Landholder
- The items listed below are not links. They indicate where you are in this process.
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Landholder
Interest
Significant interest
Conclusion - liable
Not liable
Exempt transaction
Concessions
Answer the following question to find out if an acquisition of shares or units in a landholder creates a liability to duty at the general rate.
- Is the landholder land rich?
Note: a landholder is considered to be land rich if:
it has land holdings in NSW to the value of $2 000 000 or more, and
its landholdings in all places, whether within or outside Australia, comprise 60% or more of the value of their property.
In determining the extent of landholdings that a company or trust owns, the following must be taken into account:
the interest that a company or trust holds in any land which is the subject of an uncompleted agreement (either as vendor or purchaser) - read more information in Section 163V(1) of the Duties Act 1997
the interest that a company or trust is deemed to hold in the property of any linked entity. Linked entities include subsidiaries and any entities in which an interest of not less than 20% is held, including through a chain of persons. Read more information in Section 163T of the Duties Act 1997.
In determining the value of the property of a company or trust for the purpose of the 60% test, certain types of property are disregarded. For a complete list of these items, refer to Sections 163B(2) and (3), and Section 163V(2) of the Duties Act 1997.
Note: if a landholder is a party to an uncompleted agreement for sale of property at the time an acquisition statement is assessed for duty, the statement may need to be reassessed upon completion or rescission of the agreement in accordance with Sections 163W and 163X of the Duties Act 1997.
More information
- Duties Act 1997 - Section 163B - Meaning of "land rich"
- Duties Act 1997 - Section 163V(1) 'Effect of uncompleted agreements'
- Duties Act 1997 - Section 163T 'Constructive ownership of land holdings and other property: linked entities'
- Duties Act 1997 - Sections 163B - Meaning of “land rich”
- Duties Act 1997 - Section 163V(2) 'property to be disregarded'
- Duties Act 1997 - Section 163W 'Reassessment - Uncompleted agreement for the sale of land'
- Duties Act 1997 - Section 163X 'Reassessment - Uncompleted agreement for sale of land and other property'
