Shares, units and interests

Duty on the acquisition of unquoted marketable securities ceased on transactions first executed on and after 1 July 2010.

Transactions after 30 June 2010

Unquoted marketable securities transactions after 30 June 2010 are not liable to duty

Any dutiable transaction where the agreement for transfer or the transfer (whichever is earlier) occurs after 30 June 2010 is not liable to duty, unless landholder provisions are triggered.

Continuation of Land Holder Provisions

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 continue 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. 

Transactions before 1 July 2010

Description

If you acquired unlisted marketable securities before 1 July 2010, (shares, units and interests) that are dutiable property in the ACT from another person, you must pay duty to the ACT Revenue Office.  Duty liability is determined under the Duties Act 1999 and administered under the Taxation Administration Act 1999.

The following information applies if the entity in which the marketable securities is acquired does not hold land in the ACT.

If the entity is a landholder in the ACT please refer to Landholder duty - shares units and interests.

Duty on the transfer of marketable securities listed on a recognised stock exchange (the Australian Stock Exchange, any other member of the World Federation of Exchanges or a financial market recognised by the Minister) has been abolished.

Duty amount

Duty is payable at a rate of 60 cents per $100 or part thereof of the total value of the marketable securities, or $20 whichever is greater.

Documents required on lodgment

Within 90 days of the acquisition of marketable securities, you must lodge a completed Transfer of Unlisted Shares, Units and Interests Lodgment Form.  Supporting documentation specified in the form (such as agreement for transfer) and the Transfer executed by both parties must also be included.

Compliance obligations/requirements

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

Record keeping

Section 57 of the Taxation Administration Act 1999 requires the retention of such records as are necessary to enable a person’s tax liability to be properly assessed.  The records are to be kept in such a way that they correctly record and explain the matters, transactions, acts or operations to which they relate (section 59).  The Act also provides that the records be kept so that they can be readily produced to the Commissioner if required (section 62) and be retained for a period of not less than five years (section 64).

Relevant links

• Transfer of Unlisted Shares, Units and Interests Lodgment Form (external site)
• Duties Act 1999 (external site) 
• Determination of duty rates (excluding motor vehicles) - DI2008-220 

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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).