for human habitation by a single family unit; and
(c)used for residential purposes.

88What is a person’s occupation date for a residence

A person’s occupation date for a residence is the date the person, as owner of the residence, starts occupying it as the person’s principal place of residence.

89What is a person’s transfer date for residential land or vacant land

A person’s transfer date for residential land or vacant land is the date the person is entitled to possession of the land under the dutiable transaction that is—
(a)the transfer, or agreement for the transfer, of the land; or
(b)the acquisition, mentioned in section 85 (b) , of a lease of the land; or
(c)the vesting, mentioned in section 85 (c) , of the land.

s 89 amd 2006 No. 44s 23; 2010 No. 11s 17; 2011 No. 8s 20

90What is the dutiable value of residential land or vacant land

(1)Subsection (2) applies to a dutiable transaction that is 1 of the following in relation to residential land or vacant land—
(a)a transfer, or agreement for the transfer, of the land;
(b)an acquisition, mentioned in section 85 (b), of a lease of the land;
(c)a vesting, mentioned in section 85 (c), of the land.
(2)The dutiable value of the land to which the transaction relates is as follows—
(a)for a transaction mentioned in subsection (1)(a) or (c)—the part of the dutiable value of the transaction that is attributable to the land;
(b)for a transaction mentioned in subsection (1)(b)—the part of the dutiable value of the transaction that is attributable to the interest acquired in the land.

s 90 amd 2006 No. 44s 24

sub 2010 No. 11s 18

amd 2011 No. 8 ss 21, 122 sch

Division 3 Concessions for homes and first homes

div hdg amd 2011 No. 20s 133; 2012 No. 8s 18

91Concession—home

(1)This section applies if—
(a)a dutiable transaction is 1 of the following—
(i)the transfer, or agreement for the transfer, of residential land;
(ii)the acquisition, mentioned in section 85 (b) , of a lease of residential land;
(iii)the vesting, mentioned in section 85 (c) , of residential land; and
(b)either of the following applies—
(i)the transferees, lessees or vested persons are individuals and are not trustees and the residence will be their home;
(ii)the transferees, lessees or vested persons are trustees of a trust, other than a discretionary or unit trust, the beneficiaries are individuals all of whom are under a legal disability and the residence would be the home of all the beneficiaries if they were the transferees or lessees of, or vested persons for, the land.
(2)The transfer duty imposed on the dutiable transaction is the amount worked out under subsection (3) or (5).
(3)If the dutiable value of the residential land is not more than $350,000, the transfer duty is the total of—
(a)$1 for each $100, or part of $100, of the dutiable value of the land; and
(b)the amount worked out by deducting, from transfer duty on the dutiable value of the dutiable transaction, the amount worked out by applying the relevant rate to the dutiable value of the residential land.
(4)For subsection (3), the relevant rate is the rate of transfer duty stated in schedule 3 , column 2, opposite the part of the dutiable value of the dutiable transaction attributable to the dutiable value of the residential land stated in schedule 3 , column 1.
(5)If the dutiable value of the residential land is more than $350,000, the transfer duty is the total of—
(a)$3500; and
(b)the amount worked out by deducting, from transfer duty on the dutiable value of the dutiable transaction, the amount worked out by applying the relevant rate to $350,000.
(6)For subsection (5), the relevant rate is the rate of transfer duty stated in schedule 3 , column 2, for $350,000.

s 91 prev s 91 amd 2004 No. 15s 4; 2005 No. 60s 6; 2006 No. 44s 25; 2008 No. 39s 4; 2010 No. 11s 19; 2011 No. 8 ss 22, 122 sch

om 2011 No. 20s 134

pres s 91 ins 2012 No. 8s 19

92Concession—first home

(1)This section applies if—
(a)a dutiable transaction is 1 of the following—
(i)the transfer, or agreement for the transfer, of residential land or vacant land;
(ii)the acquisition, mentioned in section 85 (b), of a lease of residential land or vacant land;
(iii)the vesting, mentioned in section 85 (c), of residential land or vacant land; and
(b)either of the following applies—
(i)the transferees, lessees or vested persons are all individuals of at least 18 years of age on the day the liability for transfer duty arises, the residence will be the first home of all of the transferees, lessees or vested persons and none of the transferees, lessees or vested persons are trustees;
(ii)the transferees, lessees or vested persons are trustees of a trust, other than a discretionary or unit trust, the beneficiaries are individuals all of whom are under a legal disability and the residence would be the first home of all the beneficiaries if they were the transferees or lessees of, or vested persons for, the land and other residential land or vacant land previously the subject of a trust of which they were beneficiaries; and
(c)either—
(i)the unencumbered value of the land is not more than—
(A)for residential land—$500,000; or
(B)for vacant land—$320,000; or
(ii)if the unencumbered value of the land is more than the amount stated in subparagraph (i) for the land, the consideration for the dutiable transaction is at least the unencumbered value of the land.
(1A)However, if subsection (1)(b)(ii) applies and 1 or more of the beneficiaries is under a legal disability only because the beneficiary is not at least 18 years of age, this section applies in relation to the dutiable transaction only if the commissioner is satisfied there is no avoidance scheme in relation to the transaction.
(2)The transfer duty imposed on the dutiable transaction is as follows—
(a)for a dutiable transaction mentioned in subsection (1)(a) in relation to residential land—the amount of transfer duty worked out under section 91 less the concession amount stated in schedule 4A ;
(b)for a dutiable transaction mentioned in subsection (1)(a) in relation to vacant land—the amount of transfer duty worked out by applying the relevant rate to the dutiable value of the transaction, less the concession amount stated in schedule 4B .
(3)The commissioner may exempt a transferee, lessee or vested person for land from the requirement under subsection (1)(b)(i) that the transferee, lessee or vested person for land be at least 18 years of age if the commissioner is satisfied there is no avoidance scheme in relation to the dutiable transaction.
(4)In this section—
relevant rate, for a transaction mentioned in subsection (2)(b), means the rate of transfer duty stated in schedule 3 , column 2, opposite the dutiable value of the transaction as stated in schedule 3 , column 1.

s 92 amd 2004 No. 2s 4; 2006 No. 44 ss 12, 26; 2008 No. 39s 5; 2008 No. 75s 16 (retro); 2010 No. 11s 20; 2011 No. 8 ss 23, 122 sch; 2011 No. 20s 135; 2012 No. 8s 20

93Concession—mixed and multiple claims for individuals—residential land

(1)This section applies if—
(a)a dutiable transaction is 1 of the following (each a relevant transaction)—
(i)the transfer, or agreement for the transfer, of residential land;
(ii)the acquisition, mentioned in section 85 (b), of a lease of residential land;
(iii)the vesting, mentioned in section 85 (c), of residential land; and
(b)there is more than 1 transferee or lessee of, or vested person for, the residential land to which the transaction relates; and
(c)the residence is—
(i)the home or first home of all the transferees, all the lessees or all the vested persons (each relevant persons); or
(ii)the home or first home of 1 or more of the transferees, 1 or more of the lessees or 1 or more of the vested persons (each also relevant persons) but not all the transferees, all the lessees or all the vested persons; and
(d)the relevant persons are individuals.
(2)Also, this section applies if—
(a)a dutiable transaction is a relevant transaction in relation to residential land on which more than 1 residence is constructed; and
(b)1 or more of the residences is, for 1 or more of the transferees, 1 or more of the lessees or 1 or more of the vested persons (each also relevant persons), a home or first home; and
(c)the relevant persons are individuals.
(3)In addition, this section applies if a dutiable transaction is a relevant transaction in relation to a part interest in residential land that, if it were in relation to the whole interest in the land, would be a dutiable transaction to which this section applies under subsection (1) or (2), other than the requirement for more than 1 transferee, lessee or vested person for the land.
(4)For subsections (1)(c) and (2)(b), a residence may be treated as the first home of a relevant person only if the relevant person is at least 18 years of age on the day the liability for transfer duty arises.
(5)The commissioner may exempt a relevant person from the requirement that the relevant person be at least 18 years of age if the commissioner is satisfied there is no avoidance scheme in relation to the dutiable transaction.
(6)The transfer duty imposed on a dutiable transaction to which this section applies under subsection (1)(c)(i) or (2) is the total of—
(a)for each relevant person, the amount worked out by applying the transferee’s, lessee’s or vested person’s interest to the concessional duty; and
(b)the amount worked out by deducting, from transfer duty on the dutiable value of the transaction, the amount (the deduction amount) worked out by applying the relevant rate to the lesser of the following—
(i)the total of the value of each relevant person’s interest;
(ii)$350,000.
(7)The transfer duty imposed on a dutiable transaction to which this section applies under subsection (1)(c)(ii) or (3) is the total of—
(a)for each relevant person, the amount worked out by applying the person’s interest to the concessional duty; and
(b)the amount worked out by deducting, from transfer duty on the dutiable value of the transaction, the amount (also the deduction amount) worked out by applying the relevant rate to the lesser of the following—
(i)the total of the value of each relevant person’s interest;
(ii)the total of the relevant persons’ interests multiplied by $350,000.
(8)For subsections (6) and (7)—
(a)the concessional duty is the transfer duty that—
(i)if section 91 were to apply to the dutiable transaction—would be equal to the amount worked out under section 91 (3)(a) or the amount stated in section 91 (5)(a); or
(ii)if section 92 were to apply to the dutiable transaction—would be equal to the amount worked out under section 91 (3)(a) or the amount stated in section 91 (5)(a) less the amount of the deduction under section 92 (2)(a); and
(b)the relevant person’s interest is the proportion that the share of the person in the whole dutiable property bears to the total of the shares of—
(i)for a dutiable transaction to which this section applies under subsection (3)—all the co-owners, or the owner, on completion of the transaction; or
(ii)for another dutiable transaction—all the relevant persons; and
(c)the value of a relevant person’s interest is worked out by applying the person’s interest to the dutiable value of the residential land; and
(d)the relevant rate is the rate of transfer duty stated in schedule 3 , column 2, opposite the part of the dutiable value of the dutiable transaction attributable to the deduction amount as stated in schedule 3 , column 1.
(9)For working out the concessional duty under subsection (8)(a) for a relevant person under subsection (2), the residential land mentioned in section 91 (3) or (5), and schedule 4A , is the part of the residential land relating to the person’s home or first home.
(10)For a relevant person under subsection (2), the residential land mentioned in subsection (8)(c) is the part of the residential land relating to the person’s home or first home.

s 93 amd 2002 No. 65s 12; 2004 No. 2s 5; 2004 No. 15s 5; 2005 No. 60s 7; 2006 No. 44s 27; 2008 No. 39s 6; 2010 No. 11s 21; 2011 No. 8 ss 24, 122 sch; 2011 No. 20s 136; 2012 No. 8s 21

93AConcession—mixed and multiple claims for individuals—vacant land

(1)This section applies if—
(a)a dutiable transaction is 1 of the following (each a relevant transaction)—
(i)the transfer, or agreement for the transfer, of vacant land;
(ii)the acquisition, mentioned in section 85 (b), of a lease of vacant land;
(iii)the vesting, mentioned in section 85 (c), of vacant land; and
(b)there is more than 1 transferee or lessee of, or vested person for, the vacant land to which the transaction relates; and
(c)the residence, when constructed, will be the first home of 1 or more of the transferees, 1 or more of the lessees or 1 or more of the vested persons (each relevant persons) but not all the transferees, all the lessees or all the vested persons; and
(d)the relevant persons are individuals.
(2)In addition, this section applies if a dutiable transaction is a relevant transaction in relation to a part interest in vacant land that, if it were in relation to the whole interest in the land, would be a dutiable transaction to which this section applies under subsection (1), other than the requirement for more than 1 transferee, lessee or vested person for the land.
(3)For subsection (1)(c), a residence may be treated as the first home of a relevant person only if the relevant person is at least 18 years of age on the day the liability for transfer duty arises.
(4)The commissioner may exempt a relevant person from the requirement that the relevant person be at least 18 years of age if the commissioner is satisfied there is no avoidance scheme in relation to the dutiable transaction.
(5)The transfer duty imposed on the dutiable transaction is the amount worked out by deducting, from transfer duty on the dutiable value of the transaction, the lesser of the following amounts—
(a)the total amount worked out by, for each relevant person, applying the relevant person’s interest to the concession amount stated in schedule 4B opposite the dutiable value of the vacant land;
(b)the total amount worked out by, for each relevant person, applying the relevant person’s interest to transfer duty on the dutiable value of the vacant land.
(6)For subsection (5), the relevant person’s interest is the proportion that the share of the relevant person in the whole dutiable property bears to the total of the shares of—
(a)for a dutiable transaction to which this section applies under subsection (1)—all the transferees, all the lessees or all the vested persons for the land; or
(b)for a dutiable transaction to which this section applies under subsection (2)—all the co-owners, or the owner, on completion of the transaction.

s 93A ins 2006 No. 44s 28

amd 2008 No. 75s 11 (retro); 2010 No. 11s 22; 2011 No. 8 ss 25, 122 sch

94Concession—mixed and multiple claims for trustees—residential land

(1)This section applies if—
(a)a dutiable transaction is 1 of the following—
(i)the transfer, or agreement for the transfer, of residential land;
(ii)the acquisition, mentioned in section 85 (b), of a lease of residential land;
(iii)the vesting, mentioned in section 85 (c), of residential land; and
(b)the transferee, lessee or vested person is a trustee of a trust, other than a discretionary or unit trust; and
(c)the beneficiaries of the trust are individuals all of whom are under a legal disability.
(2)Section 93 applies to the transaction as if the beneficiaries are the transferees or lessees of, or vested persons for, the residential land.
(3)However, section 93 (4) and (5) applies in relation to a beneficiary only if the beneficiary is under a legal disability only because the beneficiary is not at least 18 years of age.

s 94 amd 2004 No. 2s 6; 2006 No. 44s 29; 2010 No. 11s 23; 2011 No. 8 ss 26, 122 sch; 2011 No. 20s 137

94AConcession—mixed and multiple claims for trustees—vacant land

(1)This section applies if—
(a)a dutiable transaction is 1 of the following—
(i)the transfer, or agreement for the transfer, of vacant land;
(ii)the acquisition, mentioned in section 85 (b), of a lease of vacant land;
(iii)the vesting, mentioned in section 85 (c), of vacant land; and
(b)the transferee, lessee or vested person is a trustee of a trust, other than a discretionary or unit trust; and
(c)the beneficiaries of the trust are individuals all of whom are under a legal disability.
(2)Section 93A applies to the transaction as if the beneficiaries are the transferees or lessees of, or vested persons for, the vacant land.
(3)However, section 93A (3) and (4) apply in relation to a beneficiary only if the beneficiary is under a legal disability only because the beneficiary is not at least 18 years of age.

s 94A ins 2006 No. 44s 30

amd 2010 No. 11s 24; 2011 No. 8 ss 27, 122 sch

95Application for concession

An application for a concession for transfer duty on a dutiable transaction under this division must be made in the approved form.

s 95 sub 2006 No. 44s 31

Division 4 Miscellaneous

div hdg ins 2008 No. 75s 4 (retro)

95AOccupation date—particular arrangements for retirement village

(1)This section applies if—
(a)a dutiable transaction is the transfer, agreement for the transfer, or vesting mentioned in section 85 (c) , of residential land that is an accommodation unit in a retirement village; and
(b)the transferee, or the vested person for the land, enters into a retirement village leasing arrangement for the unit.
(2)A reference in section 88 to a person occupying a residence as owner of the residence includes the transferee, or the vested person for the land, occupying the unit under the sublease.

s 95A ins 2008 No. 75s 4 (retro)

amd 2011 No. 8s 28

Part 10 Concessions for dutiable transactions for particular family businesses

Division 1 Preliminary

96Purposes of pt 10

The purposes of this part are to—
(a)provide a concession for transfer duty on particular dutiable transactions for dutiable property used to carry on particular family businesses of primary production; and
(b)provide a concession for transfer duty on particular dutiable transactions by way of gift of dutiable property used to carry on particular family prescribed businesses.

s 96 sub 2016 No. 37s 5

97Dutiable transactions to which pt 10 applies

(1)This part applies to each of the following dutiable transactions if the conditions applying to the transaction are satisfied—
(a)the transfer, or agreement for the transfer, of business property;
(b)a partnership acquisition if property of the partnership includes business property;
(c)a trust acquisition, other than a trust acquisition on the creation of a trust or a trust acquisition for a unit trust, if property of the trust includes business property;
(d)the creation of a trust, or trust acquisition on the creation of a trust, of—
(i)business property; or
(ii)an indirect interest in dutiable property if the dutiable property includes business property;
(e)a trust acquisition for a unit trust if the property of the trust includes business property.
(2)For subsection (1)(d)(ii), an indirect interest in dutiable property is a partnership or trust interest in a family partnership, family trust or family unit trust that holds the dutiable property.

s 97 amd 2006 No. 44s 32

98Conditions for transfer or agreement for transfer of business property

(1)The conditions applying to a dutiable transaction mentioned in section 97 (1)(a) are as follows—
(a)the transferor or person directing the transfer is—
(i)if the business property is used to carry on a business of primary production—a defined relative of the transferee; or
(ii)otherwise—an ancestor of the transferee;
(b)the transferee does not acquire the business property as—
(i)trustee, other than as trustee of a trust for the beneficiaries mentioned in subsection (2); or
(ii)agent or nominee of another person;
(c)the business for which the business property is used is carried on by the defined relative or ancestor, whether alone or with others;
(d)the business is intended to be carried on by the transferee, whether alone or with others.
(2)For subsection (1)(b)(i)—
(a)the beneficiary of the trust is a minor, and—
(i)if the business property is used to carry on a business of primary production—the minor is a defined relative of the person creating the trust; or
(ii)otherwise—the minor is a descendant of the person creating the trust; and
(b)there are no other beneficiaries of the trust, other than a person who would become a beneficiary of the trust on the death of the beneficiary mentioned in paragraph (a).

s 98 amd 2014 No. 35s 4

99Conditions for partnership acquisitions

(1)The conditions applying to a dutiable transaction mentioned in section 97 (1)(b) are as follows—
(a)the partnership is a family partnership for the acquirer;
(b)the transferor or person directing the acquisition is—
(i)if the business property is used to carry on a business of primary production—a defined relative of the acquirer; or
(ii)otherwise—an ancestor of the acquirer;
(c)the acquirer does not acquire the partnership interest as—
(i)trustee, other than as trustee of a trust for the beneficiaries mentioned in subsection (2); or
(ii)agent or nominee of another person;
(d)the business for which the business property is used is carried on by the defined relative or ancestor with the other partners;
(e)the business is intended to be carried on by the acquirer, whether alone or with other partners.
(2)For subsection (1)(c)(i)—
(a)the beneficiary of the trust is a minor, and—
(i)if the business property is used to carry on a business of primary production—the minor is a defined relative of the person creating the trust; or
(ii)otherwise—the minor is a descendant of the person creating the trust; and
(b)there are no other beneficiaries of the trust, other than a person who would become a beneficiary of the trust on the death of the beneficiary mentioned in paragraph (a).

s 99 amd 2014 No. 35s 5

100Conditions for particular trust acquisitions

(1)The conditions applying to a dutiable transaction mentioned in section 97 (1)(c) are as follows—
(a)the trust is a family trust for the acquirer;
(b)the person disposing of the interest or directing the acquisition is—
(i)if the business property is used to carry on a business of primary production—a defined relative of the acquirer; or
(ii)otherwise—an ancestor of the acquirer;
(c)the acquirer does not acquire the interest as—
(i)trustee, other than as trustee of a trust for the beneficiaries mentioned in subsection (2); or
(ii)agent or nominee of another person;
(d)the business for which the business property is used is carried on by the defined relative or ancestor, whether alone or with others;
(e)the business is intended to be carried on by the acquirer, whether alone or with others.
(2)For subsection (1)(c)(i)—
(a)the beneficiary of the trust is a minor, and—
(i)if the business property is used to carry on a business of primary production—the minor is a defined relative of the person creating the trust; or
(ii)otherwise—the minor is a descendant of the person creating the trust; and
(b)there are no other beneficiaries of the trust, other than a person who would become a beneficiary of the trust on the death of the beneficiary mentioned in paragraph (a).

s 100 amd 2014 No. 35s 6

101Conditions for creation of trusts and particular trust acquisitions

The conditions applying to a dutiable transaction mentioned in section 97 (1)(d) are as follows—
(a)the trust is a family trust for the acquirer;
(b)the beneficiary of the trust is a minor, and—
(i)if the business property is used to carry on the business of primary production—the minor is a defined relative of the person creating the trust; or
(ii)otherwise—the minor is a descendant of the person creating the trust;
(c)there are no other beneficiaries of the trust other than a person who would become a beneficiary of the trust on the death of the beneficiary mentioned in paragraph (b);
(d)the acquirer does not acquire the interest as agent or nominee of another person;
(e)the business for which the business property is used is carried on by the person creating the trust, whether alone or with others;
(f)the business is intended to be carried on for the beneficiary, whether alone or with others.

s 101 amd 2014 No. 35s 7

102Conditions for acquisitions of interest in family unit trusts

(1)The conditions applying to a dutiable transaction mentioned in section 97 (1)(e) are as follows—
(a)the trust is a family unit trust for the acquirer;
(b)the person disposing of the interest or directing the acquisition is—
(i)if the business property is used to carry on a business of primary production—a defined relative of the acquirer; or
(ii)otherwise—an ancestor of the acquirer;
(c)the acquirer does not acquire the interest as—
(i)trustee, other than as trustee of a trust for the beneficiaries mentioned in subsection (2); or
(ii)agent or nominee of another person;
(d)the business for which the business property is used is carried on by the defined relative or ancestor, whether alone or with others;
(e)the business is intended to be carried on by the acquirer, whether alone or with others.
(2)For subsection (1)(c)(i)—
(a)the beneficiary of the trust is a minor, and—
(i)if the business property is used to carry on a business of primary production—the minor is a defined relative of the person creating the trust; or
(ii)otherwise—the minor is a descendant of the person creating the trust; and
(b)there are no other beneficiaries of the trust, other than a person who would become a beneficiary of the trust on the death of the beneficiary mentioned in paragraph (a).

s 102 amd 2014 No. 35s 8

103[Repealed]

s 103 om 2006 No. 44s 33

104Dutiable transactions by way of gift

For this part, a dutiable transaction is by way of gift if there is no consideration or the unencumbered value of the dutiable property is greater than the consideration for the transaction.

Division 2 Concessions for transfer duty for dutiable transactions

105How transfer duty is assessed on dutiable transaction—primary production business

(1)This section applies for assessing transfer duty on a dutiable transaction to which this part applies if business property to which the transaction relates is used to carry on a primary production business.
(2)The dutiable value of the business property is taken to be nil.
(3)In addition, if the dutiable property the subject of the dutiable transaction includes residential land adjacent to land used to carry on the business, the dutiable value of the residential land is taken to be nil.

s 105 amd 2006 No. 44s 34

sub 2016 No. 37s 6

105A How transfer duty is assessed on dutiable transaction—prescribed business

(1)This section applies for assessing transfer duty on a dutiable transaction to which this part applies—
(a)if business property to which the transaction relates is used to carry on a prescribed business; and
(b)to the extent the transaction is by way of gift.
(2)The unencumbered value of the business property is limited to the amount by which the value exceeds $500,000.
(3)Subsection (2) has effect subject to section 106 .

s 105A ins 2016 No. 37s 6

106Special provision for assessing transfer duty if total gifts of property used for prescribed business exceed $500,000

(1)This section applies to a dutiable transaction to which this part applies if—
(a)business property to which the transaction relates is used to carry on a prescribed business; and
(b)the transferee or acquirer has, since 12 December 1984, been gifted business property, a partnership interest, a trust interest or a marketable security; and
(c)the gift was made by or at the direction of the ancestor of the transferee or acquirer; and
(d)the ancestor was a party to, or directed, the transaction; and
(e)the gifted business property or the business property of the partnership, trust or corporation to which the gifted interest or security relates is also used to carry on the prescribed family business.
(2)The unencumbered value of the business property to which the transaction relates is limited to the amount by which the total value of the property mentioned in subsection (1)(a) and (e) exceeds $500,000.
(3)Subsection (1)(b) does not apply to a marketable security gifted on or after 1 January 2007.

s 106 amd 2006 No. 44s 35

107Application for concession for transfer duty under pt 10

An application for a concession for transfer duty on a dutiable transaction under this part must—
(a)be made in the approved form; and
(b)be lodged when the instrument that effects or evidences the transaction or transfer duty statement for the transaction is lodged for assessment.

Part 11 Concessions for superannuation

108Dutiable transactions to which pt 11 applies

(1)This part applies to the following dutiable transactions—
(a)a transfer of dutiable property between superannuation funds to effect a merger of 2 or more superannuation funds or the splitting of a superannuation fund into 2 or more superannuation funds, if the trustees of the funds declare the new fund or funds will be complying superannuation funds within 1 year after the merger or split;
(b)the creation of a trust of dutiable property because of the variation or reconstitution of a superannuation fund if the trustees of the fund declare that the fund, after the variation or reconstitution, will be a complying superannuation fund within 1 year after the creation of the trust.
(2)However, this part does not apply if the dutiable transaction is part of an arrangement the sole or dominant purpose of which is to avoid duty on the disposition of dutiable property of, or to, a superannuation fund.

109Concession for transfer duty

Transfer duty imposed on a dutiable transaction to which this part applies is $20.

110Documents to accompany application

An application for an assessment of duty under this part must be accompanied by the following—
(a)an explanation of the background to the dutiable transaction and the entitlements, if any, to be extinguished or created;
(b)copies of the governing rules of the superannuation funds and any proposed amendments of the rules;
(c)a statement of the dutiable property the subject of the transaction;
(d)a copy of each instrument relating to the transaction;
(e)a statutory declaration from a trustee of each of the superannuation funds concerned stating that, in the trustee’s opinion, the fund will be a complying superannuation fund within 1 year after the transaction.

Part 12 [Repealed]

pt 12 (ss 111–114) exp 30 June 2011 (see s 114)

111[Repealed]

pt 12 (ss 111–114) exp 30 June 2011 (see s 114)

112[Repealed]

pt 12 (ss 111–114) exp 30 June 2011 (see s 114)

113[Repealed]

pt 12 (ss 111–114) exp 30 June 2011 (see s 114)

114[Repealed]

pt 12 (ss 111–114) exp 30 June 2011 (see s 114)

Part 13 Exemptions for transfer duty

Division 1 Exemptions for cancelled agreements and particular agreements entered into before registration of companies

115Exemption—cancelled agreements

(1)Transfer duty is not imposed on a dutiable transaction that is an agreement for the transfer of dutiable property (the cancelled agreement) if—
(a)the agreement is ended because of a breach of it by a party to it; or
(b)the agreement is ended because of non-fulfilment of a condition of it; or
(c)the agreement is brought to an end by frustration; or
(d)the agreement is ended with the consent of the parties to it and there is no resale agreement.
(2)For subsection (1)(d), an agreement is a resale agreement if—
(a)under the agreement, any of the dutiable property the subject of the cancelled agreement is or will be transferred or is agreed to be transferred; and
(b)the transferee under the cancelled agreement or a related person of the transferee receives, or will receive, directly or indirectly a financial benefit other than—
(i)the release of the transferee from the transferee’s obligation under the cancelled agreement; or
(ii)an interest in the dutiable property to the extent that the unencumbered value of the interest does not represent a profit for the transferee because of the resale agreement.
(3)If, on an assessment, transfer duty has been paid on an agreement that is not liable to transfer duty because of this section, the commissioner must make a reassessment if an application is made within 6 months after the agreement is ended or within the longer period the commissioner allows.
(4)The applicant must lodge the cancelled agreement with the application.

s 115 amd 2011 No. 8s 29

116Exemption—particular agreements entered into before registration of company

(1)Subsection (2) applies if—
(a)a transferee enters into an agreement (the first agreement) for, or for the benefit of, a company proposed to be registered under the Corporations Act; and
(b)the company is named in the first agreement; and
(c)the company, or a company that is reasonably identifiable with it, is registered under the Corporations Act; and
(d)the first agreement is ended so that the company can enter into an agreement as the transferee of the dutiable property.
(2)Transfer duty is not imposed on the dutiable transaction that is the first agreement for the transfer of the dutiable property.
(3)Subsection (4) applies if—
(a)a transferee enters into an agreement for, or for the benefit of, a company proposed to be registered under the Corporations Act; and
(b)the company is named in the agreement; and
(c)the company, or a company that is reasonably identifiable with it, is registered under the Corporations Act; and
(d)under the Corporations Act, section 131 , the company ratifies the agreement after it is registered.
(4)Transfer duty is not imposed on the dutiable transaction that is the transfer of the dutiable property to the company if transfer duty imposed on the agreement is paid.

Note—

See also section 241A in relation to the imposition of AFAD on the agreement in particular circumstances.
(5)If, on an assessment, transfer duty has been paid on a dutiable transaction that is not liable to transfer duty because of this section, the commissioner must make a reassessment if an application is made within 6 months after the agreement is ended or ratified or the longer period the commissioner allows.
(6)The applicant must lodge the first agreement or transfer with the application.

s 116 amd 2017 No. 20s 4

Division 2 Exemptions for trusts

117Exemption—change of trustee

(1)Transfer duty is not imposed on a dutiable transaction for the sole purpose of giving effect to a change of a trustee if—
(a)the transaction is not part of an arrangement—
(i)involving a change in the rights or interest of a beneficiary of the trust; or
(ii)terminating the trust; and
(b)transfer duty has been paid on all trust acquisitions or trust surrenders for which transfer duty is imposed for the trust before the transaction.
(2)Also, transfer duty is not imposed on a dutiable transaction for the sole purpose of giving effect to a change of a trustee if—
(a)the transaction is part of an arrangement involving a change in the rights or interest of a beneficiary of the trust; and
(b)transfer duty has been paid on all trust acquisitions or trust surrenders—
(i)of trust interests in the trust made under the arrangement; and
(ii)for which transfer duty is imposed; and
(c)transfer duty has been paid on all trust acquisitions or trust surrenders for which transfer duty is imposed for the trust before the transaction; and
(d)the change of trustee is not part of an arrangement to avoid the imposition of duty.

Note—

In relation to subsection (2), see also section 615 .

s 117 amd 2010 No. 11s 25; 2011 No. 8s 30

118Exemption—trust acquisition or surrender in family trust

(1)Transfer duty is not imposed on a dutiable transaction that is a trust acquisition or trust surrender of a trust interest if—
(a)the trust is established and maintained as a discretionary trust primarily for the benefit of the members of a particular family or a family company; and
(b)the person acquiring or surrendering the trust interest is a member of the family who, or is a family company that, does not benefit in the capacity of trustee.
(2)Also, transfer duty is not imposed on a dutiable transaction that is a trust acquisition or trust surrender if—
(a)the trust is established and maintained primarily for the benefit of the members of a particular family or a family company; and
(b)the trust acquisition or trust surrender is a result of—
(i)a member of the family becoming or ceasing to be a member of a class of beneficiaries of the trust because of the birth or death of the member; or
(ii)the person acquiring or surrendering the trust interest becoming or ceasing to be a member of a class of beneficiaries of the trust consisting of the children, stepchildren or grandchildren of a named member or members of the family.
(3)For subsection (1)(a) or (2)(a), a discretionary trust is established and maintained primarily for the benefit of the members of a particular family or a family company if—
(a)the primary beneficiaries of the trust consist only of members of the family or the family company; and
(b)the takers in default of an appointment for capital by the trustee of the trust consist only of members of the family or the family company.
(4)However, subsection (3)(b) is taken to be satisfied if the last taker in default of an appointment for capital by the trustee of the trust is—
(a)a person decided under the Succession Act 1981 ; or
(b)a charitable institution.
(5)For subsection (2)(a), a trust other than a discretionary trust is established and maintained primarily for the benefit of the members of a particular family or a family company if at least 90% of the trust interests in the trust are held by members of the family or the family company.
(6)For applying this section, a person (the first person) is a member of the particular family of another person (the other person) if—
(a)the first person is the spouse of the other person; or
(b)the first person, or the first person’s spouse, is any of the following in relation to the other person, or the other person’s spouse—
(i)child, stepchild or adopted child;
(ii)grandchild or great grandchild;
(iii)brother, sister, aunt, uncle or cousin;
(iv)parent, step-parent, adoptive parent, grandparent or great grandparent.
(7)In this section—
family company, for a trust, means a corporation in which all its directors and shareholders are members of the particular family for which the trust is established and maintained.
spouse includes former spouse.

s 118 amd 2008 No. 75s 23; 2010 No. 15s 98sch 3

sub 2011 No. 8s 31

119Exemption—trust acquisition or surrender in superannuation fund

Transfer duty is not imposed on a dutiable transaction that is a trust acquisition or trust surrender of a trust interest—
(a)of a member in a superannuation fund if the transaction is for the sole purpose of providing superannuation benefits for the member; or
(b)to the extent the transaction gives effect to a distribution of benefits of a person who was a member of a superannuation fund on the person’s death.

120Exemption—trust acquisition or surrender for membership of particular unincorporated association

(1)Transfer duty is not imposed on a dutiable transaction that is a trust acquisition or trust surrender of a trust interest of a member of an unincorporated association to which this section applies if—
(a)the transaction is solely the result of a person becoming a member of the association for the sole purpose of enjoying the benefits of membership and no consideration is paid or payable by the person other than membership fees; or
(b)the transaction is solely the result of a person ceasing to be a member of the association and no consideration is received by the person other than a refund of membership fees.
(2)This section applies to an unincorporated association that—
(a)has at least 7 members; and
(b)is not formed or carried on for providing financial gain for its members; and
(c)does not have as its main purpose the holding of property—
(i)in which its members have a disposable interest; or
(ii)that the members have a right to divide between all or some of them; or
(iii)for use by some or all of its members or among persons claiming through, or nominated by, some or all of its members; or
(iv)for distribution, or for distribution of the income from it, among some or all of its members or among persons claiming through, or nominated by, some or all of its members; and
(d)does not have an object of raising a fund by subscription of its members to make loans to them.
(3)For subsection (2)(b), an association is not formed or carried on for providing financial gain for its members merely because 1 or more of the circumstances mentioned in the Associations Incorporation Act 1981 , section 4 , apply to it.

121Exemption—trust acquisition or surrender for dutiable property comprising only existing rights

Transfer duty is not imposed on a dutiable transaction that is a trust acquisition or trust surrender of a trust interest if—
(a)the only dutiable property of the trust are existing rights of the holder of a mortgage, charge, bill of sale or other security over dutiable property located in Queensland; and
(b)the existing rights have been given in favour of the trustee for the sole purpose of being held for the benefit of the beneficiaries of the trust who have provided, or will from time to time provide, financial accommodation.

122Exemption—restructure of stapled entities

(1)Transfer duty is not imposed on a dutiable transaction that is a trust acquisition or trust surrender of a trust interest in a listed unit trust or a widely held unit trust if—
(a)the purpose of the transaction is to give effect to a scheme that qualifies or would, on its completion, qualify as a roll-over under the Income Tax Assessment Act 1997 (Cwlth), subdivision 124.Q; and
(b)when the scheme is completed, the interposed trust will be a listed unit trust or a widely held unit trust; and
(c)the transaction is not part of an arrangement to avoid the imposition of transfer duty.
(2)Subsection (1) does not apply if—
(a)the interposed trust is not a listed unit trust or a widely held unit trust when the scheme is completed; or
(b)the interposed trust ceases to be a listed unit trust or a widely held unit trust within 3 years after the scheme is completed; or
(c)the interposed trust does not retain all the ownership interests in the stapled entities for at least 3 years after the date of the transaction.
(3)Despite subsection (2)(c), subsection (1) continues to apply if the commissioner is satisfied the interposed trust did not retain all the ownership interests because 1 or more of the stapled entities ceased to exist other than under an arrangement, a significant purpose of which was to avoid the requirement to retain all the ownership interests for at least 3 years.
(4)If subsection (1) does not apply, the commissioner must make a reassessment to impose transfer duty on the transaction as if the exemption from duty had never applied.
(5)Subsection (4) applies to the reassessment despite the limitation period under the Administration Act for reassessments.

Note—

See the Administration Act, part 3 , division 3.
(6)If an event mentioned in subsection (2) happens, a party to the transaction must, within 28 days after the event happens—
(a)give notice of the event to the commissioner in the approved form; and
(b)ensure the instruments required for the assessment of duty on the transaction are lodged for reassessment.

Note—

Failure to give the notice is an offence under the Administration Act, section 120 .
(7)Without limiting subsection (3), a company registered under the Corporations Act ceases to exist if it is deregistered under that Act.

s 122 prev s 122 om 2002 No. 65s 13 (retro)

pres s 122 ins 2010 No. 11s 26

123Exemption—particular distribution of dutiable property to a beneficiary

(1)Transfer duty is not imposed on a dutiable transaction that is the transfer, or agreement for the transfer, of dutiable property to a beneficiary, or the surrender of a trust interest of a beneficiary, to the extent it represents the beneficiary’s trust interest on a distribution by the trustee under a trust.
(2)However, subsection (1) applies only if the commissioner is satisfied—
(a)the dutiable property being distributed to the beneficiary—
(i)is the same property held on trust at the time the beneficiary acquired the beneficiary’s trust interest; or
(ii)represents the proceeds of re-investment of property held on trust when the beneficiary acquired the beneficiary’s trust interest in the trust; and
(b)under this chapter—
(i)transfer duty imposed has been paid for the dutiable transactions that are the creation of a trust of the dutiable property or the trust acquisition of the beneficiary’s trust interest; or
(ii)the transactions are exempt from transfer duty.
(3)The trust acquisition of a beneficiary’s trust interest is not exempt from transfer duty for the purposes of subsection (2)(b)(ii) if transfer duty is not imposed on the acquisition because of the operation of section 66 (2).
(4)Also, subsection (1) applies only to the extent transfer duty is paid for the distribution of the dutiable property if—
(a)a concession for transfer duty has been provided under part 10 for the dutiable property; and
(b)any of the following applies—
(i)if the property of the trust is business property used to carry on a business of primary production—the beneficiary is not a defined relative of the person who created the trust;
(ii)if the property of the trust is business property used to carry on a prescribed business—the beneficiary is not a descendant of the person who created the trust;
(iii)the property of the trust is not, at the time of the distribution, business property or the business is not intended to be carried on by the beneficiary, whether alone or with others.

s 123 amd 2008 No. 75s 3 sch; 2013 No. 28s 5; 2014 No. 35s 9

124Exemption—deceased person’s estate

Transfer duty is not imposed on the following dutiable transactions—
(a)a transfer, or agreement for the transfer, of dutiable property to the extent that it gives effect to a distribution in the estate of a deceased person;
(b)the creation of a trust of dutiable property to the extent that it gives effect to a distribution in the estate of a deceased person;
(c)a transfer, or agreement for the transfer, of dutiable property to the extent that it gives effect to a court order under the Succession Act 1981 , part 4 .

Note—

Also, see section 66 (When no transfer duty on trust acquisition or trust surrender).

125Exemption—particular vestings of dutiable property

Transfer duty is not imposed on a dutiable transaction that is, or arises from—
(a)a vesting of dutiable property on a statutory trust for sale or partition under the Property Law Act 1974 , part 5 ; or
(b)a vesting of dutiable property in a receiver or trustee in bankruptcy or a retransfer of the property to the bankrupt on the bankrupt’s discharge from bankruptcy.

126Exemption—transactions for trust created for person under legal disability

Transfer duty is not imposed on a dutiable transaction that is—
(a)the transfer, or agreement for the transfer, of dutiable property from the trustee of a trust created under the Public Trustee Act 1978 , section 59 , to the beneficiary of the trust; or
(b)the surrender of a trust interest of the beneficiary as a result of the transfer or agreement for the transfer.

126AExemption—special disability trusts

(1)Transfer duty is not imposed on a dutiable transaction that is—
(a)the transfer, or agreement for the transfer, of an eligible home to the trustee of a special disability trust; or
(b)the creation of a special disability trust holding dutiable property, to the extent the dutiable property is an eligible home; or
(c)a trust acquisition in a special disability trust, to the extent the trust interest acquired relates to an eligible home.
(2)In this section—
eligible home, in relation to a special disability trust, means residential land that is being, or will be, used as the principal place of residence by the beneficiary of the trust.
special disability trust means a special disability trust under—
(a)the Social Security Act 1991 (Cwlth), section 1209L; or
(b)the Veterans’ Entitlements Act 1986 (Cwlth), section 52ZZZW.

s 126A ins 2011 No. 8s 32

127Exemption—declaration of charitable trust

Transfer duty is not imposed on a dutiable transaction that is—
(a)the creation of a trust, that is a charitable trust only, of dutiable property; or
(b)a trust acquisition in a trust that is a charitable trust only.

128Exemption—community purpose associations

Transfer duty is not imposed on a dutiable transaction that is the creation of a trust of dutiable property or a trust acquisition for which details of the trust are required to be registered under the Land Title Act 1994 if—
(a)the association of persons for which the property is held on trust is formed for providing recreation or amusement, promoting religion, charity, patriotism or the arts or achieving another object that, in the commissioner’s opinion, is useful to the community; and
(b)the association’s constitution provides for the application of its funds to its objects and prohibits the distribution of any part of its funds or profits to its members.

Division 3 Exemptions for particular investment schemes

129Exemption—transfer by direction to primary custodian for responsible entity of registered managed investment scheme

(1)Transfer duty is not imposed on a transfer of dutiable property from a person as vendor to another person as primary custodian for the responsible entity of a registered managed investment scheme.
(2)However, subsection (1) applies only if—
(a)the transfer is made under a dutiable transaction that is the agreement for the transfer of the property entered into between the person as vendor and the responsible entity as purchaser; and
(b)the property is acquired by the responsible entity as scheme property; and
(c)transfer duty imposed on the transaction has been paid.

130Exemption—other transfers of scheme property of registered managed investment scheme

(1)Transfer duty is not imposed on the following dutiable transactions (relevant transactions)—
(a)for scheme property of a registered managed investment scheme other than a trust interest—a transfer, or agreement for the transfer, of the scheme property from 1 property holder for the scheme to the other property holder for the scheme; or
(b)for scheme property of a registered managed investment scheme that is a trust interest—a trust acquisition made by 1 property holder for the scheme, if the trust interest was held by the other property holder for the scheme immediately before the acquisition.
(2)However, subsection (1) does not apply if the relevant transaction is part of an arrangement under which—
(a)the scheme property, or an interest in the scheme property, ceases to be scheme property; or
(b)the persons who are members of the registered managed investment scheme do not have the same trust interest in the scheme property after the relevant transaction happens as they had immediately before the arrangement was entered into.
(3)In this section—
property holder, for a registered managed investment scheme, means—
(a)the responsible entity of the scheme; or
(b)a person as primary custodian for the responsible entity of the scheme.
scheme property includes a trust interest of a registered managed investment scheme held by a property holder for the scheme.

s 130 amd 2010 No. 11s 27

Division 3A Exemptions for eligible superannuation entities

div hdg ins 2002 No. 65s 15

amd 2013 No. 28s 6 (retro)

130AExemption—transfer by direction to custodian for a superannuation entity

(1)Subject to subsections (2) and (3), transfer duty is not imposed on a transfer of dutiable property from a person as vendor to another person as custodian for the trustee of one of the following entities (each an eligible superannuation entity)—
(a)a public superannuation entity;
(b)a complying superannuation fund, if the trustee has, under the Superannuation Industry Act, section 19 (4), given a written notice electing to apply that Act in relation to the fund to APRA or an entity other than APRA.
(2)Subsection (1) applies only if—
(a)the transfer is made under a dutiable transaction that is the agreement for the transfer of the property entered into between the person as vendor and the trustee as purchaser; and
(b)the property is acquired by the trustee as fund property; and
(c)transfer duty imposed on the transaction has been paid.
(3)If the trustee of the eligible superannuation entity has given a written notice to an entity other than APRA as mentioned in subsection (1)(b), subsection (1) applies only if the transfer of dutiable property is the transfer of an acquirable asset to the custodian to be held on trust for the trustee in compliance with the Superannuation Industry Act, section 67A(1)(b).
(4)In this section—
APRA see the Superannuation Industry Act, section 10 .

s 130A ins 2002 No. 65s 15

amd 2013 No. 28s 7 (retro)

130BExemption—other transfers of fund property of eligible superannuation entities

(1)Subject to subsections (2) and (3), transfer duty is not imposed on a transfer, or agreement for the transfer, of fund property of an eligible superannuation entity from—
(a)the trustee of the entity to a person as custodian for the trustee; or
(b)a person as custodian for the trustee of the entity to the trustee.
(2)Subsection (1) does not apply if the transfer or agreement is part of an arrangement under which—
(a)the fund property, or an interest in the fund property, ceases to be fund property; or
(b)the persons who are members of the eligible superannuation entity do not have the same trust interest in the fund property after the property is transferred or agreement is made as they had immediately before the arrangement was entered into.
(3)If the trustee of the eligible superannuation entity has given a written notice to an entity other than APRA as mentioned in section 130A (1)(b), subsection (1) applies to the transfer or agreement only if—
(a)for a transaction mentioned in subsection (1)(a)—the property the subject of the transfer or agreement is an acquirable asset that is, on completion of the transfer, held on trust by the custodian for the trustee in compliance with the Superannuation Industry Act, section 67A(1)(b); or
(b)for a transaction mentioned in subsection (1)(b)—the property the subject of the transfer or agreement is an acquirable asset that, immediately before the transfer, was held on trust by the custodian for the trustee in compliance with the Superannuation Industry Act, section 67A(1)(b).

s 130B ins 2002 No. 65s 15

amd 2013 No. 28s 8 (retro)

Division 3B Exemptions for asset-backed securities

div hdg ins 2002 No. 65s 14 (retro)

Subdivision 1 Some basic concepts for asset-backed securities

sdiv hdg ins 2002 No. 65s 14 (retro)

130CWhat is an asset-backed security

(1)An asset-backed security is—
(a)an entitlement or interest of a person in—
(i)an entitlement of a financier for a financial asset or pool of financial assets; or
(ii)amounts payable to a financier under a financial asset or pool of financial assets whether or not on the same conditions applying under the asset and whether or not the person is entitled to a transfer of the asset or pool of assets; or
(b)a debenture, promissory note, bill of exchange, stock, bond, note or other security creating, evidencing or acknowledging indebtedness issued or made by a corporation if the payments under the security are received by the corporation—
(i)substantially from the receipts, whether of capital or income, from a financial asset or pool of financial assets; or
(ii)if another extent is prescribed under a regulation—to the extent prescribed, from the receipts, whether of capital or income, from a financial asset or pool of financial assets; or
(c)a security by which an interest in, or mortgage or charge over, an entitlement, interest or security mentioned in paragraph (a) or (b) is created; or
(d)a covered bond within the meaning of the Banking Act 1959 (Cwlth), section 26, if the cover pool for the covered bond under that section consists of either of the following—
(i)a financial asset;
(ii)a pool of financial assets.
(2)However, the term does not include—
(a)a mortgage, other than a mortgage mentioned in subsection (1)(c); or
(b)a transfer of a mortgage or financial asset.
(3)It does not matter whether an asset-backed security is effected by an instrument or another way.

s 130C ins 2002 No. 65s 14 (retro)

amd 2013 No. 28s 9 (retro)

130DWho is a financier

A financier is a lender or bailor who provides financial accommodation under a financial asset.

s 130D ins 2002 No. 65s 14 (retro)

130EWhat is a financial asset

(1)A financial asset is any of the following—
(a)a loan, including any security for the loan;
(b)a credit card account;
(c)a hire purchase agreement;
(d)a chattel lease, whether finance or operating;
(e)a vehicle dealer floor plan agreement;
(f)the rights of a financier that are—
(i)usually conferred in relation to an asset mentioned in paragraphs (a) to (e); and
(ii)incidental to the asset.
(2)In this section—
credit card account means an account kept by a credit card provider for a credit card holder recording the balance of account between the provider and the holder for credit card transactions for the holder’s credit card.
credit card transaction means a debit or adjustment to a credit card holder’s credit card account that—
(a)is for—
(i)a payment by a credit card provider to a merchant to whom the holder’s credit card is produced; or
(ii)a cash advance made by a credit card provider to, or at the direction of, the holder; and
(b)involves the giving of credit by the provider or an adjustment of credit previously given by the provider.

s 130E ins 2002 No. 65s 14 (retro)

amd 2004 No. 15s 3 sch

130FWhat is a pool of financial assets

(1)A pool of financial assets is a pool or collection of assets that consists solely of financial assets.
(2)Also, a pool of financial assets is a pool or collection of assets that consists substantially or, if another extent is prescribed under a regulation, to the extent prescribed, of financial assets or amounts paid under financial assets, or a combination of them, if the other assets in the pool or collection are cash or an authorised investment.

s 130F ins 2002 No. 65s 14 (retro)

130GWhat is an authorised investment

An authorised investment, for a pool of financial assets, is any of the following—
(a)a bond, debenture, stock or Treasury bill of the Commonwealth or a State;
(b)a debenture or stock of a public statutory body established under an Act of the Commonwealth or a State;
(c)a note or other security of the Commonwealth or a State;
(d)a deposit with, or a certificate of deposit or another security issued by, a financial institution;
(e)a bill of exchange, promissory note or other negotiable instrument accepted, drawn or endorsed by a financial institution;
(f)an asset-backed security or mortgage-backed security.

s 130G ins 2002 No. 65s 14 (retro)

Subdivision 2 Exemptions

sdiv 2 (s 130H) ins 2002 No. 65s 14 (retro)

130HExemption—particular transactions for asset-backed securities

(1)Transfer duty is not imposed on a dutiable transaction that is a transfer, or agreement for the transfer, of—
(a)an asset-backed security; or
(b)a financial asset or pool of financial assets for creating, issuing, marketing or securing an asset-backed security.
(2)Also, transfer duty is not imposed on a dutiable transaction that—
(a)is the creation of a trust of dutiable property or a trust acquisition; and
(b)is required for creating, issuing, marketing, acquiring or securing an asset-backed security.
(3)In addition, transfer duty is not imposed on a dutiable transaction that is a trust surrender required to give effect to a redemption of an asset-backed security.

sdiv 2 (s 130H) ins 2002 No. 65s 14 (retro)

Division 3C Exemptions for mortgage-backed securities

div hdg ins 2002 No. 65s 14 (retro)

130IExemption—mortgage-backed securities

(1)Transfer duty is not imposed on a dutiable transaction that is a transfer, or agreement for the transfer, of a mortgage or pool of mortgages for creating, issuing, marketing or securing a mortgage-backed security.
(2)Also, transfer duty is not imposed on a dutiable transaction that—
(a)is the creation of a trust of dutiable property or a trust acquisition; and
(b)is required for creating, issuing, marketing, acquiring or securing a mortgage-backed security.
(3)In addition, transfer duty is not imposed on a dutiable transaction that is a trust surrender required to give effect to a redemption of a mortgage-backed security.

s 130I ins 2002 No. 65s 14 (retro)

amd 2002 No. 65s 16

Division 4 Exemptions for dealings under particular Acts

131Exemption—dealings under Aboriginal and Torres Strait Islander Land Acts

Transfer duty is not imposed on the following dutiable transactions—
(a)the issue, under the Aboriginal Land Act 1991 or Torres Strait Islander Land Act 1991 , of a deed of grant in fee simple;
(b)the issue of a lease prepared for the Aboriginal Land Act 1991 , section 287 or the Torres Strait Islander Land Act 1991 , section 191;
(c)a surrender, under or for the Aboriginal Land Act 1991 or Torres Strait Islander Land Act 1991 , of a deed of grant or lease mentioned in paragraph (a) or (b);
(d)the acquisition of an interest in land because the Aboriginal Land Act 1991 , section 199, or the Torres Strait Islander Land Act 1991 , section 148, ceases to apply to the land.

s 131 amd 2014 No. 45s 58sch 1 pt 1

132Exemption—vesting under boundary adjustment plans

Transfer duty is not imposed on the vesting of land because of the registration of—
(a)a boundary adjustment plan under the Integrated Resort Development Act 1987 , part 5, division 4, subdivision B; or
(b)a boundary adjustment plan under the Mixed Use Development Act 1993 , part 5 , division 11 ; or
(c)a stratum boundary adjustment plan under the Mixed Use Development Act 1993 , part 6 , division 2 ; or
(d)a boundary adjustment plan under the South Bank Corporation Act 1989 , section 42.

s 132 amd 1989 No. 37s 43(3) (amd 2003 No. 24s 39)

133Exemption—community titles schemes

(1)Subject to subsection (2), transfer duty is not imposed on a transfer, or agreement for the transfer, of a lot that, under the Body Corporate and Community Management Act 1997 , is a lot included in a community titles scheme if—
(a)the transferor is a corporation (the transferor corporation); and
(b)under that Act, the transferor corporation is the original owner for the scheme; and
(c)the transferee held shares in the transferor corporation that were surrendered to obtain the transfer of the lot from the transferor corporation; and
(d)the separate area that the lot comprises corresponds with the separate area the transferee had a right to occupy immediately before surrendering the transferee’s shares; and
(e)the separate area that the lot comprises has been used for residential purposes immediately before the transferee surrendered the transferee’s shares and will, after registration of the plan and the transfer of the lot to the transferee, be used for residential purposes.
(2)Subsection (1) applies to the transfer or agreement for the transfer of a lot by a transferor corporation on or after the commencement day only if—
(a)before the commencement day—
(i)shares were issued by the transferor corporation; and
(ii)the corporation’s constitution provided, and on and from the commencement day continues to provide, that a person who holds the shares has the right to occupy the separate area mentioned in subsection (1)(d); or
(b)before the commencement day, the transferee entered into an agreement with the transferor corporation under which—
(i)the transferee is entitled to purchase the shares mentioned in subsection (1)(c) from the transferor corporation; and
(ii)because of the purchase of the shares, the transferee has the right to occupy the separate area mentioned in subsection (1)(d).
(3)In this section—
commencement day means the day this section commences.

s 133 sub 2014 No. 35s 10

134Exemption—forfeiture orders

Transfer duty is not imposed on a dutiable transaction that is the transfer, or agreement for the transfer, of dutiable property under—
(a)any of the following under the Criminal Proceeds Confiscation Act 2002
(i)third party order;
(ii)an exclusion order;
(iii)an innocent interests exclusion order;
(iv)a buy-back order;
(v)a request under section 175 ; or
(b)the Drugs Misuse Act 1986 , section 39(4).

s 134 amd 2002 No. 68s 339sch 4

135Exemption—industrial organisations

Transfer duty is not imposed on a dutiable transaction that is—
(a)the vesting of dutiable property in an industrial organisation under the Industrial Relations Act 2016 , chapter 12, part 14; or
(b)the transfer, or agreement for the transfer, of dutiable property from trustees of an industrial organisation under the Industrial Relations Act 2016 to the organisation.

s 135 amd 2016 No. 63s 1157sch 6

136Exemption—dealings under Land Act

Transfer duty is not imposed on the following dutiable transactions—
(a)a grant under the Land Act 1994 , in fee simple in trust, of unallocated State land for a community purpose under that Act;
(b)a grant under the Land Act 1994 , in fee simple, of land comprised in a freeholding lease, grazing homestead perpetual lease, or perpetual lease for pastoral purposes, under that Act, to the lessee;
(c)a surrender under the Land Act 1994 of land held in fee simple to the State;
(d)a transfer, or agreement for the transfer, of a road licence issued under the Land Act 1994 , section 103, if the value of the licence is not more than $200;
(e)a transfer, or agreement for the transfer, of a pastoral lease under the Land Act 1994 , other than a preferential pastoral holding issued under the Land Act 1962, from the mortgagee to the mortgagor having the effect of a release of the mortgage;
(f)the acquisition of a new right that is a change of tenure under the Land Act 1994 , section 504 or 505;
(g)the acquisition of a new right that is a lease, licence or permit issued under the Land Act 1994 , other than a post-Wolfe freeholding lease under that Act.

s 136 amd 2002 No. 65s 17; 2015 No. 4s 16

137Exemption—mining, petroleum and other particular legislation

(1)Transfer duty is not imposed on a dutiable transaction that is—
(a)the grant of a resource authority; or
(b)the transfer, or an agreement for the transfer, of a mining claim, or a share in a mining claim, under the Mineral Resources Act 1989 if the consideration is not more than $100.
(2)Transfer duty is not imposed on a dutiable transaction that is—
(a)the grant of a tenure under the Offshore Minerals Act 1998 ; or
(b)the transfer, or agreement for the transfer, of a tenure or interest in a tenure, under that Act.
(3)Transfer duty is not imposed on a dutiable transaction that is—
(a)the grant of an access authority, licence, permit or pipeline licence under the Petroleum (Submerged Lands) Act 1982 ; or
(b)the transfer, agreement for the transfer or surrender, of—
(i)an authority, licence or permit mentioned in paragraph (a); or
(ii)an interest in an authority, licence or permit mentioned in paragraph (a).
(4)Subsection (1) applies to a dutiable transaction if liability for transfer duty arose or arises on or after 1 March 2002.

s 137 amd 2004 No. 18s 6; 2004 No. 25s 952; 2009 No. 3s 445; 2012 No. 25s 4

138Exemption—manufactured homes

(1)Transfer duty is not imposed on any of the following dutiable transactions—
(a)a transfer, or agreement for the transfer, of a manufactured home positioned on a site under a site agreement;
(b)a transfer, or agreement for the transfer, of a manufactured home not positioned on a site if—
(i)the manufactured home is acquired for positioning on a site under a site agreement; and
(ii)the transfer or agreement is not part of a transaction involving the transferor’s agreement for the transfer of ownership of land;
(c)a transfer, or agreement for the transfer, of a person’s rights and obligations as occupier of a manufactured home under a site agreement for the home.
(2)In this section—
manufactured home see the Manufactured Homes (Residential Parks) Act 2003 , section 10.
site see the Manufactured Homes (Residential Parks) Act 2003 , section 13.

s 138 amd 2003 No. 74s 155sch 1

139Exemption—dealings under South Bank Corporation Act

Transfer duty is not imposed on a dutiable transaction that is—
(a)the transfer, or agreement for the transfer, of dutiable property for which no fee or charge is payable under the South Bank Corporation Act 1989 , section 23; or
(b)the determination or partial determination of a lease under the South Bank Corporation Act 1989 , schedule 4, part 2 or 3.

s 139 amd 1989 No. 37s 43(3) (amd 2003 No. 24s 39); 2004 No. 53s 2 sch

140Exemption—particular water entitlements

Transfer duty is not imposed on a dutiable transaction that is the grant of a water entitlement to the extent that it replaces and represents—
(a)a water entitlement held by the grantee; or
(b)an authority to take water under the repealed Water Resources Act 1989 held by the grantee immediately before the repeal of that Act.

141Exemption—particular statutory bodies

(1)Transfer duty is not imposed on a dutiable transaction that is the transfer, or agreement for the transfer, of dutiable property to any of the following bodies—
(a)the Library Board of Queensland constituted under the Libraries Act 1988 ;
(b)the Queensland Art Gallery Board of Trustees constituted under the Queensland Art Gallery Act 1987 ;
(c)the Queensland Museum Board of Trustees constituted under the Queensland Museum Act 1970 ;
(d)the Queensland Performing Arts Trust constituted under the Queensland Performing Arts Trust Act 1977 ;
(e)the Queensland Theatre Company constituted under the Queensland Theatre Company Act 1970 .
(2)Transfer duty is not imposed on a dutiable transaction that is a gift of dutiable property under the Queensland Institute of Medical Research Act 1945 , section 14 , to the Council of the Queensland Institute of Medical Research constituted under that Act.

s 141 amd 2005 No. 60s 36sch 2; 2008 No. 75s 3 sch; 2014 No. 33s 104

Division 5 Miscellaneous exemptions

142Exemption—charitable institutions

(1)Transfer duty is not imposed on a transfer, or agreement for the transfer, of dutiable property to—
(a)a charitable institution to conduct an art union, if the prize for the art union is to be represented wholly or partly by the dutiable property transferred; or
(b)the winner of a prize in the art union.
(2)In this section—
art union see the Charitable and Non-Profit Gaming Act 1999 , section 6.
charitable institution does not include a charitable institution mentioned in the Administration Act, section 149C(2)(a).

s 142 amd 2010 No. 15s 98sch 3

143Exemption—change of tenure

(1)Transfer duty is not imposed on an agreement for a transfer entered into, or a transfer made, solely for the purpose of changing the registered ownership of property—
(a)from tenants in common to joint tenants; or
(b)from joint tenants to tenants in common.
(2)Subsection (1) applies only if—
(a)the total value of the co-owners’ interests in the property immediately before the agreement was entered into, or the transfer had effect, is not changed; and
(b)either—
(i)for subsection (1)(a)—immediately before the agreement was entered into or the transfer had effect, the owners held the property as tenants in common in equal shares; or
(ii)for subsection (1)(b)—after the transfer has effect, the owners hold the property as tenants in common in equal shares.

s 143 sub 2010 No. 11s 28

144Exemption—joint tenancy

Transfer duty is not imposed on a dutiable transaction that arises by operation of law because of the death of a joint tenant.

145Exemption—transfer to State for public or community purpose

Transfer duty is not imposed on a dutiable transaction that is a transfer of land to, or vesting of land in a way mentioned in section 9 (1)(d)(i) in, the State for—
(a)a public purpose under the Acquisition of Land Act 1967 ; or
(b)a community purpose under the Land Act 1994 .

s 145 amd 2015 No. 4s 17

146Exemption—leases of particular residences

(1)Transfer duty is not imposed on an acquisition of a new right that is a lease of land in Queensland if—
(a)the new right is an instrument that is—
(i)a lease of a dwelling house; or
(ii)a site agreement; and
(b)the leased premises are not used for carrying on a business or commercial venture; and
(c)there is no premium, fine or other consideration payable for the grant of the new right.
(2)In this section—
leased premises includes the land the subject of a site agreement.

s 146 sub 2002 No. 65s 18

amd 2005 No. 60s 8

147Exemption—surrender of lease

Transfer duty is not imposed on a dutiable transaction that is a surrender of a lease of land in Queensland if—
(a)there is no premium, fine or other consideration paid or payable for the surrender; or
(b)any premium, fine or other consideration paid or payable for the surrender is paid by the lessor.

148Exemption—marketable securities etc.

Transfer duty is not imposed on any of the following dutiable transactions—
(a)a transfer, or agreement for the transfer, of stock, debentures or bonds of an authority established under a State Act or an Act of another State;
(b)a transfer, or agreement for the transfer, of a corporate debt security.

s 148 amd 2006 No. 44s 36

149Exemption—debt factoring agreements

(1)Transfer duty is not imposed on a transfer, or agreement for the transfer, of a business asset that is a book debt if the transaction is part of a debt factoring agreement between the parties.
(2)In this section—
debt factoring agreement means an agreement for purchasing, acquiring or factoring a book debt for providing finance to the transferor of the book debt.

150Exemption—particular chattels

(1)Transfer duty is not imposed on a dutiable transaction that is the transfer, or agreement for the transfer, of any of the following chattels taken under a statutory licence, profit a prendre, sharefarming agreement or other similar arrangement if the condition in subsection (2) for the chattel is complied with—
(a)standing timber;
(b)gas, petroleum or mineral;
(c)gravel, rock, stone, sand, clay, earth or soil;
(d)primary produce;
(e)fish or livestock;
(f)water.
(2)For subsection (1), the condition is—
(a)for a chattel mentioned in paragraphs (a) to (d)—it must be severed or released, and taken, from land in Queensland by the transferee; or
(b)for a chattel mentioned in paragraph (e) or (f)—it must be taken from land in Queensland by the transferee.

151Exemption—particular residences

(1)Transfer duty is not imposed on a dutiable transaction that is the transfer, or agreement for the transfer, by way of gift, from 1 party to a subsisting marriage, de facto relationship or civil partnership, to the other party to the marriage, de facto relationship or civil partnership, of an interest in residential land if—
(a)after the transfer, the residential land will be owned by the parties as joint tenants or tenants in common in equal shares; and
(b)the residence will be the principal residence of the parties.
(2)Subsection (1) applies even if liability under a mortgage over the interest in the land, in existence immediately before the transaction, is assumed by the other party under the transaction.

Note—

In relation to subsection (2), see also section 616 .

s 151 amd 2010 No. 11s 29; 2011 No. 46s 52; 2012 No. 12s 50; 2015 No. 33s 46

151AExemption—indigenous land use agreements

(1)Transfer duty is not imposed on the following dutiable transactions, if the dutiable transaction satisfies the requirements stated in subsection (2)—
(a)a transfer, or agreement for the transfer, of land;
(b)the acquisition of a new right that is land in Queensland.
(2)For subsection (1), the requirements are—
(a)the dutiable transaction is expressly provided for in an indigenous land use agreement; and
(b)the sole purpose of the dutiable transaction is to give effect to the indigenous land use agreement; and
(c)the transfer or agreement for the transfer of land, or the acquisition of the right, is in exchange for the surrender of native title rights and interests under the Native Title Act 1993 (Cwlth) for an area of land to which the indigenous land use agreement relates; and
(d)the commissioner is satisfied the land will be used by the transferee or acquirer for an eligible use on or before the day that is 6 months after the transferee or acquirer is entitled to possession of the land, or the later day fixed by the commissioner by notice given to the transferee or acquirer (the start date); and
(e)the commissioner is satisfied the land will be used for the eligible use for at least 12 months from the start date (the duration period).
(3)Subsection (4) applies if, after an assessment is made on the basis of an exemption under subsection (1), the commissioner is satisfied the land the subject of the dutiable transaction—
(a)has not been used for an eligible use by the start date; but
(b)will be used—
(i)for an eligible use by a later date (the new start date) fixed by the commissioner by notice given to the transferee or acquirer; and
(ii)for the eligible use for at least 12 months from the new start date (the new duration period).
(4)The commissioner must not make a reassessment merely because the land has not been used for an eligible use by the start date if the land starts to be used for the eligible use by the new start date.
(5)In this section—
indigenous land use agreement means an indigenous land use agreement registered on the register of indigenous land use agreements under the Native Title Act 1993 (Cwlth), part 8.

s 151A ins 2011 No. 8s 33

152Exemption—to correct clerical error in previous dutiable transaction

(1)Transfer duty is not imposed on a dutiable transaction to correct a clerical error in a previous dutiable transaction about the same property if—
(a)no additional consideration is paid or payable; and
(b)the beneficial interests in the property change only to the extent necessary to correct the error.

Examples of clerical errors in a dutiable transaction about property—

an accidental misdescription of the property
an accidental misdescription of a party to the transaction
(2)To remove any doubt, it is declared that an error by a party about the appropriateness of a transaction to achieve a particular intended legal result is not a clerical error in the transaction.
(3)A dutiable transaction to which this section applies is a section 152 exempt transaction.

s 152 amd 2006 No. 44s 13; 2013 No. 28s 10

152AExemption—previous dutiable transaction for a section 152 exempt transaction if clerical error is a misdescription of property

(1)Transfer duty is not imposed on a dutiable transaction that is the previous dutiable transaction for a section 152 exempt transaction if—
(a)the previous dutiable transaction is the transfer, or agreement for the transfer, of dutiable property; and
(b)the clerical error in the previous dutiable transaction is a misdescription of the property; and
(c)in addition to the section 152 exempt transaction, there is another transfer, or agreement for the transfer, of dutiable property (the third dutiable transaction) that, other than for the error, would have been the subject of the previous dutiable transaction; and
(d)the sole purpose of the third dutiable transaction is to correct the error; and
(e)no consideration is paid or payable for any dutiable transaction entered into to correct the error, other than the consideration already paid or payable for the previous dutiable transaction; and
(f)the beneficial interests in the property the subject of the previous dutiable transaction and third dutiable transaction change only to the extent necessary to correct the error.
(2)If, under an assessment, transfer duty is imposed on a previous dutiable transaction to which subsection (1) applies, on application in the approved form by a party to the previous dutiable transaction the commissioner must make a reassessment of transfer duty on the basis that transfer duty is not imposed on the previous dutiable transaction.
(3)In this section—
previous dutiable transaction means a previous dutiable transaction mentioned in section 152 (1) in relation to a section 152 exempt transaction.

s 152A ins 2013 No. 28s 11

Part 14 Reassessments for transfer duty

Division 1 Reassessments for concessions for homes

div hdg amd 2011 No. 20s 138; 2012 No. 8s 22

153Reassessment—disposal after occupation date for residence

(1)This section applies if—
(a)transfer duty on a dutiable transaction that is 1 of the following is assessed on the basis of a concession under section 91 , 92 , 93 or 93A
(i)the transfer, or agreement for the transfer, of residential land or vacant land;
(ii)the acquisition, mentioned in section 85 (b), of a lease of residential land or vacant land;
(iii)the vesting, mentioned in section 85 (c), of residential land or vacant land; and
(b)a transferee, lessee or vested person for the land, within the year after the transferee’s, lessee’s or vested person’s occupation date for the residence, disposes of the land, other than because of an intervening event, by—
(i)transferring part or all of it; or
(ii)leasing or otherwise granting exclusive possession of part or all of it to another person; or
(iii)for a lease of residential land on which a home or first home is constructed or of vacant land on which a first home is to be constructed and for which a premium, fine or other consideration is payable—surrendering the lease.
(1A)For subsection (1)(b), a transferee, lessee or vested person for land does not dispose of land if—
(a)the transferee, lessee or vested person transfers part of the land to the transferee’s, lessee’s or vested person’s spouse; and
(b)the transfer is exempt from duty under section 151 .
(1B)Also, for subsection (1)(b), a transferee or vested person for land does not dispose of residential land that is an accommodation unit in a retirement village only by entering into a retirement village leasing arrangement for the unit.
(2)The commissioner must make a reassessment to impose further transfer duty on the dutiable transaction worked out using the following formula—

equation

      where—
C means the difference between the transfer duty that would have been imposed on the dutiable transaction if the concession had not applied to the transferee, lessee or vested person and transfer duty assessed on the dutiable transaction.
OD means the number of days between the transferee’s, lessee’s or vested person’s occupation date for the residence and the date of disposal of the land, both days inclusive.
TD means the further transfer duty payable on the reassessment.
(3)If—
(a)under subsection (1A) or section 154 (2A), this section or section 154 does not apply to a transferee’s, lessee’s or vested person’s transfer of part of the land to the transferee’s, lessee’s or vested person’s spouse; and
(b)under subsection (1)(b), the transferee, lessee or vested person later disposes of the land or part of it;

this section applies to the later disposal as if the transferee, lessee or vested person had not transferred the part of the land to the transferee’s, lessee’s or vested person’s spouse.

s 153 amd 2002 No. 65s 19; 2006 No. 44s 37; 2008 No. 75 ss 5 (retro), 39; 2010 No. 11s 30; 2011 No. 8 ss 34, 122 sch; 2011 No. 20s 139; 2012 No. 8s 23

154Reassessment—noncompliance with occupancy requirements

(1)This section applies if—
(a)transfer duty on a dutiable transaction that is 1 of the following is assessed on the basis of a concession under section 91 , 92 , 93 or 93A
(i)the transfer, or agreement for the transfer, of residential land or vacant land;
(ii)the acquisition, mentioned in section 85 (b), of a lease of residential land or vacant land;
(iii)the vesting, mentioned in section 85 (c), of residential land or vacant land; and
(b)either of the following happens other than because of an intervening event—
(i)a transferee, lessee or vested person for land disposes of the land before the occupation date;
(ii)a transferee’s, lessee’s or vested person’s occupation date for the residence on the land is not within—
(A)if the dutiable transaction related to residential land—1 year after the transfer date for the land; or
(B)if the dutiable transaction related to vacant land—2 years after the transfer date for the land.
(2)For subsection (1)(b)(i), a transferee, lessee or vested person for land disposes of land if—
(a)the lessee of a home or vacant land lease surrenders the lease; or
(b)the transferee, lessee or vested person transfers, leases or otherwise grants exclusive possession of part or all of the land to another person; or
(c)the transferee, lessee or vested person acquires the land subject to a lease, granted before the transfer date, over all or part of the land.
(2AA)Subsection (2) does not apply if—
(a)another person (the occupier) has exclusive possession of the land before the occupation date; and
(b)the occupier—
(i)is the transferor of the land, or the owner of the land immediately before the vesting; or
(ii)has exclusive possession of the land under a lease granted before the transfer date; and
(c)the occupier—
(i)if paragraph (b)(i) applies—vacates the land as soon as reasonably practicable or within 6 months after the transfer date, whichever is the earlier; or
(ii)if paragraph (b)(ii) applies—vacates the land on the termination of the current term of the lease referred to in subsection (2)(c), or within 6 months after the transfer date, whichever is the earlier.
(2A)Also, for subsection (1)(b)(i), a transferee, lessee or vested person for land does not dispose of land if—
(a)the transferee, lessee or vested person transfers part of the land to the transferee’s, lessee’s or vested person’s spouse; and
(b)the transfer is exempt from duty under section 151 .
(2B)Also, for subsection (1)(b)(i), a transferee or vested person for land does not dispose of residential land that is an accommodation unit in a retirement village only by entering into a retirement village leasing arrangement for the unit.
(3)The commissioner must make a reassessment to impose transfer duty on the dutiable transaction as if the concession had never applied to the transferee, lessee or vested person.
(4)If—
(a)under subsection (2A), this section does not apply to a transferee’s, lessee’s or vested person’s transfer of part of the land to the transferee’s, lessee’s or vested person’s spouse; and
(b)under subsection (1)(b)(i), the transferee, lessee or vested person later disposes of the land or part of it;

this section applies to the later disposal as if the transferee, lessee or vested person had not transferred the part of the land to the transferee’s, lessee’s or vested person’s spouse.

(5)In this section—
home or vacant land lease means a lease—
(a)of residential land on which a home or first home is constructed or of vacant land on which a first home is to be constructed; and
(b)for which a premium, fine or other consideration is payable.

s 154 amd 2002 No. 65s 20; 2006 No. 44s 38; 2008 No. 75 ss 6 (retro), 40; 2010 No. 11s 31; 2011 No. 8 ss 35, 122 sch; 2011 No. 20s 140; 2012 No. 8s 24; 2016 No. 64s 6

155When transferees, lessees and vested persons for land must give notice for reassessment

(1)This section applies if a notifiable event happens after an assessment, on the basis of a concession under section 91 , 92 , 93 or 93A , of transfer duty on a dutiable transaction that is 1 of the following (each a relevant transaction)—
(a)the transfer, or agreement for the transfer, of residential land or vacant land;
(b)the acquisition, mentioned in section 85 (b), of a lease of residential land or vacant land;
(c)the vesting, mentioned in section 85 (c), of residential land or vacant land.
(2)Within 28 days after the notifiable event happens, each transferee, lessee or vested person for land in relation to the relevant transaction must—
(a)give notice in the approved form to the commissioner; and
(b)ensure the instruments required for the assessment of duty for the transaction are lodged for a reassessment of transfer duty on the transaction.

Note—

Failure to give the notice is an offence under the Administration Act, section 120 .
(3)In this section—
lease does not include a lease or sublease entered into as part of a retirement village leasing arrangement.
notifiable event, for residential land or vacant land, means—
(a)the transfer, lease or otherwise granting of exclusive possession of all or part of the land before, or within 1 year after, the transferee’s, lessee’s or vested person’s occupation date for the residence on the land; or
(b)if the relevant transaction is the acquisition, mentioned in section 85 (b) , of a lease of residential or vacant land—the surrender of the lease before, or within 1 year after, the lessee’s occupation date for the residence on the land; or
(c)failure to comply with the occupancy requirement for the residence on the land.

s 155 amd 2006 No. 44s 39; 2008 No. 75s 7 (retro); 2010 No. 11s 32; 2011 No. 8 ss 36, 122 sch; 2011 No. 20s 141; 2012 No. 8s 25; 2013 No. 28s 12

Division 2 Reassessments for concessions and exemptions for superannuation

div hdg sub 2002 No. 65s 3(2) sch

156Reassessment—noncomplying superannuation fund or public superannuation entity

(1)This section applies if—
(a)transfer duty has been assessed on a dutiable transaction on the basis of—
(i)a concession under part 11 ; or
(ii)an exemption under part 13 , division 3A , for a fund or trust mentioned in the definition public superannuation entity, paragraph (e); and
(b)at the first anniversary of the transaction—
(i)if paragraph (a)(i) applies—the superannuation funds created by the split, merger, variation or reconstitution are not complying superannuation funds; or
(ii)if paragraph (a)(ii) applies—the fund or trust is not a public superannuation entity.
(2)Within 28 days after the first anniversary, the trustees of the funds mentioned in subsection (1)(b)(i) or trustees of the fund or trust mentioned in subsection (1)(b)(ii) must—
(a)give notice in the approved form to the commissioner; and
(b)ensure the instruments required for the assessment of duty for the transaction are lodged for a reassessment of transfer duty on the transaction.

Note—

Failure to give the notice is an offence under the Administration Act, section 120 .
(3)The commissioner must make a reassessment to impose transfer duty on the transaction as if the concession or exemption had never applied.

s 156 sub 2002 No. 65s 21

Division 3 Reassessments for cancelled transfers of dutiable property

div hdg ins 2010 No. 11s 33

sub 2011 No. 8s 37

156AReassessment of duty for cancelled transfer of dutiable property

(1)This section applies if—
(a)transfer duty has been assessed on a transfer of dutiable property effected or evidenced by an instrument or ELN transfer document; and
(b)the instrument or ELN transfer document is cancelled by the parties before it has legal effect; and
(c)the dutiable property has not been transferred to the transferee or a related person of the transferee; and
(d)the instrument or ELN transfer document was not cancelled—
(i)to give effect to a resale agreement; or
(ii)as part of an arrangement under which any of the dutiable property is or will be transferred, or is agreed to be transferred, to the transferee or a related person of the transferee.
(2)For this section, an instrument or ELN transfer document has legal effect if—
(a)for an instrument or ELN transfer document that, when recorded in a register, will effect the transfer of dutiable property—the instrument or ELN transfer document is lodged for recording in the register; or
(b)a right has been exercised, or an obligation fulfilled, under the instrument or ELN transfer document; or
(c)the instrument or ELN transfer document has been relied on in any other way.
(3)For subsection (1)(d)(i), an agreement is a resale agreement if—
(a)under the agreement, any of the dutiable property is or will be transferred or is agreed to be transferred; and
(b)the transferee, or a related person of the transferee, receives or will receive, directly or indirectly, a financial benefit, other than the release of the transferee from the transferee’s obligation under the transaction mentioned in subsection (1)(a).
(4)The person may lodge an application for a reassessment in the approved form within 6 months after the instrument or ELN transfer document is cancelled.
(5)The person must lodge the instrument, ELN transfer document or a copy of the ELN transfer document with the application, unless the commissioner decides lodgement is unnecessary.
(6)The commissioner must make a reassessment of transfer duty for the transaction on the basis that transfer duty is not imposed on the transaction.

s 156A ins 2010 No. 11s 33

amd 2011 No. 8s 38; 2015 No. 4s 18

Division 4 Reassessments for exemptions for indigenous land use agreements

div 4 (ss 156B–156C) ins 2011 No. 8s 39

156BReassessment on application

(1)This section applies if—
(a)under an assessment, duty is imposed on a dutiable transaction because the commissioner is not satisfied of a matter under section 151A (2)(d) or (e) for land; and
(b)on application by the transferee or acquirer concerned, the commissioner is satisfied, under section 151A (2)(d) and (e), that the land has been used for an eligible use from the start date and for the duration period for the land (the relevant requirements).
(2)The commissioner must make a reassessment of duty for the transaction on the basis of compliance with section 151A (2)(d) and (e).
(3)Subsection (2) applies to the reassessment despite the Administration Act, section 21 .
(4)However, if the application is made by the transferee or acquirer after the limitation period for reassessments under the Administration Act has expired, the application must be made within 6 months after the relevant requirements are satisfied.

Note—

See the Administration Act, part 3 (Assessments of tax), division 3 (Reassessments).

div 4 (ss 156B–156C) ins 2011 No. 8s 39

156CReassessment—noncompliance with particular requirements

(1)This section applies if—
(a)duty is assessed on a dutiable transaction on the basis of an exemption under section 151A ; and
(b)after the assessment, the land transferred or acquired—
(i)is not used for an eligible use before the start date, or new start date, for the land under section 151A (2)(d) or (3)(b)(i); or
(ii)is not used for an eligible use for the duration period, or new duration period, for the land under section 151 (2)(e) or (3)(b)(ii).
(2)Within 28 days after the event mentioned in subsection (1)(b) happens, the transferee or acquirer must—
(a)give notice of the event in the approved form to the commissioner; and
(b)ensure the instruments required for the assessment of duty are lodged for a reassessment of duty on the dutiable transaction.

Note—

Failure to give the notice is an offence under the Administration Act, section 120 .
(3)The commissioner must make a reassessment of duty on the transaction as if the exemption had never applied.

Note—

Unpaid tax interest and penalty tax may be payable under the Administration Act, part 5 .
(4)The reassessment must be made within the later of the following—
(a)the limitation period for the reassessment under the Administration Act;
(b)12 months after the event mentioned in subsection (1)(b) happens.
(5)Subsection (4)(b) applies despite the Administration Act, section 22 .

div 4 (ss 156B–156C) ins 2011 No. 8s 39

Part 15 Provisions for ELN transfers

pt hdg ins 2015 No. 4s 19

Division 1 Preliminary

div 1 (ss 156D–156G) ins 2015 No. 4s 19

156DDefinitions for pt 15

In this part—
completed transfer means a transfer of dutiable property—
(a)for which an instrument or ELN transfer document is registered under the Land Title Act 1994 ; and
(b)on which a liability for transfer duty is imposed.
ELN transfer means a transfer of dutiable property—
(a)that consists only of relevant residential land and any chattel incidental to the land; and
(b)for which an ELN workspace exists; and
(c)that is to the transferee under a relevant transfer agreement and for the same consideration as provided for under the agreement.
ELN transfer document means a document under the Electronic Conveyancing National Law (Queensland) that—
(a)is an instrument of transfer under the Land Title Act 1994 , section 61; and
(b)would effect a transfer of dutiable property that is an ELN transfer if the document were—
(i)digitally signed; and
(ii)lodged electronically under the Electronic Conveyancing National Law (Queensland), section 7 ; and
(iii)registered under the Land Title Act 1994 .

Note—

Under the Electronic Conveyancing National Law (Queensland), schedule 1, section 12 (1), definition document, a document includes a record of information that exists in a digital form and is capable of being reproduced, transmitted, stored and duplicated by electronic means.

ELN workspace, for an ELN transfer, means the part of an ELN on which information is entered and kept for the ELN transfer.
incomplete ELN transfer means an ELN transfer for which the ELN workspace is unlocked before an ELN transfer document for the ELN transfer is registered under the Land Title Act 1994 .
locked, in relation to an ELN workspace for an ELN transfer, see section 156F (1).
lot means a lot under the Body Corporate and Community Management Act 1997 or the Building Units and Group Titles Act 1980 .
outstanding liability, for division 4 , see section 156P (1)(b).
payment commitment, for an agreement for the transfer of dutiable property, see section 156N .
related see section 156G .
relevant residential land means land—
(a)that is, or will be, used wholly for residential purposes; and
(b)to which any of the following applies—
(i)on the land there is, or will be constructed, a building that is designed or approved by a local government for human habitation by a single family unit;
(ii)the land is a lot on which there is a building or a part of a building that, for the separate area the lot comprises, is designed or approved by a local government for human habitation by a single family unit;
(iii)the land will be a lot on which there is a building or a part of a building that, for the separate area the lot comprises, is designed or approved by a local government for human habitation by a single family unit;
(iv)the land is a lot on which there will be a building or a part of a building that, for the separate area the lot comprises, is designed or approved by a local government for human habitation by a single family unit.
relevant transfer agreement means an agreement for the transfer of dutiable property—
(a)that consists only of relevant residential land and any chattel incidental to the land; and
(b)on which transfer duty is imposed; and
(c)that is not eligible for a concession, exemption or other reduction of transfer duty, other than a concession under chapter 2 , part 9 ; and
(d)that either—
(i)is not aggregated under section 30 with any other dutiable transaction; or
(ii)is aggregated under section 30 only with another agreement for the transfer of dutiable property that complies with paragraphs (a) to (c).
signed, in relation to an ELN transfer document, see section 156E .
subscriber see the Electronic Conveyancing National Law (Queensland), section 3 .
transfer information, in an ELN workspace for an ELN transfer, means information in the ELN workspace that is necessary for either of the following purposes in relation to an ELN transfer document for the ELN transfer—
(a)complying with a provision of the Land Title Act 1994 in relation to the registration of the document; or
(b)endorsing the document under this Act.
unlocked, in relation to an ELN workspace for an ELN transfer, see section 156F (2).

div 1 (ss 156D–156G) ins 2015 No. 4s 19

156EWhen an ELN transfer document is signed

An ELN transfer document for an ELN transfer is signed when all transfer information in the ELN workspace for the ELN transfer is digitally signed by or for all parties to the ELN transfer.

div 1 (ss 156D–156G) ins 2015 No. 4s 19

156FWhen an ELN workspace is locked and unlocked

(1)An ELN workspace for an ELN transfer is locked when the subscribers to the ELN workspace are unable to amend the transfer information in the ELN workspace.
(2)An ELN workspace for an ELN transfer is unlocked if, after the ELN workspace has been locked, the subscribers to the ELN workspace are no longer unable to amend the transfer information in the ELN workspace.

div 1 (ss 156D–156G) ins 2015 No. 4s 19

156GWhen transfers of dutiable property are related

For this part, an incomplete ELN transfer and a completed transfer, or an incomplete ELN transfer and another incomplete ELN transfer, are related to each other if both are transfers—
(a)of the same dutiable property; and
(b)to the same transferee; and
(c)under the same relevant transfer agreement.

Note—

There may be more than 1 ELN transfer of the same dutiable property to the same transferee under the same relevant transfer agreement—see section 156H.

div 1 (ss 156D–156G) ins 2015 No. 4s 19

Division 2 Provisions about liability for transfer duty

div hdg ins 2015 No. 4s 19

Subdivision 1 Preliminary

sdiv 1 (ss 156H–156I) ins 2015 No. 4s 19

156HEffect of multiple locking events for ELN workspace

(1)Each time a multiple locking event happens for the ELN workspace for an ELN transfer, when the ELN workspace is locked again—
(a)another ELN transfer document is taken to exist, regardless of whether another ELN transfer document has been created in the ELN workspace; and
(b)the document is taken to be signed by the parties to the transfer; and
(c)to remove any doubt, it is declared that another dutiable transaction that is an ELN transfer is taken to arise.
(2)For this section, a multiple locking event happens for the ELN workspace for an ELN transfer if, after the ELN workspace has been unlocked, the ELN workspace is locked again.

sdiv 1 (ss 156H–156I) ins 2015 No. 4s 19

156ILiability for transfer duty not affected by particular events

(1)To remove any doubt, it is declared that the following events do not affect a liability for transfer duty imposed on an ELN transfer—
(a)an unlocking of the ELN workspace for the ELN transfer;
(b)an unsigning of the ELN transfer document for the ELN transfer;
(c)after an event mentioned in paragraph (a) or (b)—
(i)a signing of an ELN transfer document for another ELN transfer that is related to the ELN transfer; or
(ii)another locking of the ELN workspace;
(d)the signing of an instrument that, when recorded in a register, would effect a completed transfer related to the ELN transfer.
(2)In this section—
unsigning, in relation to an ELN transfer document, means unsigning of the ELN transfer document for the purposes of the Electronic Conveyancing National Law (Queensland).

Note—

See the Electronic Conveyancing National Law (Queensland), section 12 (3).

sdiv 1 (ss 156H–156I) ins 2015 No. 4s 19

Subdivision 2 No multiple duty—incomplete ELN transfers related to completed transfer

sdiv 2 (ss 156J–156L) ins 2015 No. 4s 19

156JApplication of sdiv 2

This subdivision applies if 1 or more incomplete ELN transfers are related to a completed transfer.

sdiv 2 (ss 156J–156L) ins 2015 No. 4s 19

156KWhen liability for transfer duty is imposed on incomplete ELN transfers and completed transfer

(1)This section applies to a liability for transfer duty imposed on each of the following—
(a)any incomplete ELN transfer related to the completed transfer, other than the first related transfer;
(b)the completed transfer.
(2)The liability is taken to be imposed when the liability for transfer duty is imposed on the first related transfer.
(3)This section applies despite section 16 .
(4)In this section—
first related transfer means the incomplete ELN transfer related to the completed transfer for which the ELN workspace is first locked.

sdiv 2 (ss 156J–156L) ins 2015 No. 4s 19

156LDeemed compliance with duty obligation for incomplete ELN transfer

(1)A duty obligation for an incomplete ELN transfer that is related to the completed transfer is taken to be complied with when the duty obligation under the same provision is complied with in full for the completed transfer.
(2)In this section—
duty obligation means an obligation under any of the following provisions—
(a)a provision for a lodgement requirement under the Administration Act;
(b)the Administration Act, section 30 , 31, 32, 35, 54 or 58;
(c)section 455A (1)(b) or 471E(1).

sdiv 2 (ss 156J–156L) ins 2015 No. 4s 19

Subdivision 3 Other provisions

sdiv 3 (s 156M) ins 2015 No. 4s 19

156MExclusion of ss 21 and 22(2) and (2A) for ELN transfers etc.

(1)To remove any doubt, it is declared that section 21 does not apply to the imposition of transfer duty on either of the following—
(a)an incomplete ELN transfer that is related to—
(i)a completed transfer; or
(ii)another incomplete ELN transfer;
(b)a completed transfer.
(2)Section 22 (2) or (2A) does not apply to an incomplete ELN transfer that is related to a completed transfer.
(3)The fact that an incomplete ELN transfer is not related to a completed transfer does not affect a liability for transfer duty imposed on the incomplete ELN transfer.
(4)This section does not limit section 156A or 499.

sdiv 3 (s 156M) ins 2015 No. 4s 19

Division 3 Payment commitments

div 3 (ss 156N–156O) ins 2015 No. 4s 19

156NMaking of payment commitment for agreement to transfer dutiable property

(1)A payment commitment for an agreement for the transfer of dutiable property is made by the parties to the agreement if—
(a)the ELN workspace for an ELN transfer of the dutiable property to the transferee under the agreement is locked; and
(b)the amount (the commitment amount) of transfer duty, assessed interest and penalty tax imposed on the agreement—
(i)is included in the ELN workspace as an amount to be paid; and

Example—

The settlement schedule in the ELN workspace includes the amount of transfer duty, assessed interest and penalty tax imposed on the agreement.
(ii)is outstanding when the ELN workspace becomes locked.
(2)For subsection (1)(b), an amount is outstanding if it has not been—
(a)if the relevant self assessor is registered under chapter 12 , part 2 —paid to the commissioner; or
(b)if the relevant self assessor is registered under chapter 12 , part 3 —paid to the commissioner or received by the relevant self assessor.
(3)A payment commitment made for an agreement for the transfer of dutiable property has effect until the earlier of the following—
(a)the commissioner is paid all of the commitment amount;
(b)the ELN workspace for an ELN transfer of the dutiable property to the transferee under the agreement is unlocked.
(4)In this section—
relevant self assessor means a self assessor registered under chapter 12 , part 2 or 3 who, for the purposes of endorsing an ELN transfer document under section 455A
(a)assigns a transaction number to the ELN transfer document; or
(b)is notified of a transaction number assigned to the ELN transfer document under a system administered by the commissioner.

div 3 (ss 156N–156O) ins 2015 No. 4s 19

156OPayment commitment does not affect liability to pay

To remove any doubt, it is declared that a party’s liability under this Act to pay an amount to the commissioner is not affected by the making of a payment commitment for all or part of the amount.

div 3 (ss 156N–156O) ins 2015 No. 4s 19

Division 4 Charge for unpaid transfer duty

div 4 (ss 156P–156U) ins 2015 No. 4s 19

156PCharge over transferee’s interest in land for unpaid transfer duty for ELN transfer

(1)This section applies if—
(a)an ELN transfer document for an ELN transfer is—
(i)stamped on the basis that duty is not imposed on the transfer under section 22 (2A); and
(ii)registered under the Land Title Act 1994 ; and
(b)all or part of the commitment amount for the payment commitment made for the relevant transfer agreement is not paid by the date the amount (the outstanding liability) is payable.

Note—

For when tax must be paid, see the Administration Act, section 30 .
(2)The outstanding liability is a first charge on the transferee’s interest in the land that is the subject of the ELN transfer.
(3)The charge has priority over all other encumbrances over the transferee’s interest in the land.
(4)Subsection (3) applies—
(a)whether the other encumbrances over the transferee’s interest in the land—
(i)are registered or unregistered; or
(ii)were created before or after the charge arises under subsection (2); and
(b)despite the Land Title Act 1994 , part 3, divisions 2 and 2A.
(5)The commissioner may lodge, under the Administration Act, part 4 , division 5, a request to register the charge on the land that is the subject of the ELN transfer.
(6)Despite section 47B of the Administration Act, the registrar must not register the charge if the transferee is no longer the registered owner of the land.
(7)On its registration, the charge is not affected by a disposition of the transferee’s interest in the land.

div 4 (ss 156P–156U) ins 2015 No. 4s 19

156QCommissioner may apply to Supreme Court for order to sell

(1)This section applies if—
(a)a charge has been registered over the land under section 156P ; and
(b)the outstanding liability has not been paid within 18 months after registration.
(2)The commissioner may apply to the Supreme Court for an order to sell the land stated in the application.
(3)At least 6 months before making the application, the commissioner must give the persons mentioned in subsection (4) notice of the commissioner’s intention to apply to the Supreme Court for an order to sell the land unless the outstanding liability is paid within 6 months after the date of the notice.
(4)The persons to whom notice must be given are—
(a)the person liable to pay the outstanding liability; and
(b)the owner of the land.

div 4 (ss 156P–156U) ins 2015 No. 4s 19

156RWhen court must order sale of land

(1)The court must order the sale of the land if it is satisfied—
(a)proper notice of the application for the order was given under section 156Q ; and
(b)there is an outstanding liability payable to the State.
(2)However, the court may make an order only for the land the court considers is sufficient to realise proceeds to pay the amounts mentioned in section 156S (a) to (d) .

div 4 (ss 156P–156U) ins 2015 No. 4s 19

156SApplication of proceeds of sale

The proceeds of the sale of land sold under the order must be applied as follows—
(a)first, in payment of the commissioner’s expenses on the application to the court for the order;
(b)second, in payment of expenses properly incurred by the commissioner on the sale or any attempted sale;
(c)third, in payment of the outstanding liability under the Administration Act, section 42 ;
(d)fourth, in payment of amounts secured by a security interest or charge on the land recorded before the charge mentioned in section 156Q (1)(a), unless the land is sold subject to the security interest or charge;
(e)fifth, any balance must be applied as the court orders.

div 4 (ss 156P–156U) ins 2015 No. 4s 19

156TRegistration of transfer

(1)If land is sold under the order to sell, the person stated in the order for this section must—
(a)sign a transfer in the appropriate form in favour of the purchaser; and
(b)lodge the transfer with the registrar.
(2)The registrar must register the transfer as if it had been signed by the registered owner of the land.
(3)Subsection (2) applies despite non-production of the relevant instrument of title.

div 4 (ss 156P–156U) ins 2015 No. 4s 19

156UFormer owner may recover proceeds of sale as debt

(1)The amount equal to the proceeds of the sale of land under the order to sell less an amount paid under section 156S (d) is a debt payable to the former owner of the land by the persons liable to pay the outstanding liability for which the order was made.
(2)The former owner may recover the debt in a court of competent jurisdiction.
(3)In this section—
former owner, of land sold under the order to sell, means the person who owned the land immediately before its sale.

div 4 (ss 156P–156U) ins 2015 No. 4s 19

Division 5 Miscellaneous

div 5 (ss 156V–156W) ins 2015 No. 4s 19

156VParticular information in ELN workspace taken to be stated to commissioner

(1)For this Act and the Administration Act, each party to an ELN transfer, and each relevant subscriber, is taken to have stated to the commissioner information that is—
(a)in the ELN workspace for an ELN transfer; and
(b)relevant to this Act or the Administration Act.

Note—

For the consequences of stating anything to the commissioner that is false or misleading, see the Administration Act, section 123 .
(2)In this section—
relevant subscriber means a subscriber, including a self assessor registered under chapter 12 , part 3 , who is engaged by a party for the ELN transfer.

div 5 (ss 156V–156W) ins 2015 No. 4s 19

156WEffect of self assessor’s endorsement of ELN transfer document for incomplete ELN transfer

(1)This section applies if—
(a)an ELN transfer document for an ELN transfer is endorsed by a self assessor registered under chapter 12 , part 2 or 3; and
(b)the ELN transfer becomes an incomplete ELN transfer.
(2)The endorsement is of no effect from the time the ELN workspace for the incomplete ELN transfer is unlocked.

div 5 (ss 156V–156W) ins 2015 No. 4s 19

Chapter 3 Landholder duty and corporate trustee duty

ch hdg amd 2011 No. 20s 63

Part 1 Landholder duty

pt hdg amd 2011 No. 20s 64

Division 1 Preliminary

157Imposition of landholder duty

(1)This part imposes duty (landholder duty) on relevant acquisitions.

Notes—

1Exemptions for landholder duty are dealt with in division 5 . Also, particular acquisitions relating to corporate reconstructions are exempt from landholder duty under chapter 10 , part 1 .
2Additional foreign acquirer duty is imposed on particular relevant acquisitions under chapter 4 .
(2)Landholder duty is imposed—
(a)for a relevant acquisition in a private landholder—on the dutiable value of the relevant acquisition; and
(b)for a relevant acquisition in a public landholder—in the way provided under section 179B .

s 157 sub 2011 No. 20s 65

amd 2016 No. 37s 7

Division 2 Some basic concepts for landholder duty

div hdg amd 2011 No. 20s 66

Subdivision 1 Some basic concepts about acquiring interests in landholders

sdiv hdg amd 2011 No. 20s 67

158What is a relevant acquisition

(1)A person makes a relevant acquisition if—
(a)the person acquires a significant interest in a landholder; or
(b)the person acquires an interest in a landholder and, when the following are aggregated, the aggregation results in a significant interest in the landholder—
(i)interests held by the person in the landholder;
(ii)interests acquired or held by related persons of the person in the landholder; or
(c)having acquired a significant interest in a landholder as mentioned in paragraph (a) or (b) for which acquisition landholder duty was imposed, the person’s interest in the landholder increases.
(2)To remove any doubt, it is declared that for subsection (1)(b), it is not relevant whether, immediately before the person acquires the interest—
(a)an interest mentioned in subsection (1)(b)(i) or (ii) is, of itself, a significant interest in the landholder; or
(b)the aggregation of any interests mentioned in subsections (1)(b)(i) or (ii), of itself, amounts to a significant interest in the landholder.

s 158 sub 2011 No. 20s 68

159What are interests and significant interests in a landholder

(1)A person has an interest in a landholder if the person has an entitlement as a shareholder or unit holder to a distribution of the landholder’s property—
(a)for a corporation—on its winding up; or
(b)for a listed unit trust—on its termination.
(2)A person has a significant interest in a landholder if the person has an interest in the landholder of—
(a)for a private landholder—50% or more; or
(b)for a public landholder—90% or more.

s 159 amd 2006 No. 34s 6

sub 2011 No. 20s 69

160Interest in landholder is percentage of distributable property on winding up of a corporation or termination of a listed unit trust

A person’s interest in a landholder is the person’s entitlement expressed as a percentage of the value of all of the landholder’s property that would be distributed if, immediately after the person acquires the interest—
(a)for a corporation—the corporation were to be wound up; or
(b)for a listed unit trust—the trust were to be terminated.

s 160 sub 2011 No. 20s 70

161Entitlement on distribution of corporation’s property

(1)Subject to section 161B , the entitlement of a person on a distribution of a corporation’s property is the greater of the entitlement of the person as a shareholder, based on a distribution carried out—
(a)under the corporation’s constitution and the Corporations Act; or
(b)after the person or the person’s representative, has, to maximise the person’s entitlement, exercised all powers and discretions to do all or any of the following—
(i)effect or compel a change of the corporation’s constitution;
(ii)vary the rights conferred by the shares in the corporation;
(iii)pay up any uncalled amount owing to the corporation for the shares;
(iv)satisfy conditions in the corporation’s constitution relating to the shares;
(v)effect or compel the substitution or replacement of shares in the corporation with other shares in the corporation.
(2)In this section—
representative, of another person, means someone who is accustomed, or under an obligation, or reasonably expected to act under the directions, instructions or wishes of the other person.

s 161 amd 2011 No. 20s 71

161AEntitlement on distribution of listed unit trust’s property

(1)Subject to section 161B , the entitlement of a person on a distribution of a listed unit trust’s property is the greater of the entitlement of the person as a unit holder, based on a distribution carried out—
(a)under the instrument creating the trust; or
(b)after the person or the person’s representative has, to maximise the person’s entitlement, exercised all powers and discretions to do all or any of the following—
(i)effect or compel a change of the instrument creating the trust;
(ii)vary the rights conferred by the units in the trust;
(iii)pay up any uncalled amount owing to the trust for the units;
(iv)satisfy conditions under the instrument creating the trust relating to the units;
(v)effect or compel the substitution or replacement of units in the trust with other units in the trust;
(vi)effect or compel the fulfilment of a condition;
(vii)effect or compel the outcome of a contingency;
(viii)effect or compel the exercise or non-exercise of a power or discretion.
(2)The entitlement of a person under subsection (1) must be worked out without regard to the liabilities of the trust.
(3)In this section—
representative, of another person, means someone who is accustomed, or under an obligation, or reasonably expected to act under the directions, instructions or wishes of the other person.

s 161A ins 2011 No. 20s 72

161BMatters about applying ss 161 and 161A

(1)If the commissioner considers the application of section 161 (1)(b) or 161A(1)(b) would be inequitable, the commissioner may decide the entitlement of a person be based on a distribution carried out under section 161 (1)(a) or 161A(1)(a).
(2)Also, if a person makes a relevant acquisition because interests are aggregated under section 158 (1)(b)(ii), the entitlements under section 161 (1)(b) or 161A(1)(b) of the person and the related persons of the person must not be more than 100%.

s 161B ins 2011 No. 20s 72

162Acquiring an interest in a landholder

(1)A person acquires an interest in a landholder if the person obtains an interest, or the person’s interest increases, in the landholder regardless of how it is obtained or increased.
(2)Without limiting subsection (1), a person may acquire an interest in a landholder in the following ways—
(a)the purchase, gift, allotment or issue of a share or unit;
(b)the cancellation, redemption or surrender of a share or unit;
(c)the abrogation or alteration of a right for a share or unit;
(d)the payment of an amount owing for a share or unit;
(e)if the person holds an interest in the landholder, whether or not as trustee—by changing the capacity in which the person holds the interest.

Example of when the capacity in which a person holds an interest changes—

A person holds a share or unit in a corporation or listed unit trust other than as trustee. The person’s capacity changes if the person starts holding the share or unit as trustee.
(3)To remove any doubt, it is declared that an acquisition of shares or units is not necessary to acquire an interest in a landholder.

s 162 amd 2011 No. 20s 73

163When is an interest acquired

(1)This section applies—
(a)if a person acquires an interest in a landholder; or
(b)for an interest acquired by a person in a landholder when, under section 179 (6), definition excluded interest, paragraph (b) and 179B(2), definition excluded interest, paragraph (b), the landholder did not hold land in Queensland.
(2)The person acquires the interest—
(a)if there is an agreement to acquire the interest, whether conditional or not, and paragraph (b) does not apply—when the agreement is made; or
(b)if there is an agreement to acquire the interest, whether conditional or not, and the landholder is not a landholder when the agreement is made but is a landholder when the agreement is completed—when the agreement is completed; or
(c)otherwise—when the interest is acquired.
(3)Also, if—
(a)a person holds a security interest in a landholder; and
(b)the acquisition of the security interest was an exempt acquisition under section 190 ; and
(c)the person later acquires the interest free from any interest or equity of the previous holder of the interest (the later acquisition);

the person acquires an interest in the landholder at the time of the later acquisition.

s 163 sub 2011 No. 20s 74

164Who is a related person

(1)A person is a related person of another person if—
(a)for individuals—they are members of the same family; or
(b)for an individual and a corporation—the person or a member of the person’s family is a majority shareholder, director or secretary of the corporation or a related body corporate of the corporation, or has an interest of 50% or more in it; or
(c)for an individual and a trustee—the person or a related person under another provision of this section is a beneficiary of the trust; or
(d)for corporations—they are related bodies corporate; or
(e)for a corporation and a trustee—the corporation or a related person under another provision of this section is a beneficiary of the trust; or
(f)for trustees—
(i)there is a person who is a beneficiary of both trusts; or
(ii)a person is beneficiary of 1 trust and a related person under another provision of this section is a beneficiary of the other trust.
(2)Also, a person is a related person of another person if the persons acquire interests in a landholder and the acquisitions form, evidence, give effect to or arise from what is substantially 1 arrangement.
(3)However, a person is not a related person of another person under subsection (1), other than subsection (1)(d), if the commissioner is satisfied the interests of the persons—
(a)were acquired, and will be used, independently; and
(b)were not acquired, and will not be used, for a common purpose.

s 164 amd 2002 No. 65s 22; 2011 No. 20s 75

Subdivision 2 Some basic concepts about entities and their land-holdings and property

sdiv hdg amd 2011 No. 20s 76

165What is a landholder

A landholder is an entity that has land-holdings in Queensland, the unencumbered value of which are $2,000,000 or more.

s 165 amd 2006 No. 34s 7

sub 2011 No. 20s 77

165AWhat is a private landholder and public landholder

(1)A private landholder is a landholder that is an unlisted corporation.
(2)A public landholder is a landholder that is a listed corporation or listed unit trust.

s 165A ins 2011 No. 20s 77

166What is a subsidiary

(1)A corporation is a subsidiary of—
(a)another corporation (the holding entity) if, under the Corporations Act, it is a subsidiary of the holding entity; or
(b)a listed unit trust (also the holding entity) if, under subsection (4), the corporation is a subsidiary of the holding entity.
(2)Also, each of the following is a subsidiary of the holding entity—
(a)a trustee of a trust, if the holding entity or a subsidiary of the holding entity, whether under this or another subsection, is a beneficiary of the trust (a relevant trust);
(b)a corporation in which—
(i)the trustee of a relevant trust has an interest of 50% or more; or
(ii)an interest of 50% or more is held on trust and the trustee of a relevant trust is a beneficiary of that trust.

Example for subsections (1) and (2)—

A Pty Ltd has a 51% shareholding in B Pty Ltd. B Pty Ltd has a trust interest in the C Trust of which C Pty Ltd acts as trustee. C Pty Ltd as trustee of the C trust has a 51% shareholding in D Pty Ltd.

Under subsection (1), B Pty Ltd is the subsidiary of A Pty Ltd because, under the Corporations Act, it is a subsidiary of A Pty Ltd.

Under subsection (2)(a), C Pty Ltd is the subsidiary of A Pty Ltd because B, a subsidiary of A Pty Ltd, is a beneficiary of the trust.

Under subsection (1), D Pty Ltd is the subsidiary of C Pty Ltd because, under the Corporations Act, it is a subsidiary of C Pty Ltd.

Under subsection (2)(b)(i), D Pty Ltd is the subsidiary of A Pty Ltd because C Pty Ltd, a relevant trust, has an interest of 50% or more in D Pty Ltd.

(3)In addition, a corporation or trustee of a trust is a subsidiary of a holding entity if, under subsection (1) or (2), it is a subsidiary of a subsidiary of the holding entity.
(4)For subsection (1)(b), a corporation is a subsidiary of a listed unit trust if it is a subsidiary of the trust under the Corporations Act, chapter 1 , part 1.2, division 6 , applied—
(a)as if a reference to a body corporate includes a reference to a trustee of a listed unit trust; and
(b)as if section 48 (2) and (3) of that Act did not apply, to the extent the section disregards shares held or a power exercisable only in a fiduciary capacity; and
(c)with any other necessary changes.
(5)For deciding whether a trustee of a trust is a subsidiary of a holding entity under subsection (2)—
(a)a trust interest sale agreement made by the holding entity or a subsidiary of it is taken not to have been made; and
(b)a trust interest purchase agreement made by the holding entity or a subsidiary of it is taken to have been completed.
(6)In this section—
trust interest purchase agreement means an uncompleted agreement, whether or not conditional, for the acquisition of an interest as a beneficiary of the trust.
trust interest sale agreement means an uncompleted agreement, whether or not conditional, for the disposal of an interest as a beneficiary of the trust.

s 166 amd 2010 No. 11s 34

sub 2011 No. 20s 78

167What are an entity’s land-holdings

(1)An entity’s land-holdings means the following—
(a)the entity’s interest in land, and anything fixed to the land that may be separately owned from the land (whether or not the entity has an interest in the thing fixed to the land), other than—
(i)a security interest; or
(ii)an interest in a trust;

Note—

See the Acts Interpretation Act 1954 , schedule 1, definition interest.
(b)rights held by the entity that—
(i)relate to, or affect, the use of the entity’s land and other land; and
(ii)enhance the value of the entity’s land;
(c)an interest in land, and anything fixed to the land, that is the subject of a purchase agreement or sale agreement made by the entity.
(2)Also, an entity’s land-holdings includes the land-holdings, under subsection (1), of a subsidiary of the entity as if a reference in the subsection to an entity were a reference to the subsidiary.
(3)Despite subsections (1) and (2), an entity’s land-holdings do not include—
(a)for a corporation—land-holdings held on trust by the corporation or a subsidiary of it unless the corporation or any subsidiary of it is a beneficiary of the trust; or
(b)for a listed unit trust—land-holdings held on trust by a subsidiary of it unless the listed unit trust or any subsidiary of it is a beneficiary of the trust.

s 167 amd 2011 No. 20s 79; 2012 No. 25s 5

168What is an entity’s property

(1)An entity’s property means the entity’s interest in any property other than a security interest or interest in a trust.
(2)Also, an entity’s property includes any property under subsection (1) of a subsidiary of the entity as if a reference in the subsection to an entity were a reference to the subsidiary.
(3)Despite subsections (1) and (2), the entity’s property does not include—
(a)for a corporation—property held on trust by the corporation or a subsidiary of it unless the corporation or any subsidiary of it is a beneficiary of the trust; or
(b)for a listed unit trust—property held on trust by a subsidiary of it unless the listed unit trust or any subsidiary of it is a beneficiary of the trust.

s 168 sub 2011 No. 20s 80

169[Repealed]

s 169 om 2011 No. 20s 81

Subdivision 3 Some basic concepts about unencumbered values of land-holdings and property

170Value of co-owned land-holdings

(1)If an entity’s land-holdings include land-holdings in which it has an interest as co-owner, the unencumbered value of the interests of all co-owners in the land-holdings must be included in working out the unencumbered value of the entity’s land-holdings for section 165 .

Note—

Even though the unencumbered value of the interests of all co-owners of the land-holdings is included for working out whether an entity is a landholder, only the unencumbered value of the entity’s interest in the land-holdings is used under division 4 for working out landholder duty imposed on the dutiable value of a relevant acquisition. See section 184 .
(2)However, subsection (1) does not apply if the commissioner is satisfied that the co-ownership is not intended to avoid the imposition of landholder duty.

s 170 amd 2011 No. 20s 82

171Value of land-holdings in uncompleted agreement for transfer included

To remove any doubt, it is declared that the unencumbered value of the land the subject of a purchase agreement or sale agreement made by the entity or a subsidiary of the entity must be included in working out the unencumbered value of an entity’s land-holdings.

s 171 amd 2011 No. 20s 83

172[Repealed]

s 172 om 2011 No. 20s 84

173Value of land-holdings and property—business property disregarded

(1)For an acquisition of an interest in an entity that is a dutiable transaction to which chapter 2 , part 10 , applies, business property taken to have no value under the part must be disregarded in working out the unencumbered value of the land-holdings or property of the entity.
(2)For subsection (1), a repealed s 97 (1)(f) transaction is taken to be a dutiable transaction to which chapter 2 , part 10 , applies.
(3)A repealed s 97(1)(f) transaction is a transfer, or agreement for the transfer, of a marketable security in a corporation to which the following applies—
(a)the property of the corporation includes business property;
(b)the corporation is a family company for the transferee;
(c)the transferor or person directing the transfer is—
(i)if the business property is used to carry on a business of primary production—a defined relative of the transferee; or
(ii)otherwise—an ancestor of the transferee;
(d)the transferee does not acquire the marketable security as—
(i)trustee, other than as trustee of a trust for the beneficiaries mentioned in subsection (4); or
(ii)agent or nominee of another person;
(e)the business for which the business property is used is carried on by the defined relative or ancestor whether alone or with others;
(f)the business is intended to be carried on by the transferee, whether alone or with others.
(4)For subsection (3)(d)(i)—
(a)the beneficiary of the trust is a minor, and—
(i)if the business property is used to carry on a business of primary production—the minor is a defined relative of the person creating the trust; or
(ii)otherwise—the minor is a descendant of the person creating the trust; and
(b)there are no other beneficiaries of the trust, other than a person who would become a beneficiary of the trust on the death of the beneficiary mentioned in paragraph (a).
(5)In this section—
family company, for a person, means an exempt proprietary company at least 50% of the value of the shares of which are owned by members of the person’s family.

s 173 amd 2006 No. 44s 40; 2011 No. 20s 85; 2014 No. 35s 11

Division 3 Liability for landholder duty

div hdg amd 2011 No. 20s 86

174When liability for landholder duty arises

A liability for landholder duty imposed on a relevant acquisition arises when the acquisition is made.

s 174 amd 2011 No. 20s 87

175Who is liable to pay landholder duty

(1)Landholder duty imposed on a relevant acquisition must be paid by the acquirer.
(2)However, if a person makes a relevant acquisition because interests are aggregated under section 158 (1)(b)(ii), the person and the related persons of the person are jointly and severally liable for the payment of the landholder duty.

s 175 amd 2011 No. 20s 88

176[Repealed]

s 176 om 2011 No. 20s 89

177Landholder duty statement

The acquirer under a relevant acquisition, or for a relevant acquisition mentioned in section 175 (2), the acquirer or the related persons of the acquirer must within 30 days after the acquisition is made, lodge a statement in the approved form (a landholder duty statement).

Maximum penalty—40 penalty units.

s 177 amd 2011 No. 20s 90

178Effect of lodging landholder duty statement by acquirer or related person

The lodging, under section 177 , of a landholder duty statement by the acquirer or a related person of the acquirer relieves the other person from complying with the section.

s 178 amd 2011 No. 20s 91

Division 4 Working out landholder duty for relevant acquisitions

div hdg sub 2011 No. 20s 92

Subdivision 1 Private landholders

sdiv hdg ins 2011 No. 20s 92

178ARate of landholder duty

The rate of landholder duty imposed on the dutiable value of a relevant acquisition made in a private landholder is the rate stated in schedule 3 , column 2, opposite the dutiable value stated in schedule 3 , column 1.

s 178A ins 2011 No. 20s 92

179Working out dutiable value of relevant acquisition

(1)The dutiable value of a relevant acquisition in a private landholder is the interest in, or total of interests in, the landholder constituting the relevant acquisition, less any excluded interest of the person at the time of the acquisition, multiplied by the unencumbered value of all Queensland land-holdings of the landholder at the time of the acquisition.

Note—

See also section 14 (What is the unencumbered value of property).
(2)Subsection (3) applies to the following relevant acquisitions—
(a)a relevant acquisition mentioned in section 158 (1)(c);
(b)a relevant acquisition made by a person in the following circumstances—
(i)the person together with related persons of the person had a significant interest in the private landholder immediately before the relevant acquisition;
(ii)the interests of the person and related persons were previously aggregated so that duty under subsection (1) was paid for a relevant acquisition in the private landholder;
(iii)since the relevant acquisition mentioned in subparagraph (ii), no other related person of the person has acquired an interest in the landholder.
(3)For applying subsection (1) to a relevant acquisition mentioned in subsection (2), the interest is the increased interest in the private landholder that is acquired by the person by the relevant acquisition.

Examples for subsections (2) and (3)—

1A and B are related persons. A holds a 30% interest in a private landholder. B acquires a 25% interest and, when aggregated with A’s interest, a significant interest. If A acquires another 5% bringing its interest to 35%, for working out the dutiable value, the interest constituting the relevant acquisition is 5%.
2A and B are related persons. A holds a 30% interest in a private landholder. B acquires a 25% interest and, when aggregated with A’s interest, a significant interest. If A acquires B’s 25% interest, for working out the dutiable value, the interest constituting the relevant acquisition is 25%.
(4)For applying subsection (1) to a relevant acquisition, the interest mentioned in section 409 (2) must be disregarded.

Note—

Under section 409 (2), landholder duty is not imposed on particular interests acquired under a corporate reconstruction.
(5)This section has effect subject to a deduction allowed under sections 185 to 188 .
(6)In this section—
excluded interest, of a person who makes a relevant acquisition in a private landholder, is any interest constituting the relevant acquisition—
(a)held by the person, or a related person of the person, on or before the day that is 3 years before the relevant acquisition, unless—
(i)the interest was acquired as part of an arrangement; and
(ii)the arrangement includes the interest most recently acquired as part of the relevant acquisition; or
(b)acquired by the person, or a related person of the person, at a time when the landholder did not hold land in Queensland.

s 179 amd 2011 No. 20s 93

Subdivision 2 Public landholders

sdiv 2 (ss 179A–179B) ins 2011 No. 20s 94

179ALandholder duty

(1)Subject to section 179B , the landholder duty imposed on a relevant acquisition made by a person in a public landholder is 10% of the amount of transfer duty that would be imposed on a dutiable transaction under chapter 2 , if a transfer of all the Queensland land-holdings of the landholder had happened at the time of the relevant acquisition.
(2)However, for a relevant acquisition to which section 158 (1)(c) applies, no landholder duty is imposed for an increase in the person’s interest if—
(a)landholder duty for a relevant acquisition by the person in the landholder has previously been imposed under this section; and
(b)since making the relevant acquisition for which landholder duty was imposed, the interest of the person constituting the previous acquisition has not reduced.
(3)This section has effect subject to a deduction allowed under sections 185 to 188 .

sdiv 2 (ss 179A–179B) ins 2011 No. 20s 94

179BDutiable value of dutiable transaction for s 179A

(1)For section 179A , in working out the amount of transfer duty that would be imposed under chapter 2 , the dutiable value of the dutiable transaction is the unencumbered value of all Queensland land-holdings of the landholder at the time of the acquisition, reduced by the proportion of the value represented by any excluded interest of the person at the time of the acquisition.
(2)In this section—
excluded interest, of a person who makes a relevant acquisition in a public landholder, is any interest constituting the relevant acquisition acquired by the person, or a related person—
(a)before 1 July 2011; or
(b)at a time when the landholder did not hold land in Queensland.

sdiv 2 (ss 179A–179B) ins 2011 No. 20s 94

Subdivision 3 Other provisions for working out dutiable value

sdiv hdg ins 2011 No. 20s 94

180Aggregation of particular relevant acquisitions

(1)This section applies for aggregating relevant acquisitions that together form, evidence, give effect to or arise from what is, substantially 1 arrangement if a person makes a relevant acquisition mentioned in section 179 (2).
(2)For assessing landholder duty on each of the relevant acquisitions, the acquisitions must be aggregated and treated as a single relevant acquisition.
(3)For subsection (1), all relevant circumstances relating to the relevant acquisitions must be taken into account in deciding whether they together form, evidence, give effect to or arise from what is, substantially 1 arrangement.
(4)For subsection (3), relevant circumstances include the following—
(a)whether any of the acquisitions are conditional on entry into, or completion of, any of the other acquisitions;
(b)whether the parties to any of the acquisitions are the same;
(c)whether any party to an acquisition is a related person of another party to any of the other acquisitions;
(d)the time over which the acquisitions take place;
(e)whether, after the acquisitions take place, the acquirers’ interests will be used together or dependently with one another;
(f)whether, before the acquisitions take place, the interests were used together or dependently with one another.
(5)Landholder duty imposed on the relevant acquisition aggregated under this section must—
(a)be assessed on the total of the dutiable values of the acquisitions when the liability for landholder duty for each of the acquisitions arose; and
(b)be apportioned between the acquisitions as decided by the commissioner.
(6)The acquirer must, when lodging the landholder duty statement relating to the acquisition, give notice to the commissioner stating details known to the acquirer about—
(a)all of the interests of the acquirer and related persons of the acquirer included or to be included in the arrangement mentioned in subsection (1); and
(b)the dutiable value of each relevant acquisition.

Note—

Under the Administration Act, the requirement under this subsection is a lodgement requirement for which a failure to comply is an offence under section 121 of that Act.

s 180 amd 2011 No. 20s 95

181[Repealed]

s 181 om 2011 No. 20s 96

182Unencumbered value of land-holdings of subsidiary of landholder

(1)This section applies for working out the unencumbered value of the Queensland land-holdings of a landholder under section 179 or 179B , to the extent the land-holdings comprise land-holdings of a subsidiary of the landholder.
(2)The unencumbered value of the Queensland land-holdings of the landholder is the proportion of the unencumbered value of the land-holdings in Queensland of all the subsidiaries to which the landholder would be entitled, if the subsidiaries, at the same time and without regard to their liabilities—
(a)for subsidiaries that are corporations—were wound up; or
(b)for subsidiaries that are trusts—were terminated.
(3)For subsection (2), the unencumbered value of the Queensland land-holdings of the subsidiary on the winding up or termination of all the subsidiaries is—
(a)if the subsidiary is a corporation, the greatest proportion of the unencumbered value of the land-holdings in Queensland that the landholder would be entitled to under sections 161 (1) and 161B(1) applied as if—
(i)a reference to a person were a reference to the landholder mentioned in this section; and
(ii)a reference to a corporation were a reference to the subsidiary; or
(b)if the subsidiary is a unit trust, the greatest proportion of the unencumbered value of the land-holdings in Queensland that the landholder would be entitled to under sections 161A (1), (2) and 161B (1) as if—
(i)a reference to a person were a reference to the landholder mentioned in this section; and
(ii)a reference to a listed unit trust were a reference to the subsidiary; or
(c)if the subsidiary is a trustee of a trust other than a unit trust—the greatest proportion of the unencumbered value of the land-holdings in Queensland of the trust that the landholder could derive at any time from the trust without regard to the liabilities of any of the subsidiaries.
(4)Without limiting subsection (3)(c), land-holdings may be derived by—
(a)the fulfilment of a condition; or
(b)the outcome of a contingency; or
(c)the exercise or non-exercise of a power or discretion.
(5)To remove any doubt it is declared that land-holdings may be derived by the landholder even if a subsidiary of the landholder is a beneficiary of a trust.
(6)If there is more than 1 subsidiary of the landholder that is a beneficiary of a trust, for subsection (2), the proportion of the unencumbered value of the Queensland land-holdings that may be derived from the trust must not be more than the whole.

s 182 amd 2011 No. 20s 97

183Land transferred for shares or units to be disregarded

(1)This section applies if the relevant acquisition is the issue of shares or units by a landholder to a person in the following circumstances—
(a)the shares or units are issued to the person in consideration of a transfer of land to the landholder by the person;
(b)transfer duty is paid for the transfer;
(c)the land is not the only land of the landholder;
(d)the person is not the only shareholder or unit holder of the landholder.
(2)In working out the unencumbered value of the Queensland land-holdings of the landholder, the value of the land must be disregarded.

s 183 amd 2011 No. 20s 98

184Value of co-owned land-holdings

For sections 179 and 179B , if a landholder has an interest in land-holdings as co-owner, the value of the land-holdings is the unencumbered value of the landholder’s interest in the land-holdings.

s 184 sub 2011 No. 20s 99

Subdivision 4 Deductions

sdiv hdg ins 2011 No. 20s 99

185Deduction—corporate trustee duty

(1)This section applies if—
(a)corporate trustee duty has been paid or is payable on a relevant acquisition under part 2 ; and
(b)land-holdings in which the corporate trustee, or relevant corporation for a corporate trustee, has an interest at the time of the relevant acquisition under part 2 , has been included in working out the dutiable value of a relevant acquisition under this part; and
(c)the relevant acquisitions are part of the 1 arrangement.
(2)Landholder duty imposed on the relevant acquisition must be reduced by the amount of corporate trustee duty paid or payable for the land-holdings to the extent that the land-holdings were included in working out the dutiable value of the relevant acquisition under this part.

s 185 amd 2011 No. 20s 100

186Deduction—transfer duty for particular trusts

(1)This section applies if—
(a)transfer duty has been paid or is payable on a dutiable transaction that is a trust acquisition for a trust, other than a discretionary trust; and
(b)land-holdings held by the trustee as trustee of the trust at the time of the transaction has been included in working out the dutiable value of the relevant acquisition under this part; and
(c)the acquisitions are part of the 1 arrangement.
(2)Landholder duty imposed on the relevant acquisition must be reduced by the amount of transfer duty paid or payable for the land-holdings to the extent that the land-holdings were included in working out the dutiable value of the relevant acquisition under this part.

s 186 amd 2011 No. 20s 101

187Deduction—transfer duty for marketable securities

(1)This section applies if—
(a)transfer duty is paid or payable for marketable securities the subject of a dutiable transaction or an equivalent duty in another State is paid or payable for the marketable securities; and
(b)the dutiable transaction is a relevant acquisition.
(2)Landholder duty imposed on the relevant acquisition must be reduced by an amount worked out using the following formula—

equation

      where—
LV means the unencumbered value of all Queensland land-holdings of the landholder at the time of the relevant acquisition.
PV means the unencumbered value of all the property of the landholder at the time of the relevant acquisition.
R means the amount of the reduction.
TD is the transfer or equivalent duty paid or payable for the marketable securities.

s 187 amd 2011 No. 20s 102

188Deduction—mortgage duty

(1)This section applies if—
(a)shares or units in an entity are transferred, or agreed to be transferred, by way of security; and
(b)afterwards, the transferee acquires ownership of the shares or units free from any interest or equity of the previous holder of the shares or units; and
(c)the transferee and related persons of the transferee were to newly acquire all of the shares or units they hold in the entity at the time of the acquisition mentioned in paragraph (b), the acquisition would be a relevant acquisition.
(2)Also, this section applies if—
(a)shares or units in an entity are transferred, or agreed to be transferred, by way of security; and
(b)the commissioner is not satisfied of the matter mentioned in section 190 ; and
(c)the acquisition mentioned in paragraph (a) is a relevant acquisition.
(3)For subsection (1), the transferee is taken to have made a relevant acquisition of the shares or units owned by the transferee and related persons of the transferee.
(4)Landholder duty imposed on the relevant acquisition must be reduced by any mortgage duty paid on the transfer or agreement to transfer.

s 188 amd 2008 No. 39s 7; 2011 No. 20s 103

Division 5 Exempt acquisitions

189Exemption—particular share or unit issues

(1)Landholder duty is not imposed on an acquisition by a person of an interest on the initial allotment of shares or units on the registration of a corporation or the establishment of a listed unit trust.
(2)Also, landholder duty is not imposed on an acquisition by a person if—
(a)the interest was acquired on the issue of shares or units to a person in consideration of a transfer of land to the corporation or trust by the person; and
(b)transfer duty is paid or payable for the acquisition of the land by the corporation or trust; and
(c)the land is the only land of the corporation or trust; and
(d)the person is the only shareholder or unit holder of the corporation or trust.
(3)In addition, landholder duty is not imposed on an acquisition by a person if—
(a)the interest is acquired on a dealing in shares or units for all of the shareholders or unit holders of the corporation or trust; and
(b)the interests of the shareholders or unit holders after the dealing are, as near as practicable, the same as the proportions in which they held the shares or units before the dealing; and
(c)the rights among the shareholders or unit holders have not changed significantly because of the dealing in the shares or units.
(4)In this section—
dealing, for shares or units, means the issue, cancellation, redemption or buy-back of the shares or units.

s 189 amd 2011 No. 20s 104

190Exemption—security interests

Landholder duty is not imposed on an acquisition of a security interest if the commissioner is satisfied the interest was not acquired with the intention of avoiding the imposition of landholder duty.

s 190 amd 2011 No. 20s 105

191Exemption—change of trustee

Landholder duty is not imposed on a relevant acquisition for the sole purpose of giving effect to a change of a trustee if—
(a)the acquisition is not part of an arrangement—
(i)involving a change in the rights or interest of a beneficiary of the trust; or
(ii)terminating the trust; and
(b)the acquisition is not part of an arrangement to avoid the imposition of duty; and
(c)transfer duty has been paid on all trust acquisitions for which transfer duty is imposed for the trust before the acquisition.

s 191 amd 2011 No. 20s 106

192Exemption—acquisition by liquidator

Landholder duty is not imposed on a relevant acquisition by a person if the interest was acquired solely in the person’s capacity as a liquidator.

s 192 amd 2011 No. 20s 107

193Exemption—compromise or arrangements

Landholder duty is not imposed on a relevant acquisition by a person if—
(a)the interest was acquired solely because of the making of a compromise or arrangement with creditors approved under the Corporations Act, part 5.1; and
(b)the commissioner is satisfied the compromise or arrangement was not made with the intention of avoiding the imposition of landholder duty.

s 193 amd 2011 No. 20s 108

193AExemption—restructure of stapled entities

(1)Landholder duty is not imposed on a relevant acquisition if—
(a)the purpose of the acquisition is to give effect to a scheme that qualifies or would, on its completion, qualify as a roll-over under the Income Tax Assessment Act 1997 (Cwlth), subdivision 124.Q; and
(b)when the scheme is completed, the interposed trust will be a listed unit trust or a widely held unit trust; and
(c)the acquisition is not part of an arrangement to avoid the imposition of landholder duty.
(2)Subsection (1) does not apply if—
(a)the interposed trust is not a listed unit trust or a widely held unit trust when the scheme is completed; or
(b)the interposed trust ceases to be a listed unit trust or a widely held unit trust within 3 years after the scheme is completed; or
(c)the interposed trust does not retain all the ownership interests in the stapled entities for at least 3 years after the date of the acquisition.
(3)Despite subsection (2)(c), subsection (1) continues to apply if the commissioner is satisfied the interposed trust did not retain all the ownership interests because 1 or more of the stapled entities ceased to exist other than under an arrangement, a significant purpose of which was to avoid the requirement to retain all the ownership interests for at least 3 years.
(4)If subsection (1) does not apply, the commissioner must make a reassessment to impose landholder duty on the relevant acquisition as if the exemption from duty had never applied.
(5)Subsection (4) applies to the reassessment despite the limitation period under the Administration Act for reassessments.

Note—

See the Administration Act, part 3, division 3.
(6)If an event mentioned in subsection (2) happens, the acquirer under the relevant acquisition must, within 28 days after the event happens—
(a)give notice of the event to the commissioner in the approved form; and
(b)ensure the instruments required for the assessment of duty on the acquisition are lodged for reassessment.

Note—

Failure to give the notice is an offence under the Administration Act, section 120 .
(7)Without limiting subsection (3), a company registered under the Corporations Act ceases to exist if it is deregistered under that Act.

s 193A ins 2010 No. 11s 35

amd 2011 No. 20s 109

194Exemption—if transfer duty not imposed

(1)This section applies for a relevant acquisition that would be a dutiable transaction if marketable securities were dutiable property under chapter 2 .
(2)Landholder duty is not imposed on the acquisition if transfer duty would not be imposed on the dutiable transaction because of an exemption under any of the following provisions—
sections 123 to 126
sections 129 and 130
sections 130A and 130B
sections 134 and 135
section 141
section 143 .

s 194 amd 2002 No. 65s 3(2) sch; 2006 No. 44s 41; 2011 No. 20s 110

194AExemption—marketable securities

Landholder duty is not imposed on a relevant acquisition that is a transfer, or agreement for the transfer, of a marketable security to or from a corporation if—
(a)the corporation is—
(i)a financial institution; or
(ii)a trustee company under the Trustee Companies Act 1968 ; or
(iii)a related body corporate of the corporation; or
(iv)a corporation of a class prescribed under a regulation; and
(b)the corporation’s principal business is to hold property as trustee or nominee for another person; and
(c)whichever of the following is relevant applies—
(i)for a transfer to the corporation—
(A)the property is to be held on trust solely for the transferor; and
(B)the transfer is not part of an arrangement under which the security will be held on trust for another person;
(ii)for a transfer from the corporation—the transfer is a retransfer to the owner in the same capacity as the security was previously held by the owner.

s 194A ins 2006 No. 44s 42

amd 2011 No. 20s 111

195Exemption—no liability for transfer duty on acquisition in other way

Landholder duty is not imposed on an acquisition by a person if—
(a)the land-holdings of a landholder could have been acquired by the person without incurring a liability to pay transfer duty for the acquisition of land other than under chapter 10 , part 1 ; and
(b)the commissioner is satisfied the acquisition would not have been part of an arrangement to avoid the imposition of landholder duty.

s 195 amd 2011 No. 20s 112

196Interests acquired under exempt acquisitions disregarded for particular purposes

An interest acquired under an exempt acquisition, other than an exempt acquisition under section 195 , must be disregarded as an interest in a landholder when—
(a)deciding whether a person has, under section 158 (1)(b)(i) or (ii), acquired an interest in the corporation; or
(b)aggregating interests under section 158 (1)(b)(i) or (ii).

s 196 amd 2011 No. 20s 113

Division 6 Reassessments for landholder duty

div hdg amd 2011 No. 20s 114

197When commissioner must make reassessment

(1)The commissioner must make a reassessment of landholder duty imposed for a relevant acquisition if—
(a)at the time of the relevant acquisition, the landholder’s land-holdings included—
(i)land the subject of—
(A)a sale agreement that was later completed; or
(B)a purchase agreement that was not completed; or
(ii)land-holdings of a trustee of a trust that was a subsidiary of the landholder because of—
(A)a trust interest sale agreement that was later completed; or
(B)a trust interest purchase agreement that was not completed; and
(b)the commissioner is satisfied the agreement was not made or was not part of an arrangement made for the purpose of avoiding the imposition of landholder duty.
(2)Also, the commissioner must make a reassessment of landholder duty imposed for a relevant acquisition if at the time of the relevant acquisition a person is taken to have acquired an interest in a landholder under an agreement to acquire the interest but the agreement is not completed.
(3)When reassessing landholder duty under subsection (1), the commissioner must disregard the land mentioned in the subsection in—
(a)deciding whether the entity in which the acquisition is made is a landholder; and
(b)working out the dutiable value of the relevant acquisition.
(4)When reassessing the landholder duty under subsection (2), the commissioner must disregard the interest mentioned in the subsection.
(5)For a reassessment under subsection (1) or (2), the acquirer under the relevant acquisition must lodge the landholder duty statement for the acquisition.
(6)Subsection (1) or (2) applies to the reassessment despite the limitation period under the Administration Act for reassessments.

Note—

See the Administration Act, part 3 (Assessments of tax), division 3 (Reassessments).
(7)In this section—
trust interest purchase agreement see section 166 .
trust interest sale agreement see section 166 .

s 197 amd 2010 No. 11s 36; 2011 No. 20s 115

Division 7 Enforcement

Subdivision 1 Charges

198Charge over land for unpaid landholder duty

(1)This section applies if landholder duty is not paid by the date by which the duty must be paid.
(2)The liability to pay the outstanding amount of landholder duty is a first charge on land owned by the landholder concerned in the relevant acquisition for which the landholder duty is payable and any subsidiary of the landholder.
(3)The commissioner may lodge, under the Administration Act, part 4, division 5, a request to register the charge over stated land owned by the landholder or its subsidiary.
(4)The charge has priority over all other encumbrances over the land.

s 198 amd 2010 No. 11s 37; 2011 No. 20s 116

199[Repealed]

s 199 om 2010 No. 11s 38

Subdivision 2 Power of sale

200Commissioner may apply to Supreme Court for order to sell

(1)This section applies if—
(a)under subdivision 1 , a charge has been registered over land; and
(b)the outstanding amount of landholder duty has not been paid within 18 months after registration.
(2)The commissioner may apply to the Supreme Court for an order to sell the land stated in the application.
(3)At least 6 months before making the application, the commissioner must give notice to the person liable to pay the landholder duty and the owner of the land of the commissioner’s intention to apply to the Supreme Court for an order to sell the land unless the outstanding amount of landholder duty is paid within 6 months after the date of the notice.

s 200 amd 2011 No. 20s 117

201When court must order sale of land

(1)The court must order the sale of the land if it is satisfied—
(a)proper notice of the application for the order was given under section 200 ; and
(b)there is an outstanding amount of landholder duty payable to the State.
(2)However, the court may make an order only for the land the court considers is sufficient to realise proceeds to pay the amounts mentioned in section 202 (a) to (d) .

s 201 amd 2011 No. 20s 118

202Application of proceeds of sale

The proceeds of the sale of land sold under the order must be applied as follows—
(a)first, in payment of the commissioner’s expenses on the application to the court for the order;
(b)second, in payment of expenses properly incurred by the commissioner on the sale or any attempted sale;
(c)third, in payment of the outstanding amount of landholder duty under the Administration Act, section 42 ;
(d)fourth, in payment of amounts secured by a security interest or charge on the land recorded before the charge mentioned in section 200 (1)(a), unless the land is sold subject to the security interest or charge;
(e)fifth, any balance must be applied as the court orders.

s 202 amd 2011 No. 20s 119; 2013 No. 28s 13

203Registration of transfer

(1)If land is sold under the order to sell, the person stated in the order for this section must—
(a)sign a transfer in the appropriate form in favour of the purchaser; and
(b)lodge the transfer with the registrar.
(2)The registrar must register the transfer as if it had been signed by the registered owner of the land.
(3)Subsection (2) applies despite non-production of the relevant instrument of title.

204Landholder or subsidiary may recover proceeds of sale as debt

(1)The amount equal to the proceeds of the sale of land under the order less an amount paid under section 202 (d) is a debt payable to the entity or subsidiary that previously owned the land by the persons liable to pay the landholder duty for which the order was made.
(2)The entity or subsidiary may recover the debt in a court of competent jurisdiction.

s 204 amd 2011 No. 20s 120; 2013 No. 28s 51sch 2

Part 2 Corporate trustee duty

Division 1 Preliminary

205Imposition of corporate trustee duty

(1)This part imposes duty (corporate trustee duty) on relevant acquisitions.

Notes—

1Exemptions for corporate trustee duty are dealt with in division 6 .
2Additional foreign acquirer duty is imposed on particular relevant acquisitions under chapter 4 .
(2)Corporate trustee duty is imposed on the dutiable value of a relevant acquisition.

s 205 amd 2016 No. 37s 8

206Interpretation for property held by partnership or trust

A reference to a partnership or trust holding property is a reference to the holding of the property by the partners for the partnership or trustees for the trust.

Division 2 Some basic concepts for corporate trustee duty

207What is a relevant acquisition

A person makes a relevant acquisition if—
(a)the person acquires a share interest in a corporate trustee or relevant corporation for a corporate trustee; and
(b)the acquisition is part of an arrangement under which any person obtains, directly or indirectly, a benefit relating to the property held by the corporate trustee on trust.

208What is a share interest

A share interest is a person’s interest as a shareholder in a corporate trustee or relevant corporation for a corporate trustee.

209What is a corporate trustee

A corporate trustee is an unlisted corporation, other than an authorised trustee corporation, that is the trustee of a discretionary trust that—
(a)holds dutiable property on trust for the discretionary trust; or
(b)has an indirect interest in dutiable property and that interest is held on trust for the discretionary trust.

Note—

Section 498 includes provision about references to dutiable property.

s 209 amd 2011 No. 20s 121

210What is a corporate trustee’s indirect interest in dutiable property

A corporate trustee has an indirect interest in dutiable property if it—
(a)has a partnership interest or trust interest in an ultimate entity; or
(b)through a series of partnership interests or trust interests, or a combination of any of them, there is a connection between the corporate trustee and dutiable property of a partnership or trust in the series.

211What is a relevant corporation for a corporate trustee

(1)A corporation is a relevant corporation for a corporate trustee if the corporation is an unlisted corporation that has an interest in the corporate trustee.
(2)For subsection (1), a corporation has an interest in a corporate trustee if—
(a)it has a share interest in the corporate trustee; or
(b)it has a share interest in a corporation that has a share interest in the corporate trustee.

212Acquiring share interest in corporation

(1)A person acquires a share interest in a corporate trustee or relevant corporation for a corporate trustee if—
(a)the person becomes a shareholder of the corporate trustee or relevant corporation; or
(b)being a shareholder, the person’s share interest increases.
(2)However, the acquisition of a share interest by a beneficiary from the personal representative in the administration of the estate of a deceased person is not an acquisition for this part.

213Contracted property and trust interests

(1)For a corporate trustee, contracted property is taken to be dutiable property held by the corporate trustee.
(1A)If a corporate trustee has made a purchase or sale agreement for a trust interest, the corporate trustee is taken to have an indirect interest in the trust-related dutiable property.
(2)For determining the dutiable value of a relevant acquisition—
(a)a sale agreement made by the corporate trustee is taken not to have been made; and
(b)a purchase agreement made by the corporate trustee is taken to have been completed.
(3)Subsection (3A) applies if—
(a)contracted property, or an indirect interest in dutiable property mentioned in subsection (1A), is included in determining the dutiable value of a relevant acquisition; and
(b)the sale agreement for the property or trust interest is later completed or the purchase agreement for the property or trust interest is later rescinded.
(3A)The commissioner must make a reassessment as if the contracted property or indirect interest were never held by the corporate trustee.
(4)For the reassessment, the acquirer under the relevant acquisition must lodge the corporate trustee duty statement for the acquisition.
(5)In this section—
purchase agreement includes an uncompleted agreement, whether or not conditional, for the acquisition of a trust interest through which the corporate trustee would have, if the agreement were completed, an indirect interest in dutiable property (the trust-related dutiable property).
sale agreement includes an uncompleted agreement, whether or not conditional, for the sale of a trust interest through which the corporate trustee has an indirect interest in dutiable property (also the trust-related dutiable property).

s 213 amd 2010 No. 11s 39

Division 3 Liability for corporate trustee duty

214When liability for corporate trustee duty arises

A liability for corporate trustee duty imposed on a relevant acquisition arises when the acquisition is made.

215Who is liable to pay corporate trustee duty

Corporate trustee duty imposed on a relevant acquisition must be paid by the acquirer.

216Rate of corporate trustee duty

The rate of corporate trustee duty imposed on the dutiable value of a relevant acquisition is the rate stated in schedule 3 , column 2, opposite the dutiable value relating to the dutiable property in schedule 3 , column 1.

s 216 sub 2006 No. 44s 43

217Corporate trustee duty statement

The acquirer under a relevant acquisition, must within 30 days after the acquisition is made, lodge a statement in the approved form (a corporate trustee duty statement).

Maximum penalty—40 penalty units.

Division 4 Apportionment of unencumbered value for particular relevant acquisitions

218Apportionment—head office or principal place of business in Queensland

(1)This section applies for determining the unencumbered value of dutiable property that is a Queensland business asset, other than a debt or personal property, of a Queensland business that has its head office or principal place of business in Queensland if, at any time during the 3 financial years preceding the relevant acquisition concerned—
(a)a supply of land, money, credit or goods or any interest in them, or provision of services, has been made by the business to customers outside Queensland; or
(b)the asset has been used, exploited or exercised in, or relates to, a place outside Queensland.
(2)A reference in this chapter to the unencumbered value of the property is taken to be a reference to the amount (the apportioned amount) worked out using the following formula—

equation

      where—
AA means the apportioned amount.
OS means the gross amount of the supplies and provision of services made by the business to its customers in other States during the 3 completed financial years preceding the relevant acquisition.
TS means the gross amount of supplies and provision of services made by the business to all its customers during the 3 completed financial years preceding the relevant acquisition.
UV means the unencumbered value of the Queensland business asset mentioned in subsection (1).
(3)However, the commissioner may decide the unencumbered value of the dutiable property on another basis if the commissioner is satisfied the other basis would be more appropriate in particular circumstances.

s 218 amd 2002 No. 65s 3(2) sch

219Apportionment—head office or principal place of business in another State

(1)This section applies for determining the unencumbered value of dutiable property that is a Queensland business asset, other than a debt or personal property, of a Queensland business that does not have its head office or principal place of business in Queensland if, at any time during the 3 financial years preceding the relevant acquisition concerned—
(a)a supply of land, money, credit or goods or any interest in them, or provision of services, has been made by the business to customers in Queensland; or
(b)the asset has been used, exploited or exercised in, or relates to, Queensland.
(2)A reference in this chapter to the unencumbered value of the property is taken to be a reference to the amount (the apportioned amount) worked out using the following formula—

equation

      where—
AA means the apportioned amount.
QS means the gross amount of the supplies and provision of services made by the business to its Queensland customers during the 3 completed financial years preceding the relevant acquisition.
TS means the gross amount of supplies and provision of services made by the business to all its customers during the 3 completed financial years preceding the relevant acquisition.
UV means the unencumbered value of the Queensland business asset mentioned in subsection (1).
(3)However, the commissioner may decide the unencumbered value of the dutiable property on another basis if the commissioner is satisfied the other basis would be more appropriate in particular circumstances.

s 219 amd 2002 No. 65s 3(2) sch

220Apportionment of particular acquisitions relating to existing rights

(1)This section applies for determining the unencumbered value of dutiable property that is an existing right if the right is exercisable or relates to the conduct of a business or an activity outside Queensland.
(2)A reference in this chapter to the unencumbered value of the right is taken to be a reference to the amount that represents the same proportion of the unencumbered value that the unencumbered value of the right to the extent it is exercisable or relates to the conduct of a business or activity in Queensland bears to the total unencumbered value of the right.
(3)However, the commissioner may decide the unencumbered value of the right on another basis if the commissioner is satisfied the other basis would be more appropriate in particular circumstances.

Division 5 Dutiable value of relevant acquisitions

221Acquirer’s share interest is proportionate to shares in corporate trustee or relevant corporation

(1)For a relevant acquisition that is an acquisition of a share interest in a corporate trustee, the acquirer’s share interest is the proportion that the number of shares the acquirer has bears to the total issued shares in the corporate trustee expressed as a percentage.
(2)For a relevant acquisition that is an acquisition of a share interest in a relevant corporation for a corporate trustee if the relevant corporation has an interest in the corporate trustee as mentioned in section 211 (2)(a), the acquirer’s share interest is worked out by applying the acquirer’s share interest in the relevant corporation to the relevant corporation’s share interest in the corporate trustee.
(3)For a relevant acquisition that is an acquisition of a share interest in a relevant corporation for a corporate trustee if the relevant corporation has an interest in the corporate trustee as mentioned in section 211 (2)(b), the acquirer’s share interest is worked out by applying—
(a)the acquirer’s share interest in the relevant corporation to the relevant corporation’s share interest in the other relevant corporation; and
(b)the result worked out under paragraph (a) to the other relevant corporation’s share interest in the corporate trustee.
(4)For subsections (2) and (3)—
(a)the acquirer’s share interest in the relevant corporation is the proportion that the number of shares the acquirer acquires bears to the total issued shares in the relevant corporation expressed as a percentage; and
(b)the relevant corporation’s share interest in the corporate trustee is the proportion that the number of shares the relevant corporation holds bears to the total issued shares in the corporate trustee expressed as a percentage.
(5)Also, for subsection (3), the relevant corporation’s share interest in the other relevant corporation is the proportion that the number of shares the relevant corporation holds bears to the total issued shares in the other relevant corporation expressed as a percentage.
(6)However, if the commissioner is satisfied the acquirer’s share interest worked out under subsection (1), (2) or (3) does not accurately represent the acquirer’s rights and obligations as a shareholder when compared with the rights and obligations of the other shareholders, the commissioner may decide the acquirer’s share interest.
(7)For applying subsection (1), (2) or (3) to a relevant acquisition that is an increase in the acquirer’s share interest, the acquirer’s share interest is taken to be the increase in the acquirer’s share interest.

222What is the dutiable value of a relevant acquisition

(1)The dutiable value of the relevant acquisition is the total of the amounts worked out by applying the acquirer’s share interest to the unencumbered value, when the liability for corporate trustee duty arises, of—
(a)the dutiable property held on trust by the corporate trustee; and
(b)any indirect interest in dutiable property held on trust by the corporate trustee.

Notes—

1Under section 213 (1), dutiable property includes contracted property. Also, under section 213 (1A), the corporate trustee may be taken to hold an indirect interest in dutiable property through a trust interest that is the subject of a purchase or sale agreement.
2See section 14 (What is the unencumbered value of property).
(2)For subsection (1)(b), the unencumbered value of an indirect interest of a corporate trustee under section 210 (a) is the amount worked out by applying to the unencumbered value of the dutiable property held by the entity in which the corporate trustee has a trust interest or partnership interest the corporate trustee’s trust interest or partnership interest in the entity.
(3)For subsection (1)(b), the unencumbered value of an indirect interest of a corporate trustee under section 210 (b) is the amount worked out by—
(a)first applying to the unencumbered value of the dutiable property held by the ultimate entity, the trust interest or partnership interest of the trust or partnership (the last beneficiary or partner) that is a beneficiary or partner of the ultimate entity; and
(b)applying to the amount worked out under paragraph (a), and the unencumbered value of any dutiable property held by the last beneficiary or partner, the trust interest or partnership interest of the next trust or partnership in the series of trusts or partnerships that is a beneficiary or partner of the last beneficiary or partner; and
(c)applying the calculation in paragraph (b) for each of the other trusts or partnerships in the series until the first entity’s trust interest or partnership interest is used in the calculation; and
(d)applying to the amount last worked out under paragraph (c) and the unencumbered value of any dutiable property held by the first entity, the trust interest or partnership interest of the corporate trustee.
(4)Schedule 4 contains an example of how the dutiable value of a relevant acquisition is worked out.
(5)If the corporate trustee is trustee of more than 1 discretionary trust, the unencumbered value of the dutiable property of each trust and each indirect interest held on trust by the corporate trustee must be aggregated in working out the dutiable value of the relevant acquisition.

s 222 amd 2010 No. 11s 40

223Aggregation of particular relevant acquisitions

(1)This section applies for aggregating relevant acquisitions that together form, evidence, give effect to or arise from what is, substantially 1 arrangement.
(2)For assessing corporate trustee duty on each of the relevant acquisitions, the acquisitions must be aggregated and treated as a single relevant acquisition.
(3)For subsection (1), all relevant circumstances relating to the relevant acquisitions must be taken into account in deciding whether they together form, evidence, give effect to or arise from what is, substantially 1 arrangement.
(4)For subsection (3), relevant circumstances include the following—
(a)whether any of the acquisitions are conditional on entry into, or completion of, any of the other acquisitions;
(b)whether the parties to any of the acquisitions are the same;
(c)whether any party to an acquisition is a related person of another party to any of the other acquisitions;
(d)the time over which the acquisitions take place;
(e)whether, after the acquisitions take place, the acquirers’ interests will be used together or dependently with one another;
(f)whether, before the acquisitions take place, the interests were used together or dependently with one another.
(5)Corporate trustee duty imposed on the relevant acquisition aggregated under this section must—
(a)be assessed on the total of the dutiable values of the acquisitions when the liability for corporate trustee duty for each of the acquisitions arose; and
(b)be apportioned between the acquisitions as decided by the commissioner.
(6)The acquirer must, when lodging the corporate trustee duty statement relating to the acquisition, give notice to the commissioner stating details known to the acquirer about—
(a)all of the interests of the acquirer and related persons of the acquirer included or to be included in the arrangement mentioned in subsection (1); and
(b)the dutiable value of each relevant acquisition.

Note—

Under the Administration Act, the requirement under this subsection is a lodgement requirement for which a failure to comply is an offence under section 121 of that Act.

Division 6 Exempt acquisitions

224Exemption—change of trustee

Corporate trustee duty is not imposed on a relevant acquisition for the sole purpose of giving effect to a change of a trustee if—
(a)the acquisition is not part of an arrangement—
(i)involving a change in the rights or interest of a beneficiary of the trust; or
(ii)terminating the trust; and
(b)the acquisition is not part of an arrangement to avoid the imposition of duty; and
(c)transfer duty has been paid on all trust acquisitions for which transfer duty is imposed for the trust before the acquisition.

225Exemption—relevant acquisition in family trust

(1)Corporate trustee duty is not imposed on a relevant acquisition if—
(a)the trust of which the corporate trustee is trustee is established and maintained primarily for the benefit of the members of a particular family or a family company; and
(b)the acquirer under the relevant acquisition is a member of the family who, or is a family company that, does not hold the shares acquired as trustee.
(2)A trust is established and maintained primarily for the benefit of the members of a particular family or a family company if—
(a)the primary beneficiaries of the trust consist only of members of the family or the family company; and
(b)the takers in default of an appointment for capital by the trustee of the trust consist only of members of the family or the family company.
(3)However, subsection (2)(b) is taken to be satisfied if the last taker in default of an appointment for capital by the trustee of the trust is—
(a)a person decided under the Succession Act 1981 ; or
(b)a charitable institution.
(4)For applying this section, a person (the first person) is a member of the particular family of another person (the other person) if—
(a)the first person is the spouse of the other person; or
(b)the first person, or the first person’s spouse, is any of the following in relation to the other person, or the other person’s spouse—
(i)child, stepchild or adopted child;
(ii)grandchild or great grandchild;
(iii)brother, sister, aunt, uncle or cousin;
(iv)parent, step-parent, adoptive parent, grandparent or great grandparent.
(5)In this section—
family company, for a trust, means a corporation in which all its directors and shareholders are members of the particular family for which the trust is established and maintained.
spouse includes former spouse.

s 225 amd 2008 No. 75s 24; 2010 No. 15s 98sch 3

sub 2011 No. 8s 40

226Exemption—if transfer duty not imposed

Corporate trustee duty is not imposed on a relevant acquisition that is a dutiable transaction on which transfer duty is not imposed because of an exemption under sections 123 to 126 .

Division 7 Deductions and reassessments

227Deduction—interstate transfer duty for shares

(1)This section applies if—
(a)interstate transfer duty is paid or payable for a transfer, or agreement for the transfer, of shares of a corporate trustee or relevant corporation for a corporate trustee; and
(b)the transfer or agreement is a relevant acquisition.
(2)Corporate trustee duty imposed on the relevant acquisition must be reduced by the amount of the interstate transfer duty.
(3)In this section—
interstate transfer duty means a duty in another State equivalent to transfer duty under this Act.

s 227 sub 2006 No. 44s 44

228Deduction—transfer duty for trust acquisition

(1)This section applies if—
(a)a person makes a trust acquisition for which transfer duty is paid or payable; and
(b)the acquisition is a relevant acquisition.
(2)Corporate trustee duty imposed on the relevant acquisition must be reduced by the amount of transfer duty paid or payable.

229When commissioner must make reassessment

(1)The commissioner must make a reassessment of corporate trustee duty imposed for a relevant acquisition if at the time of the relevant acquisition a person is taken to have acquired a share interest in a corporation under an agreement to acquire the interest but the agreement is not completed.
(2)When reassessing the corporate trustee duty under subsection (1), the commissioner must disregard the interest mentioned in the subsection.
(3)For the reassessment, the acquirer under the relevant acquisition must lodge the corporate trustee duty statement for the acquisition.

Chapter 4 Additional foreign acquirer duty

ch hdg prev ch 4 hdg om 2005 No. 60s 11

pres ch 4 hdg ins 2016 No. 37s 9

Part 1 Preliminary

pt hdg prev pt 1 hdg 2005 No. 60s 11

pres pt 1 hdg ins 2016 No. 37s 9

230Relevant transactions

This chapter applies to the following transactions (relevant transactions)—
(a)dutiable transactions on which transfer duty is imposed under chapter 2 ;
(b)relevant acquisitions on which landholder duty or corporate trustee duty is imposed under chapter 3 .

s 230 prev s 230 om 2005 No. 60s 11

pres s 230 ins 2016 No. 37s 9

231Imposition of AFAD

(1)This chapter imposes an additional amount of transfer duty, landholder duty or corporate trustee duty on particular relevant transactions.
(2)The additional amount of duty is additional foreign acquirer duty or AFAD.
(3)Part 3 provides for when AFAD is imposed on a relevant transaction.
(4)Part 4 provides for how AFAD is calculated.
(5)The AFAD imposed on a relevant transaction is added to the duty imposed on the transaction under chapter 2 or 3.
(6)To remove any doubt, it is declared that, unless the contrary intention appears—
(a)a reference in this Act to transfer duty is a reference to duty imposed under chapter 2 and AFAD relating to transfer duty imposed under this chapter; and
(b)a reference in this Act to landholder duty is a reference to duty imposed under chapter 3 , part 1 and AFAD relating to landholder duty imposed under this chapter; and
(c)a reference in this Act to corporate trustee duty is a reference to duty imposed under chapter 3 , part 2 and AFAD relating to corporate trustee duty imposed under this chapter.

s 231 prev s 231 om 2005 No. 60s 11

pres s 231 ins 2016 No. 37s 9

Part 2 Some basic concepts for AFAD

pt hdg prev pt 2 hdg om 2005 No. 60s 11

pres pt 2 hdg ins 2016 No. 37s 9

232What is AFAD residential land

(1)AFAD residential land is land in Queensland—
(a)that is, or will be, solely or primarily used for residential purposes; and
(b)to which any of the following applies—
(i)on the land there is, or will be constructed, a building designed or approved by a local government for human habitation by a single family unit;
(ii)on the land there is a building that a person will refurbish, renovate or extend so it becomes a building mentioned in subparagraph (i);
(iii)the land is a lot on which there is a building or a part of a building that, for the separate area the lot comprises, is designed or approved by a local government for human habitation by a single family unit;
(iv)the land will be a lot on which there is a building or a part of a building that, for the separate area the lot comprises, is designed or approved by a local government for human habitation by a single family unit;
(v)the land is a lot on which there will be a building or a part of a building that, for the separate area the lot comprises, is designed or approved by a local government for human habitation by a single family unit;
(vi)a person is undertaking, or will undertake, development of the land so it becomes land mentioned in any of subparagraphs (i) to (v).
(2)For the purpose of imposing AFAD relating to transfer duty, a reference to AFAD residential land includes a reference to a chattel in Queensland if—
(a)the chattel and the land are included in the same dutiable transaction under section 29 or 30, whether or not the chattel is the subject of a separate agreement for transfer; and
(b)the use of the chattel can be directly linked to, or is incidental to, the use and occupation of the land.

s 232 prev s 232 amd 2002 No. 65s 23

om 2005 No. 60s 11

pres s 232 ins 2016 No. 37s 9

amd 2017 No. 20s 5

233Who is an acquirer

(1)For the purpose of imposing AFAD relating to transfer duty on a dutiable transaction, a person is an acquirer if the person is—
(a)for a dutiable transaction mentioned in section 9 (1)(a) or (b)—a transferee of the dutiable property under the transaction; or
(b)for a dutiable transaction mentioned in section 9 (1)(c) to (e)—a person who, under the transaction, acquires the dutiable property; or
(c)for a dutiable transaction mentioned in section 9 (1)(f)—a person who, under the transaction, acquires the new right; or
(d)for a dutiable transaction mentioned in section 9 (1)(g)—a person who, under the transaction, acquires a partnership interest; or
(e)for a dutiable transaction mentioned in section 9 (1)(h) that is the creation of a trust of dutiable property—a person who, under the transaction, starts to hold the dutiable property in a way mentioned in section 53 ; or
(f)for a dutiable transaction mentioned in section 9 (1)(h) that is the termination of a trust of dutiable property—a person who, under the transaction, starts to hold the dutiable property other than as trustee; or
(g)for a dutiable transaction mentioned in section 9 (1)(i) that is a trust acquisition—a person who makes a trust acquisition under the transaction; or
(h)for a dutiable transaction mentioned in section 9 (1)(i) that is a trust surrender—a person who is a trustee of the trust in which, under the transaction, the trust interest is surrendered; or
(i)for a dutiable transaction mentioned in paragraph (a) to (h)—a partner in a partnership in which any of the other partners is (in the capacity of a partner) a person mentioned in the paragraph.
(2)For the purpose of imposing AFAD relating to landholder duty on a relevant acquisition, a person is an acquirer if the person is—
(a)a person who makes the relevant acquisition under the transaction; or
(b)if a person makes a relevant acquisition because interests are aggregated under section 158 (1)(b)(ii), the person or a related person of the person; or
(c)a partner in a partnership in which any of the other partners is (in the capacity of a partner) a person mentioned in paragraph (a) or (b).
(3)For the purpose of imposing AFAD relating to corporate trustee duty on a relevant acquisition, a person is an acquirer if the person—
(a)makes the relevant acquisition under the transaction; or
(b)is a partner in a partnership in which any of the other partners (in the capacity of a partner) makes the relevant acquisition under the transaction.
(4)In this section—
related person see section 164 .

s 233 prev s 233 om 2005 No. 60s 11

pres s 233 ins 2016 No. 37s 9

234Who is a foreign person

Each of the following is a foreign person
(a)a foreign individual;
(b)a foreign corporation;
(c)the trustee of a foreign trust.

s 234 prev s 234 om 2005 No. 60s 11

pres s 234 ins 2016 No. 37s 9

235Who is a foreign individual

A foreign individual is an individual other than an Australian citizen or permanent resident.

s 235 prev s 235 om 2005 No. 60s 11

pres s 235 ins 2016 No. 37s 9

236What is a foreign corporation

(1)Each of the following is a foreign corporation
(a)a corporation incorporated outside Australia;
(b)a corporation in which foreign persons have a controlling interest.
(2)A corporation is taken to be a corporation mentioned in subsection (1)(b) if, taking their interests together, 1 or more persons who are foreign persons or related persons of foreign persons—
(a)are in a position to control at least 50% of the voting power in the corporation; or
(b)are in a position to control at least 50% of the potential voting power in the corporation; or
(c)have an interest in at least 50% of the issued shares in the corporation.
(3)In this section—
potential voting power see the Foreign Acquisitions and Takeovers Act 1975 (Cwlth), section 22.
voting power see the Foreign Acquisitions and Takeovers Act 1975 (Cwlth), section 22.

s 236 prev s 236 om 2005 No. 60s 11

pres s 236 ins 2016 No. 37s 9

237What is a foreign trust

(1)A trust is a foreign trust if at least 50% of the trust interests in the trust are foreign interests.
(2)In this section—
foreign interest means—
(a)a trust interest of a foreign individual; or
(b)a trust interest of a foreign corporation; or
(c)a trust interest of a trustee of a foreign trust; or
(d)a trust interest held by a related person of a person mentioned in paragraph (a) to (c).

s 237 prev s 237 om 2005 No. 60s 11

pres s 237 ins 2016 No. 37s 9

amd 2017 No. 20s 6

238Who are related persons

Persons are related persons if they are—
(a)related persons under section 61 ; or
(b)partners in a partnership.

s 238 prev s 238 om 2005 No. 60s 11

pres s 238 ins 2016 No. 37s 9

239Property held by partnership or trust

A reference in this chapter to a partnership or trust holding property is a reference to the holding of the property by the partners for the partnership or trustees on trust.

s 239 prev s 239 om 2005 No. 60s 11

pres s 239 ins 2016 No. 37s 9

Part 3 Liability for AFAD

pt hdg prev pt 3 hdg om 2005 No. 60s 11

pres pt 3 hdg ins 2016 No. 37s 9

240Conditions for imposing AFAD

(1)AFAD is imposed on a relevant transaction if, at the time the liability for transfer duty, landholder duty or corporate trustee duty on the transaction arises—
(a) the property condition under section 241 applies; and
(b) an acquirer under the transaction is a foreign person.
(2)Also, AFAD is imposed on a relevant transaction that is an agreement for the transfer of dutiable property if—
(a)the commissioner is satisfied—
(i)a person (the agent) is appointed in writing as an agent for another person (the principal); and
(ii)under the appointment, the agent enters into the agreement for the transfer of the dutiable property from a person to the agent on behalf of the principal (the agreement); and
(iii)the principal provided all the consideration, including any deposit paid; and
(b)at the time the liability for transfer duty on the agreement arises—
(i)the property condition under section 241 applies; and
(ii)AFAD is not imposed on the agreement under subsection (1); and
(iii)the principal is a foreign person.
(3)For subsection (2)(a)(i), the commissioner must not be satisfied the person was properly appointed as agent unless the original instrument of appointment, or a copy of it, is lodged.

s 240 prev s 240 om 2005 No. 60s 11

pres s 240 ins 2016 No. 37s 9

amd 2017 No. 20s 7

241Property condition for imposing AFAD

(1)This section states the property condition for section 240 .
(2)If the relevant transaction is a dutiable transaction, the property condition is that—
(a)for a dutiable transaction mentioned in section 9 (1)(a) to (e) or (h) for dutiable property other than an existing right—the dutiable property is AFAD residential land; or
(b)for a dutiable transaction mentioned in section 9 (1)(a) to (e) or (h) for dutiable property that is an existing right—the existing right is—
(i)AFAD residential land; or
(ii)an existing right mentioned in schedule 6 , definition existing right, paragraph (g) or (i) to (m) for which the dutiable property is AFAD residential land; or
(c)for a dutiable transaction mentioned in section 9 (1)(f)—the new right is—
(i)AFAD residential land; or
(ii)a new right mentioned in schedule 6 , definition new right, paragraph (c) for which the dutiable property is AFAD residential land; or
(d)for a dutiable transaction mentioned in section 9 (1)(g)—the partnership acquisition is an acquisition of a partnership interest in a partnership that—
(i)holds dutiable property that is AFAD residential land; or
(ii)has an indirect interest in dutiable property that is AFAD residential land; or
(e)for a dutiable transaction mentioned in section 9 (1)(i)—the trust acquisition or trust surrender is an acquisition or surrender of a trust interest in a trust that—
(i)holds dutiable property that is AFAD residential land; or
(ii)has an indirect interest in dutiable property that is AFAD residential land.
(3)If the relevant transaction is a relevant acquisition, the property condition is that—
(a)for landholder duty—the landholder has land-holdings that include AFAD residential land; or
(b)for corporate trustee duty—the dutiable property held on trust by the corporate trustee, or in which the corporate trustee has an indirect interest that is held on trust, includes AFAD residential land.

s 241 prev s 241 amd 2005 No. 60s 9

om 2005 No. 60s 11

pres s 241 ins 2016 No. 37s 9

amd 2017 No. 20s 8

241A Imposition of AFAD—pre-incorporation contracts

(1)This section applies if—
(a)a transferee enters into an agreement for the transfer of dutiable property for, or for the benefit of, a company proposed to be registered under the Corporations Act; and
(b)the company is named in the agreement; and
(c)the company, or a company that is reasonably identifiable with it, is registered under the Corporations Act; and
(d)under the Corporations Act, section 131 , the company ratifies the agreement after it is registered; and
(e)the dutiable property is AFAD residential land; and
(f)the company is a foreign corporation when the dutiable property is transferred to it.
(2)AFAD is imposed on the dutiable transaction that is the agreement.

Note—

Under section 116 (4), transfer duty is not imposed on the transfer of the dutiable property to the company if transfer duty imposed on the agreement (including AFAD imposed under subsection (2)) is paid. See also section 231 (6).

s 241A ins 2017 No. 20s 9

Part 4 Calculating AFAD

pt hdg prev pt 4 hdg om 2005 No. 60s 11

pres pt 4 hdg ins 2016 No. 37s 9

242Definitions for pt 4

In this part—
foreign acquirer means an acquirer who is a foreign person.
foreign acquirer’s interest, under a relevant transaction, means the proportion that the share of the foreign acquirer under the transaction bears to the total of the shares of all acquirers under the transaction.

Example—

Under a relevant transaction that is a relevant acquisition on which landholder duty is imposed, person A (a foreign acquirer) and person B (not a foreign acquirer) each acquire a 45% interest in a public landholder. The proportion of person A’s share under the transaction is 50% (a 45% interest of a total interest of 90% acquired under the transaction). Person A’s foreign acquirer’s interest is therefore 50%.

def foreign acquirer’s interest amd 2017 No. 20s 10

s 242 prev s 242 om 2005 No. 60s 11

pres s 242 ins 2016 No. 37s 9

242A[Repealed]

s 242A ins 2005 No. 60s 10

om 2005 No. 60s 11

243Non-application of concessions

The following provisions do not apply to the calculation or payment of AFAD imposed under this chapter—
chapter 2 , part 9
chapter 2 , part 10
section 173 .

s 243 prev s 243 amd 2002 No. 65s 24(1)–(2) (retro), (3)

om 2005 No. 60s 11

pres s 243 ins 2016 No. 37s 9

244AFAD for transfer duty

(1)This section applies if, under part 3 , AFAD relating to transfer duty is imposed on a dutiable transaction.
(2)AFAD is imposed at the rate of 3% on the following amount—
(a)for a dutiable transaction under section 9 (1)(a) to (e) or (h) for dutiable property other than an existing right—the dutiable value of the transaction to the extent of the foreign acquirer’s interest in the AFAD residential land that is the subject of the transaction;
(b)for a dutiable transaction under section 9 (1)(a) to (e) or (h) for dutiable property that is an existing right—the dutiable value of the transaction to the extent of the foreign acquirer’s interest in the existing right mentioned in section 241 (2)(b) that is the subject of the transaction;
(c)for a dutiable transaction under section 9 (1)(f)—the dutiable value of the transaction to the extent of the foreign acquirer’s interest in the new right mentioned in section 241 (2)(c) that is the subject of the transaction;
(d)for a dutiable transaction under section 9 (1)(g) or (i)—the dutiable value of the transaction—
(i)to the extent the partnership acquisition, trust acquisition or trust surrender relates to AFAD residential land; and
(ii)to the extent of the foreign acquirer’s interest in the partnership acquisition, trust acquisition or trust surrender.
(3)However, if AFAD is imposed on a dutiable transaction under section 240 (2) or 241A, AFAD is imposed at the rate of 3% on the dutiable value of the transaction to the extent of the acquirer’s interest in—
(a)the AFAD residential land that is the subject of the transaction; or
(b)the existing right mentioned in section 241 (2)(b) that is the subject of the transaction.

s 244 prev s 244 amd 2003 No. 74s 155sch 1

om 2005 No. 60s 11

pres s 244 ins 2016 No. 37s 9

amd 2017 No. 20s 11

245AFAD for landholder duty

(1)This section applies if, under part 3 , AFAD relating to landholder duty is imposed on a relevant acquisition.
(2)AFAD is imposed on a relevant acquisition made in a private landholder at the rate of 3% on the dutiable value of the acquisition—
(a)to the extent the dutiable value relates to land-holdings of the landholder that are AFAD residential land; and
(b)to the extent of the foreign acquirer’s interest in the relevant acquisition.
(3)AFAD is imposed on a relevant acquisition made in a public landholder, to the extent of the foreign acquirer’s interest in the relevant acquisition, in the amount calculated in the way landholder duty is calculated under section 179A but with the changes stated in subsection (4).
(4)For subsection (3), in relation to the calculation of transfer duty as mentioned in section 179A
(a)the dutiable transaction mentioned in that section is treated as being limited to the transfer of the AFAD residential land; and
(b)the amount of transfer duty that would be imposed on the transaction as mentioned in that section is calculated at the rate of 3%.

s 245 prev s 245 om 2005 No. 60s 11

pres s 245 ins 2016 No. 37s 9

246AFAD for corporate trustee duty

(1)This section applies if, under part 3 , AFAD relating to corporate trustee duty is imposed on a relevant acquisition.
(2)AFAD is imposed at the rate of 3% on the dutiable value of a relevant acquisition—
(a)to the extent the dutiable property held on trust by the corporate trustee, or in which the corporate trustee has an indirect interest that is held on trust, is AFAD residential land; and
(b)to the extent of the foreign acquirer’s interest in the relevant acquisition.

s 246 prev s 246 om 2005 No. 60s 11

pres s 246 ins 2016 No. 37s 9

Part 5 Reassessments

pt hdg ins 2016 No. 37s 9

Division 1 Reassessments—general

div hdg ins 2017 No. 20s 12

246AReassessment if corporation or trust becomes foreign

(1)This section applies if AFAD is not imposed on a relevant transaction only because an acquirer under the transaction is not a foreign person.
(2)The commissioner must make a reassessment under subsection (3) if—
(a)within 3 years after the time the liability for transfer duty, landholder duty or corporate trustee duty on the transaction arose, a corporation that was an acquirer under the transaction becomes a foreign corporation; or
(b)both of the following apply—
(i)a person was an acquirer under the transaction in the person’s capacity as trustee;
(ii)within 3 years after the time the liability for transfer duty, landholder duty or corporate trustee duty on the transaction arose, the trust becomes a foreign trust.
(3)The commissioner must make a reassessment to impose AFAD on the transaction as if, at the time the liability for transfer duty, landholder duty or corporate trustee duty on the transaction arose, the acquirer was a foreign person.
(4)Within 28 days after an event mentioned in subsection (2)(a) or (b)(ii) happens, the corporation or trustee of the trust must—
(a)give notice in the approved form to the commissioner; and
(b)ensure the instruments required for the assessment of duty on the transaction are lodged for a reassessment of duty on the transaction.

Note—

Failure to give the notice is an offence under the Administration Act, section 120 .
(5)The commissioner is not required to make a reassessment under subsection (3) if the commissioner is required to make a reassessment under section 246AC .

s 246A ins 2016 No. 37s 9

amd 2017 No. 20s 13

Division 2 Reassessments relating to agency-related agreements

div hdg ins 2017 No. 20s 14

246AA Application of division

(1)This division applies if the commissioner is satisfied—
(a)a person (the agent) is appointed in writing as an agent for another person (the principal); and
(b)under the appointment, the agent enters into a dutiable transaction that is an agreement for the transfer of dutiable property from a person (the original transferor) to the agent on behalf of the principal (the agreement); and
(c)the principal provided all the consideration, including any deposit paid.
(2)For subsection (1)(a), the commissioner must not be satisfied the person was properly appointed as agent unless the original instrument of appointment, or a copy of it, is lodged.

s 246AA ins 2017 No. 20s 14

246AB Reassessment if principal not foreign person at time of transfer

(1)This section applies if—
(a)the commissioner is satisfied transfer duty imposed on the agreement is paid; and
(b)AFAD is imposed on the agreement, including on a reassessment under section 246AC , because the agent is a foreign person; and
(c)the dutiable property is later transferred to the principal by the original transferor or the agent; and
(d)at the time of the later transfer of the dutiable property, the principal is not a foreign person.
(2)The principal may lodge an application for a reassessment in the approved form within 6 months after the dutiable property is later transferred to the principal.
(3)The principal must lodge the agreement with the application.
(4)The commissioner must make a reassessment of transfer duty on the agreement as if, at the time the liability for transfer duty arose, the acquirer was not a foreign person.

s 246AB ins 2017 No. 20s 14

246AC Reassessment if agent or principal becomes foreign person before transfer

(1)This section applies if—
(a)AFAD is not imposed on the agreement only because the agent is not a foreign person and the principal is not a foreign person; and
(b)the dutiable property has not been transferred to the principal by the original transferor or the agent.
(2)The commissioner must make a reassessment under subsection (3) if any of the following events happen—
(a)the agent was a corporation and within 3 years after the time the liability for transfer duty on the agreement arose the agent becomes a foreign corporation;
(b)the agent acted in the agent’s capacity as trustee and within 3 years after the time the liability for transfer duty on the agreement arose the trust becomes a foreign trust;
(c)the principal was a corporation and within 3 years after the time the liability for transfer duty on the agreement arose the principal becomes a foreign corporation;
(d)the principal acted in the principal’s capacity as trustee and within 3 years after the time the liability for transfer duty on the agreement arose the trust becomes a foreign trust.
(3)The commissioner must make a reassessment to impose AFAD on the agreement as if, at the time the liability for transfer duty on the agreement arose—
(a)for a reassessment because an event mentioned in subsection (2)(a) or (b) happens—the acquirer was a foreign person; or
(b)otherwise—the agent was not a foreign person but the principal was a foreign person.
(4)Within 28 days after an event mentioned in subsection (2)(a) to (d) happens, the corporation or trustee of the trust must—
(a)give notice in the approved form to the commissioner; and
(b)ensure the instruments required for the assessment of duty on the agreement are lodged for a reassessment of duty on the agreement.

Note—

Failure to give the notice is an offence under the Administration Act, section 120 .

s 246AC ins 2017 No. 20s 14

246AD Reassessment if principal becomes foreign person after transfer

(1)This section applies if—
(a)the dutiable property has been transferred to the principal by the original transferor or the agent; and
(b)AFAD is not imposed on the agreement, including on a reassessment under section 246AB , only because the agent is not a foreign person and the principal is not a foreign person.
(2)The commissioner must make a reassessment under subsection (3) if—
(a)the principal was a corporation and within 3 years after the time the liability for transfer duty on the agreement arose the principal becomes a foreign corporation; or
(b)both of the following apply—
(i)the principal acted in the principal’s capacity as trustee;
(ii)within 3 years after the time the liability for transfer duty on the agreement arose the trust becomes a foreign trust.
(3)The commissioner must make a reassessment to impose AFAD on the agreement as if, at the time the liability for transfer duty on the agreement arose, the agent was not a foreign person but the principal was a foreign person.
(4)Within 28 days after an event mentioned in subsection (2)(a) or (b)(ii) happens, the corporation or trustee of the trust must—
(a)give notice in the approved form to the commissioner; and
(b)ensure the instruments required for the assessment of duty on the agreement are lodged for a reassessment of duty on the agreement.

Note—

Failure to give the notice is an offence under the Administration Act, section 120 .

s 246AD ins 2017 No. 20s 14

Division 3 Reassessments relating to pre-incorporation contracts

div hdg ins 2017 No. 20s 14

246AE Reassessment of pre-incorporation contract—company is foreign corporation when property is transferred

(1)If section 241A applies, the commissioner must make a reassessment to impose AFAD on the dutiable transaction that is the agreement for the transfer of the dutiable property.
(2)Within 28 days after the dutiable property is transferred to the company, the company must—
(a)give notice in the approved form to the commissioner; and
(b)ensure the instruments required for the assessment of duty on the agreement are lodged for a reassessment of duty on the agreement.

Note—

Failure to give the notice is an offence under the Administration Act, section 120 .

s 246AE ins 2017 No. 20s 14

246AF Reassessment of pre-incorporation contract—company becomes foreign corporation within 3 years

(1)This section applies if—
(a)transfer duty is not imposed on a dutiable transaction because of section 116 (4); and
(b)AFAD is not imposed on the agreement for the transfer of the dutiable property; and
(c)the dutiable property is AFAD residential land; and
(d)the company is not a foreign corporation when the dutiable property is transferred to the company.
(2)The commissioner must make a reassessment under subsection (3) if, within 3 years after the dutiable property is transferred to the company, the company becomes a foreign corporation.
(3)The commissioner must make a reassessment to impose AFAD on the agreement as if the company were a foreign corporation.
(4)Within 28 days after the event mentioned in subsection (2) happens, the company must—
(a)give notice in the approved form to the commissioner; and
(b)ensure the instruments required for the assessment of duty on the agreement are lodged for a reassessment of duty on the agreement.

Note—

Failure to give the notice is an offence under the Administration Act, section 120 .

s 246AF ins 2017 No. 20s 14

Part 6 Charge for unpaid transfer duty

pt hdg ins 2016 No. 37s 9

246BCharge over interest in land for unpaid transfer duty

(1)This section applies if—
(a)transfer duty including AFAD is imposed on a dutiable transaction; and
(b)all or part of the transfer duty is not paid by the date the amount (the outstanding liability) is payable.
(2)The outstanding liability is a first charge on the interest of the following person (the chargee) in the AFAD residential land that is the subject of the transaction—
(a)for a dutiable transaction mentioned in section 9 (1)(a) to (f)—
(i)if AFAD is imposed on the transaction under section 240 (2) and the land has not been transferred to the principal—the acquirer under the transaction; or
(ii)if AFAD is imposed on the transaction under section 240 (2) and the land has been transferred to the principal—the principal; or
(iii)if AFAD is imposed on the transaction under section 241A —the company; or
(iv)otherwise—the foreign acquirer under the transaction;
(b)for a dutiable transaction mentioned in section 9 (1)(g)—each partner who holds the AFAD residential land to which the partnership acquisition relates;
(c)for a dutiable transaction mentioned in section 9 (1)(h) that is the creation of a trust of dutiable property—the person who, under the transaction, starts to hold the AFAD residential land in a way mentioned in section 53 ;
(d)for a dutiable transaction mentioned in section 9 (1)(h) that is the termination of a trust of dutiable property—the person who, under the transaction, starts to hold the AFAD residential land other than as trustee;
(e)for a dutiable transaction mentioned in section 9 (1)(i) that is a trust acquisition—the trustee of the trust in which the trust acquisition is made;
(f)for a dutiable transaction mentioned in section 9 (1)(i) that is a trust surrender—
(i)the trustee of the trust in which the trust interest is surrendered; or
(ii)if there is no longer a trustee as a result of the surrender, the person who holds the AFAD residential land as a result of the surrender.
(3)The charge has priority over all other encumbrances over the chargee’s interest in the land other than a charge under section 156P .
(4)Subsection (3) applies—
(a)whether the other encumbrances over the chargee’s interest in the land—
(i)are registered or unregistered; or
(ii)were created before or after the charge arises under subsection (2); and
(b)despite the Land Title Act 1994 , part 3, divisions 2 and 2A.
(5)The commissioner may lodge, under the Administration Act, part 4 , division 5, a request to register the charge on the land that is the subject of the transaction.
(6)Despite the Administration Act, section 47B, the registrar must not register the charge if the chargee is no longer the registered owner of the land.
(7)On its registration, the charge is not affected by a disposition of the chargee’s interest in the land.

s 246B ins 2016 No. 37s 9

amd 2017 No. 20s 15

246CCommissioner may apply to Supreme Court for order to sell

(1)This section applies if—
(a)a charge has been registered over the land under section 246B ; and
(b)the outstanding liability has not been paid within 18 months after registration.
(2)The commissioner may apply to the Supreme Court for an order to sell the land stated in the application.
(3)At least 6 months before making the application, the commissioner must give the persons mentioned in subsection (4) notice of the commissioner’s intention to apply to the Supreme Court for an order to sell the land unless the outstanding liability is paid within 6 months after the date of the notice.
(4)The persons to whom notice must be given are—
(a)the persons liable to pay the outstanding liability; and
(b)the owner of the land.

s 246C ins 2016 No. 37s 9

246DWhen court must order sale of land

(1)The court must order the sale of the land if it is satisfied—
(a)proper notice of the application for the order was given under section 246C ; and
(b)there is an outstanding liability payable to the State.
(2)However, the court may make an order only for the land the court considers is sufficient to realise proceeds to pay the amounts mentioned in section 246E (a) to (d).

s 246D ins 2016 No. 37s 9

246EApplication of proceeds of sale

The proceeds of the sale of land sold under the order must be applied as follows—

(a)first, in payment of the commissioner’s expenses on the application to the court for the order;
(b)second, in payment of expenses properly incurred by the commissioner on the sale or any attempted sale;
(c)third, in payment of the outstanding liability under the Administration Act, section 42 ;
(d)fourth, in payment of amounts secured by a security interest or charge on the land recorded before the charge mentioned in section 246C (1)(a), unless the land is sold subject to the security interest or charge;
(e)fifth, any balance must be applied as the court orders.

s 246E ins 2016 No. 37s 9

246FRegistration of transfer

(1)If land is sold under the order to sell, the person stated in the order for this section must—
(a)sign a transfer in the appropriate form in favour of the purchaser; and
(b)lodge the transfer with the registrar.
(2)The registrar must register the transfer as if it had been signed by the registered owner of the land.
(3)Subsection (2) applies despite non-production of the relevant instrument of title.

s 246F ins 2016 No. 37s 9

246GFormer owner may recover proceeds of sale as debt

(1)The amount equal to the proceeds of the sale of land under the order to sell less an amount paid under section 246E (d) is a debt payable to the former owner of the land by the persons liable to pay the outstanding liability for which the order was made.
(2)The former owner may recover the debt in a court of competent jurisdiction.
(3)In this section—
former owner, of land sold under the order to sell, means the person who owned the land immediately before its sale.

s 246G ins 2016 No. 37s 9

Part 7 Miscellaneous

pt hdg ins 2016 No. 37s 9

246HAcquirer must lodge AFAD statement

The acquirer under a relevant transaction on which AFAD is imposed must, within 30 days after the date of the transaction, lodge a statement in the approved form.

Note—

Failure to lodge the statement is an offence under the Administration Act, section 121 .

s 246H ins 2016 No. 37s 9

246IRecovery of transfer duty payment from foreign persons

(1)This section applies if—
(a)AFAD relating to transfer duty is imposed on a dutiable transaction; and
(b)a person who is liable under this Act to pay the transfer duty pays an amount to the commissioner as payment for—
(i)all or part of the transfer duty; or
(ii)interest or penalty tax relating to the transfer duty; and
(c)the person—
(i)is not a foreign acquirer under the transaction; and
(ii)is not an agent for a principal who is a foreign person as mentioned in section 240 (2); and
(iii)is not a transferee mentioned in section 241A if the dutiable property has been transferred to the company.
(2)The person is entitled to recover the amount from a following person as a debt, to the extent the amount exceeds the amount that would have been payable if AFAD had not been imposed on the transaction—
(a)the foreign acquirer;
(b)the agent for the principal who is a foreign person as mentioned in section 240 (2);
(c)the transferee mentioned in section 241A if the dutiable property has been transferred to the company.

s 246I ins 2016 No. 37s 9

sub 2017 No. 20s 16

Chapter 5 Mortgage duty

Part 1 Preliminary

247Imposition of mortgage duty

(1)This chapter imposes duty (mortgage duty) on instruments that are mortgages, particular caveats claiming an interest under mortgages and particular releases of mortgages.

Note—

Concessions and exemptions for mortgage duty are dealt with in parts 6 and 7. Also, other exemptions are dealt with in chapter 10 .
(2)Mortgage duty is imposed on the amount secured by a mortgage.

Note—

See part 4 (Amount secured by a mortgage).

247AAbolition of mortgage duty from 1 July 2008

(1)Despite anything to the contrary in this chapter, mortgage duty is not imposed—
(a)on a mortgage first signed, or that first affects property in the State, on or after 1 July 2008; or
(b)in relation to an advance or further advance made on or after 1 July 2008, under a mortgage first signed, or that first affects property in the State, before 1 July 2008; or
(c)on an instrument that, on the deposit of instruments of title to property in Queensland, first becomes a mortgage or evidences the terms of a mortgage on or after 1 July 2008.
(2)This section is subject to chapter 17 , part 9 , division 1.

s 247A ins 2008 No. 39s 8

Part 2 Some basic concepts for mortgage duty

248What is a mortgage

(1)An instrument is a mortgage if it is—
(a)a security by way of mortgage or charge over property wholly or partly in Queensland; or
(b)a security by way of a transfer of property wholly or partly in Queensland to a trustee, to be sold or otherwise converted into money, redeemable before the sale or conversion, other than if the transfer is made for the benefit of creditors who accept the transfer in full satisfaction of debts owed to them; or
(c)any transfer, or agreement for the transfer, of property wholly or partly in Queensland that is apparently absolute but is intended only as security; or

Note—

See section 32 (Transfer by way of security—land).
(d)an instrument that, on the deposit of instruments of title to property wholly or partly in Queensland, becomes a mortgage or evidences the terms of a mortgage.
(2)However, for this chapter, an instrument mentioned in subsection (1)(a) is a mortgage only if it is a security by way of mortgage or charge over property wholly or partly in Queensland at the liability date.
(3)For sections 262 , 268 , 269 , 276 and 281 , a reference to a mortgage or previous mortgage includes a reference to a mortgage first signed before the repeal of the repealed Act.

249What is an advance

(1)An advance is the provision or obtaining of funds by way of financial accommodation by—
(a)a loan; or
(b)a bill facility that is 1 or more agreements, understandings or arrangements as a consequence of which a bill of exchange or promissory note—
(i)is drawn, accepted, endorsed or made; or
(ii)is held, negotiated or discounted.
(2)Subsection (1)(b) applies whether or not the funds are obtained from—
(a)the person who draws, accepts, endorses or makes the bill of exchange or promissory note; or
(b)a person who is a party to any of the agreements, understandings or arrangements.
(3)An advance includes a contingent liability under section 259 .
(4)However, the term does not include an amount provided or obtained on the security of a mortgage for—
(a)insurance of the secured property against fire; or
(b)keeping or effecting a policy of life insurance; or
(c)payment of duty for the security or any loan other than a current account secured by the mortgage.

250What is a loan

Each of the following is a loan
(a)an advance of money;
(b)the payment of money for or on account of, or at the request of, any person;
(c)a forbearance to require the payment of money owing on any account;
(d)any transaction, whatever its terms or form, that in substance effects a loan of money.

251Location of property

(1)For this chapter, the following property is taken to be located in the place stated—
(a)marketable securities of a company—in the State the company is taken to be registered under the Corporations Act;
(b)units in a unit trust—in the place where the register on which the units are registered is kept or, if the register is not kept in Australia, in the place of residence of the manager or responsible entity of the unit trust;
(c)debt securities of a government of a State—in that State;
(d)an insured person’s interest in, or right to receive amounts payable under, a policy of insurance that is security for a premium funding agreement—the place of residence of the insured person.
(2)Subsection (1)(a) is declared to be a Corporations legislation displacement provision for the Corporations Act, section 5G, in relation to section 1070A(4) of that Act.

s 251 amd 2002 No. 65s 25

251ATreatment of mortgages affecting property in Victoria or Tasmania

(1)For this chapter, a mortgage or mortgage package affecting property located in Victoria is taken to have been properly stamped, stamped with similar duty, duly stamped or exempt from duty under the Duties Act 2000 (Vic) only to the extent the mortgage or mortgage package was properly stamped, stamped with similar duty, duly stamped or exempt from duty under that Act before 1 July 2004.
(2)For this chapter, a mortgage or mortgage package affecting property located in Tasmania is taken to have been properly stamped, stamped with similar duty, duly stamped or exempt from duty under the Duties Act 2001 (Tas) only to the extent the mortgage or mortgage package was properly stamped, stamped with similar duty, duly stamped or exempt from duty under that Act before 1 July 2007.

s 251A ins 2004 No. 18s 7

amd 2006 No. 44s 75

Part 3 Liability for mortgage duty

252When liability for mortgage duty arises

(1)A mortgage is liable to mortgage duty when it is first signed.
(2)A mortgage is liable to mortgage duty on the making of an advance or further advance that results in the total amount secured by the mortgage exceeding the amount secured by it for which it has been properly stamped, or is exempt from duty, under this or a corresponding Act.
(3)Subsection (4) applies to an instrument of security if—
(a)the instrument does not affect property in Queensland when it is first signed; and
(b)the instrument affects property in Queensland—
(i)for land, other than a security interest—within 1 year after the instrument is first signed; or
(ii)for other property—at any time after the instrument is first signed; and
(c)for other property mentioned in paragraph (b)(ii)—
(i)the property is specifically identified, whether or not in the instrument, when the instrument is first signed; and
(ii)under an arrangement in place when the instrument is first signed, the property is intended to be secured by the security.
(4)The instrument of security is liable for mortgage duty when it first affects the property or land unless it is stamped with, or is exempt from, similar duty under a corresponding Act.
(5)An instrument that, on the deposit of instruments of title to property in Queensland, becomes a mortgage or evidences the terms of a mortgage is liable to mortgage duty on the deposit of the instruments.

s 252 amd 2004 No. 18s 8

253Who is liable to pay mortgage duty

Mortgage duty imposed on a mortgage must be paid by the mortgagor.

254Rate of mortgage duty

The rate of mortgage duty imposed on a mortgage is 20c for each $100, or part of $100, of the amount secured by the mortgage as determined under part 4 .

s 254 amd 2007 No. 29s 4

255Lodging mortgage

The mortgagor or mortgagee under a mortgage must, within 30 days after the liability for mortgage duty arises, lodge the mortgage.

256Effect of lodging mortgage by mortgagor or mortgagee

The lodging, under section 255 , of a mortgage by the mortgagor or mortgagee relieves the other person from complying with the section.

257Stamping before advance

(1)A mortgage may be stamped before an advance whether or not an earlier advance has been made.
(2)A mortgage mentioned in section 260 or 261 may be stamped to secure any amount exceeding that to which it is already stamped based on the dutiable proportion for the mortgage when it is stamped.

Part 4 Amount secured by a mortgage

258What is the amount secured by a mortgage

(1)The amount secured by a mortgage is the amount of advances actually secured by it and recoverable under it.
(2)However, if—
(a)a mortgage has been properly stamped, or is exempt from duty, under this or a corresponding Act for an amount of advances secured by the mortgage; and
(b)a further advance secured by the mortgage is made; and
(c)the total amount secured by the mortgage exceeds the amount for which the mortgage has been properly stamped;

the amount secured by the mortgage is, for section 247 (2), the excess amount mentioned in paragraph (c).

259Contingent liabilities

(1)This section applies to a mortgage securing or capable of securing, whether directly or indirectly, an amount contingently payable (the secured amount) in connection with an advance (the primary advance)—
(a)by a guarantor or indemnifying party under a guarantee or indemnity; or
(b)by another party under another type of instrument.
(2)Mortgage duty must be assessed on the secured amount as if it were a separate advance secured by the mortgage.
(3)For subsection (2), the contingent liability is limited to the amount of the primary advance.
(4)This section—
(a)does not apply if the commissioner is satisfied there is no connection between the mortgage and the primary advance; and
(b)does not require mortgage duty to be paid more than once for an advance.

260Mortgage over property not wholly in Queensland

(1)Mortgage duty must be assessed for a mortgage over property that is partly in and partly outside Queensland as if the amount secured by it were only the dutiable proportion.
(2)For subsection (1), the dutiable proportion is the proportion of the amount secured by the mortgage on which mortgage duty is imposed that, at the liability date, the value of property in Queensland affected by the mortgage bears to the value of all property affected by it, other than property located outside Australia or in a Territory or in Victoria or Tasmania.
(3)The dutiable proportion must be worked out by reference to the property values according to a referable point.
(4)For subsection (3), a referable point is any of the following prepared in the year before the liability date for the mortgage—
(a)an independent valuation of the secured property;
(b)a statement of the mortgagee based on information obtained by the mortgagee in deciding to make the advance to the mortgagor;
(c)property valuations used by the mortgagor in preparing an annual return to be lodged under the Corporations Act;
(d)a financial report of the mortgagor, certified by an independent auditor as presenting a true and fair view of a corporation’s financial position;
(e)agreed property valuations that form the basis of the mortgagor’s insurance policies;
(f)another document the commissioner considers to be appropriate for working out the dutiable proportion.
(5)However, if there is more than 1 referable point for a mortgage, the referable point is the later or latest of the referable points.
(6)Also, the acceptable referable point must be the same acceptable referable point used to determine liability to duty under a corresponding Act.

s 260 amd 2004 No. 18s 9; 2006 No. 44s 76

261Advances secured by mortgage package

(1)If—
(a)at a liability date, 2 or more security instruments secure or partly secure the same amount; and
(b)at least 1 of the instruments is a security affecting property wholly or partly outside Queensland; and
(c)at least 1 of the instruments is a mortgage;

the instruments are a mortgage package.

(2)Also, a mortgage package includes—
(a)a mortgage signed after the liability date if the commissioner is satisfied the mortgage was intended to be part of the package; and
(b)a mortgage previously collateral to an earlier advance under 1 or more of the other mortgages in the package.
(3)Mortgage duty must be assessed under this part on the mortgage package as if the instruments comprising the mortgage package were 1 mortgage, first signed on the day the last of the signed instruments was signed.
(4)One of the mortgages in the mortgage package must be stamped with the mortgage duty paid in Queensland for the mortgage package and all other mortgages in the mortgage package must be stamped as a collateral mortgage.

262Collateral mortgage

(1)Mortgage duty is not imposed on the part of the amount secured by a collateral mortgage that is secured by—
(a)a mortgage or security instrument that is properly stamped under this Act or a corresponding Act; or
(b)a mortgage package that has been properly stamped under section 261 or a corresponding Act.
(1A)However, a mortgage (a secondary mortgage) that secures all or part of the same amount as another mortgage, security instrument or mortgage package that affects property located in Victoria or Tasmania and has been properly stamped under this Act or a corresponding Act is taken not to be a collateral mortgage if the commissioner is satisfied there was an arrangement to avoid the imposition of mortgage duty on the secondary mortgage.
(2)A collateral mortgage that no longer secures an amount secured by a mortgage, instrument or mortgage package mentioned in subsection (1) is not security for another advance unless mortgage duty for the amount of the other advance is paid.

s 262 amd 2004 No. 18s 10; 2006 No. 44s 77

263Extent mortgage is enforceable

(1)A mortgage or mortgage package for which mortgage duty is imposed or a similar duty is chargeable under a corresponding Act is enforceable only to the extent of the amount secured by the mortgage or mortgage package for which duty has been paid, or the mortgage or mortgage package is exempt from duty, under this Act or the corresponding Act.
(2)For subsection (1), mortgage duty has been paid on a mortgage or mortgage package affecting property that is partly in and partly outside Queensland if—
(a)duty has been paid on the total advances under the mortgage or mortgage package when the mortgage duty paid is taken with the duty paid under a corresponding Act; and
(b)the dutiable proportion of the mortgage or mortgage package is not incorrect by more than 5%.

Note—

Under section 260 (3), the dutiable proportion must be worked out by reference to property values according to a referable point.
(3)For subsection (1), if an advance is made on or after 1 July 2004 under a mortgage or mortgage package that, before 1 July 2004, affected property located in Victoria and was properly stamped under the Duties Act 2000 (Vic), the mortgage or mortgage package is taken to be a mortgage or mortgage package for which a similar duty is chargeable under a corresponding Act.
(4)For subsection (1), if an advance is made on or after 1 July 2007 under a mortgage or mortgage package that, before 1 July 2007, affected property located in Tasmania and was properly stamped under the Duties Act 2001 (Tas), the mortgage or mortgage package is taken to be a mortgage or mortgage package for which a similar duty is chargeable under a corresponding Act.

s 263 amd 2004 No. 18s 11; 2006 No. 44s 78

264Limit on security provided by stamped and collateral mortgages

(1)A stamped or collateral mortgage that was, but is no longer, part of the same mortgage package and no longer secures the same amount secured by the package is not security for another advance unless mortgage duty for the amount of the other advance is paid.

Example for subsection (1)—

A has property in 5 States, each valued at $150,000. A borrows $100,000 secured by a mortgage package comprising 5 mortgages. The mortgages secure the full $100,000 and are stamped under this Act and the corresponding Acts of the other States on the basis that the dutiable proportion for each mortgage is $20,000.

Under a restructure of the loans, the Queensland mortgage no longer secures the $100,000 which remains secured by the other mortgages on which duty has been paid in the other States.

Under this subsection, if A takes out a new loan, the Queensland mortgage is not security for the new loan unless mortgage duty imposed on it is paid.

(2)The fact that the stamped or collateral mortgage is no longer part of the mortgage package does not affect the amounts for which the remaining mortgages in the mortgage package provide security.

265Multi-jurisdictional statement

(1)If mortgage duty is imposed on the dutiable proportion of a mortgage, (whether for a mortgage over property not wholly in Queensland, a mortgage package or on original or subsequent advances), the mortgagor or mortgagee must make a statement in the approved form about the location and value of the secured property.

Maximum penalty—40 penalty units.

(2)The making of a statement under subsection (1) by the mortgagor or mortgagee relieves the other person from complying with the subsection.
(3)The statement may be taken to be the mortgage, or mortgages comprising the mortgage package.

Part 5 Mortgage duty on particular debenture issues, caveats and releases of mortgages

266Mortgage duty associated with particular debenture issues

(1)This section applies if—
(a)a corporation offers debentures to the public for subscription; and
(b)the corporation is a party to an instrument of trust relating to the debentures; and
(c)a mortgage secures the repayment of debentures issued by the corporation.
(2)Mortgage duty must be assessed on the mortgage for the offer of debentures as if it were a mortgage securing the payment of an amount equal to the total amount of debentures, other than exempt short-term debentures, subscribed for by the public in Queensland from time to time.
(3)On or before 31 July in each year, the trustee under the instrument of trust must—
(a)lodge a statutory declaration stating the total amount subscribed for in Queensland for the corporation’s debentures and exempt short-term debentures in the year ending on the previous 30 June; and
(b)pay to the commissioner mortgage duty on the amount subscribed for in the year for the debentures, other than exempt short-term debentures.
(4)If mortgage duty is paid under subsection (3), the instrument of trust and debentures are not liable to duty under this Act.
(5)In this section, a reference to an amount subscribed for relating to debentures does not include an amount represented by debentures issued on the conversion or renewal of an existing holding of debentures or other marketable securities.

267What is an exempt short-term debenture

(1)A debenture issued by a public company is an exempt short-term debenture if—
(a)the amount repayable under the debenture is repayable within 6 months after it is issued or is not repayable within a fixed or certain period but the amount is later paid or repaid within 6 months after it is issued; and
(b)the debenture is not part of an arrangement, the effect of which is to extend the period for repayment of an amount to more than 6 months after it is issued.
(2)If a debenture is reissued or renewed, the combined terms of debentures is taken into account when deciding when the amount under the debenture is repayable for subsection (1).
(3)Also, for subsection (1), debentures subscribed for by a corporation include debentures subscribed for by a related body corporate unless the commissioner decides otherwise.

268Caveats

(1)Mortgage duty is imposed on a caveat claiming an interest in land, or a water allocation, under a mortgage if mortgage duty is imposed, but not paid, on the mortgage.
(2)The amount of mortgage duty imposed on the caveat is the amount of mortgage duty that would be imposed on the mortgage.
(3)The mortgagor must pay the duty as if it were assessed on the mortgage.
(4)To the extent that mortgage duty is paid on the caveat, mortgage duty is not imposed on the mortgage.

269Releases of mortgages

(1)Mortgage duty is imposed on a release of mortgage to the extent that mortgage duty is imposed, but not paid, on the mortgage.
(2)Immediately after the release, the mortgagor must—
(a)lodge a statement in the approved form; and
(b)pay the duty as if it were assessed on the mortgage.

Part 6 Concessions for home mortgages and first home mortgages

Division 1 Preliminary

270Purpose of pt 6

The purpose of this part is to provide for concessions for mortgage duty on home mortgages and home refinance mortgages.

Division 2 Concessions for mortgage duty for home mortgages

Subdivision 1 Some basic concepts about concessions for mortgage duty for home mortgages

271What is a home mortgage

(1)A home mortgage is a mortgage given by a person to the extent that the mortgage secures an advance to the person to finance the purchase or construction of the person’s home or a further interest in the person’s home.
(2)A home mortgage or, if there is more than 1 home mortgage, at least 1 of them, must be over the residential land.

272What is a home and first home for div 2

(1)For this division—
(a)a residence that is constructed is a person’s home or first home if it is the person’s home or first home under section 86 ; and
(b)a residence that is to be constructed is a person’s home or first home if, when constructed, it will be the person’s home or first home under section 86 .
(2)For subsection (1), section 86 (2)(b) does not apply.
(3)For subsection (1)(b), section 86 applies as if the reference to a period of 1 year after the person’s transfer date for the residential land were a reference to a period of 2 years after the date the mortgage was first signed.

s 272 prev s 272 sub 2006 No. 44s 45; 2011 No. 20s 142

om 2012 No. 8s 26

pres s 272 (prev s 272A) ins 2011 No. 20s 142

amd 2012 No. 8s 27(1)–(4)

renum 2012 No. 8s 27(5)

273Who is a home borrower and a first home borrower

(1)A person is a home borrower if the person is the mortgagor under a home mortgage.
(2)A home borrower is a first home borrower if—
(a)the borrower’s home mortgage secures an advance to the borrower to finance the purchase or construction of the borrower’s first home; and
(b)the borrower is an individual of at least 18 years of age on the day the liability for mortgage duty arises.
(3)The commissioner may exempt an individual from the requirement that the individual be at least 18 years of age if the commissioner is satisfied there is no avoidance scheme in relation to the home mortgage.

s 273 amd 2004 No. 2s 7

Subdivision 2 Concessions for home mortgages

274Concession for mortgage duty—home mortgage

(1)If all owners of a home are home borrowers, mortgage duty is not imposed on the part of the amount secured by the home mortgage that is the lesser of the following—
(a)the qualifying amount;
(b)if—
(i)all the owners are first home borrowers—$250,000; or
(ii)all the owners are not first home borrowers—$70,000.
(2)For owners who are home borrowers to which subsection (1) does not apply, mortgage duty is not imposed on the part of the amount secured by the home mortgage that is the lesser of the following—
(a)the total of—
(i)for each home borrower—the borrower’s interest multiplied by $70,000; and
(ii)for each first home borrower—the borrower’s interest multiplied by $250,000;
(b)the qualifying amount.
(3)The total amount of concessions for mortgage duty on all home mortgages must not be more than the maximum amount of concessions applicable to the borrowers under subsection (1)(b) or (2)(a).
(4)For subsection (2), a home borrower or first home borrower’s interest is the proportion that the value of the borrower’s interest in the residential land bears to the value of the land.
(5)Also, for subsections (1) and (2), the qualifying amount is the proportion of—
(a)for a home mortgage to which section 260 applies or a mortgage package—the dutiable proportion; or
(b)for another home mortgage—the amount secured by the mortgage;

that corresponds to the part of the advances secured by the mortgage that are used or to be used to finance the purchase or construction of the home by the borrowers to whom the concession relates.

(6)For subsection (5), advances used to refinance an existing home mortgage for the home must be disregarded in working out the advances that are used or to be used to finance the purchase or construction of the home.

s 274 amd 2002 No. 65s 3(2) sch; 2004 No. 2s 8

275Concession for mortgage duty—particular trusts

(1)This section applies if—
(a)the trustee of a trust, other than a discretionary or unit trust, gives a mortgage to secure an advance to the trustee to finance the purchase or construction of a home or a further interest in a home; and
(b)the beneficiaries are individuals all of whom are under a legal disability; and
(c)the residence is the home of all or some of the beneficiaries.
(2)This division applies as if—
(a)the mortgage were a home mortgage; and
(b)the beneficiaries were the home borrowers or first home borrowers under it; and
(c)the beneficiaries were the owners of the home.
(3)However, section 273 (2)(b) and (3) applies in relation to a beneficiary only if the beneficiary is under a legal disability only because the beneficiary is not at least 18 years of age.

s 275 amd 2004 No. 2s 9

Division 3 Concessions for mortgage duty for home refinance mortgages

Subdivision 1 Some basic concepts about concessions for mortgage duty for home refinance mortgages

276What is a home refinance mortgage

(1)A home refinance mortgage is a mortgage securing advances to the person, all or part of which are used or to be used to repay the balance outstanding under a previous mortgage over the person’s home.
(2)A home refinance mortgage, or if there is more than 1 home refinance mortgage, at least 1 of them must be over the person’s home.

277What is a home for div 3

For this division, a person’s home is a residence the person has occupied as the person’s principal place of residence for whichever is the shorter of the following—
(a)6 months before signing the home refinance mortgage;
(b)since the borrower has owned the residence.

278Who is a home refinance borrower

A person is a home refinance borrower if the person is the mortgagor under a home refinance mortgage.

Subdivision 2 Concessions for home refinance mortgages

279Concession for mortgage duty—home refinance mortgage

(1)If all of the owners of a home are home refinance borrowers, mortgage duty is not imposed on the part of the amount secured by the home refinance mortgage that is the lesser of the following—
(a)the refinance qualifying amount;
(b)$100,000.
(2)If all of the owners of a home are not home refinance borrowers, mortgage duty is not imposed on the part of the amount secured by the home refinance mortgage up to the amount that is the lesser of the following—
(a)home refinance borrowers’ interests multiplied by $100,000;
(b)the refinance qualifying amount.
(3)The total amount of concessions for mortgage duty on all home refinance mortgages must not be more than the maximum amount of concessions applicable to the borrowers under subsection (1)(b) or (2)(a).
(4)For subsection (2), a home refinance borrower’s interest is the proportion that the value of the home refinance borrower’s interest in the residential land bears to the value of the land.
(5)Also, for subsections (1) and (2), the refinance qualifying amount is the proportion of—
(a)for a home refinance mortgage to which section 260 applies or a mortgage package—the amount of the dutiable proportion; or
(b)for another home refinance mortgage—the amount secured or to be secured by the home refinance mortgage;

that corresponds to the part of the advances secured by the mortgage that are used or to be used to repay the balance outstanding on the previous mortgage by the borrowers to whom the concession relates.

(6)For subsection (5), advances used to finance the acquisition of a home or first home must be disregarded in working out the advances that are used or to be used to repay the balance outstanding under the previous mortgage.

280Concession for mortgage duty—particular trusts

(1)This section applies if—
(a)the trustee of a trust, other than a discretionary or unit trust, gives a mortgage to secure an advance to the trustee, all or part of which is used, or to be used, to repay the balance outstanding under a previous mortgage over a home; and
(b)the beneficiaries are individuals all of whom are under a legal disability; and
(c)the residence is the home of all or some of the beneficiaries.
(2)This division applies as if—
(a)the mortgage were a home refinance mortgage; and
(b)the beneficiaries were the home refinance borrowers under it; and
(c)the beneficiaries were the owners of the home.

Division 4 Miscellaneous provisions

281Further concession for particular home refinance mortgages

(1)This section applies if the amount secured by a home refinance mortgage, or the dutiable proportion of a home refinance mortgage, is more than—
(a)the amount determined under section 279 (1) or (2); or
(b)if there is also a home borrower for the mortgage—the total of the amount determined under section 279 (2) and any amount determined under section 274 (2) for the borrower.
(2)The non-concessional balance for the home refinance mortgage is reduced by the amount by which the amount secured for which duty has been paid in Queensland under the previous mortgage is more than—
(a)for a mortgage or mortgage package to which section 260 or 261 applies—the balance outstanding under the previous mortgage multiplied by the dutiable proportion; or
(b)for another mortgage—the balance outstanding under the previous mortgage.
(3)For subsection (2), the non-concessional balance for the home refinance mortgage is—
(a)the part of the amount secured by the mortgage for which a concession for mortgage duty is not given under section 279 ; or
(b)if there is also a home borrower for the mortgage—the total of the amount mentioned in paragraph (a) and the part of the amount secured by the mortgage for which a concession for mortgage duty is not given under section 274 .

282Application for concession for mortgage duty

An application for a concession for mortgage duty on a home mortgage or home refinance mortgage must be made in the approved form.

Part 7 Exemptions for mortgage duty

Division 1 Particular debentures and instruments of trust, transfer of land by security and mortgages under particular Acts

283Exemption—particular debentures and instruments of trust

(1)Mortgage duty is not imposed on an exempt short-term debenture.
(2)Mortgage duty is not imposed on a mortgage that is—
(a)a debenture issued by a financial corporation or related corporation of a financial corporation under an instrument of trust—
(i)to which the financial corporation or related corporation is a party; and
(ii)that protects the interests of the holders of the debentures; or
(b)a debenture issued by a financial corporation or related corporation of a financial corporation, the repayment for which is secured by a mortgage given by the financial corporation or related corporation; or
(c)an instrument of trust—
(i)to which a financial corporation or related corporation of a financial corporation is a party; and
(ii)that protects the interests of the holders of debentures issued under the instrument of trust.
(3)Mortgage duty is not imposed on a mortgage given by a financial corporation or a related corporation of a financial corporation to secure the repayment of debentures issued by the financial corporation or related corporation.
(4)This section applies to debentures issued, a mortgage given or an instrument of trust signed, by a related corporation of a financial corporation only so far as the debentures are issued, the mortgage is given or the instrument of trust is signed, for raising funds to be used by the financial corporation.
(5)In this section—
financial corporation means a corporation whose sole or principal business is providing finance to the public.
related corporation, of a financial corporation, means a corporation that is a related body corporate of the financial corporation.

284Exemption—transfer of land by way of security

Mortgage duty is not imposed on a mortgage that is a transfer of land by way of security if transfer duty is paid on the dutiable transaction that is the transfer.

285Exemption—mortgages under particular Acts

Mortgage duty is not imposed on the following instruments—
(a)a mortgage given to secure an advance to a cooperative registered under the Cooperatives Act 1997 whose members are primary producers, if the mortgage secures advances to finance—
(i)the acquisition of primary produce; or
(ii)payments to suppliers on account of primary produce marketed for the suppliers; or
(iii)working or other expenses, other than capital expenses, incidental to the acquisition, processing or marketing of primary produce;
(b)a mortgage given to secure an advance to a parents and citizens association formed under the Education (General Provisions) Act 2006 ;
(c)a mortgage given by a society registered as a cooperative housing society under the Financial Intermediaries Act 1996 to secure—
(i)an advance made, or to be made to the society, by the Treasurer; or
(ii)an advance guaranteed by the Treasurer and made, or to be made, to the society by—
(A)a financial institution; or
(B)another entity prescribed under a regulation;
(d)a mortgage given to secure an advance made by the Brigalow Corporation under the Land Act 1994 , chapter 8, part 7A;
(e)a mortgage of a tenure, or interest in a tenure, under the Offshore Minerals Act 1998 ;
(f)a mortgage of, or a mortgage of an interest in, an access authority, licence, permit or pipeline licence under the Petroleum (Submerged Lands) Act 1982 .

s 285 amd 2006 No. 39s 512(1)sch 1; 2014 No. 33s 105

Division 2 Asset-backed and mortgage-backed securities

div hdg sub 2002 No. 65s 3(2) sch (retro)

Subdivision 1 Some basic concepts for mortgage-backed securities

286What is a mortgage-backed security

(1)A mortgage-backed security is—
(a)an entitlement or interest of a person in—
(i)an entitlement of a mortgagee or another entitlement for a mortgage or pool of mortgages; or
(ii)amounts payable by a mortgagor under a mortgage or pool of mortgages whether or not on the same conditions applying under the mortgage and whether or not the person is entitled to a transfer of the mortgage or pool of mortgages; or
(b)a debenture, promissory note, bill of exchange, stock, bond, note or other security creating, evidencing or acknowledging indebtedness issued or made by a corporation if the payments under the security are received by the corporation—
(i)substantially from the receipts, whether of capital or income, from a mortgage or pool of mortgages; or
(ii)if another extent is prescribed under a regulation—to the extent prescribed, from the receipts, whether of capital or income, from a mortgage or pool of mortgages; or
(c)a security by which an interest in, or mortgage or charge over, an entitlement, interest or security mentioned in paragraph (a) or (b) is created; or
(d)a covered bond within the meaning of the Banking Act 1959 (Cwlth), section 26, if the cover pool for the covered bond under that section consists of either of the following—
(i)a loan secured by a mortgage;
(ii)a pool of mortgages, if all mortgages in the pool or collection of assets comprising the pool of mortgages under section 288 are loans secured by a mortgage.
(2)However, the term does not include—
(a)a mortgage, other than a mortgage mentioned in subsection (1)(c); or
(b)a transfer of a mortgage.
(3)It does not matter whether a mortgage-backed security is effected by an instrument or another way.

s 286 amd 2002 No. 65s 26; 2013 No. 28s 14 (retro)

287What is a mortgage

A mortgage is a mortgage of, or charge over, land regardless of whether the land is situated in Queensland or elsewhere.

288What is a pool of mortgages

(1)A pool of mortgages is a pool or collection of assets that consists solely of mortgages.
(2)Also, a pool of mortgages is a pool or collection of assets that consists substantially or, if another extent is prescribed under a regulation, to the extent prescribed, of mortgages or amounts paid under mortgages, or a combination of them, if the other assets in the pool or collection are cash or an authorised investment.

289What is an authorised investment

An authorised investment, for a pool of mortgages, is any of the following—
(a)a bond, debenture, stock or Treasury bill of the Commonwealth or a State;
(b)a debenture or stock of a public statutory body established under an Act of the Commonwealth or a State;
(c)a note or other security of the Commonwealth or a State;
(d)a deposit with, or a certificate of deposit or another security issued by, a financial institution;
(e)a bill of exchange, promissory note or other negotiable instrument accepted, drawn or endorsed by a financial institution;
(f)an asset-backed security or mortgage-backed security.

s 289 amd 2002 No. 65s 3(2) sch (retro)

Subdivision 2 Exemption

289AExemption—asset-backed security

Mortgage duty is not imposed on the following—
(a)a mortgage of an asset-backed security or release of mortgage of an asset-backed security;
(b)a mortgage of a financial asset or pool of financial assets or part of a pool of financial assets for creating, issuing, marketing or securing an asset-backed security—
(i)to a person entitled to an asset-backed security or a trustee or agent for a person entitled to an asset-backed security; or
(ii)by or to a person who issues, makes or endorses an asset-backed security; or
(iii)to a person who provides security, whether as guarantor, surety or otherwise, to a person entitled to an asset-backed security or a trustee or agent for a person entitled to an asset-backed security;
(c)a mortgage of an instrument—
(i)issued or made for creating, issuing, marketing or securing payments under an asset-backed security; and
(ii)that is of a class prescribed under a regulation.

s 289A ins 2002 No. 65s 27 (retro)

290Exemption—mortgage-backed security

Mortgage duty is not imposed on the following—
(a)a mortgage of a mortgage-backed security or release of mortgage of a mortgage-backed security;
(b)a mortgage of a mortgage or pool of mortgages or part of a pool of mortgages for creating, issuing, marketing or securing a mortgage-backed security—
(i)to a person entitled to a mortgage-backed security or a trustee or agent for a person entitled to a mortgage-backed security; or
(ii)by or to a person who issues, makes or endorses a mortgage-backed security; or
(iii)to a person who provides security, whether as guarantor, surety or otherwise, to a person entitled to a mortgage-backed security or a trustee or agent for a person entitled to a mortgage-backed security;
(c)a mortgage of an instrument—
(i)issued or made for creating, issuing, marketing or securing payments under a mortgage-backed security; and
(ii)that is of a class prescribed under a regulation.

s 290 amd 2002 No. 65s 3(2) sch

Part 8 Reassessments for mortgage duty

290AReassessment—stamping before advance—Victorian property

(1)This section applies in relation to a mortgage mentioned in section 260 or 261 if—
(a)the mortgage was first signed before 1 July 2004 and partly affected property located in Victoria; and
(b)the mortgage was properly stamped or exempt from duty, and mortgage duty was paid for the mortgage before 1 July 2004, under the Duties Act 2000 (Vic), section 161 , in relation to an advance made under the mortgage on or after the commencement of this section; and
(c)before 1 July 2004, the mortgage was stamped under section 257 (1) and (2) in relation to the advance; and
(d)after the commencement of this section, the duty mentioned in paragraph (b) (the Victorian duty) is refunded because the mortgage is no longer stamped before the advance.
(2)Section 257 (1) and (2) are taken not to have authorised the stamping of the mortgage and the commissioner must make a reassessment to impose mortgage duty on the mortgage based on the dutiable proportion at the liability date.
(3)The mortgagor or mortgagee must, within 28 days of the Victorian duty being refunded—
(a)give written notice to the commissioner stating that the Victorian duty has been refunded; and
(b)ensure the mortgage is lodged for a reassessment of mortgage duty on the mortgage.

Note—

Failure to give the notice is an offence under the Administration Act, section 120 .
(4)Compliance with subsection (3) by the mortgagor or mortgagee relieves the other person from complying with the subsection.

s 290A ins 2004 No. 18s 12

amd 2006 No. 44s 79

290BReassessment—stamping before advance—Tasmanian property

(1)This section applies in relation to a mortgage mentioned in section 260 or 261 if—
(a)the mortgage was first signed before 1 July 2007 and partly affected property located in Tasmania; and
(b)the mortgage was properly stamped or exempt from duty, and mortgage duty was paid for the mortgage before 1 July 2007, under the Duties Act 2001 (Tas), section 151 , in relation to an advance made under the mortgage on or after the commencement of this section; and
(c)before 1 July 2007, the mortgage was stamped under section 257 (1) and (2) in relation to the advance; and
(d)after the commencement of this section, the duty mentioned in paragraph (b) (the Tasmanian duty) is refunded because the mortgage is no longer stamped before the advance.
(2)Section 257 (1) and (2) are taken not to have authorised the stamping of the mortgage and the commissioner must make a reassessment to impose mortgage duty on the mortgage based on the dutiable proportion at the liability date.
(3)The mortgagor or mortgagee must, within 28 days of the Tasmanian duty being refunded—
(a)give written notice to the commissioner stating that the Tasmanian duty has been refunded; and
(b)ensure the mortgage is lodged for a reassessment of mortgage duty on the mortgage.

Note—

Failure to give the notice is an offence under the Administration Act, section 120 .
(4)Compliance with subsection (3) by the mortgagor or mortgagee relieves the other person from complying with the subsection.

s 290B ins 2006 No. 44s 80

291Reassessment—concession under pt 6

(1)This section applies if mortgage duty on a home mortgage is assessed on the basis of a concession under part 6 and one of the following events happen other than because of an intervening event—
(a)before the occupation date for the residence, the home borrower disposes of the residential land under section 154 (2);
(b)the home borrower’s occupation date for the residence is not within the prescribed period after the later of the transfer date for the land or when the mortgage was first signed;
(c)in the year following the home borrower’s occupation date for the residence, the home borrower disposes of the residential land by—
(i)transferring part or all of it; or
(ii)leasing or otherwise granting exclusive possession of part or all of it to another person.
(1A)For subsection (1)(a) or (c), a home borrower does not dispose of land if—
(a)the home borrower transfers part of the land to the home borrower’s spouse; and
(b)the transfer is exempt from duty under section 151 .
(1AB)Also, for subsection (1)(a) or (c), a home borrower does not dispose of land that is an accommodation unit in a retirement village only by entering into a retirement village leasing arrangement for the unit.
(1B)For subsection (1)(b), the prescribed period is—
(a)for a home mortgage given over residential land on which a residence is constructed—1 year; or
(b)for a home mortgage given over residential land on which a residence is to be constructed—2 years.
(2)Within 28 days after the event happens, each home borrower under the mortgage must—
(a)give notice in the approved form to the commissioner; and
(b)ensure the mortgage is lodged for a reassessment of mortgage duty on the mortgage.

Note—

Failure to give the notice is an offence under the Administration Act, section 120 .
(3)If subsection (1)(a) or (b) applies, the commissioner must make a reassessment to impose mortgage duty on the mortgage as if the concession for mortgage duty had never applied.
(4)If subsection (1)(c) applies, the commissioner must make a reassessment to impose further mortgage duty on the mortgage worked out using the following formula—

equation

      where—
C means the concession received by the home borrower, being the difference between the mortgage duty that would have been imposed on the home mortgage if the concession had not applied and the mortgage duty assessed on the mortgage.
MD means the further mortgage duty payable on the reassessment.
OD means the number of days between the home borrower’s occupation date for the residence and the date of disposal of the residential land, both days inclusive.
(5)If—
(a)under subsection (1A), this section does not apply to a home borrower’s transfer of part of the land to the home borrower’s spouse; and
(b)under subsection (1)(a) or (c), the home borrower later disposes of the land or part of it;

this section applies to the later disposal as if the home borrower had not transferred the part of the land to the home borrower’s spouse.

s 291 amd 2002 No. 65s 28; 2006 No. 44s 46; 2008 No. 75 ss 8 (retro), 41

292Reassessment—noncomplying use by cooperatives

(1)This section applies if—
(a)under section 285 (a) , mortgage duty is not imposed on a mortgage given to secure an advance to a cooperative registered under the Cooperatives Act 1997 ; and
(b)the advance or part of it is not used for a purpose mentioned in the section (the noncomplying use).
(2)Within 28 days after starting to use the advance or part of it for the noncomplying use, the cooperative must—
(a)give notice in the approved form to the commissioner; and
(b)ensure the mortgage is lodged for a reassessment of mortgage duty on the mortgage.

Note—

Failure to give the notice is an offence under the Administration Act, section 120 .
(3)The commissioner must make a reassessment to impose mortgage duty on the mortgage as if the exemption from duty had never applied.

Note—

Unpaid tax interest and penalty tax may be payable under the Administration Act, part 5 .
(4)Subsection (3) applies to the reassessment despite the limitation period under the Administration Act for reassessments.

Note—

See the Administration Act, part 3 (Assessments of tax), division 3 (Reassessments).

Chapter 6 [Repealed]

ch hdg amd 2004 No. 15s 3 sch

om 2005 No. 60s 12

Part 1 [Repealed]

pt hdg sub 2004 No. 15s 3 sch

om 2005 No. 60s 12

pt 1 div 1 hdg om 2004 No. 15s 3 sch

pt 1 div 2 hdg om 2004 No. 15s 3 sch (incl in orig ch 6, pt 1)

pt 1 div 3 hdg om 2004 No. 15s 3 sch (incl in orig ch 6, pt 1)

pt 1 div 4 hdg om 2004 No. 15s 3 sch (incl in orig ch 6, pt 1)

pt 1 div 5 hdg om 2004 No. 15s 3 sch (incl in orig ch 6, pt 1)

293[Repealed]

s 293 amd 2004 No. 15s 3 sch

om 2005 No. 60s 12

294[Repealed]

s 294 amd 2004 No. 15s 3 sch

om 2005 No. 60s 12

Part 2 [Repealed]

pt hdg orig ch 6 pt 2 hdg om 2004 No. 15s 6

prev ch 6 pt 2 hdg ins 2004 No. 15s 3 sch

om 2005 No. 60s 12

pt 2 div 1 hdg om 2004 No. 15s 6 (incl in orig ch 6, pt 2)

pt 2 div 2 hdgom 2004 No. 15s 6 (incl in orig ch 6, pt 2)

pt 2 div 3 hdg om 2004 No. 15s 6 (incl in orig ch 6, pt 2)

pt 2 div 4 hdg om 2004 No. 15s 6 (incl in orig ch 6, pt 2)

295[Repealed]

s 295 om 2005 No. 60s 12

296[Repealed]

s 296 amd 2004 No. 15s 3 sch

om 2005 No. 60s 12

297[Repealed]

s 297 om 2005 No. 60s 12

298[Repealed]

s 298 om 2005 No. 60s 12

299[Repealed]

s 299 amd 2004 No. 18s 13 (retro)

om 2005 No. 60s 12

300[Repealed]

s 300 om 2005 No. 60s 12

Part 3 [Repealed]

pt hdg ins 2004 No. 15s 3 sch

om 2005 No. 60s 12

301[Repealed]

s 301 om 2005 No. 60s 12

302[Repealed]

s 302 om 2005 No. 60s 12

303[Repealed]

s 303 om 2005 No. 60s 12

Part 4 [Repealed]

pt hdg ins 2004 No. 15s 3 sch

om 2005 No. 60s 12

304[Repealed]

s 304 om 2005 No. 60s 12

305[Repealed]

s 305 om 2005 No. 60s 12

306[Repealed]

s 306 om 2005 No. 60s 12

307[Repealed]

s 307 om 2005 No. 60s 12

308[Repealed]

s 308 om 2005 No. 60s 12

Part 5 [Repealed]

pt hdg ins 2004 No. 15s 3 sch

om 2005 No. 60s 12

309[Repealed]

s 309 om 2005 No. 60s 12

310[Repealed]

s 310 om 2004 No. 15s 6

311[Repealed]

s 311 om 2004 No. 15s 6

312[Repealed]

s 312 om 2004 No. 15s 6

313[Repealed]

s 313 om 2004 No. 15s 6

314[Repealed]

s 314 om 2004 No. 15s 6

315[Repealed]

s 315 om 2004 No. 15s 6

316[Repealed]

s 316 om 2004 No. 15s 6

317[Repealed]

s 317 om 2004 No. 15s 6

318[Repealed]

s 318 om 2004 No. 15s 6

319[Repealed]

s 319 om 2004 No. 15s 6

320[Repealed]

s 320 om 2004 No. 15s 6

321[Repealed]

s 321 om 2004 No. 15s 6

322[Repealed]

s 322 om 2004 No. 15s 6

323[Repealed]

s 323 om 2004 No. 15s 6

324[Repealed]

s 324 om 2004 No. 15s 6

Chapter 7 [Repealed]

ch hdg om 2006 No. 44s 47

Part 1 [Repealed]

pt 1 (ss 325–326) om 2006 No. 44s 47

325[Repealed]

pt 1 (ss 325–326) om 2006 No. 44s 47

326[Repealed]

pt 1 (ss 325–326) om 2006 No. 44s 47

Part 2 [Repealed]

pt hdg om 2006 No. 44s 47

327[Repealed]

s 327 om 2006 No. 44s 47

328[Repealed]

s 328 om 2006 No. 44s 47

329[Repealed]

s 329 om 2006 No. 44s 47

330[Repealed]

s 330 om 2006 No. 44s 47

331[Repealed]

s 331 om 2006 No. 44s 47

332[Repealed]

s 332 om 2006 No. 44s 47

333[Repealed]

s 333 amd 2002 No. 65s 29

om 2006 No. 44s 47

334[Repealed]

s 334 om 2006 No. 44s 47

Part 3 [Repealed]

pt 3 (ss 335–337) om 2006 No. 44s 47

335[Repealed]

pt 3 (ss 335–337) om 2006 No. 44s 47

336[Repealed]

pt 3 (ss 335–337) om 2006 No. 44s 47

337[Repealed]

pt 3 (ss 335–337) om 2006 No. 44s 47

Part 4 [Repealed]

pt 4 (ss 338–339) om 2006 No. 44s 47

338[Repealed]

pt 4 (ss 338–339) om 2006 No. 44s 47

339[Repealed]

pt 4 (ss 338–339) om 2006 No. 44s 47

Part 5 [Repealed]

pt hdg om 2006 No. 44s 47

340[Repealed]

s 340 om 2006 No. 44s 47

341[Repealed]

s 341 om 2006 No. 44s 47

342[Repealed]

s 342 amd 2005 No. 60s 13

om 2006 No. 44s 47

343[Repealed]

s 343 om 2006 No. 44s 47

344[Repealed]

s 344 om 2006 No. 44s 47

Part 6 [Repealed]

pt 6 (ss 345–347) om 2006 No. 44s 47

345[Repealed]

pt 6 (ss 345–347) om 2006 No. 44s 47

346[Repealed]

pt 6 (ss 345–347) om 2006 No. 44s 47

347[Repealed]

pt 6 (ss 345–347) om 2006 No. 44s 47

Part 7 [Repealed]

pt 7 (s 348) om 2006 No. 44s 47

348[Repealed]

pt 7 (s 348) om 2006 No. 44s 47

Chapter 8 Insurance duty

Part 1 Preliminary

349Imposition of insurance duty

(1)This chapter imposes duty (insurance duty) on each of the following—
(a)a contract of insurance that effects general insurance;
(b)a contract of insurance that effects life insurance;
(c)accident insurance.

Note—

Exemptions for insurance duty are dealt with in part 7 . Also, other exemptions are dealt with in chapter 10 .
(2)Insurance duty is imposed on the following—
(a)for general insurance—
(i)if a regulation states that duty is payable only on a part of the premium—that part of the premium; or
(ii)otherwise—premiums for the insurance;
(b)for life insurance—premiums for the insurance or the sum insured, depending on the type of the insurance;
(c)for accident insurance—net premiums charged for the insurance.

s 349 amd 2013 No. 28s 15

Part 2 Some basic concepts for insurance duty

350What is general insurance

(1)General insurance is any kind of insurance that is applicable to either or both of the following—
(a)property in Queensland;
(b)a risk, contingency or event concerning an act or omission that in the normal course of events may happen wholly or partly in Queensland.
(2)However, the term does not include the following—
(a)life insurance;
(b)accident insurance.

351What is life insurance

Life insurance is insurance applying to a life or lives, or any event or contingency relating to or depending on a life or lives, of a person or persons whose place of residence is in Queensland when the policy effecting the insurance is issued.

352What is accident insurance

Accident insurance is accident insurance under the Workers’ Compensation and Rehabilitation Act 2003 .

s 352 amd 2003 No. 27s 622sch 5

353What is a premium

(1)A premium for general insurance or life insurance is the total consideration given to an insurer by or for the insured person to effect the insurance without deductions for any amounts paid or payable, allowed or allowable, by way of commission or discount to an insurance intermediary.
(2)However, a premium does not include—
(a)an amount paid to an insurance intermediary by the insured person as a fee under a contract between the insured person and the intermediary if the amount can be clearly identified as a fee; or
(b)an amount of duty under this or a corresponding Act.
(3)It is immaterial where the amount is paid or where the insurance is effected.

s 353 amd 2010 No. 11s 41

354Who is a general insurer

(1)A general insurer is a person who writes general insurance whether or not the person is authorised under the Insurance Act 1973 (Cwlth) to carry on an insurance business.
(2)An insurance intermediary is not a general insurer.

s 354 sub 2010 No. 11s 42

355Who is a life insurer

(1)A life insurer is a person who writes life insurance whether or not the person is registered under the Life Insurance Act 1995 (Cwlth).
(2)An insurance intermediary is not a life insurer.

s 355 amd 2010 No. 11s 43

356What are net premiums charged

Net premiums charged, for accident insurance, are all amounts charged to policy holders under the Workers’ Compensation and Rehabilitation Act 2003 for premiums after any adjustments are made for any previous period.

s 356 amd 2003 No. 27s 622sch 5

Part 3 Liability for insurance duty

357Who is liable to pay insurance duty

(1)Insurance duty imposed on general insurance must be paid by the insurer.
(2)Insurance duty imposed on life insurance must be paid by the insurer.
(3)Insurance duty imposed on accident insurance must be paid by WorkCover Queensland.

s 357 amd 2010 No. 11s 44

358When insurance duty is payable—general insurance

Insurance duty must be paid each time a premium is paid for a contract of general insurance.

359When premium is paid—general insurance

(1)For this chapter, a premium is paid when the first of the following happens—
(a)the premium is received by the insurer;
(b)a part of the premium is received by the insurer.
(2)For subsection (1), a premium or part of a premium is taken to be received by an insurer if—
(a)it is received by the insurer or another person on behalf of the insurer; or
(b)an account of the insurer is credited with the amount of the premium or part of the premium.

360When insurance duty is payable—life insurance

Insurance duty must be paid each time an insurer writes a contract of life insurance.

s 360 amd 2010 No. 11s 45

361When insurance duty is payable—accident insurance

Insurance duty must be paid each time net premiums are charged for accident insurance.

362Rate of insurance duty—general and accident insurance

(1)The rate of insurance duty imposed on a premium for general insurance or, if section 349 (2)(a)(i) applies, the part of the premium, is—
(a)9% of the premium or part of the premium to the extent to which the premium or part of the premium is paid to effect class 1 general insurance; or
(b)9% of the premium or part of the premium to the extent to which the premium or part of the premium is paid to effect class 2 general insurance.
(2)The rate of insurance duty imposed on a premium for CTP insurance is 10c.
(3)The rate of insurance duty imposed on net premiums charged for accident insurance is 5%.
(4)This section has effect subject to part 4 .

s 362 amd 2004 No. 15s 7; 2013 No. 28ss 1617

363Rate of insurance duty—life insurance

(1)The rate of insurance duty imposed on a contract of life insurance that effects temporary or term insurance is 5% of the first year’s premium.
(2)The rate of insurance duty imposed on another contract of life insurance is—
(a)if the sum insured is not more than $2,000—.05% of the sum insured; or
(b)if the sum insured is more than $2,000—
(i).05% of the first $2,000; and
(ii).1% of the balance of the sum insured.

Part 4 Apportionment of premiums

Division 1 Apportionment between States

364Application of div 1

(1)This division applies to a contract of general insurance that insures either or both of the following—
(a)property in Queensland as well as property in another State;
(b)a risk, contingency or event about an act or omission that in the normal course of events may happen wholly or partly in Queensland as well as wholly or partly in another State.
(2)Also, this division applies to a contract of life insurance that insures lives, or any event or contingency relating to or depending on lives, of persons resident in Australia, at least one of whom has a place of residence in Queensland when the policy effecting the insurance is issued.

365Purpose of div 1

The purpose of this division is—
(a)to provide a way for apportioning premiums or parts of premiums paid for insurance; and
(b)to avoid multiple duty between the States; and
(c)to give the States their appropriate share of duty by way of the apportionment.

366Apportionment of premiums

(1)A regulation may state how premiums for insurance are to be apportioned.
(2)A premium or part of a premium must be apportioned under the regulation.
(3)However, the commissioner may, on the written application of an insurer or an insured person, apportion a premium or part of a premium on another basis if the commissioner is satisfied the apportionment on that basis would result in less insurance duty being paid.

Division 2 Other apportionments

367Apportionment between different types or classes of insurance

If the commissioner is not satisfied a premium paid for a contract of insurance effecting different types or classes of insurance has been properly apportioned for assessing insurance duty, the commissioner may decide the basis of the apportionment.

368Apportionment of premiums between 2 or more policies

(1)This section applies if—
(a)2 or more contracts of insurance (the primary contracts) are effected with—
(i)1 insurer; or
(ii)separate insurers between whom there is an arrangement about the insurance; and
(b)1 or more of the premiums under the primary contracts—
(i)are conditional on 1 or more other contracts of insurance (the secondary contracts) being effected; or
(ii)are part of an arrangement that applies only if 1 or more other contracts of insurance (also the secondary contracts) are effected; and
(c)1 or more of the premiums under the primary contracts attract insurance duty at a different rate to 1 or more of the premiums under the secondary contracts; and
(d)the commissioner is not satisfied a premium for 1 of the contracts reflects the relative risk of the contract.
(2)The commissioner may apportion part of the total premiums payable to each of the contracts of insurance as the commissioner considers appropriate.

Note—

For objections and appeals against assessments, see the Administration Act, part 6 .

Part 5 Arrangements applying to insurers and WorkCover Queensland

pt hdg sub 2010 No. 11s 46

369Insurers to be registered

A general insurer or life insurer must not carry on business in Queensland as an insurer unless the insurer is registered under chapter 12 , part 1 , to carry on the business.

Maximum penalty—200 penalty units.

s 369 amd 2010 No. 11s 47

370Lodging returns and payment of insurance duty

(1)If a registered insurer has a liability to insurance duty for a return period, the insurer must on or before the return date—
(a)lodge a return in the approved form; and
(b)pay to the commissioner the amount of insurance duty based on the following—
(i)for general insurance—the total amount of the premiums received in the return period by the insurer;
(ii)for life insurance—
(A)for contracts of life insurance that effect temporary or term insurance—the total amount of the premiums received in the return period by the insurer; and
(B)for other contracts of life insurance—the amounts of the sums insured for the contracts written in the return period by the insurer; and
(c)pay to the commissioner any assessed interest and penalty tax.
(3)If an insurer refunds the whole or part of a premium for a contract of insurance for which insurance duty has been paid, the insurer may deduct from the amount required to be paid under subsection (1) the insurance duty paid on the amount of the premium refunded.

Note—

For provisions about reassessments and refunds, see the Administration Act, part 3 (Assessments of tax), division 2 (Self assessments) and part 4 (Payments and refunds of tax and other amounts), division 2 (Refunds of tax and other amounts).
(4)If WorkCover Queensland has a liability to insurance duty for a month, it must—
(a)lodge a statement in the approved form; and
(b)pay to the commissioner the amount of insurance duty based on the total amount of the net premiums charged in the month and any assessed interest and penalty tax.
(5)WorkCover Queensland must comply with subsection (4) within 21 days after the end of the month or the longer period the commissioner allows.
(6)For the Administration Act, the statement is taken to be a return for a self assessment for the accident insurance.

s 370 amd 2010 No. 11s 48

Part 6 Arrangements applying to other persons

371Application of pt 6

(1)This part applies to a person (the insured person) who effects or renews general insurance or life insurance with a person (the insurer) who is not registered under chapter 12 , part 1 or 2.
(2)However, this part does not apply to an insured person who has been charged, by the insurer, an amount for insurance duty in relation to the premium for the insurance.

s 371 sub 2010 No. 11s 49

372Lodging statement and payment of insurance duty

(1)The insured person must, within 30 days after payment of the premium for the insurance—
(a)lodge a statement in the approved form; and
(b)pay to the commissioner the amount of insurance duty for the insurance.
(2)For the Administration Act, the statement is taken to be a return for a self assessment for the insurance.

s 372 amd 2010 No. 11s 50

Part 7 Exemptions for insurance duty

373Exemption—particular marine insurance

Insurance duty is not imposed on a contract of insurance for the physical loss or damage to the hull of a boat used primarily for commercial purposes.

374Exemption—goods in transit

Insurance duty is not imposed on a contract of insurance for the physical loss or damage to goods in transit or for the loss of freight of goods in transit.

375Exemption—health insurance

Insurance duty is not imposed on a contract of insurance that—
(a)is issued by a private health insurer under the Private Health Insurance Act 2007 (Cwlth); and
(b)provides hospital benefits or medical benefits, or both, whether or not other benefits are also provided.

s 375 amd 2008 No. 75s 3 sch; 2016 No. 64s 7

376Exemption—reinsurance

Insurance duty is not imposed on a contract of reinsurance between one insurer and another insurer.

Chapter 9 Vehicle registration duty

Part 1 Preliminary

377Imposition of vehicle registration duty

(1)This chapter imposes duty (vehicle registration duty) on—
(a)an application to register a vehicle; and
(b)an application to transfer a vehicle if the person in whose name the vehicle is to be registered differs from the person in whose name the vehicle is registered.

Note—

Exemptions for vehicle registration duty are dealt with in part 4 . Also, other exemptions are dealt with in chapter 10 .
(2)Vehicle registration duty is imposed on the dutiable value of the vehicle.
(3)However, the vehicle registration duty imposed on an application for a special vehicle is the amount stated in section 382 (2)(a).

s 377 amd 2004 No. 18s 14

Part 2 Some basic concepts for vehicle registration duty

378What is the dutiable value of a vehicle

(1)The dutiable value of a vehicle that has not previously been registered, whether in Queensland or another State, and for which there is a list price is the total of the following—
(a)the vehicle’s list price;
(b)the price of all items of optional equipment not included in the list price.
(2)The dutiable value of a vehicle that has previously been registered, whether in Queensland or another State, or for which there is no list price is the greater of the following—
(a)the total consideration, in monetary terms, payable by the purchaser including any deposit, trade-in allowance and the price of all items of optional equipment;
(b)the market value of the vehicle.
(3)However, if a vehicle is modified for a person with a disability, the dutiable value of the vehicle is—
(a)for a vehicle mentioned in subsection (1)—the amount worked out under subsection (1) reduced by the value of the modifications; or
(b)for a vehicle mentioned in subsection (2)—the market value of the vehicle without having regard to the value of the modifications.

s 378 amd 2011 No. 8s 41

379What is the market value of a vehicle

The market value of a vehicle is the amount for which the vehicle might reasonably be sold, free of encumbrances, on the open market when the transaction to which an application to register or transfer the vehicle is made.

379AWho is a relative

A relative of a person is any of the following—
(a)the person’s spouse;
(b)a parent or grandparent of the person;
(c)a parent or grandparent of the person’s spouse;
(d)a child, stepchild or grandchild of the person;
(e)a child, stepchild or grandchild of the person’s spouse;
(f)the spouse of anyone in paragraphs (b) to (e).

s 379A ins 2008 No. 75s 25

379BWhen is a vehicle modified for a person with a disability

A vehicle is modified for a person with a disability if—
(a)an application to register or transfer the vehicle is made by a person with a disability, or a relative or carer of a person with a disability; and
(b)the vehicle will be used by, or to transport, the person with a disability; and
(c)modifications have been made to the vehicle to enable the person with a disability to—
(i)drive the vehicle; or
(ii)be transported in the vehicle.

s 379B ins 2011 No. 8s 42

Part 3 Liability for vehicle registration duty

380Who is liable to pay vehicle registration duty

(1)For an application to register a vehicle, the applicant is liable to pay the vehicle registration duty.
(2)For an application to transfer a vehicle, the transferee and the transferor are liable to pay the vehicle registration duty.

381When vehicle registration duty must be paid

(1)For an application to register a vehicle, the applicant must pay the vehicle registration duty on the application when making it.
(2)For an application to transfer a vehicle, the transferee and the transferor must pay the vehicle registration duty on the application when making it.

382Assessment of vehicle registration duty

(1)On the making of an application to register or transfer a vehicle—
(a)the commissioner is taken to have made an assessment of vehicle registration duty on the application; and
(b)the application is taken to be an assessment notice for the duty; and
(c)the commissioner is taken to have given the assessment notice to the persons liable to pay the duty.
(2)The liability for the vehicle registration duty on the application is—
(a)if the application is for a special vehicle—$25; or
(b)if paragraph (a) does not apply—the amount worked out by applying the rate of vehicle registration duty to the dutiable value of the vehicle at the dutiable day.

s 382 amd 2004 No. 18s 15; 2008 No. 75s 3 sch

383Rate of vehicle registration duty, other than for a special vehicle

The rate of vehicle registration duty imposed on an application to register or transfer a vehicle, other than a special vehicle, is as stated in schedule 4C .

s 383 amd 2004 No. 18s 16; 2007 No. 29s 5

384Reduction in vehicle registration duty payable

(1)The amount of vehicle registration duty assessed under section 382 (2) must be reduced if—
(a)the application to register or transfer the vehicle is made in relation to a dutiable transaction; and
(b)the dutiable value of the dutiable transaction relating to the dutiable property includes an amount representing the market value or part of the market value of the vehicle; and
(c)transfer duty in schedule 3 has been paid or is payable on the dutiable transaction.
(2)The reduction must be worked out using the following formula—

equation

      where—
DP means the duty paid or payable on the dutiable transaction that was worked out by applying the rate of transfer duty under schedule 3 .
DVDP means the dutiable value of the dutiable transaction relating to the dutiable property on which transfer duty in schedule 3 was worked out.
MVV means the market value of the vehicle or part of the market value of the vehicle mentioned in subsection (1)(b).
R means the amount of the reduction.

Example for subsection (2)—

A dutiable transaction comprises the transfer of the following dutiable property for the consideration stated—

a statutory business licence ($5,000)
personal property ($15,000) including a vehicle ($10,000).

Assuming the consideration for the transaction is the dutiable value, transfer duty of $225 is imposed on the transaction under chapter 2 , being the amount worked out at the applicable rate of duty stated in schedule 3 .

In working out the reduction—

factor DP is $225, being transfer duty on the transaction
factor MVV is $10,000, being the market value of the vehicle
factor DVDP is $20,000, being the dutiable value of the transaction on which transfer duty is imposed at the applicable rate of duty stated in schedule 3 .

Applying the formula, the reduction is $112.50.

(3)However, the reduction must not be more than the amount of vehicle registration duty that is otherwise payable under section 382 (2).

s 384 amd 2004 No. 18s 17; 2006 No. 44s 48; 2015 No. 4s 20

Part 4 Exemptions for vehicle registration duty

385Exemption—registration of previously registered vehicle

Vehicle registration duty is not imposed on an application to register a vehicle if—
(a)the vehicle was registered under the Vehicle Registration Act; and
(b)the registration expired or was cancelled under that Act; and
(c)the application is made by—
(i)the same person in whose name the vehicle was registered immediately before the expiry or cancellation (the previous registered operator); or
(ii)a relative of the previous registered operator; or
(iii)the previous registered operator and a relative of the previous registered operator.

s 385 amd 2008 No. 75s 26

386Exemption—registration of interstate registered vehicle or previously registered vehicle

(1)Subject to subsection (3), vehicle registration duty is not imposed on an application to register a vehicle if—
(a)either—
(i)the vehicle is registered under an Act of another State that corresponds to the Vehicle Registration Act (a corresponding Act); or
(ii)the vehicle was registered under a corresponding Act and the registration expired or was cancelled under that Act; and
(b)duty under a corresponding Act was paid in that State for the registration of the vehicle; and
(c)the application is made by a person or persons mentioned in subsection (2).
(2)For subsection (1)(c), the applicant or applicants must be—
(a)if there is only 1 registered operator—
(i)the registered operator; or
(ii)the registered operator and a relative of the registered operator; or
(iii)a relative of the registered operator; or
(b)if there is more than 1 registered operator—
(i)the registered operators; or
(ii)1 of the registered operators if the other registered operators are the applicant’s relatives; or
(iii)1 of 2 registered operators and a relative of the other registered operator; or
(iv)a relative of the registered operators; or
(v)a relative of each of 2 registered operators.
(3)Subsection (1) applies only if the registration of the vehicle, or an interest in the vehicle, in the name of a relative of a registered operator constitutes a gift of the vehicle or interest by the operator to the relative.
(4)In this section—
registered operator, of a vehicle mentioned in subsection (1)(a)(ii), means the person in whose name the vehicle was registered immediately before the expiry or cancellation.

s 386 amd 2004 No. 18s 18; 2008 No. 75s 27

387Exemption—registration of heavy vehicle

Vehicle registration duty is not imposed on an application for registration of a vehicle if—
(a)the vehicle has a GVM under the Vehicle Registration Act of more than 4.5t; and
(b)immediately before 1 July 1995, the vehicle was registered under the Interstate Road Transport Act 1985 (Cwlth); and
(c)the application is the first application for registration of the vehicle in a State; and
(d)the application is made by the same person in whose name the vehicle is registered under the Act mentioned in paragraph (b).

388Exemption—business name

Vehicle registration duty is not imposed on an application to register or transfer a vehicle if—
(a)the vehicle is registered in the name of a business; and
(b)vehicle registration duty or duty under a corresponding Act was paid for the registration of the vehicle; and
(c)the application is made by or for the owners of the business to register or transfer the vehicle—
(i)in the sole names of the owners; or
(ii)in the name of another business owned solely by the owners; or
(iii)for an application to register a vehicle registered under a corresponding Act in a business name—in the name of the business owned solely by the owners.

389Exemption—vehicle dealer

Vehicle registration duty is not imposed on—
(a)an application to register a vehicle in the name of a vehicle dealer or to transfer a vehicle to a vehicle dealer if the vehicle is acquired as trading stock; or
(b)an application to register a new vehicle in the name of a vehicle dealer if the vehicle is acquired for the dealer’s use as a demonstrator.

390Exemption—particular persons and entities

(1)Vehicle registration duty is not imposed on an application to register a vehicle in the name of, or an application to transfer a vehicle to, any of the following persons—
(a)the Governor;
(b)the personal representative of the estate of a deceased person;
(c)a person who is beneficially entitled to the vehicle in the estate of a deceased person;
(d)a person who is in the business of financing the purchase or use of vehicles if the vehicle the subject of the application is repossessed by, or voluntarily surrendered to, the person;
(e)a hirer who redeems a previously repossessed vehicle if the registration will be in the same name as before the repossession;
(f)a government entity;
(g)a local government;
(h)a consul or officer of a consulate if the person is a national of the country represented;
(i)a primary producer if—
(i)the vehicle is a vehicle with a GVM under the Vehicle Registration Act of more than 6t; and
(ii)the primary producer lodges a statutory declaration stating that the primary producer intends to use the vehicle solely in a business of primary production;
(j)an ex-serviceperson who, under the Vehicle Registration Act, is entitled to concessional registration fees for the vehicle;
(k)an entity if the vehicle is a motorised wheelchair for a disabled person’s use;
(l)a person who has lost the use of 1 or both legs if the vehicle is for use for transport to and from the person’s place of employment because the person can not use public transport;
(m)a person who has lost the use of 1 or both legs if—
(i)the vehicle is for use for transport to and from the person’s place of education because the person can not use public transport; and
(ii)the education is for the purpose of obtaining employment.
(2)Also, vehicle registration duty is not imposed on an application to transfer a vehicle or an interest in a vehicle wholly by way of gift to a relative of the registered operator.

s 390 amd 2008 No. 75 ss 15 (retro), 28

391Exemption—forfeiture orders

Vehicle registration duty is not imposed on an application to transfer a vehicle under—
(a)any of the following under the Criminal Proceeds Confiscation Act 2002
(i)third party order;
(ii)an exclusion order;
(iii)an innocent interests exclusion order;
(iv)a buy-back order;
(v)a request under section 175 ; or
(b)the Drugs Misuse Act 1986 , section 38(4) or 39(4).

s 391 amd 2002 No. 68s 339sch 4

392Exemption—industrial organisations

Vehicle registration duty is not imposed on an application, under the Industrial Relations Act 2016 , chapter 12, part 14, to register a vehicle in the name of, or to transfer a vehicle to, an organisation under that Act.

s 392 amd 2016 No. 63s 1157sch 6

393Exemption—disposal under particular Acts

Vehicle registration duty is not imposed on an application to transfer a vehicle under—
(a)the Libraries Act 1988 , section 28 ; or
(b)the Queensland Art Gallery Act 1987 , section 28 ; or
(c)the Queensland Museum Act 1970 , section 21 ; or
(d)the Queensland Performing Arts Trust Act 1977 , section 19 ; or
(e)the Queensland Theatre Company Act 1970 , section 18 .

s 393 amd 2005 No. 60s 36sch 2; 2008 No. 75s 3 sch

Part 5 Reassessments for vehicle registration duty

393AReassessment—noncomplying use by vehicle dealer

(1)This section applies if—
(a)vehicle registration duty is not paid on an application to register a vehicle in the name of a vehicle dealer, or to transfer a vehicle to a vehicle dealer, on the basis of an exemption under section 389 ; and
(b)the vehicle stops being trading stock, or stops being used as a demonstrator, other than because of a sale of the vehicle in the ordinary course of business.
(2)Within 28 days after the event mentioned in subsection (1)(b) happens, the vehicle dealer must give notice in the approved form to the commissioner.

Note—

Failure to give the notice is an offence under the Administration Act, section 120 .
(3)The commissioner must make a reassessment to impose vehicle registration duty on the application to register or transfer the vehicle as if the exemption from duty had never applied.

Note—

Unpaid tax interest and penalty tax may be payable under the Administration Act, part 5 .
(4)For subsection (1)(b), the vehicle is taken to stop being trading stock, or stop being used as a demonstrator, on the day that is the prescribed period after the registration or transfer mentioned in subsection (1)(a), unless the vehicle dealer sells the vehicle in the ordinary course of business before that day.
(5)In this section—
prescribed period means the period, at least 1 year, prescribed under a regulation for this section or, if no period is prescribed, 1 year.

s 393A ins 2008 No. 75s 29

394Reassessment—noncomplying use by primary producer

(1)This section applies if—
(a)vehicle registration duty is not paid on an application to register or transfer a vehicle in the name of a primary producer on the basis of an exemption under section 390 (1)(i); and
(b)within 5 years after the application to register or transfer the vehicle, the primary producer starts using the vehicle other than in the business of primary production, or sells or otherwise transfers the vehicle.
(2)Within 28 days after the event mentioned in subsection (1)(b) happens, the primary producer must give notice in the approved form to the commissioner.

Note—

Failure to give the notice is an offence under the Administration Act, section 120 .
(3)The commissioner must make a reassessment to impose vehicle registration duty on the application to register the vehicle as if the exemption from duty had never applied.

Note—

Unpaid tax interest and penalty tax may be payable under the Administration Act, part 5 .

395Reassessment of vehicle registration duty

(1)This section applies if the commissioner is satisfied that—
(a)after an application to register or transfer a vehicle is made, the vehicle is repossessed from a person because it was stolen before it was acquired by the person; or
(b)vehicle registration duty was paid for an application to register or transfer a vehicle and the transaction is cancelled within 3 months after the application is made.
(2)On application made by the person who paid the vehicle registration duty on the application to register or transfer the vehicle, the commissioner must make a reassessment of the duty paid as if it were exempt from vehicle registration duty.
(3)An application under subsection (2) must be made within 1 year after the application to register or transfer the vehicle was made.

Part 6 Miscellaneous provisions

396Obligations of vehicle dealers

(1)This section applies if—
(a)under section 389 , vehicle registration duty is not imposed on an application to register a vehicle in the name of a vehicle dealer or to transfer a vehicle to a vehicle dealer; and
(b)the vehicle dealer sells the vehicle.
(2)The vehicle dealer must—
(a)give the purchaser of the vehicle a statement showing the consideration for the purchase of the vehicle and the value of any trade-in; and
(b)keep a copy of the statement.

Maximum penalty—100 penalty units.

Note—

See the Administration Act, section 118 (Period for keeping records).

Chapter 10 General exemptions

Part 1 Exemptions for particular duties for corporate reconstruction

Division 1 Preliminary

397Purpose of pt 1

This part provides for exemptions for particular duties on particular transactions carried out for a corporate reconstruction.

Division 2 Some basic concepts about exemptions for duty for corporate reconstructions

Subdivision 1 Basic concepts about corporate reconstructions

398What is a corporate reconstruction

(1)A corporate reconstruction happens if—
(a)through a transaction or series of transactions, property is transferred, or agreed to be transferred, for the purpose of changing a corporate structure to make internal adjustments to corporate arrangements; and
(b)the transaction or each transaction is necessary to give effect to the purpose and is not undertaken for any other purpose; and
(c)the transfer, or agreement for the transfer, of the property is not part of an arrangement under which any company involved with any of the transactions will or may cease, at any time, to belong to the same corporate group other than in the circumstances mentioned in section 412 (4).
(2)For subsection (1)(b), a transaction that is 1 in a series of transactions is taken to be necessary to give effect to the purpose if it is necessary for an exemption to apply to the transaction.

s 398 amd 2011 No. 8s 43

Subdivision 2 Basic concepts about companies, group companies, parent companies and subsidiaries

399What is a company

A company is a body corporate other than a corporation sole.

400What are group companies, a group company and a corporate group

(1)If a company is the subsidiary of another company, the companies are group companies.
(2)Also, if 2 or more companies are the subsidiary of another company, all the companies are group companies.
(3)Each of the group companies is a group company.
(4)All companies that are group companies form a corporate group.

401What is a parent company

A company is the parent company of another company if—
(a)it directly owns, other than as trustee, at least 90% of the issued shares in the other company; and
(b)has voting control over the other company.

402What is a subsidiary

A company (the first company) is a subsidiary of another company if at least 90% of the issued shares in the first company are owned, other than as trustee, and voting control of the first company is held, by 1 or more of the following companies—
(a)the other company;
(b)1 or more other subsidiaries of the other company;
(c)the other company and 1 or more other subsidiaries of the other company.

403Example of corporate group structure

(1)Schedule 5 contains an example of a corporate group structure.
(2)The example shows the group companies, the parent companies and subsidiaries in the group.

404How part applies to particular transactions

For this part—
(a)an application to transfer a vehicle is treated as an agreement for the transfer of dutiable property to the applicant transferee from the applicant transferor; and
(b)a vesting of dutiable property by, or expressly authorised by, statute law is treated as a transfer of the property to the person in whom it is vested from its owner immediately before the vesting takes place; and
(c)a vesting, under a court order, of dutiable property is treated as a transfer of the property to the person in whom it is vested from its owner immediately before the order is made; and
(d)a surrender of dutiable property is treated as a transfer of the property to the person to whom it is surrendered from the person who surrenders it; and
(e)a partnership acquisition is treated as a transfer of dutiable property to the partner from the former owner; and
(f)a trust acquisition, under which a person becomes a beneficiary or the person’s trust interest increases because of a transfer, or agreement for the transfer, of a trust interest, is treated as a transfer of dutiable property to the acquiring beneficiary from the transferor.

s 404 amd 2006 No. 44s 49; 2016 No. 64s 8

405[Repealed]

s 405 amd 2004 No. 18s 19

om 2006 No. 44s 50

Division 3 Exemptions for corporate reconstructions

406Exemption—intra-group transfers of property

(1)Transfer duty or vehicle registration duty is not imposed on a transfer, or agreement for the transfer, of dutiable property carried out for a corporate reconstruction if the conditions in subsection (2) are complied with.

Note—

See section 404 (How part applies to particular transactions).
(2)For subsection (1), the conditions are as follows—
(a)the transferor did not hold, and the transferee will not hold, the property as trustee;
(b)the transferor and transferee of the property are group companies;
(c)the dutiable transaction has not been made under an arrangement under which—
(i)part or all of the consideration for the dutiable transaction has or is to be provided or received, directly or indirectly by a person other than a group company; or
(ii)a group company is to be enabled to provide any of the consideration by a person other than as mentioned in subsection (3); or
(iii)a group company is to dispose of any of the consideration through a payment or other disposition—
(A)to a person other than a group company; or
(B)to a person other than by way of loan on ordinary commercial terms;
(d)the property transferred is, at the time of the transfer, group property under section 407 .
(3)For subsection (2)(c)(ii), consideration may be provided—
(a)by a financial institution by way of loan on ordinary commercial terms; or
(b)by a group company; or
(c)under an offer and sale of shares to the public in the circumstances mentioned in section 412 (4)(b).

s 406 amd 2002 No. 65 ss 30, 3(2) sch

407Group property for intra-group transfer of property

(1)For section 406 (2)(d), property is group property if—
(a)the transferor and transferee—
(i)were group companies before the property, or an interest of at least 90% in the property, was first owned by the transferor or another group company; and
(ii)have been group companies at all times subsequent during which the property, or an interest of at least 90% in the property, has been continuously owned by the transferor or another group company; or
(b)the transferor and transferee—
(i)were group companies before the property, or an interest of at least 90% in the property, came into the ownership of the transferor or another group company by way of a transaction for which transfer duty, or an equivalent duty under a corresponding Act, has been paid; and
(ii)have been group companies at all times subsequent during which the property, or an interest of at least 90% in the property, has been continuously owned by the transferor or the other group company; or
(c)the transferor or transferee is the new parent company of the other party to the transfer and the transferor and the transferee became group companies in the circumstances mentioned in section 409 (1)(a) to (c); or
(d)the transferee is the parent company of the transferor and landholder duty was imposed and paid for the transferee acquiring its shares in the transferor; or
(e)the transferee is the parent company of the transferor, and the transferee acquired at least 70% of the shares of the transferor because of a takeover bid, under the Corporations Act, chapter 6 , for the shares if they were quoted securities under that Act; or

Note—

Section 498A includes provision about when the quotation of securities is suspended.
(f)the transferor and transferee have been group companies for 3 years.
(2)For section 406 (2)(d), property is also group property if—
(a)the transfer is between a parent company and a subsidiary of it; and
(b)either of the following applies—
(i)the parent company became the parent company of the subsidiary on its registration;
(ii)the parent company became the parent company of the subsidiary after its registration and the subsidiary has been dormant since its registration; and
(c)the parent company remained the parent company of the subsidiary from its registration or from when it became the subsidiary’s parent company until the property is transferred.
(3)However, for subsection (1)(a) or (b), property that is a lot on a plan of subdivision registered after the transferor and the transferee became group companies is only group property to the extent that the property comprising the lot was group property under subsection (1)(a) or (b) immediately before registration of the plan of subdivision.
(4)For property mentioned in subsection (3), transfer duty is not imposed on the dutiable value of the part of the lot that is group property, worked out using the following formula—

equation

      where—
DVG means the dutiable value of the part of the lot that is group property for section 406 (2)(d).
DVL means the dutiable value of the lot.
TV means the total value, immediately before the plan of subdivision was registered, of the property that forms the lot.
VP means the value, immediately before the plan of subdivision was registered, of property that—
(a)forms part of the lot; and
(b)was group property under subsection (1)(a) or (b) immediately before the plan of subdivision was registered.
(5)In this section—
lot see the Land Title Act 1994 , schedule 2.
plan of subdivision means—
(a)a plan under the Building Units and Group Titles Act 1980 ; or
(b)a plan of subdivision under the Land Title Act 1994 ; or
(c)a plan of subdivision under the Land Act 1994 ; or
(d)a plan or scheme, however described, showing the division of, amalgamation into, dedication of or redefinition of, at least 1 lot, that is able to be registered in a land registry under the Land Act 1994 or the Land Title Act 1994 .

s 407 amd 2006 No. 44s 51; 2008 No. 75s 30; 2010 No. 11s 51; 2011 No. 8s 44; 2011 No. 20s 122

408Exemption—trustees

(1)Transfer duty or vehicle registration duty is not imposed on a transfer, or agreement for the transfer, of dutiable property carried out for a corporate reconstruction if the following conditions are complied with—
(a)the transferor of the property holds the property as trustee for the beneficiaries of a fixed trust, including a unit trust;
(b)the transferor of the property holds at least 90% of the issued shares of the transferee as trustee for the beneficiaries or, for a unit trust, the unitholders;
(c)the conditions mentioned in section 406 (2) are complied with.

Note—

See section 404 (How part applies to particular transactions).
(2)For subsection (1), section 406 (2) and division 5 apply as if—
(a)a reference to the transferor of the property were a reference to the unitholders or beneficiaries; and
(b)the issued shares in the transferee held by the transferor were held other than as trustee.

s 408 amd 2004 No. 18s 20

409Exemption—landholder duty

(1)This section applies if—
(a)there is a corporate reconstruction constituted by a parent company (the new parent company) being interposed between a company (the existing company) and the shareholders of the existing company; and
(b)there is a transfer, or agreement for the transfer, of shares from a shareholder of the existing company to the new parent company carried out solely for the corporate reconstruction; and
(c)the following conditions are complied with—
(i)the new parent company is a company with limited liability;
(ii)the new parent company has been dormant from its registration until the resolution to become the new parent company of the existing company;
(iii)under the transaction mentioned in paragraph (b), the new parent company acquires at least 90% of the issued shares, and voting control of, the existing company;
(iv)at least 90% of the consideration for the acquisition is the issue of shares in the new parent company to the shareholders of the existing company;
(v)each shareholder of the existing company whose shares are acquired by the new parent company receives consideration equal in value to the value of the shareholder’s shares in the existing company;
(vi)immediately after the transfer of shares in the existing company, at least 90% of the issued shares in the new parent company consists of the shares it issued as consideration for the acquisition of the shares in the existing company;
(vii)if the new parent company is interposed between more than 1 existing company and their shareholders—before the acquisition by the new parent company, the same shareholders—
(A)owned, directly or indirectly, at least 90% of the issued shares in the existing companies; and
(B)had voting control of the existing companies; and
(d)the acquisition of shares in the existing company by the new parent company or the issue of the shares in the new parent company to the shareholders of the existing company is a relevant acquisition.
(2)This section also applies if, under section 406 or 408 , a transfer, or agreement for the transfer, of shares is exempt from transfer duty and the acquisition of the shares by the transferee is a relevant acquisition.
(3)Landholder duty is not imposed on the acquisition to the extent of the interest acquired by the new parent company or transferee under the transaction.

Note—

See section 179 (Working out dutiable value of relevant acquisition).
(4)For subsection (2), sections 406 , 407 and 408 apply as if a transfer, or agreement for the transfer, of shares were a dutiable transaction.

s 409 sub 2006 No. 44s 52

amd 2011 No. 20s 123

Division 4 Applications for rulings and exemptions

410Application for ruling for proposed dutiable transaction or relevant acquisition

(1)A company that proposes being party to a dutiable transaction or relevant acquisition, may apply to the commissioner for a ruling whether the proposed transaction or acquisition will be exempt from duty under this part.
(2)The application must—
(a)be in the approved form; and
(b)be accompanied by enough information to enable the commissioner to make a ruling.
(3)The commissioner must give the applicant notice of the commissioner’s ruling on the application.

411Application for exemption for dutiable transaction or relevant acquisition

(1)The parties to a dutiable transaction or acquirer under a relevant acquisition may apply to the commissioner for an exemption from duty under division 3 .
(2)The application must—
(a)be in the approved form; and
(b)be supported by enough information to enable the commissioner to make an assessment.
(3)On the application, the commissioner must make an assessment of nil duty for the dutiable transaction or relevant acquisition if—
(a)the commissioner is satisfied the transaction or acquisition is exempt from duty under division 3 ; or
(b)the commissioner has, on an application for a ruling, decided the transaction or acquisition would be exempt from duty under division 3 .
(4)However, subsection (3)(b) does not apply if—
(a)the instruments submitted with the application for exemption differ in a material particular to drafts of instruments lodged with the application for the ruling; or
(b)the circumstances existing in relation to the transaction or acquisition at the time of the application for exemption are materially different from the circumstances existing at the time of the application for the ruling; or
(c)the information given with the application for the ruling was false or misleading in a material particular; or
(d)each of the following applies—
(i)after the ruling is made but before the application for the exemption is decided, a legislative change takes effect, a judgment of a court is given or a decision is made by QCAT;
(ii)the change, judgment or decision would, if it had taken effect or been given before the ruling was made, have materially affected the ruling made by the commissioner.

s 411 amd 2004 No. 18s 21; 2009 No. 24s 1847

Division 5 Reassessments for corporate reconstructions

412Reassessment—exemption for intra-group transfers of property, trustees and landholder duty

(1)This section applies if—
(a)duty is assessed on a dutiable transaction or relevant acquisition on the basis of an exemption under section 406 , 408 or 409 ; and
(b)within 3 years after the transaction or acquisition—
(i)the transferor or transferee has ceased to belong to the same corporate group; or
(ii)part or all of the consideration for the transaction or acquisition is provided or received other than as permitted by section 406 (2)(c)(ii) or (iii).
(2)The commissioner must make a reassessment to impose duty on the dutiable transaction or relevant acquisition as if the exemption from duty had never applied.

Note—

Unpaid tax interest and penalty tax may be payable under the Administration Act, part 5.
(3)Subsection (2) applies to the reassessment despite the following—
(a)the limitation period under the Administration Act for reassessments;
(b)the commissioner’s ruling under section 410 for the dutiable transaction or relevant acquisition.

Note—

See the Administration Act, part 3 (Assessments of tax), division 3 (Reassessments).
(4)However, subsection (2) does not apply—
(a)if the transferor or transferee ceases to exist, other than under an arrangement, a significant purpose of which was to avoid the requirement that the transferor and transferee belong to the same corporate group for the 3 years mentioned in subsection (1); or
(b)if—
(i)the transferor or transferee ceases to be a group company in the corporate group because its shares, or the shares of a new parent company interposed between the transferor and transferee, are offered and sold to the public; and
(ii)the shares are quoted on the market operated by a recognised stock exchange within 1 year after the offer to the public; or

Note—

Section 498A includes provision about when the quotation of securities is suspended.
(c)if less than 5% of the value of the property held, directly or indirectly, by the company that ceases to be a group company is dutiable property.
(5)Without limiting subsection (4)(a), a company registered under the Corporations Act ceases to exist if it is deregistered under that Act.

s 412 amd 2002 No. 65 ss 31, 3(2) sch; 2008 No. 75s 31; 2011 No. 20s 124

413When parties must give notice for reassessment

(1)This section applies if an event mentioned in section 412 (1)(b) happens within 3 years after a dutiable transaction or relevant acquisition to which an exemption under this part was applied.
(2)Within 28 days after the event happens, a party to the dutiable transaction or person making the relevant acquisition must—
(a)give notice in the approved form to the commissioner; and
(b)ensure the instruments required for the assessment for the dutiable transaction or relevant acquisition are lodged for a reassessment of duty on the transaction or acquisition.

Note—

Failure to give the notice is an offence under the Administration Act, section 120 .

Part 2 Exemptions for particular duties for charitable institutions

pt hdg amd 2010 No. 15s 98sch 3

Division 1 Exemptions for charitable institutions

div hdg amd 2010 No. 15s 98sch 3

414Exemption—particular duties for charitable institutions

(1)Duty is not imposed on the following—
(a)a dutiable transaction under which a charitable institution acquires dutiable property;
(b)a dutiable transaction that is—
(i)the creation or termination of a trust of dutiable property for the benefit of a charitable institution; or
(ii)a trust acquisition or trust surrender by a charitable institution;
(c)a premium for general insurance for property or undertaking of a charitable institution;
(d)an application to register or transfer a vehicle in the name of a charitable institution.
(2)Subsection (1) applies only if the use requirements under division 2 are complied with.

s 414 amd 2005 No. 60s 36sch 2; 2006 No. 44s 53; 2008 No. 39s 9; 2010 No. 15s 98sch 3

Division 2 Use requirements for exemptions

415Use requirement

(1)Property acquired or insured by, or property held on trust for, a charitable institution must be used solely or almost solely by the institution for 1 or more of the following purposes (a qualifying exempt purpose)—
(a)activities of a religious nature;
(b)public benevolent purposes;
(c)educational purposes;
(d)conducting a kindergarten or preschool;
(e)the care of the sick, aged, infirm, afflicted or incorrigible persons;
(f)the relief of poverty;
(g)the care of children under the Administration Act, section 149C(2)(h);
(h)another charitable purpose or promotion of the public good;
(i)providing a residence to a minister, or members of a religious order who are engaged in an object or pursuit of a kind mentioned in paragraphs (a) to (h).
(2)For subsection (1)(a) to (h), the property acquired, insured or held is not used solely or almost solely for a qualifying exempt purpose if the property is used for an employment or salary package of an officer or employee of the institution.

s 415 amd 2002 No. 65s 32; 2005 No. 60s 36sch 2; 2006 No. 44s 54; 2008 No. 39s 10; 2010 No. 15s 98sch 3

416Start of use requirement

(1)For property held on trust for a charitable institution, the commissioner must be satisfied—
(a)the property will start to be used for the institution for a qualifying exempt purpose on or before the date that is 6 months after the liability for transfer duty on the transaction would, apart from the exemption under division 1 , arise or the later date fixed by the commissioner by notice given to the institution (the start date); and
(b)the property will be used solely or almost solely for the institution for a qualifying exempt purpose for the period starting on the date the property is used for the institution for a qualifying exempt purpose and ends 1 year after that date or the later date fixed by the commissioner by notice given to the institution (the duration period).

Note—

In relation to subsection (1)(a), see also section 620 .
(2)For other property, the commissioner must be satisfied—
(a)the property acquired or insured will start to be used by the charitable institution for a qualifying exempt purpose on or before the date stated in subsection (3) (also the start date); and
(b)the property will be used solely or almost solely by the institution for a qualifying exempt purpose for the period stated in subsection (4) (also the duration period).
(3)For subsection (2)(a), the start date is—
(a)for a dutiable transaction that is an acquisition of dutiable property—6 months after the liability for transfer duty on the transaction would, apart from the exemption under division 1 , arise or the later date fixed by the commissioner by notice given to the institution; or
(c)for a premium for a contract of general insurance—immediately after the premium is paid; or
(d)for an application to register or transfer a vehicle—immediately after the application is made.

Note—

In relation to subsection (3)(a), see also section 620 .
(4)For subsection (2)(b), the duration period starts—
(a)for a dutiable transaction that is an acquisition of dutiable property—on the date the charitable institution starts to use the property for a qualifying exempt purpose and ends 1 year after that date or the later date fixed by the commissioner by notice given to the institution; or
(c)for a premium for a contract of general insurance—on the start date and ends 1 year after payment of the premium; or
(d)for an application to register or transfer a vehicle—on the start date and ends 9 months after the application is made.

s 416 amd 2005 No. 60s 36sch 2; 2006 No. 44s 55; 2008 No. 39s 11; 2010 No. 11s 52; 2010 No. 15s 98sch 3; 2015 No. 4s 21

417Commissioner to extend start date and duration period

(1)This section applies if, after an assessment made on the basis of an exemption under division 1 , the commissioner is satisfied the property acquired, insured or held—
(a)has not been used solely or almost solely for a qualifying exempt purpose; but
(b)will be used solely or almost solely for a qualifying exempt purpose by a later date (the new start date), and for the period, fixed by the commissioner (the new duration period) by notice given to the institution.
(2)The commissioner must not make a reassessment merely because the property has not been used solely or almost solely for a qualifying exempt purpose if the property starts to be so used by the new start date.

s 417 amd 2005 No. 60s 36sch 2; 2006 No. 44s 56; 2008 No. 39s 12

Division 3 Reassessments for charitable institutions

div hdg amd 2010 No. 15s 98sch 3

418Reassessment on application of charitable institution

(1)This section applies if, under an assessment, duty is imposed on an instrument or transaction because the use requirements under division 2 will not be complied with.
(2)If, on application by the charitable institution concerned, the commissioner is satisfied the property acquired, insured or held has been used solely, or almost solely, for a qualifying exempt purpose from the start date for the duration period, the commissioner must make a reassessment on the basis of compliance with division 2 .
(3)For the reassessment, the charitable institution must lodge the instruments required for the original assessment.

s 418 amd 2005 No. 60s 36sch 2; 2006 No. 44s 57; 2008 No. 39s 13; 2010 No. 15s 98sch 3

419Reassessment—noncompliance with use requirements

(1)This section applies if—
(a)duty is assessed on an instrument or transaction on the basis of an exemption under division 1 ; and
(b)after the assessment, the property acquired, insured or held—
(i)is used for a purpose other than a qualifying exempt purpose; or
(ii)is not used for a qualifying exempt purpose by the start date or new start date; or
(iii)is not used for a qualifying exempt purpose for the duration period or new duration period.
(2)Within 28 days after the event mentioned in subsection (1)(b) happens, the charitable institution must—
(a)give notice in the approved form to the commissioner; and
(b)ensure the instruments required for the assessment of duty are lodged for a reassessment of duty on the instrument or transaction.

Note—

Failure to give the notice is an offence under the Administration Act, section 120 .
(3)The commissioner must make a reassessment to impose duty on the instrument or transaction as if the exemption had never applied.

Note—

Unpaid tax interest and penalty tax may be payable under the Administration Act, part 5.

s 419 amd 2005 No. 60s 36sch 2; 2006 No. 44s 58; 2008 No. 39s 14; 2010 No. 11s 53; 2010 No. 15s 98sch 3

Part 3 Exemptions for matrimonial and de facto relationship instruments

Division 1 Some basic concepts for matrimonial and de facto relationship instruments

420What is a matrimonial instrument

(1)An instrument mentioned in subsection (2) that provides for the transfer of matrimonial property from 1 party to a marriage to only the other party to the marriage is a matrimonial instrument on the dissolution or annulment of the marriage.
(2)For subsection (1), the instruments are the following—
(a)an agreement registered or approved under the Family Law Act 1975 (Cwlth);
(b)an order of a court under the Family Law Act 1975 (Cwlth);
(c)an instrument made under an instrument mentioned in paragraph (a) or (b);
(d)an instrument made after the start of a proceeding for the dissolution or annulment of the marriage.

421What is matrimonial property

Matrimonial property is property of the parties to a marriage or of either of them that is—
(a)residential land, the residence on which is for use as the principal residence of the party to whom it is to be or is being transferred; or
(b)a vehicle for use for private purposes by the party to whom it is to be or is being transferred.

422What is a de facto relationship instrument

A de facto relationship instrument is any of the following instruments to the extent it deals with de facto relationship property—
(a)a recognised agreement under the Property Law Act 1974 , section 266 ;
(b)an order of a court under the Property Law Act 1974 , part 19 ;
(c)an instrument made under an instrument mentioned in paragraph (a) or (b).

s 422 amd 2002 No. 17s 7 (retro); 2002 No. 65s 33 (retro)

423What is de facto relationship property

De facto relationship property is property of the de facto partners of a de facto relationship or of either of them.

s 423 amd 2002 No. 17s 8 (retro); 2002 No. 74s 90 sch

Division 2 Exemptions and reassessments

424Exemption—matrimonial and de facto relationship instruments

Duty is not imposed on a transaction to the extent that it gives effect to a matrimonial instrument or de facto relationship instrument.

Notes—

1Exemptions for duty for particular instruments and maintenance agreements are provided in the Family Law Act 1975 (Cwlth), section 90.
2Exemptions for duty for particular instruments and agreements relating to financial matters, in the event of a breakdown in a marriage, are provided in the Family Law Act 1975 (Cwlth), section 90L.
3Exemptions for duty for particular instruments and agreements relating to financial matters, in the event of a breakdown of a de facto relationship, are provided in the Family Law Act 1975 (Cwlth), section 90WA.

s 424 amd 2009 No. 31s 9

425Reassessment on application

(1)This section applies if—
(a)duty has been paid on a transaction to the extent that it gives effect to an instrument for the transfer, or agreement for the transfer, of—
(i)matrimonial property from 1 party to a marriage to the other party; or
(ii)de facto relationship property from 1 de facto partner to the other; and
(b)duty was paid on the basis that the instrument was not a matrimonial instrument or de facto relationship instrument; and
(c)either of the following applies—
(i)when the duty was paid, the instrument was a matrimonial instrument or de facto relationship instrument for the property;
(ii)after the duty was paid, the instrument becomes a matrimonial instrument or de facto relationship instrument for the property.
(2)On application made by a party to the marriage or 1 of the de facto partners, the commissioner must make a reassessment of duty for the transfer as if it were exempt from duty under section 424 .
(3)The application must be made within 6 months after—
(a)if subsection (1)(c)(i) applies—the instrument is made; or
(b)if subsection (1)(c)(ii) applies—the instrument becomes a matrimonial instrument or de facto relationship instrument for the property.
(4)The applicant must lodge the matrimonial instrument or de facto relationship instrument for the property with the application.

s 425 amd 2002 No. 74s 90 sch

Part 4 Other exemptions

426Exemption—State

The State is not liable to pay duty unless this Act expressly provides otherwise.

Note—

See sections 17 (Who is liable to pay transfer duty) and 357 (Who is liable to pay insurance duty).

427Exemption—particular instruments and transactions relating to incorporated associations