The creation and extinguishment of dutiable property which includes leases is dutiable unless exempt or excluded. Excluded items include the grant, renewal or variation of a lease for no consideration and any transactions prescribed by the Regulations. The regulation will be retrospective and will commence from the date of assent of the legislation which is the 19th of May 2022.

The Regulation and the Commissioner’s Practice Note (when published) will contain a detailed explanation of the duty consequences of lease transactions. Generally, leases where rent is paid or payable will not be liable for duty, provided there is no premium or other consideration for the grant of the lease.

Leases granted for consideration (monetary or non-monetary) will be liable. Please be aware that an excluded transaction that results in a change in beneficial ownership of dutiable property will be treated as a dutiable transaction if it is part of a scheme or arrangement to avoid or reduce duty.