CPI method
Duty was abolished on lease instruments first executed on or after 1 January 2008. The abolition of duty on leases does not affect any obligation to pay duty in respect of a lease instrument and a variation of a lease instrument executed before 1 January 2008.
The CPI method is used where one or more of the cost components of a lease cannot be fully determined at the date of commencement.
Note: This method can only be applied where there is agreement between the Chief Commissioner and the lessee.
In using the CPI method you must:
identify the cost for each component of cost for the first year,
obtain the CPI figure which was current immediately prior to the commencement of the lease,
apply the CPI figure to each of the unascertainable cost components of the lease for the first year and compound it for each of the remaining years,
add these amounts to those cost components that can be determined to a definite sum over the term of the lease.
The rate of 35 cents per $100 (or part thereof) is then applied to the resulting figure to determine the total duty payable.
