From 1 July 2009, landholder duty replaced land rich provisions
Acquisition of interests in landholders
The provisions relating to Acquisition of interests in landholders apply to relevant acquisitions in private landholders made on or after 1 July 2009 and in public landholders on or after 1 October 2009. These provisions are contained in Chapter 4 of the Duties Act 1997.
Where a company or unit trust scheme holds land in NSW valued at $2,000,000 or more, an acquisition of shares in the company or units in the unit trust scheme, may attract duty at the general rate as if it were an acquisition of the land held by such entity.
To be a landholder prior to 1 December 2009, the unencumbered value of the land holdings in NSW must be $2,000,000 or more. From 1 December 2009 if a land holding consists of an estate in fee simple in land, the value of the land (as determined under the Valuation of Land Act 1916), rather than the unencumbered value of the land, is used to determine whether the $2,000,000 threshold is met. (However, once a liability arises, duty will still be calculated with reference to the unencumbered value of the land holdings in NSW).
A liability at the general rate arises whenever a person or persons makes a relevant acquisition in a landholder
When a relevant acquisition is made, the person or persons acquiring the interest must complete an Acquisition Statement and submit it to the Office of State Revenue for assessment of duty.
Duty is calculated at the general rate, on the amount calculated by multiplying the unencumbered value of all the land holdings and goods of the landholder in New South Wales by the proportion of that value represented by the interest acquired.
Generally duty is calculated on both the current acquisition and any other acquisitions made by the person and any ‘associated person’ in the period commencing three years before the date of the relevant acquisition and ending on the date of the relevant acquisition.
Exemptions and concessions apply to certain acquisitions.
- What is a landholder?
- Landholder definitions
- What are the land holdings of a landholder?
- Value of landholdings from 1 December 2009
- Constructive ownership through linked entities
- Constructive ownership through discretionary trusts
- When does a liability arise?
- What is a relevant acquisition?
- What are interests and significant interests in landholders?
- How may an interest be acquired?
- Acquisition statements
- Who is liable to pay the duty?
- When must duty be paid?
- How duty is charged – private landholders
- How duty is charged – public landholders
- Charging of duty on acquisitions made by trustees
- Goods of a landholder
- Uncompleted agreements for sale of land
- Discretion to grant exemption or concession
- Exemptions and concessions
- Concession for primary producers
- Transitional provisions