When does a liability arise?
Landholder duty
From 1 July 2009, landholder duty replaces the land rich provisions.
When does a liability for duty arise?
A liability for duty arises when a relevant acquisition is made.
When does a relevant acquisition occur?
A relevant acquisition occurs when a person:
a) acquires an interest in a land rich landholder:
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i) that is of itself a significant interest in the landholder, or
ii) that when aggregated with other interests in the landholder held by the person or an associated person, results in an aggregation that amounts to a significant interest in the landholder, or
iii) that, when aggregated with other interests in the landholder acquired by the person or other persons under transactions that form, evidence, give effect to or arise from what is substantially one arrangement between the acquirers, results in an aggregation that amounts to a significant interest in the landholder, or
b) having a significant interest, or an interest described in paragraph (a)(ii) in a land-rich landholder, acquires a further interest in the landholder.
A person who acquires an interest in a land rich landholder under an arrangement that results in the land rich landholder ceasing to be landholder is not a relevant acquisition because of (a)(iii) above.
For the purposes of these provisions, persons in their capacity as qualifying investors (within the meaning of the definition of wholesale unit trust scheme) of a wholesale unit trust scheme are taken not to be associated persons.
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