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Revenue, Fines and Other Legislation Amendment Act 2023 guide

Chapters

  1. Overview
  2. Vesting of land
  3. When does a liability for duty arise?
  4. Aggregation of dutiable transactions
  5. Effect of alteration in purchase price
  6. Transfers in relation to managed investment schemes
  7. Property vested to an apparent purchaser
  8. Establishment of a trust relating to unidentified property and non-dutiable property
  9. Transfers of property in connection with persons changing superannuation funds
  10. Registered native title body corporates
  11. Valuation of property
  12. Changes to the Taxation Administration Act

2. Vesting of land

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Section 8A of the Duties Act 1997

Section 8A of the Duties Act 1997 has been amended to include subsection (6) and (7).

These subsections provide that if, as a result of the division of a corporation (the dividing corporation), a corporation (a new corporation) holds land previously held by the dividing corporation, the land is taken to have vested in the new corporation by statute law and is a dutiable transaction.

In summary, ad valorem duty is payable if:

  • Under section 8A(6):
    • The dividing corporation no longer exists, and
    • 2 or more new corporations result as a consequence of the division, and
    • The new corporations hold land that was previously held by the dividing corporation.
  • Under section 8A(7):
    • The dividing corporation continues to be in existence, and
    • 1 or more new corporations result as a consequence of the division, and
    • The new corporations hold land that was previously held by the dividing corporation.

When does the change take effect?

Amendments made to this section of the Duties Act 1997 apply to transactions that occur on or after 4 September 2023.

The amendments do not apply to transactions that are in conformity with a transaction that occurred before this date.

How are these transactions processed?

This transaction type must be lodged via eDuties.

Submit your documents and supporting information using application type "Other”.

Where can I find more information?

 

Note

Revenue rulings and CPNs impacted by this change are currently being reviewed. This guide will be updated once any updated rulings and CPNs become available. Existing Revenue rulings can be found on our Revenue rulings page.