2009

THE LEGISLATIVE ASSEMBLY

FOR THE AUSTRALIAN CAPITAL TERRITORY

(As presented)

(Treasurer)

2009

THE LEGISLATIVE ASSEMBLY

FOR THE AUSTRALIAN CAPITAL TERRITORY

(As presented)

(Treasurer)

An Act to amend the Duties Act 1999

The Legislative Assembly for the Australian Capital Territory enacts as follows:

This Act is the Duties Amendment Act 2009.

This Act commences on 1 July 2009.

Note The naming and commencement provisions automatically commence on the notification day (see Legislation Act, s 75 (1)).

This Act amends the Duties Act 1999.

(1) No duty is chargeable under this chapter on a dutiable transaction that is a transfer or grant of a long-term lease for residential purposes.

(2) This section applies to a dutiable transaction entered into on or after 29 November 2006.

(3) Subsection (2) and this subsection expire 5 years after the day they commence.

(4) No duty is chargeable under this chapter on a transfer, or an agreement for a sale or transfer, of marketable securities if the commissioner is satisfied that the transfer or agreement is made to give effect to a scheme that would qualify as a roll-over under the Income Tax Assessment Act 1997 (Cwlth), subdivision 124-Q.

(c) if the person holds an interest in the landholder (whether or not as trustee) and the capacity in which the person holds the interest changes (including if there is a change in the beneficial ownership of an interest held by a person as trustee).

a person who holds a unit in the landholder declares a trust in relation to the unit

Note An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).

In this division:

exchanging members—see the Income Tax Assessment Act 1997 (Cwlth), section 124-1045 (1).

interposed trust—see the Income Tax Assessment Act 1997 (Cwlth), section 124-1045 (1).

(1) An exchanging member who makes a relevant acquisition to which section 87 (Acquisition statements) applies may apply to the commissioner for an exemption from duty under this Act on the relevant acquisition.

(2) The commissioner must grant the exemption if satisfied that—

(a) the relevant acquisition was made to give effect to a scheme that would qualify as a roll-over under the Income Tax Assessment Act 1997 (Cwlth), subdivision 124-Q; and

Note A roll-over involves a scheme for interposing a unit trust scheme (whether a new or existing unit trust scheme) between people who have an ownership interest in 2 or more unit trust schemes, or in 1 or more companies and 1 or more unit trust schemes, and the unit trust schemes or companies in which they have an ownership interest. The interests of the unit holders or shareholders are stapled together to form stapled securities and the interposed unit trust becomes the owner of all the stapled interests.

(b) when the scheme is completed, the interposed trust will be a listed trust, widely held trust or landholder; and

(c) the acquisition is not part of a scheme a purpose of which is to minimise duty otherwise payable under this Act; and

(d) the conditions of the exemption, if any, will be met by the applicant.

(3) If duty under this chapter has been paid on the relevant acquisition, the commissioner must refund any duty paid that is not payable because of the exemption.

(1) An exemption granted under this division is subject to any conditions stated by the commissioner.

(2) A condition of the exemption is binding on each exchanging member.

(1) The commissioner may revoke an exemption granted under this division if—

(a) the interposed trust is not a listed trust, widely held trust or landholder when the scheme is completed; or

(b) the interposed trust ceases to be a listed trust, widely held trust or landholder within 12 months after the day the scheme is completed; or

(c) the commissioner is no longer satisfied of a matter mentioned in section 115J (2) (a) or (c); or

(d) the decision to grant the exemption was based on false or misleading information in a material particular given to the commissioner in relation to the application; or

(e) a condition of the exemption is not met.

(2) If the commissioner revokes an exemption granted under this division—

(a) duty is chargeable under this chapter on the relevant acquisition as if the exemption had never been granted; and

(b) the exchanging member who made the relevant acquisition must lodge an acquisition statement with the commissioner not later than 28 days after the day the exemption is revoked; and

(c) the commissioner must make an assessment of duty chargeable under this chapter on the relevant acquisition; and

(d) a tax default happens for the Taxation Administration Act if the whole of any duty assessed under paragraph (c) is not paid to the commissioner within 90 days after the assessment.

(ua) under section 115J (2) refusing to grant an exemption from duty; or

(ub) under section 115K imposing a condition on an exemption; or

(uc) under section 115L revoking an exemption; or

exchanging members, for division 3.7.2 (Exempt transactions—‘top hatting’ arrangements)—see section 115I.

interposed trust, for division 3.7.2 (Exempt transactions—‘top hatting’ arrangements)—see section 115I.

Presentation speech made in the Legislative Assembly on 2009.

Notified under the Legislation Act on 2009.

For the latest republication of amended laws, see www.legislation.act.gov.au.