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This is a Bill, not an Act. For current law, see the Acts databases.


DUTIES AMENDMENT (ADDITIONAL DUTY FOR FOREIGN PERSONS) BILL 2018

                    Western Australia


Duties Amendment (Additional Duty for
       Foreign Persons) Bill 2018

                        Contents

1.   Short title                                                 2
2.   Commencement                                                2
3.   Act amended                                                 2
4.   Section 3 amended                                           2
5.   Section 147A amended                                        2
6.   Section 147C amended                                        3
7.   Section 147D amended                                        3
8.   Chapter 3A inserted                                         3
     Chapter 3A -- Additional duty for foreign persons
     Part 1 -- Preliminary
     205A.     Terms used                                  3
     205B.     Associate                                   5
     205C.     Foreign corporation                         5
     205D.     Foreign trust                               6
     205E.     Residential property                        7
     Part 2 -- Foreign transfer duty
     Division 1 -- Preliminary
     205F.     Terms used                                  8
     Division 2 -- Imposition of foreign transfer duty
     205G.     Foreign transfer duty imposed               9
     Division 3 -- Foreign dutiable transactions
     205H.     Foreign dutiable transaction                10
     205I.     New residential property                    11
     Division 4 -- Collection of foreign transfer duty
     205J.     When liability for duty arises              12
     205K.     Who is liable to pay duty                   12
     205L.     Joint tenants to be treated as tenants in
               common in equal shares                      13
     205M.     Foreign transfer duty declaration to be
               lodged                                      13
     205N.     When duty must be paid                      13


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Duties Amendment (Additional Duty for Foreign Persons) Bill 2018



Contents



              205O.     Rate of foreign transfer duty                 14
              205P.     Dutiable value                                14
              205Q.     No double foreign transfer duty               15
              205R.     Interim assessment of foreign transfer
                        duty                                          16
              Division 5 -- Application of Chapter 2 Part 5 to
                     certain transactions
              205S.     Application of Chapter 2 Part 5 to foreign
                        dutiable transactions                         16
              205T.     References to residential trust acquisition   18
              205U.     References to residential trust surrender     18
              205V.     Dutiable value of residential trust
                        acquisition or residential trust surrender    18
              205W.     Share disposition taken to be agreement
                        for transfer of trust property                20
              205X.     References to residential partnership
                        acquisition                                   21
              Division 6 -- Exemptions and reassessment
              Subdivision 1 -- Exempt transactions
              205Y.     Transactions on which minimum, nominal
                        or no transfer duty payable                   21
              205Z.     Transactions relating to agreements for
                        transfer of residential property              22
              Subdivision 2 -- Exemptions relating to
                     construction, refurbishment and subdivision
              205ZA. Exemption relating to construction or
                        refurbishment of 10 or more dwellings         23
              205ZB. Exemption relating to subdivision for
                        purpose of constructing 10 or more
                        dwellings                                     25
              Subdivision 3 -- Reassessment
              205ZC. Reassessment                                     26
              Part 3 -- Foreign landholder duty
              Division 1 -- Preliminary
              205ZD. Terms used                                       27
              Division 2 -- Application of Chapter 3
              205ZE. Application of Chapter 3                         28
              Division 3 -- Imposition of foreign landholder duty
              205ZF.    Foreign landholder duty imposed               30
              Division 4 -- Residential landholders to which this
                     Part applies
              205ZG. Which entities are residential landholders       31
              Division 5 -- Acquisitions to which this Part applies
              205ZH. Acquisition of significant interest in
                        residential landholder                        32



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                                                                      Contents



        205ZI.    Acquisition of further interest by holder of
                  significant interest                           33
        Division 6 -- Collection of foreign landholder duty
        205ZJ.    Rate of foreign landholder duty                34
        205ZK. Calculation of foreign landholder duty
                  where landholder duty calculated under
                  s. 193                                         34
        Division 7 -- Interim assessment of foreign
               landholder duty
        205ZL.    Interim assessment of foreign landholder
                  duty                                           35
        Division 8 -- Exemptions and reassessment
        Subdivision 1 -- Exempt acquisitions
        205ZM. Exemption if foreign transfer duty would
                  not be chargeable                              36
        205ZN. Exemption for certain acquisitions treated
                  as made under agreement referred to in
                  s. 176(2)                                      37
        Subdivision 2 -- Exemptions relating to
               construction, refurbishment and subdivision
        205ZO. Exemption relating to construction or
                  refurbishment of 10 or more dwellings          37
        205ZP. Exemption relating to subdivision for
                  purpose of constructing 10 or more
                  dwellings                                      39
        205ZQ. Calculation of duty where some land of
                  landholder not part of parcel of land          41
        Subdivision 3 -- Reassessment
        205ZR. Reassessment                                      41
        Division 9 -- Lodgment of declaration
        205ZS. Foreign landholder duty declaration to be
                  lodged                                         42
        205ZT.    Failure to lodge foreign landholder duty
                  declaration                                    42
9.      Section 259 amended                                             43
10.     Section 260 amended                                             43
11.     Section 272 amended                                             44
12.     Section 273 amended                                             44
13.     Section 275 amended                                             46
14.     Schedule 2 amended                                              46




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Duties Amendment (Additional Duty for Foreign Persons) Bill 2018



Contents



      15.     Schedule 3 Division 8 inserted                            46
              Division 8 -- Provisions for Duties Amendment
                     (Additional Duty for Foreign Persons)
                     Act 2018
              39.       Terms used                                 46
              40.       When Ch. 3A Pt. 2 starts to apply          47
              41.       Agreements entered into before
                        1 January 2019                             47
              42.       Declaration of trusts made before
                        1 January 2019                             47
              43.       Other transactions before 1 January 2019   48
              44.       When Ch. 3A Pt. 3 starts to apply          49
              45.       Application of some Ch. 8 provisions       49




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                           Western Australia


                     LEGISLATIVE ASSEMBLY


      Duties Amendment (Additional Duty for
             Foreign Persons) Bill 2018

                               A Bill for


An Act to amend the Duties Act 2008.



The Parliament of Western Australia enacts as follows:




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     Duties Amendment (Additional Duty for Foreign Persons) Bill 2018



     s. 1




1    1.         Short title
2               This is the Duties Amendment (Additional Duty for Foreign
3               Persons) Act 2018.

4    2.         Commencement
5               This Act comes into operation as follows --
6                (a) sections 1 and 2 -- on the day on which this Act
7                      receives the Royal Assent;
8                (b) the rest of the Act -- on 1 January 2019.

9    3.         Act amended
10              This Act amends the Duties Act 2008.

11   4.         Section 3 amended
12              In section 3 insert in alphabetical order:
13

14                    foreign dutiable transaction has the meaning given in
15                    section 205H;
16                    foreign landholder duty means duty under Chapter 3A
17                    Part 3;
18                    foreign transfer duty means duty under Chapter 3A
19                    Part 2;
20                    residential property has the meaning given in
21                    section 205E;
22


23   5.         Section 147A amended
24        (1)   In section 147A(1) delete the definition of residential property.




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                                                                               s. 6



1         (2)   In section 147A(1) insert in alphabetical order:
2

3                       residential land has the meaning given in
4                       section 147D;
5


6    6.         Section 147C amended
7               In section 147C(1) delete "property." and insert:
8

9               land.
10


11   7.         Section 147D amended
12              In section 147D delete "residential property" and insert:
13

14              residential land
15

16              Note: The heading to amended section 147D is to read:
17                      Residential land
18


19   8.         Chapter 3A inserted
20              Before Chapter 4 insert:
21

22                      Chapter 3A -- Additional duty for
23                                    foreign persons
24                                 Part 1 -- Preliminary
25          205A.       Terms used
26              (1)     In this Chapter, unless the contrary intention
27                      appears --
28                      associate has the meaning given in section 205B;

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1                  dwelling means a building, or part of a building, that is
2                  or is intended to be used solely or dominantly as a
3                  place of residence;
4                  foreign corporation has the meaning given in
5                  section 205C;
6                  foreign individual means an individual who is not --
7                    (a) an Australian citizen as defined in the
8                           Australian Citizenship Act 2007
9                           (Commonwealth) section 3; or
10                   (b) the holder of a permanent visa as defined in the
11                          Migration Act 1958 (Commonwealth)
12                          section 5(1); or
13                   (c) the holder of a special category visa as defined
14                          in the Migration Act 1958 (Commonwealth)
15                          section 5(1);
16                 foreign person means --
17                   (a) a foreign corporation; or
18                   (b) a foreign individual; or
19                   (c) a foreign trustee;
20                 foreign trust has the meaning given in
21                 section 205D(1);
22                 foreign trustee means a person that is the trustee of a
23                 foreign trust;
24                 parcel of land means --
25                   (a) a lot as defined in the Land Tax Assessment
26                          Act 2002 Glossary clause 2; or
27                   (b) 2 or more such lots which have common
28                          boundaries and which in the opinion of the
29                          Commissioner should be treated as a single lot
30                          for the purpose of this Chapter.




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                                                                        s. 8



1      (2)   If a term is given a meaning in section 9 it has the same
2            meaning in this Chapter unless the contrary intention
3            appears in this Chapter.
4      (3)   If a term is given a meaning in section 148 or 161 (as
5            applied by section 205ZE(1)) it has the same meaning
6            in this Chapter unless the contrary intention appears in
7            this Chapter.

8    205B.   Associate
9      (1)   A person is an associate of another person if --
10            (a) the person is a family member (within the
11                  meaning given in section 100) of the other
12                  person; or
13            (b) the person and the other person are related
14                  persons under section 162(1)(c) to (g); or
15            (c) the person and the other person are partners in
16                  the same partnership.
17     (2)   If a beneficiary of a trust, other than a unit trust scheme
18           or a discretionary trust, is an associate under
19           subsection (1) of a person, a trustee of the trust is also
20           an associate of that person.

21   205C.   Foreign corporation
22     (1)   In this section --
23           potential voting power has the meaning given in the
24           Foreign Acquisitions and Takeovers Act 1975
25           (Commonwealth) section 4;
26           voting power has the meaning given in the Foreign
27           Acquisitions and Takeovers Act 1975 (Commonwealth)
28           section 4.
29     (2)   A corporation is a foreign corporation if --
30            (a) the corporation is incorporated outside
31                  Australia; or

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1                    (b)    the corporation is a corporation in which
2                           foreign persons have a controlling interest.
3             (3)   For the purposes of subsection (2)(b), foreign persons
4                   have a controlling interest in a corporation if 1 or more
5                   foreign persons or their associates --
6                     (a) control at least 50% of the voting power in the
7                           corporation; or
8                     (b) control at least 50% of the potential voting
9                           power in the corporation; or
10                    (c) hold at least 50% of the issued shares in the
11                          corporation.
12            (4)   In subsection (3) references to control are to control
13                  that is direct or indirect, including control that is
14                  exercisable as a result or by means of arrangements or
15                  practices, whether or not having legal or equitable
16                  force, and whether or not based on legal or equitable
17                  rights.

18          205D.   Foreign trust
19            (1)   A trust is a foreign trust if it is --
20                   (a) a discretionary trust controlled by a foreign
21                          person; or
22                   (b) a discretionary trust and 1 or more foreign
23                          persons that are takers in default, together with
24                          their associates, hold at least a 50% interest in
25                          the discretionary trust; or
26                   (c) a trust other than a discretionary trust and 1 or
27                          more foreign persons, together with their
28                          associates, hold beneficial interests in at least
29                          50% of the income or property of the trust.
30            (2)   For the purposes of subsection (1)(a), a discretionary
31                  trust is controlled by a foreign person if the person is in
32                  a position to influence, either directly or indirectly, the


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                                                                          s. 8



1            vesting of the whole or any part of the capital of the
2            trust property, or of the whole or any part of the
3            income from the trust property.

4    205E.   Residential property
5      (1)   Subject to subsection (3), any of the following is
6            residential property --
7              (a) land in Western Australia that is, is capable of
8                   being, or is intended to be, used solely or
9                   dominantly for residential purposes;
10             (b) land in Western Australia that is vacant or
11                  substantially vacant and zoned solely for
12                  residential purposes under a planning scheme
13                  as defined in the Planning and Development
14                  Act 2005 section 4(1);
15             (c) in the case of land described in paragraph (a)
16                  or (b) --
17                     (i) any estate or interest in the land;
18                    (ii) anything that is part of the land as a
19                          fixture.
20     (2)   For the purposes of Part 2, other than
21           sections 205S(2)(b) and (h) and 205X, residential
22           property includes a chattel in Western Australia if --
23             (a) the chattel is the subject of a dutiable
24                   transaction; and
25             (b) under section 37, the dutiable transaction in
26                   respect of the chattel is aggregated with a
27                   dutiable transaction in respect of residential
28                   property as defined in subsections (1) and (3);
29                   and
30             (c) the use of the chattel is directly linked to, or is
31                   incidental to, the use of residential property for
32                   residential purposes.


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1             (3)   The following are not residential property --
2                    (a) land that is intended to be used solely or
3                           dominantly for the purposes of an aged care
4                           facility as defined in the Land Tax Assessment
5                           Act 2002 section 38A(1);
6                    (b) land that is intended to be used solely or
7                           dominantly for the purposes of commercial
8                           residential premises as defined in the A New
9                           Tax System (Goods and Services Tax) Act 1999
10                          (Commonwealth) section 195-1;
11                   (c) land that is intended to be used solely or
12                          dominantly for the purposes of a retirement
13                          village as defined in the Retirement Villages
14                          Act 1992 section 3(1);
15                   (d) an easement;
16                   (e) a security interest;
17                    (f) a carbon right or a carbon covenant registered
18                          under the Carbon Rights Act 2003;
19                   (g) land prescribed for the purposes of this
20                          subsection.

21                     Part 2 -- Foreign transfer duty
22                          Division 1 -- Preliminary
23          205F.   Terms used
24            (1)   In this Part, unless the contrary intention appears --
25                  dutiable value has the meaning given in Chapter 2
26                  Part 4 Division 5 as applied by section 205P(1);
27                  foreign transfer duty endorsed has the meaning given
28                  in subsections (2) and (3);
29                  new residential property has the meaning given in
30                  section 205I;


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                                                                        s. 8



1            residential partnership acquisition has the meaning
2            given in section 205X;
3            residential trust acquisition has the meaning given in
4            section 205T;
5            residential trust surrender has the meaning given in
6            section 205U;
7            special residential property means any of the
8            following --
9              (a) a life interest in residential property;
10             (b) a remainder interest in residential property;
11             (c) a lease of residential property, if consideration
12                   is paid, or agreed to be paid, by the lessor for
13                   the surrender of the lease.
14     (2)   A foreign dutiable transaction is foreign transfer duty
15           endorsed if a transaction record for it is foreign transfer
16           duty endorsed.
17     (3)   A transaction record, or a duplicate of a transaction
18           record, for a foreign dutiable transaction is foreign
19           transfer duty endorsed if it is duty endorsed and the
20           duty endorsement indicates --
21             (a) the amount of foreign transfer duty paid on the
22                   transaction; or
23             (b) that foreign transfer duty is not chargeable on
24                   the transaction.

25      Division 2 -- Imposition of foreign transfer duty
26   205G.   Foreign transfer duty imposed
27           Foreign transfer duty is imposed on foreign dutiable
28           transactions.




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     s. 8



1                    Division 3 -- Foreign dutiable transactions
2           205H.     Foreign dutiable transaction
3              (1)    Subject to subsection (2), any of the following is a
4                     foreign dutiable transaction --
5                       (a) a transfer of residential property to a foreign
6                            person;
7                       (b) an agreement, whether conditional or not, for
8                            the transfer of residential property to a foreign
9                            person;
10                      (c) a declaration of trust over residential property if
11                           the trust is a foreign trust;
12                      (d) a vesting of residential property in a foreign
13                           person --
14                              (i) by, or expressly authorised by, statute
15                                   law of this or another jurisdiction,
16                                   whether inside or outside Australia; or
17                             (ii) by, or as a consequence of, a court order
18                                   of this or another jurisdiction, whether
19                                   inside or outside Australia;
20                      (e) a foreclosure of a mortgage over residential
21                           property by a mortgagee that is a foreign
22                           person;
23                       (f) an acquisition by a foreign person of new
24                           residential property, on its creation, grant or
25                           issue;
26                      (g) a surrender of special residential property to a
27                           foreign person;
28                      (h) a residential trust acquisition or residential trust
29                           surrender;
30                       (i) a residential partnership acquisition.




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                                                                           s. 8



1       (2)   The following transactions are not foreign dutiable
2             transactions --
3               (a) a transaction the subject of which is a right if
4                     no consideration is paid, or agreed to be paid,
5                     for the transaction;
6               (b) a transfer of, or an agreement for the transfer
7                     of, a lease if no consideration is paid, or agreed
8                     to be paid, for the transfer or agreement;
9               (c) a transaction prescribed as an excluded
10                    transaction for the purposes of this section.
11      (3)   Without limiting subsection (1)(d)(i), section 12
12            applies for the purposes of determining when
13            residential property is vested under statute law.

14   205I.    New residential property
15      (1)   Subject to subsection (2), any of the following is new
16            residential property --
17              (a) residential property;
18              (b) the following rights --
19                      (i) an option to acquire residential property,
20                           unless the option is part of a
21                           simultaneous put and call option over
22                           residential property;
23                     (ii) a right to acquire residential property;
24                    (iii) any other right prescribed for the
25                           purposes of this subsection.
26      (2)   The following are not new residential property --
27             (a) a lease if no consideration is paid, or agreed to
28                    be paid, for the grant of the lease;
29             (b) any other residential property prescribed as
30                    excluded property for the purposes of this
31                    section.


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     s. 8



1               Division 4 -- Collection of foreign transfer duty
2           205J.    When liability for duty arises
3                    Liability for foreign transfer duty chargeable on a
4                    foreign dutiable transaction arises when the liability for
5                    transfer duty chargeable on the transaction arises under
6                    section 19.

7           205K.    Who is liable to pay duty
8              (1)   A person is liable to pay foreign transfer duty on a
9                    foreign dutiable transaction if the person is --
10                     (a) liable to pay transfer duty on the transaction;
11                           and
12                     (b) a foreign person.
13             (2)   A person is liable to pay foreign transfer duty,
14                   regardless of whether the person is a foreign person,
15                   if --
16                      (a) the person is liable to pay transfer duty on a
17                           foreign dutiable transaction referred to in
18                           section 205H(1)(h); or
19                     (b) the person is, under section 69 as applied by
20                           section 205S(1), the person liable to pay
21                           foreign transfer duty.
22             (3)   A foreign individual or foreign corporation is not liable
23                   to pay foreign transfer duty on a foreign dutiable
24                   transaction if --
25                     (a) the individual or corporation is acting in their
26                           capacity as trustee; and
27                     (b) the individual or corporation is not a foreign
28                           trustee.




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                                                                          s. 8



1    205L.   Joint tenants to be treated as tenants in common in
2            equal shares
3            For the purpose of charging foreign transfer duty, joint
4            tenants of residential property are taken to hold the
5            property as tenants in common in equal shares.

6    205M. Foreign transfer duty declaration to be lodged
7      (1)   Subject to subsection (2), the person liable to pay
8            foreign transfer duty on a foreign dutiable transaction
9            must lodge a foreign transfer duty declaration in the
10           approved form within 2 months after the day on which
11           liability for foreign transfer duty on the transaction
12           arises.
13           Penalty for this subsection: a fine of $5 000.
14     (2)   A person is not required to lodge a foreign transfer
15           duty declaration in respect of a general conditional
16           agreement in respect of which liability for transfer duty
17           does not arise under section 19(2).

18   205N.   When duty must be paid
19     (1)   A person liable to pay foreign transfer duty on a
20           foreign dutiable transaction must pay the duty within
21           1 month after the date of the assessment notice issued
22           in relation to an assessment of the duty, unless a later
23           time is provided under subsection (2) or (3) in respect
24           of the transaction.
25     (2)   Unless subsection (3) applies, foreign transfer duty
26           must be paid within 12 months after the day on which
27           liability for foreign transfer duty on the transaction
28           arises if the transaction is --
29             (a) a conditional agreement; or
30             (b) a foreign dutiable transaction referred to in
31                    section 205H(1)(a), (b), (c) or (d) if a document


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     s. 8



1                           relating to the transaction must be registered
2                           under --
3                              (i) the Registration of Deeds Act 1856; or
4                             (ii) the Transfer of Land Act 1893.
5              (3)   Foreign transfer duty must be paid within 3 years after
6                    the day on which liability for foreign transfer duty on
7                    the transaction arises if the transaction is --
8                      (a) a subdivision conditional agreement; or
9                      (b) an issue of title conditional agreement.

10          205O.    Rate of foreign transfer duty
11                   Foreign transfer duty is chargeable at the rate of 7% of
12                   the dutiable value of the foreign dutiable transaction.

13          205P.    Dutiable value
14             (1)   The provisions of Chapter 2 Part 4 Division 5 other
15                   than sections 31(5), 37, 39(3) and 40 apply, with all
16                   appropriate modifications, in respect of foreign transfer
17                   duty in the same way as they apply in respect of
18                   transfer duty.
19             (2)   Without limiting subsection (1), the provisions applied
20                   by that subsection apply as if --
21                     (a) a reference to dutiable property were a
22                           reference to residential property; and
23                    (b) a reference to a dutiable transaction were a
24                           reference to a foreign dutiable transaction; and
25                     (c) other than in sections 28(6) and 29(4), a
26                           reference to duty were a reference to foreign
27                           transfer duty; and
28                    (d) a reference to duty endorsed were a reference to
29                           foreign transfer duty endorsed; and




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                                                                         s. 8



1              (e)   the reference in section 28(1) to
2                    section 11(1)(d)(ii) or (e) were a reference to
3                    section 205H(1)(d)(ii) or (e); and
4              (f)   the reference in section 29(4) to nominal duty
5                    were a reference to no foreign transfer duty.
6      (3)   If a foreign dutiable transaction is aggregated with
7            another dutiable transaction under section 37, then the
8            foreign dutiable transaction is treated as having taken
9            place at the time that the last of the aggregated
10           transactions took place.
11     (4)   Foreign transfer duty is chargeable on any foreign
12           dutiable transaction effecting an exchange of
13           residential property to a foreign person for dutiable
14           property as if the exchange involved the transfer of the
15           residential property for consideration equal to the
16           unencumbered value of the residential property.

17   205Q.   No double foreign transfer duty
18     (1)   The provisions of Chapter 2 Part 4 Division 6 other
19           than section 42(15) apply, with all appropriate
20           modifications, in respect of foreign transfer duty in the
21           same way as they apply in respect of transfer duty.
22     (2)   Without limiting subsection (1), the provisions applied
23           by that subsection apply as if --
24             (a) a reference to dutiable property were a
25                   reference to residential property; and
26            (b) a reference to a dutiable transaction were a
27                   reference to a foreign dutiable transaction; and
28             (c) a reference to duty were a reference to foreign
29                   transfer duty; and
30            (d) a reference to duty endorsed were a reference to
31                   foreign transfer duty endorsed; and



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1                      (e)   a reference to the general or a concessional rate
2                            were a reference to the rate of foreign transfer
3                            duty; and
4                      (f)   the reference in section 42(12) to
5                            section 11(1)(d) were a reference to
6                            section 205H(1)(d).

7           205R.    Interim assessment of foreign transfer duty
8              (1)   The Commissioner may make an assessment (an
9                    interim assessment) of a portion of the foreign transfer
10                   duty payable on a foreign dutiable transaction if, under
11                   section 44A(1), the Commissioner makes an
12                   assessment of a portion of the transfer duty payable on
13                   the transaction.
14             (2)   For the purposes of making an interim assessment, the
15                   foreign transfer duty payable is to be determined as if
16                   the portion of the dutiable value of the foreign dutiable
17                   transaction were the full dutiable value of the
18                   transaction.

19          Division 5 -- Application of Chapter 2 Part 5 to certain
20                              transactions
21          205S.    Application of Chapter 2 Part 5 to foreign dutiable
22                   transactions
23             (1)   The provisions of Chapter 2 Part 5 other than
24                   section 70 and Divisions 5 and 6 apply, with all
25                   appropriate modifications, in respect of foreign transfer
26                   duty in the same way as they apply in respect of
27                   transfer duty.
28             (2)   Without limiting subsection (1), the provisions applied
29                   by that subsection apply as if --
30                     (a) a reference to dutiable property (other than in
31                           Chapter 2 Part 5 Division 4) were a reference to
32                           residential property; and

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                                                                    s. 8



1            (b)    a reference to dutiable property in Chapter 2
2                   Part 5 Division 4 were a reference to each of
3                   the following --
4                      (i) residential property;
5                     (ii) a chattel in Western Australia, the use of
6                           which is directly linked to, or is
7                           incidental to, the use of residential
8                           property for residential purposes;
9                   and
10           (c)    a reference to a dutiable transaction were a
11                  reference to a foreign dutiable transaction; and
12           (d)    a reference to duty were a reference to foreign
13                  transfer duty; and
14           (e)    a reference to duty endorsed were a reference to
15                  foreign transfer duty endorsed; and
16           (f)    a reference to a trust acquisition were a
17                  reference to a residential trust acquisition; and
18           (g)    a reference to a trust surrender were a reference
19                  to a residential trust surrender; and
20           (h)    a reference in section 73 to land in Western
21                  Australia were a reference to residential
22                  property; and
23           (i)    a reference in section 76 or 77 to a partnership
24                  acquisition were a reference to a residential
25                  partnership acquisition; and
26           (j)    each provision specified in Column 1 of the
27                  Table were replaced by the provision specified
28                  opposite it in Column 2 of the Table.
29                                    Table
                     Column 1                        Column 2

            s. 55                          s. 205T


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     s. 8




                              Column 1                         Column 2

                     s. 56                           s. 205U

                     s. 59                           s. 205V

                     s. 67                           s. 205W

                     s. 72                           s. 205X

1           205T.    References to residential trust acquisition
2                    A reference to a residential trust acquisition is to the
3                    acquisition by a taker in default that is a foreign person
4                    of an interest in a discretionary trust that holds --
5                      (a) residential property; or
6                      (b) an indirect interest in residential property.

7           205U.    References to residential trust surrender
8                    A reference to a residential trust surrender is to the
9                    surrender by a taker in default of an interest in a
10                   discretionary trust that holds residential property or an
11                   indirect interest in residential property, if the surrender
12                   results in a foreign person acquiring an interest in the
13                   discretionary trust.

14          205V.    Dutiable value of residential trust acquisition or
15                   residential trust surrender
16             (1)   The dutiable value of a residential trust acquisition
17                   is --
18                     (a) the consideration for the acquisition so far as
19                          the consideration relates to residential
20                          property --
21                            (i) held by the discretionary trust; or



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1                   (ii)      to which an entity linked to the trustee
2                             of the discretionary trust is entitled;
3                  or
4            (b)   the value of the taker in default's interest in the
5                  discretionary trust at the time when liability for
6                  foreign transfer duty on the acquisition arises
7                  if --
8                       (i)   there is no consideration for the
9                             acquisition; or
10                  (ii)      the consideration cannot be ascertained
11                            when liability for foreign transfer duty
12                            on the acquisition arises; or
13                 (iii)      the value of the taker in default's
14                            interest is greater than the consideration
15                            for the acquisition.
16   (2)   The dutiable value of a residential trust surrender is --
17           (a)   the consideration for the surrender so far as the
18                 consideration relates to --
19                      (i)   residential property held by the
20                            discretionary trust or to which an entity
21                            linked to the trustee of the discretionary
22                            trust is entitled; and
23                  (ii)      the interests in the discretionary trust
24                            acquired by a foreign person as a result
25                            of the surrender;
26                 or
27           (b)   the value of a foreign person's interest in the
28                 discretionary trust at the time immediately after
29                 liability for foreign transfer duty on the
30                 surrender arises less the value of the foreign
31                 person's interest in the discretionary trust



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1                           immediately before liability for foreign transfer
2                           duty on the surrender arises if --
3                              (i) there is no consideration for the
4                                  surrender; or
5                             (ii) the consideration cannot be ascertained
6                                  when liability for foreign transfer duty
7                                  on the surrender arises; or
8                            (iii) the value of the taker in default's
9                                  interest is greater than the consideration
10                                 for the surrender.

11          205W. Share disposition taken to be agreement for transfer
12                of trust property
13             (1)   A disposition of a share in a corporate trustee is taken
14                   to be an agreement for the transfer of residential
15                   property and is liable to foreign transfer duty
16                   accordingly if --
17                     (a) it is a transaction, or part of a transaction, that
18                           is a scheme or arrangement, or part of a scheme
19                           or arrangement; and
20                     (b) the transaction results in --
21                              (i) a foreign person increasing its beneficial
22                                   interest in residential property held
23                                   directly or indirectly by the corporate
24                                   trustee of a discretionary trust; or
25                             (ii) a foreign person acquiring a beneficial
26                                   interest in residential property held
27                                   directly or indirectly by the corporate
28                                   trustee of a discretionary trust.
29             (2)   Subsection (1) does not apply to the disposition of a
30                   share by which the personal representative of a
31                   deceased person disposes of a share to a beneficiary in
32                   the administration of the estate of the deceased person.



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1    205X.    References to residential partnership acquisition
2             A reference to a residential partnership acquisition is to
3             a foreign person acquiring a partnership interest in a
4             partnership that holds --
5               (a) residential property; or
6               (b) an indirect interest in residential property.

7            Division 6 -- Exemptions and reassessment
8                Subdivision 1 -- Exempt transactions

9    205Y.    Transactions on which minimum, nominal or no
10            transfer duty payable
11     (1)    Foreign transfer duty is not chargeable on a transaction
12            to which section 39 applies if the minimum amount of
13            transfer duty referred to in section 39(3) is payable on
14            the transaction.
15     (2)    Except as provided in subsection (3), foreign transfer
16            duty is not chargeable on a foreign dutiable transaction
17            to the extent that --
18              (a) transfer duty is not chargeable on the
19                    transaction under Chapter 2 Part 5 Division 6;
20                    or
21              (b) transfer duty is not chargeable on the
22                    transaction under Chapter 2 Part 6 Division 1;
23                    or
24              (c) nominal duty is chargeable on the transaction
25                    under Chapter 2 Part 6 Division 2.
26     (3)    Foreign transfer duty is chargeable on a foreign
27            dutiable transaction if --
28              (a) section 97 applies to the transaction, the person
29                    to whom the property is transferred or agreed to
30                    be transferred is a foreign person, and foreign


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1                           transfer duty was not chargeable on the
2                           acquisition of the property by the person from
3                           whom the property is transferred or agreed to
4                           be transferred; or
5                     (b)   section 114 applies to the transaction, the taker
6                           in default is a foreign person, and foreign
7                           transfer duty was not chargeable on the
8                           acquisition of the property by the trustee of the
9                           trust or on any acquisition by which the taker in
10                          default acquired its interest in the trust; or
11                    (c)   section 115 applies to the transaction, the
12                          beneficiary is a foreign person, and foreign
13                          transfer duty was not chargeable on the
14                          acquisition of the property by the trustee of the
15                          trust; or
16                    (d)   section 116 applies to the transaction, the
17                          beneficiary is a foreign person, and the
18                          declaration of trust has not been foreign transfer
19                          duty endorsed; or
20                    (e)   section 117(1)(a) or (b) applies to the
21                          transaction, the real purchaser is a foreign
22                          person, and foreign transfer duty was not
23                          chargeable on the acquisition of the property by
24                          the apparent purchaser.

25          205Z.    Transactions relating to agreements for transfer of
26                   residential property
27             (1)   Foreign transfer duty is not chargeable on an
28                   agreement for the transfer of residential property if --
29                     (a) the agreement is an agreement referred to in
30                          section 42(2) or (4), the purchaser is a foreign
31                          person, and the transferee is not a foreign
32                          person; or




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1              (b)   the agreement is an agreement referred to in
2                    section 42(4B), the purchaser is a foreign
3                    person, and the trust is not a foreign trust; or
4              (c)   the agreement is an agreement referred to in
5                    section 42(5), the person named in the
6                    agreement as the purchaser is a foreign person,
7                    and the corporation is not a foreign corporation.
8      (2)   Foreign transfer duty is not chargeable on an
9            agreement for the transfer of residential property to a
10           transferee if the property is transferred in conformity
11           with the agreement and the transferee is not a foreign
12           person when the property is transferred.

13      Subdivision 2 -- Exemptions relating to construction,
14                 refurbishment and subdivision

15   205ZA. Exemption relating to construction or
16          refurbishment of 10 or more dwellings
17     (1)   Foreign transfer duty is not chargeable on a foreign
18           dutiable transaction to the extent that the transaction
19           relates to a parcel of land to which this section applies.
20     (2)   This section applies to a parcel of land if --
21            (a) at the time when liability for foreign transfer
22                  duty on the transaction arises, there is no
23                  building, or part of a building, on the parcel of
24                  land capable of being used solely or dominantly
25                  as a place of residence; and
26            (b) the person liable to pay foreign transfer duty on
27                  the transaction or an associate of the person
28                  intends to construct, refurbish or complete the
29                  construction or refurbishment of 10 or more
30                  dwellings on the parcel of land; and
31            (c) within the period of 5 years beginning on the
32                  day on which the transaction is completed, the
33                  person or associate complies with

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1                           subsection (3) in relation to 10 or more
2                           dwellings on the parcel of land; and
3                     (d)   the parcel of land is, in the Commissioner's
4                           opinion, suitable for 10 or more dwellings.
5              (3)   A person or an associate of a person complies with this
6                    subsection in relation to --
7                      (a) a dwelling the person or associate intends to
8                           construct, if the person or associate begins
9                           construction of that dwelling or another
10                          dwelling on the parcel of land; or
11                     (b) a dwelling the person or associate intends to
12                          refurbish, if all licences, approvals,
13                          registrations, exemptions and other kinds of
14                          authorisation necessary to refurbish that
15                          dwelling or another dwelling on the parcel of
16                          land are issued, granted or obtained; or
17                     (c) a dwelling the person or associate intends to
18                          complete the construction or refurbishment of,
19                          if that dwelling or another dwelling on the
20                          parcel of land, construction or refurbishment of
21                          which is completed by the person or associate,
22                          is ready for occupation as a place of residence.
23             (4)   For the purposes of subsection (3)(a), construction of a
24                   dwelling begins on --
25                    (a) the day on which laying the foundations for the
26                           dwelling begins; or
27                    (b) another day the Commissioner considers
28                           appropriate in the circumstances of the case.
29             (5)   An application for reassessment under
30                   section 205ZC(2) because of this section must be made
31                   on or before the later of the following --
32                     (a) the last day of the period of 1 year beginning on
33                           the day on which the person or associate


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                                                                          s. 8



1                    complies with subsection (3) in relation to 10 or
2                    more dwellings;
3              (b)   the last day of the period of 5 years beginning
4                    on the day on which the transaction is
5                    completed.

6    205ZB. Exemption relating to subdivision for purpose of
7           constructing 10 or more dwellings
8      (1)   Foreign transfer duty is not chargeable on a foreign
9            dutiable transaction to the extent that the transaction
10           relates to a parcel of land to which this section applies.
11     (2)   This section applies to a parcel of land if --
12            (a) at the time when liability for foreign transfer
13                  duty on the transaction arises, the parcel of land
14                  is vacant or substantially vacant; and
15            (b) the person liable to pay foreign transfer duty on
16                  the transaction or an associate of the person
17                  intends to subdivide or complete subdividing
18                  the parcel of land for the purpose of a person
19                  constructing 10 or more dwellings on the parcel
20                  of land; and
21            (c) within the period of 5 years beginning on the
22                  day on which the transaction is completed, the
23                  person or associate --
24                     (i) begins subdividing the parcel of land; or
25                    (ii) if subdividing the parcel of land has
26                          begun when the transaction is
27                          completed, completes subdividing the
28                          parcel of land;
29                  and
30            (d) the parcel of land is, in the Commissioner's
31                  opinion, suitable for 10 or more dwellings.



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1              (3)   An application for reassessment under
2                    section 205ZC(2) because of this section must be made
3                    on or before the later of the following --
4                      (a) the last day of the period of 1 year beginning on
5                            the day on which the person or associate --
6                               (i) begins subdividing the parcel of land; or
7                              (ii) if subdividing the parcel of land has
8                                   begun when the transaction is
9                                   completed, completes subdividing the
10                                  parcel of land;
11                     (b) the last day of the period of 5 years beginning
12                           on the day on which the transaction is
13                           completed.
14             (4)   For the purposes of subsections (2)(c) and (3)(a) --
15                    (a) a person begins subdividing land on the day on
16                           which the land is subdivided under the Land
17                           Tax Assessment Act 2002 Glossary clause 3;
18                           and
19                    (b) a person completes subdividing land on the day
20                           on which the new certificate of title is created
21                           and registered for the subdivided land.

22                          Subdivision 3 -- Reassessment

23          205ZC. Reassessment
24             (1)   If the Commissioner is required to reassess the liability
25                   to transfer duty of a foreign dutiable transaction that is
26                   not liable to foreign transfer duty because of
27                   section 205Y --
28                     (a) the Commissioner, on the application of a
29                           taxpayer, must reassess the liability to foreign
30                           transfer duty of the transaction; and
31                     (b) the limitation as to time (if any) that applies in
32                           respect of the reassessment of transfer duty

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1                    applies in respect of the reassessment of foreign
2                    transfer duty; and
3              (c)   if the reassessment of transfer duty is under
4                    section 107 -- the application for reassessment
5                    under this subsection must be made in the
6                    approved form.
7      (2)   The Commissioner, on the application of a taxpayer,
8            must reassess the liability to foreign transfer duty of a
9            foreign dutiable transaction if the liability is affected
10           by section 205Z, 205ZA or 205ZB.
11     (3)   The limitations as to time in the Taxation
12           Administration Act section 17 do not apply in respect
13           of a reassessment because of section 205ZA or 205ZB.
14     (4)   An application for reassessment under subsection (2)
15           must be made in the approved form.

16              Part 3 -- Foreign landholder duty
17                    Division 1 -- Preliminary
18   205ZD. Terms used
19     (1)   In this Part, unless the contrary intention appears --
20           foreign acquirer means --
21             (a) a foreign person that acquires an interest in a
22                    residential landholder by a foreign landholder
23                    acquisition; or
24             (b) a foreign person that is a related person to a
25                    person that acquires an interest in a residential
26                    landholder by a foreign landholder acquisition;
27                    or
28             (c) if there is more than 1 person referred to in
29                    paragraph (a) or (b), each of them;



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1                    foreign landholder acquisition has the meaning given
2                    in sections 205ZH and 205ZI;
3                    residential landholder means an entity that is a
4                    residential landholder under section 205ZG.
5              (2)   A reference in this Part to a provision of Chapter 3 that
6                    is applied by section 205ZE(1) is a reference to that
7                    provision as so applied.

8                     Division 2 -- Application of Chapter 3
9           205ZE. Application of Chapter 3
10             (1)   The provisions of Chapter 3 other than the provisions
11                   set out in the Table apply, with all appropriate
12                   modifications, in respect of foreign landholder duty in
13                   the same way as they apply in respect of landholder
14                   duty.
15                                             Table
                     s. 149(2A) and (4)             Part 2

                     s. 155                         Part 5 Division 2
                                                    Subdivision 2

                     s. 167                         s. 168

                     s. 171                         Part 5 Division 2
                                                    Subdivision 4

                     s. 175                         Part 6 Division 4

                     s. 193                         Part 6 Division 6A

                     Part 6 Division 7




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                                                                     s. 8



1    (2)   Without limiting subsection (1), the provisions applied
2          by that subsection apply as if --
3            (a) a reference to duty or landholder duty were a
4                  reference to foreign landholder duty; and
5           (b) a reference to an acquirer were a reference to a
6                  foreign acquirer; and
7            (c) a reference to a landholder were a reference to a
8                  residential landholder; and
9           (d) a reference to a relevant acquisition were a
10                 reference to a foreign landholder acquisition;
11                 and
12           (e) a reference to land, land in Western Australia or
13                 dutiable property were a reference to residential
14                 property; and
15           (f) a reference to a chattel were a reference to a
16                 chattel, the use of which is directly linked to, or
17                 is incidental to, the use of residential property
18                 for residential purposes; and
19          (g) the reference in section 157(1) to section 155
20                 were a reference to section 186; and
21          (h) the provisions of Division 8 Subdivisions 1
22                 and 2 of this Chapter were provisions of
23                 Chapter 3 Part 5 Division 2 Subdivision 3; and
24            (i) the reference in the definition of call option,
25                 put option and simultaneous put and call
26                 option in section 177(1) to section 44 were a
27                 reference to section 44 as applied by
28                 section 205S(1); and
29            (j) a reference in section 185 or 189 to a related
30                 person were a reference to a related person that
31                 is a foreign person; and
32          (k) a reference in section 188(1) or 189(1) to
33                 applying the appropriate rate of duty under


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1                             section 184(1) to the value were a reference to
2                             working out 7% of the value; and
3                     (l)     the reference in section 189(6) to 1 July 2008
4                             were a reference to 1 January 2019; and
5                    (m)      a reference to a provision specified in
6                             Column 1 of the Table were a reference to the
7                             provision specified opposite it in Column 2 of
8                             the Table.
9                                               Table
                               Column 1                         Column 2

                     s. 67                           s. 205W

                     s. 151                          s. 205ZF

                     s. 155                          s. 205ZG

                     s. 163                          s. 205ZH

                     s. 164                          s. 205ZI

                     s. 167                          s. 205ZM

                     s. 200                          s. 205ZS

10             Division 3 -- Imposition of foreign landholder duty
11          205ZF. Foreign landholder duty imposed
12                  Foreign landholder duty is imposed in respect of any
13                  foreign landholder acquisition of an interest in a
14                  residential landholder.




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1       Division 4 -- Residential landholders to which this
2                         Part applies
3    205ZG. Which entities are residential landholders
4      (1)   This section applies where it is necessary to determine
5            in relation to an acquisition of an interest in an entity
6            whether the entity is a residential landholder for the
7            purposes of section 205ZH or 205ZI.
8      (2)   A corporation is a residential landholder if immediately
9            before the acquisition --
10             (a) it is entitled to residential property or an entity
11                   linked to the corporation is so entitled; and
12            (b) it is a landholder.
13     (3)   A unit trust scheme is a residential landholder if
14           immediately before the acquisition --
15             (a) the trustee of the scheme is entitled to
16                   residential property or an entity linked to the
17                   unit trust scheme is so entitled; and
18             (b) the scheme is a landholder.
19     (4)   For the purposes of subsections (2)(a) and (3)(a) --
20            (a) a partnership, as a linked entity, is entitled to
21                   residential property if the partnership property
22                   is or includes residential property; and
23            (b) a unit trust scheme, as a linked entity, is entitled
24                   to residential property if the trustee of the
25                   scheme is so entitled.




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1              Division 5 -- Acquisitions to which this Part applies
2           205ZH. Acquisition of significant interest in residential
3                  landholder
4              (1)   An acquisition by a foreign person of an interest in an
5                    entity is a foreign landholder acquisition if --
6                      (a) immediately before the acquisition the entity
7                             was a residential landholder in which the
8                             interest (if any) of the foreign person and the
9                             interest (if any) of any related person did not
10                            amount to a significant interest; and
11                     (b) after the acquisition the entity is a residential
12                            landholder in which --
13                               (i) the interest of the foreign person is a
14                                    significant interest; or
15                              (ii) the interest of the foreign person when
16                                    aggregated with any interest of a related
17                                    person amounts to a significant interest.
18             (2)   An acquisition by a person that is not a foreign person
19                   of an interest in an entity is a foreign landholder
20                   acquisition if --
21                     (a) immediately before the acquisition the entity
22                           was a residential landholder in which the
23                           interest (if any) of the person and the interest (if
24                           any) of any related person did not amount to a
25                           significant interest; and
26                     (b) after the acquisition the entity is a residential
27                           landholder in which the person and at least 1
28                           related person that is a foreign person has an
29                           interest and in which --
30                             (i) the interest of the person is a significant
31                                    interest; or




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1                      (ii)   the interest of the person when
2                             aggregated with any interest of a related
3                             person amounts to a significant interest.

4    205ZI. Acquisition of further interest by holder of
5           significant interest
6       (1)   An acquisition by a foreign person of an interest in an
7             entity is also a foreign landholder acquisition if --
8               (a) immediately before the acquisition the entity is
9                      a residential landholder in which --
10                        (i) the interest of the foreign person is a
11                             significant interest; or
12                       (ii) the interest of the foreign person when
13                             aggregated with any interest of a related
14                             person amounts to a significant interest;
15                             or
16                      (iii) the interest of a related person is a
17                             significant interest;
18                     and
19              (b) by the acquisition the foreign person or any
20                     related person acquires, or the foreign person
21                     and any related person acquire, a further
22                     interest in the landholder.
23      (2)   An acquisition by a person that is not a foreign person
24            of an interest in an entity is also a foreign landholder
25            acquisition if --
26              (a) immediately before the acquisition the entity is
27                    a residential landholder in which at least 1
28                    related person that is a foreign person has an
29                    interest and in which --
30                       (i) the interest of the person is a significant
31                             interest; or
32                      (ii) the interest of the person when
33                             aggregated with any interest of a related

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1                                    person amounts to a significant interest;
2                                    or
3                            (iii)   the interest of a related person is a
4                                    significant interest;
5                            and
6                     (b)    by the acquisition the person or a related person
7                            acquires, or the person and a related person
8                            acquire, a further interest in the landholder.

9              Division 6 -- Collection of foreign landholder duty
10          205ZJ. Rate of foreign landholder duty
11                   Foreign landholder duty is chargeable --
12                    (a) by reference to the value referred to in
13                          section 188(1) or 189(1), as the case requires;
14                          and
15                    (b) at the rate of 7% of that value.

16          205ZK. Calculation of foreign landholder duty where
17                 landholder duty calculated under s. 193
18             (1)   This section applies to the calculation of foreign
19                   landholder duty in respect of a foreign landholder
20                   acquisition if the Commissioner calculates landholder
21                   duty in respect of the acquisition under section 193(3).
22             (2)   If this section applies --
23                     (a) the Commissioner may calculate the foreign
24                            landholder duty in respect of the acquisition as
25                            if the acquisition occurred at the end of the
26                            relevant period (as defined in section 193(1));
27                            and




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                                                                         s. 8



1              (b)   if the single relevant acquisition referred to in
2                    section 193(3) (the single acquisition) includes
3                    more than 1 foreign landholder acquisition --
4                       (i) the Commissioner is not required to
5                             make a separate calculation of foreign
6                             landholder duty in respect of the
7                             acquisition; and
8                      (ii) the Commissioner may calculate foreign
9                             landholder duty in respect of all foreign
10                            landholder acquisitions forming part of
11                            the single acquisition as if all of the
12                            acquisitions had been made by a single
13                            foreign landholder acquisition.

14   Division 7 -- Interim assessment of foreign landholder
15                           duty
16   205ZL. Interim assessment of foreign landholder duty
17     (1)   The Commissioner may make an assessment (an
18           interim assessment) of a portion of the foreign
19           landholder duty payable in respect of a foreign
20           landholder acquisition if, under section 195A(1), the
21           Commissioner makes an assessment of a portion of the
22           landholder duty payable in respect of the acquisition.
23     (2)   For the purposes of making an interim assessment, the
24           foreign landholder duty payable is to be determined as
25           if the portion of the value of the residential landholder
26           were the full value of the residential landholder.
27     (3)   The Commissioner can make a determination of a
28           portion of the value of a residential landholder for the
29           purposes of making an interim assessment even though
30           the Commissioner has ascertained --
31             (a) the value of only some of the residential
32                   property or chattels to which section 186(1)
33                   applies; or

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     s. 8



1                      (b)    only a portion of the value of particular
2                             residential property or chattels to which
3                             section 186(1) applies.

4                    Division 8 -- Exemptions and reassessment
5                        Subdivision 1 -- Exempt acquisitions

6           205ZM. Exemption if foreign transfer duty would not be
7                  chargeable
8              (1)    In this section --
9                     acquiring person, in relation to an acquisition, means
10                    the person making the acquisition;
11                    relinquishing person, in relation to an acquisition,
12                    means the person from whom the interest in the
13                    landholder was acquired.
14             (2)    An acquisition is exempt if no foreign transfer duty
15                    would be chargeable, other than under Chapter 6, on
16                    the transfer, at the time of the acquisition, by the
17                    relinquishing person to the acquiring person of
18                    residential property of the landholder, or of a linked
19                    entity in respect of the landholder, as if the property
20                    were that of the relinquishing person.
21             (3)    For the purposes of subsection (2), the acquiring person
22                    in respect of an acquisition described in
23                    section 205ZH(2) or 205ZI(2) is to be treated as if they
24                    were a foreign person.
25             (4)    If the acquiring person did not acquire the interest in
26                    the residential landholder from another person, the
27                    reference to the relinquishing person is to be read
28                    (according to what is relevant) as a reference to the or a
29                    person --
30                      (a) whose interest in the landholder is decreased
31                             because of the acquisition; or


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                                                                                s. 8



1              (b)     whose interest in the landholder decreased
2                      resulting in the acquisition.
3            Note for this subsection:
4                    An acquiring person may acquire an interest in a company
5                    by the company issuing shares to the person, or buying
6                    back shares of another person.

7    205ZN. Exemption for certain acquisitions treated as made
8           under agreement referred to in s. 176(2)
9            An acquisition is exempt if --
10            (a) for the purposes of an assessment, the
11                 acquisition was treated as having been made
12                 under an agreement of the kind referred to in
13                 section 176(2); and
14            (b) when the agreement is completed the acquirer
15                 is not a foreign person; and
16            (c) had the acquisition not been treated as
17                 mentioned in paragraph (a) the liability for
18                 foreign landholder duty in respect of the
19                 acquisition would not have arisen.

20      Subdivision 2 -- Exemptions relating to construction,
21                 refurbishment and subdivision

22   205ZO. Exemption relating to construction or
23          refurbishment of 10 or more dwellings
24     (1)   An acquisition is exempt if --
25            (a) at the time when the acquisition occurs, the
26                 residential landholder or a linked entity in
27                 respect of the landholder is entitled to a parcel
28                 of land on which there is no building, or part of
29                 a building, capable of being used solely or
30                 dominantly as a place of residence; and
31            (b) the landholder, linked entity or an associate of
32                 the landholder intends to construct, refurbish or


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     s. 8



1                            complete the construction or refurbishment of
2                            10 or more dwellings on the parcel of land; and
3                      (c)   within the period of 5 years beginning on the
4                            day on which the acquisition occurs, the
5                            landholder, linked entity or associate complies
6                            with subsection (2) in relation to 10 or more
7                            dwellings; and
8                     (d)    the interest the subject of the acquisition has
9                            not been disposed of by the acquirer at the time
10                           the landholder, linked entity or associate
11                           complies with subsection (2) in relation to 10 or
12                           more dwellings; and
13                     (e)   the parcel of land is, in the Commissioner's
14                           opinion, suitable for 10 or more dwellings.
15             (2)   A residential landholder, linked entity or associate of a
16                   residential landholder complies with this subsection in
17                   relation to --
18                     (a) a dwelling the landholder, linked entity or
19                           associate intends to construct, if the landholder,
20                           linked entity or associate begins construction of
21                           that dwelling or another dwelling on the parcel
22                           of land; or
23                     (b) a dwelling the landholder, linked entity or
24                           associate intends to refurbish, if all licences,
25                           approvals, registrations, exemptions and other
26                           kinds of authorisation necessary to refurbish
27                           that dwelling or another dwelling on the parcel
28                           of land are issued, granted or obtained; or
29                     (c) a dwelling the landholder, linked entity or
30                           associate intends to complete construction or
31                           refurbishment of, if that dwelling or another
32                           dwelling on the parcel of land, construction or
33                           refurbishment of which is completed by the
34                           landholder, linked entity or associate, is ready
35                           for occupation as a place of residence.

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                                                                        s. 8



1      (3)   For the purposes of subsection (2)(a), construction of a
2            dwelling begins on --
3             (a) the day on which laying the foundations for the
4                    dwelling begins; or
5             (b) another day the Commissioner considers
6                    appropriate in the circumstances of the case.
7      (4)   An application for reassessment under section 205ZR
8            because of this section must be made on or before the
9            later of the following --
10             (a) the last day of the period of 1 year beginning on
11                    the day on which the residential landholder,
12                    linked entity or associate complies with
13                    subsection (2) in relation to 10 or more
14                    dwellings;
15             (b) the last day of the period of 5 years beginning
16                    on the day on which the acquisition occurs.

17   205ZP. Exemption relating to subdivision for purpose of
18          constructing 10 or more dwellings
19     (1)   An acquisition is exempt if --
20            (a) at the time when the acquisition occurs, the
21                 residential landholder or a linked entity in
22                 respect of the landholder is entitled to a parcel
23                 of land that is vacant or substantially vacant;
24                 and
25            (b) the landholder, linked entity or an associate of
26                 the landholder intends to subdivide or complete
27                 subdividing the parcel of land for the purpose
28                 of a person constructing 10 or more dwellings
29                 on the parcel of land; and
30            (c) within the period of 5 years beginning on the
31                 day on which the acquisition occurs, the
32                 landholder, linked entity or associate --
33                    (i) begins subdividing the parcel of land; or

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     s. 8



1                             (ii)   if subdividing the parcel of land has
2                                    begun when the acquisition occurs,
3                                    completes subdividing the parcel of
4                                    land;
5                           and
6                     (d)   the interest the subject of the acquisition has
7                           not been disposed of by the acquirer when the
8                           landholder, linked entity or associate --
9                              (i) begins subdividing the parcel of land; or
10                            (ii) if subdividing the parcel of land has
11                                  begun when the acquisition occurs,
12                                  completes subdividing the parcel of
13                                  land;
14                          and
15                    (e)   the parcel of land is, in the Commissioner's
16                          opinion, suitable for 10 or more dwellings.
17             (2)   An application for reassessment under section 205ZR
18                   because of this section must be made on or before the
19                   later of the following --
20                     (a) the last day of the period of 1 year beginning on
21                            the day on which the landholder, linked entity
22                            or associate --
23                               (i) begins subdividing the parcel of land; or
24                              (ii) if subdividing the parcel of land has
25                                    begun when the acquisition occurs,
26                                    completes subdividing the parcel of
27                                    land;
28                     (b) the last day of the period of 5 years beginning
29                            on the day on which the acquisition occurs.
30             (3)   For the purposes of subsections (1)(c) and (d)
31                   and (2)(a) --
32                     (a) a person begins subdividing land on the day on
33                           which the land is subdivided under the Land

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                                                                          s. 8



1                    Tax Assessment Act 2002 Glossary clause 3;
2                    and
3              (b)   a person completes subdividing land on the day
4                    on which the new certificate of title is created
5                    and registered for the subdivided land.

6    205ZQ. Calculation of duty where some land of landholder
7           not part of parcel of land
8      (1)   This section applies to an acquisition referred to in
9            section 205ZO or 205ZP if immediately before the
10           acquisition the residential landholder, or a linked entity
11           in respect of the landholder, is entitled to --
12             (a) a parcel of land referred to in section 205ZO
13                   or 205ZP; and
14             (b) other residential property in Western Australia.
15     (2)   Section 166 is not applicable to or in relation to the
16           acquisition.
17     (3)   For the purposes of calculating foreign landholder duty
18           in respect of the acquisition the residential property
19           referred to in subsection (1)(a) is to be disregarded
20           when determining the value of the landholder.

21                   Subdivision 3 -- Reassessment

22   205ZR. Reassessment
23     (1)   The Commissioner, on the application of a person that
24           has paid or is liable to pay foreign landholder duty,
25           must reassess the liability to foreign landholder duty on
26           an acquisition if the liability is affected by
27           section 205ZN, 205ZO or 205ZP.
28     (2)   An application for reassessment under this section must
29           be made in the approved form.




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     s. 8



1              (3)   The limitations as to time in the Taxation
2                    Administration Act section 17 do not apply in respect
3                    of a reassessment because of section 205ZO or 205ZP.

4                       Division 9 -- Lodgment of declaration
5           205ZS. Foreign landholder duty declaration to be lodged
6              (1)   A foreign landholder duty declaration must be lodged
7                    in respect of a foreign landholder acquisition.
8              (2)   The foreign landholder duty declaration must be lodged
9                    on or before the day on which the acquisition statement
10                   is required to be lodged under section 200(3), 201(6)
11                   or 202(2) in respect of the acquisition.

12          205ZT. Failure to lodge foreign landholder duty declaration
13                   If a foreign landholder duty declaration is not lodged in
14                   accordance with section 205ZS(2), the following
15                   persons commit an offence --
16                     (a) in every case, the foreign acquirer;
17                     (b) if the landholder concerned is a corporation, the
18                            corporation;
19                     (c) if the landholder concerned is a unit trust
20                            scheme, the trustee of the scheme;
21                     (d) any person taken into account under
22                            section 205ZH or 205ZI as being related to the
23                            foreign acquirer for the purposes of the
24                            acquisition, other than a person whose interest
25                            in the landholder is, for the purpose of
26                            calculating the foreign landholder duty, an
27                            excluded interest under section 189.
28                   Penalty: a fine of $5 000.
29




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                                                                                  s. 9



1    9.          Section 259 amended
2                In section 259(2) after "landholder duty" insert:
3

4                or foreign landholder duty
5


6    10.         Section 260 amended
7          (1)   After section 260(1)(a) insert:
8

9                       (aa)   any of the following foreign dutiable
10                             transactions, if foreign transfer duty is
11                             chargeable --
12                                (i) an agreement, whether conditional or
13                                     not, for the transfer of residential
14                                     property from one member of a family
15                                     to another member of the family;
16                               (ii) a transfer of residential property from
17                                     one member of a family to another
18                                     member of the family;
19                              (iii) a declaration of trust over residential
20                                     property under which one member of a
21                                     family holds the property on trust for
22                                     another member of the family;
23                              (iv) a vesting of residential property held by
24                                     one member of a family in another
25                                     member of the family;
26                               (v) a surrender of special residential
27                                     property, as defined in section 205F(1),
28                                     if the special residential property is
29                                     surrendered by one member of a family
30                                     to another member of the family;
31




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     Duties Amendment (Additional Duty for Foreign Persons) Bill 2018



     s. 11



1          (2)    In section 260(1)(d) after "landholder duty" insert:
2

3                 or foreign landholder duty
4

5          (3)    After section 260(2) insert:
6

7                (2A)   A transaction referred to in subsection (1)(aa) is not a
8                       relevant reconstruction transaction if, immediately
9                       before the transaction, the residential property is held,
10                      or the transaction results in the property being held,
11                      subject to a discretionary trust.
12


13   11.          Section 272 amended
14                Delete section 272(2)(a) and insert:
15

16                        (a)   endorsed by the Commissioner --
17                                 (i) under section 273(2), (3) or (4)
18                                     or 274(2); and
19                               (ii) if the transaction is a foreign dutiable
20                                     transaction -- under section 273(2A);
21                              or
22

23   12.          Section 273 amended
24         (1)    In section 273(1) delete the definition of duty.
25         (2)    In section 273(1) in the definition of required duty
26                paragraph (a) delete "duty" and insert:
27

28                transfer duty and foreign transfer duty (if any)
29




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                                                                          s. 12



1    (3)    Delete section 273(2) and insert:
2

3           (2)   If a transaction record for a dutiable transaction is
4                 lodged for duty endorsement and any required duty is
5                 paid in full, the Commissioner must --
6                   (a) if transfer duty is chargeable on the dutiable
7                          transaction -- endorse the transaction record to
8                          indicate the amount of transfer duty paid; or
9                   (b) if transfer duty is not chargeable on the dutiable
10                         transaction because of an exemption under this
11                         Act or another written law -- endorse the
12                         transaction record to indicate that transfer duty
13                         is not chargeable because of the exemption; or
14                  (c) if transfer duty is not chargeable on the dutiable
15                         transaction other than because of an exemption
16                         under this Act or another written law --
17                         endorse the transaction record to indicate that
18                         transfer duty is not chargeable.
19         (2A)   If a transaction record for a foreign dutiable transaction
20                is lodged for duty endorsement and any required duty
21                is paid in full, the Commissioner must --
22                  (a) if foreign transfer duty is chargeable on the
23                         foreign dutiable transaction -- endorse the
24                         transaction record to indicate the amount of
25                         foreign transfer duty paid; or
26                  (b) if foreign transfer duty is not chargeable on the
27                         foreign dutiable transaction because of an
28                         exemption under this Act or another written
29                         law -- endorse the transaction record to
30                         indicate that foreign transfer duty is not
31                         chargeable because of the exemption; or
32                  (c) if foreign transfer duty is not chargeable on the
33                         foreign dutiable transaction other than because
34                         of an exemption under this Act or another


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     Duties Amendment (Additional Duty for Foreign Persons) Bill 2018



     s. 13



1                                written law -- endorse the transaction record to
2                                indicate that foreign transfer duty is not
3                                chargeable.
4

5          (4)     In section 273(3A) delete "subsection (2)," and insert:
6

7                  subsections (2) and (2A),
8


9    13.           Section 275 amended
10                 In section 275(a)(ii) after "transfer duty (if any)" insert:
11

12                 and foreign transfer duty (if any)
13


14   14.           Schedule 2 amended
15                 In Schedule 2 Division 2 delete "Residential property" and insert:
16

17                 Residential land
18


19   15.           Schedule 3 Division 8 inserted
20                 After Schedule 3 Division 7 insert:
21


22                   Division 8 -- Provisions for Duties Amendment
23                   (Additional Duty for Foreign Persons) Act 2018
24           39.         Terms used
25                       When this Division uses a term that is used in Chapter 3A,
26                       the term has the same meaning in this Division as it has in
27                       Chapter 3A.




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       Duties Amendment (Additional Duty for Foreign Persons) Bill 2018



                                                                               s. 15



1    40.         When Ch. 3A Pt. 2 starts to apply
2                Chapter 3A Part 2 applies in relation to the imposition of
3                foreign transfer duty on a foreign dutiable transaction only if
4                that transaction takes place on or after 1 January 2019.

5    41.         Agreements entered into before 1 January 2019
6          (1)   Foreign transfer duty is not chargeable on a transfer of
7                residential property to a transferee in conformity with an
8                agreement for the transfer of residential property if the
9                agreement is entered into before 1 January 2019.
10         (2)   If an agreement for the transfer of residential property is
11               entered into before 1 January 2019, foreign transfer duty is
12               not chargeable on the subsequent transfer of the property if,
13               when liability for transfer duty on the agreement arose, the
14               person named in the instrument effecting, or evidencing, the
15               agreement as the purchaser was acting as the agent of the
16               transferee of the subsequent transfer.

17   42.         Declaration of trusts made before 1 January 2019
18         (1)   Foreign transfer duty is not chargeable on a transfer to a
19               trustee of residential property subject to a declaration of
20               trust in respect of the same residential property if the
21               declaration of trust was made before 1 January 2019.
22         (2)   Foreign transfer duty is not chargeable on a declaration of
23               trust that declares the same trusts as those upon and subject
24               to which the same residential property was transferred, or
25               agreed to be transferred, to the person declaring the trust if
26               the transfer, or agreement, was made before 1 January 2019.
27         (3)   Foreign transfer duty is not chargeable on a declaration of
28               trust if --
29                 (a)   the declaration of trust supersedes another
30                       declaration of trust which was made before
31                       1 January 2019 and declares the same trusts as were
32                       declared under the superseded declaration of trust;
33                       and



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     Duties Amendment (Additional Duty for Foreign Persons) Bill 2018



     s. 15



1                          (b)   the beneficiary under the declaration of trust is the
2                                same as under the superseded declaration of trust;
3                                and
4                          (c)   the residential property subject to the declaration of
5                                trust --
6                                   (i) is wholly or substantially the same as the
7                                         property that was the subject of the
8                                         superseded declaration of trust at the time
9                                         of the declaration of the superseded
10                                        declaration of trust; or
11                                 (ii)   represents the proceeds of re-investment of
12                                        property that was the subject of the
13                                        superseded declaration of trust at the time
14                                        of the declaration of the superseded
15                                        declaration of trust; or
16                                (iii)   is property to which both subparagraphs (i)
17                                        and (ii) apply.

18           43.         Other transactions before 1 January 2019
19                 (1)   Foreign transfer duty is not chargeable on a transfer of
20                       residential property resulting from a foreign dutiable
21                       transaction referred to in section 205H(1)(d) if the vesting of
22                       the residential property was made before 1 January 2019.
23                 (2)   Foreign transfer duty is not chargeable on a transfer of
24                       residential property in accordance with a foreclosure order if
25                       the foreclosure order was made before 1 January 2019.
26                 (3)   Foreign transfer duty is not chargeable on a transfer of
27                       residential property in accordance with a residential
28                       partnership acquisition if the residential partnership
29                       acquisition was made before 1 January 2019.
30                 (4)   Foreign transfer duty is not chargeable on a foreign dutiable
31                       transaction if --
32                         (a)   section 97 applies to the transaction and the person
33                               from whom the property is transferred or agreed to
34                               be transferred acquired the property before
35                               1 January 2019; or


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       Duties Amendment (Additional Duty for Foreign Persons) Bill 2018



                                                                                s. 15



1                  (b)   section 114, 115 or 116 applies to the transaction
2                        and the trustee acquired the property before
3                        1 January 2019; or
4                  (c)   section 117(1)(a) or (b) applies to the transaction
5                        and the apparent purchaser acquired the property
6                        before 1 January 2019.

7    44.         When Ch. 3A Pt. 3 starts to apply
8          (1)   Chapter 3A Part 3 applies in relation to the imposition of
9                foreign landholder duty on a foreign landholder acquisition
10               only if that acquisition occurs on or after 1 January 2019.
11         (2)   For the purposes of subsection (1), when an acquisition of
12               an interest in a residential landholder occurs is to be
13               determined under section 176 as applied by
14               section 205ZE(1).

15   45.         Application of some Ch. 8 provisions
16         (1)   Sections 272(2) and 273 as in force before the
17               commencement of the Duties Amendment (Additional Duty
18               for Foreign Persons) Act 2018 section 15 apply in relation
19               to a dutiable transaction that takes place before
20               1 January 2019.
21         (2)   Section 273(2A) applies in relation to a foreign dutiable
22               transaction only if that transaction takes place on or after
23               1 January 2019.
24


25




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