Exemptions and concessions

Key information

Certain acquisitions in a landholder may be exempt from duty or eligible for a concession. Exemptions and concessions can apply in circumstances such as:

• acquisitions that would be exempt from land transfer duty
• corporate restructures
• finance arrangements
• insolvency
• estate administration arrangements.

Relevant legislation and guidance include:

• sections 89D, 89E, 89F, 89FA and 89FAB of the Duties Act 2000 (the Act) 
• Revenue Ruling DA-055v4 – Landholder duty - Obligations on making a relevant acquisition and duty calculation.

Exemptions

Acquisitions of interests in a landholder will be exempt from duty under the landholder provisions in a number of circumstances, including if:

• the means by which a person acquired an interest would have resulted in no ad valorem duty being payable under Chapter 2 of the Act had the subject of the acquisition been a transfer of the land of the landholder to the person
• the interest was acquired by a person in their capacity as a receiver or trustee in bankruptcy, a liquidator or an executor or administrator of a deceased estate
• the interest was acquired solely as the result of a compromise or arrangement with the landholder’s creditors under Part 5.1 of the Corporations Act 2001 (Cth)
• the interest was acquired solely from a pro rata increase in the interests of all unitholders or shareholders of the landholder.

Concessions

The landholder provisions provide certain concessions from duty, including:

• a person acquires an interest in a landholder or an economic entitlement as a condition of providing finance and the Commissioner is satisfied that the relevant acquisition is effected solely for that purpose, the acquisition is not chargeable with duty, provided the interest is re-transferred by the person making the acquisition within 5 years
• the Commissioner is satisfied that the application of the landholder provisions results in an anomalous duty outcome and may reduce the duty payable on a relevant acquisition to an amount not less than the duty that would be payable under Chapter 2 of the Act, had the subject of the relevant acquisition been a transfer of the land of the landholder to the person
• the exclusion of the value of tax reform scheme land, including (in some circumstances) a lease, economic entitlement or fixtures over, in or on such land, from the calculation of duty
• a relevant acquisition undertaken as part of the restructure or consolidation of a corporate group.