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Chapters

  1. Overview
  2. Change in beneficial ownership of dutiable property
  3. Change in beneficial ownership of dutiable property - Regulation
  4. Change in beneficial ownership - Grant of an Option
  5. Acknowledgement of trust
  6. Off the plan transactions
  7. Breakup of marriages and de facto relationships
  8. Transfer of certain business property between family members
  9. Surcharge purchaser duty Australian-based developer
  10. Tax avoidance schemes
  11. Other changes to the Taxation Administration Act 1996
  12. Land Tax
  13. First Home Owner Grant
  14. Other legislative changes

2. Change in beneficial ownership of dutiable property

Section 8(1)(b)(ix) of the Duties Act 1997

Introduces duty on certain transactions that results in a change in beneficial ownership of dutiable property. This includes:

  • the creation of dutiable property
  • extinguishment of dutiable property
  • a change in equitable interests in dutiable property
  • dutiable property becoming the subject of a trust or
  • dutiable property ceasing to be the subject of a trust

Some transactions are now dutiable as a result of the introduction of this section including the grant of an option.

What are the excluded transactions?

The Act excludes certain transactions from comprising a change in beneficial ownership. These include:

  1. the purchase, gift, allotment or issue of a unit in a unit trust scheme
  2. the cancellation, redemption or surrender of a unit in a unit trust scheme
  3. the abrogation or alteration of a right relating to a unit in a unit trust scheme
  4. the payment of an account owing for a unit in a unit trust scheme
  5. the grant, renewal or variation of a lease for no consideration
  6. the grant of an easement for no consideration
  7. the grant of a profit a prendre for no consideration
  8. the provision of a security interest within the meaning of the Personal Property Securities Act 2009 of the Commonwealth
  9. a change in a trustee’s right of indemnity
  10. the creation of an interest in dutiable property by statute
  11. a transaction of a kind prescribed by the regulations
  12. a combination of the transactions referred to in paragraphs (a)–(k).

When do these changes take effect?

The changes will take affect for transactions entered into on or after 19 May 2022.

However, section 8(1)(b)(ix) does not extend to change in beneficial ownership transactions arising after the commencement date if the transaction occurs in accordance with an agreement or arrangement entered into before the commencement date

How is duty calculated?

Transfer duty is calculated in accordance with Chapter 2 of the Duties Act 1997.

When the beneficial ownership changes, the duty is calculated on the dutiable value of the dutiable property.

Our online duty calculators can be used to quickly calculate duty liability.

Is evidence of value required?

In most circumstances, evidence of value will be required.

Appropriate evidence of value of the dutiable property must be obtained in accordance with Revenue Ruling DUT 012 v4.

Can this transaction attract surcharge purchaser duty?

Surcharge purchaser duty (Chapter 2A of the Duties Act 1997) does not apply to transactions that are liable to duty under section 8(1)(b)(ix).

Can this transaction attract premium transfer duty?

Premium transfer duty will be payable if the change in beneficial ownership of dutiable property relates to residential property with a value greater than the premium duty threshold.

In the case of a grant of an option, premium transfer duty will be payable if the grant of an option relates to residential property and the call option fee is greater than the relevant premium duty threshold.

Refer to the transfer duty page on our website for the current threshold.

Use our online duty calculators to quickly calculate duty liability.

What are the evidentiary and identification requirements?

There are new evidentiary requirements for Section 8(1)(b)(ix). This information has been updated on our website and includes a link to the new client identification requirements for this transaction type.

What forms do I need?

This declaration must be completed for transactions effected by a written instrument which results in a change in beneficial ownership of dutiable property on or after 19 May 2022 (other than an excluded transaction)

Or

This statement must be completed for transactions that are not effected by a written instrument on or after 19 May 2022 (other than an excluded transaction)

The Purchaser/Transferee Declaration is not required for this transaction type.

How are these transactions processed?

All dutiable transactions liable under this this section, excluding the grant of an option must be lodged via eDuties.

eDuties has a new application type.

Submit your documents and supporting information using application type "Change of Beneficial Ownership – create, extinguish or change in dutiable property – section 8(1)(b)(ix)."

The Duties Document Matrix will be updated to include this transaction type.

Where can I find more information?