Statement on transfer under Part 3 of the Financial Sector (Transfers of Business) Act 1999
Duties-Form-16
What is the purpose of this form?
Section 107 of the Duties Act 2000 requires a ‘receiving body’ to lodge a statement when dutiable property is transferred to it under Part 3 of the Financial Sector (Transfers of Business) Act 1999.
This form is used to evidence transfer of property between financial institutions when there is no transfer document.
How is this form lodged?
This form is completed online. When you have completed all relevant and mandatory information, please select complete. A copy of the form will be sent to the supplied email address. You are then required to sign and submit the form directly to the SRO.
What must be lodged with this statement?
- Contract of sale or such other agreement relating to the transfer of the property (if any);
- Certificate of transfer issued under section 18 of the Financial Sector (Transfers of Business) Act 1999;
- A copy of the written statement detailing the assets of the transferring body.
Note: This may be in the form required by section 19 of the Financial Sector (Transfers of Business) Act 1999, excluding liabilities.
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Explanatory notes
All building societies, credit unions and friendly societies became authorised deposit-taking institutions (ADIs) within the meaning of the Banking Act 1959 on 1 July 1999. From this date, they also became companies for the purposes of the Corporations Law, with the Financial Institutions (Victoria) Code ceasing to apply to them.
As a result of these changes, the supervision of ADIs was transferred to the Commonwealth via the Financial Sector (Transfers of Business) Act 1999 (the FS(TB) Act). Under section 22 of that Act, where there is a transfer of business from one ADI to another all assets and liabilities of the transferring body become the assets and liabilities of the receiving body without any transfer, conveyance or assignment of property.
The voluntary transfers of assets as a result of the merger of a financial institution may, however, be eligible for an exemption under the Duties Act 2000 (Duties Act) where the merger meets the criteria established under these guidelines, which have been approved by the Treasurer of Victoria.
It has been necessary to reissue these guidelines as a result of the introduction of the Duties Act, effective on 1 July 2001. The previous guidelines were issued under section 137P of the Stamps Act 1958 (Stamps Act).
Application requirements
A ‘receiving body’ is one to whom any property is transferred under Part 3 of the FS(TB) Act. A receiving body that receives any such property must:
- lodge a statement with the Commissioner if duty would have been chargeable had an instrument for the conveyance, transfer or assignment of the property been executed in relation to the transfer
- lodge a statement in a form approved by the Commissioner and specify the property transferred and the value of that property
- pay duty on the statement unless it is not chargeable under these guidelines.
Substantial penalties apply under sections 57 and 59 of the Taxation Administration Act 1997 for failing to lodge a statement as required, and for lodging a statement that is knowingly false and misleading. Statements that do not qualify for an exemption under section 109 of the Duties Act are liable to duty, which must be paid within 3 months after the day on which the property became the property of the receiving body.
Exemption from duty
Section 109 of the Duties Act provides an exemption from Victorian duty for dutiable instruments arising from the voluntary transfers of assets of a financial institution. Institutions seeking an exemption from duty must apply in writing to the State Revenue Office of Victoria. The application must specify the property that is the subject of the instrument(s) of transfer, the amount of any duty involved, and explain why the proposal meets these guidelines.
Guidelines
An exemption is available where:
- A certificate of transfer is issued by the Australian Prudential Regulation Authority (APRA) under section 18 of the FS(TB)Act.
- The merger or transfer of engagements would not previously have been liable to duty under the Stamps Act by virtue of the operation of the former Financial Institutions (Victoria) Code.
