Landholder duty - shares, units and interests

If the entity is not a landholder in the ACT

If the entity is not a landholder in the ACT please refer to Shares, units and interests.  

If the entity is a landholder in the ACT

Where landholder duty is triggered by the transfer of certain interests in landholders in the ACT, and where the acquisition of marketable securities gives an entitlement to occupy land, duty at conveyance rates continues to apply (see Chapter 3).  An acquisition statement must be provided within 90 days of the acquisition of marketable securities where it triggers a landholder liability even though duty payable on unlisted marketable securities ceased after 30 June 2010. 

Description

If the transfer or issue of the marketable securities results in a relevant acquisition in an entity that holds ACT land landholder duty is payable.  Landholder duty is complex and we recommend that you seek legal advice if you are acquiring marketable securities in an entity that holds land in the ACT.

More information

Landholder duty is imposed under part 3.2 of the Duties Act 1999 (the Act) and administered under the Taxation Administration Act 1999.  Under part 3.2 of the Act, a landholder is an entity that has a landholding in the ACT.  An entity is a private company or a private unit trust scheme.  A relevant acquisition of marketable securities in an entity that is listed on a financial market recognised by the Minister under section 252A of the Act is exempt from marketable securities duty but is liable to landholder duty. 

Where a person acquires an interest in a landholder (by any means including the issue of shares or units) he or she may be subject to landholder duty if it is a relevant acquisition.  A relevant acquisition is one that is a significant interest, or when aggregated with other interests in the landholder held by the person or associated persons, or in associated transactions, amounts to a significant interest.

A person holds a significant interest in a landholder where, in the event of a distribution of all of the property of the landholder, he or she is entitled to at least 50% of the property distributed.

Duty amount

For the transfer of marketable securities involving a landholder component, the duty payable for the land and improvements component is at conveyance rates.  Section 90 of the Act describes how duty is charged.

Documents required on lodgment

Within 90 days of the acquisition of marketable securities that trigger a landholder duty liability, you must lodge a completed Landholder Transfer of Unlisted Shares, Units and Interests Lodgment Form, the supporting documentation specified in the form (including an Acquisition Statement), and the Transfer executed by both parties.

Registration of Unit Trust Schemes

Effective 1 July 2012, unit trust schemes are treated on an equal footing with private companies; as a result the wholesale unit trust registration and reporting provisions  have been repealed by the Duties (Landholders) Amendment Act 2012.  

Compliance obligations/requirements

Purchasers of unlisted marketable securities in an entity that is an ACT landholder are required to lodge the transfer document and pay the duty within 90 days of the liability arising, for example, execution (signing) of the transfer.  You should be aware that giving false or misleading information is a serious offence.

Relevant links

• Record keeping
• Landholder Transfer of Unlisted Shares, Units and Interests Lodgment Form (external site) 
• Application for Registration of a Unit Trust Scheme Form (external site)
• Report by the Responsible Entity of a Wholesale Unit Trust Scheme (external site)
• Duties Act 1999 (external site)
• Taxation Administration Act 1999 (external site)

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Exchange of information

To assist in the identification and assessment of ACT taxes and grants we exchange information with other Revenue Offices and the Australian Taxation Office (ATO). 

The exchange of information with other Revenue Offices is in accordance with part 9 of the Taxation Administration Act 1999 (ACT) and similar legislation in the States and the Northern Territory.  The exchange of information with the ATO is in accordance with subsection 355-65 (5) Schedule 1 of the Taxation Administration Act 1953 (Cth).