Exemptions and concessions

The following exemptions and concessions apply to landholder duty:

General

An acquisition by a person of an interest in a landholder is an exempt acquisition:

  • if the interest was acquired in the person’s capacity as:

    • a receiver or trustee in bankruptcy
    • a liquidator
    • an executor or administrator of the estate of a deceased person
  • if the interest was acquired solely as the result of the making of a compromise or arrangement with creditors under Part 5.1 of the Corporations Act 2001 of the Commonwealth that has been approved by a court

  • if the interest is acquired solely from a pro rata increase or decrease in the interests of all unit holders or shareholders

  • if the interest was acquired solely as the result of the distribution of the estate of a deceased person

  • if the land holding of the landholder comprises land used for primary production if the transfer of the land would not be chargeable with duty under this Act because of the application of section 274

  • if the acquisition of an interest in a landholder would be chargeable with duty of $50 under section 54 or 54A if the interest concerned was acquired before the landholder held land in New South Wales

  • if the interest concerned was acquired before the landholder held land in New South Wales
  • if the interest concerned is an interest in a private unit trust scheme acquired before 10 June 1987

  • if the interest concerned is an interest in a private landholder acquired before 1 July 2009 and, at the time of its acquisition, the private landholder was not a land rich landholder within the meaning of Chapter 4A (as in force before its repeal by the State Revenue Legislation Further Amendment Act 2009).
  • if the interest concerned is an interest in a private landholder acquired before 1 July 2009 and, at the time of its acquisition, the private landholder was not a land rich landholder if the interest concerned is an interest in a public landholder acquired before 1 July 2009.

Note: an exempt acquisition is counted to determine if a significant interest has been acquired, but is not chargeable with duty.

Example

A person acquires a 30% interest in a private landholder pursuant to the will of a deceased person. That person or an 'associated person' purchases another 40% interest in the private landholder. The 70% acquisition results in an aggregation that amounts to a significant interest in the landholder. The 30% acquisition is an exempt acquisition. Hence, landholder duty is only payable on the 40% acquisition:

  • if the interest was acquired by the parties to a marriage that is dissolved or annulled,
  • if the interest was acquired by the parties to a de facto relationship that has broken down irretrievably
  • if the interest was acquired by the parties to a domestic relationship that has been terminated

Primary Producers

Duty is charged in respect of an acquisition of an interest in a primary producer only if, when the acquisition is made, the primary producer is land rich.

A primary producer is land rich if:

  • it has land holdings in New South Wales with an unencumbered value of $2,000,000 or more, and
  • its land holdings in all places, whether within or outside Australia, comprise 80% or more of the unencumbered value of all its property.

Property is not to be counted in calculating the unencumbered value of the property of a primary producer for the purposes of this section if the primary producer is unable to satisfy the Chief Commissioner that the property was obtained otherwise than to reduce, for the purposes of this Chapter, the ratio of its land holdings in all places, whether within or outside Australia, to the unencumbered value of all its property.

For more information on exemptions and concessions applies, refer to Duties Act 1997.

Last updated: 20 July 2017