Capital reductions or rights alterations
If a person becomes entitled to at least 50 per cent of the voting shares of a company by means of capital reduction and/or rights alteration, or
If a person who is entitled to at least 50 per cent of the voting shares of a company becomes entitled to at least 10 per cent more of the voting shares over a period of not more than 12 months by means of capital reduction and/or rights alteration
the person must lodge a statement with the Chief Commissioner in respect of the entitlement.
The statement is chargeable with duty of 60 cents per $100, or part, of the dutiable value of the shares the subject of the capital reduction and/or rights alteration.
The statement (OSD 070) and duty must be lodged with OSR within three months of receipt of the entitlement.
Capital reduction
the redemption, surrender or cancellation of a share (including cancellation as part of a buy-back of shares in accordance with Division 2 of Part 2J.1 of the Corporations Law), or
a reduction in the paid up value of a share.
Rights alteration
Rights alteration, in relation to voting shares, means a variation, abrogation or alteration of rights relating to the shares.
