Voting shares
Duty payable if you are entitled to voting shares due to capital reduction or a rights alteration
If a person becomes entitled to at least 50 percent 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 percent of the voting shares of a company becomes entitled to at least 10 percent more of the voting shares over a period of not more than 12 months by means of capital reduction and/or rights alteration is liable to duty.
Rate of duty is payable if you become entitled to voting shares due to capital reduction or right alteration
The rate of duty chargeable, is 60 cents per $100, or part, of the dutiable value of the marketable securities.
You will need to print and complete the relevant OSR form OSD070. A statement in respect of the entitlement 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 mean, in relation to voting shares, means a variation, abrogation or alteration of rights relating to the shares.
