Land holder duty
A landholder is a person or entity, such as a private company or a private unit trust scheme, that owns land in the ACT.
If you acquire an interest in a landholder, such as through the issue of shares or units, you may owe landholder duty if it’s a ‘relevant acquisition’. A relevant acquisition is one that equates to a significant interest. An acquisition is also relevant if, when you combine it with other interests you hold in the landholder or with associated transactions, it amounts to a significant interest. You hold a significant interest in a landholder when, if you were to distribute all of the landholder’s property, you would get at least 50 per cent of that property.
Landholder duty is complex; if you’re acquiring an interest in an ACT landholder, we recommend seeking legal advice.
Calculating your duty
The ACT Revenue Office calculates landholder duty using the same rates as conveyance duty for commercial properties.
Value of Acquisition | Duty Payable |
|---|---|
| less than or equal to $1,500,000 | nil |
| More than $1,500,000 | A flat rate of $5.00 per $100 applied to the total acquisition value |
Value of Acquisition | Duty Payable |
|---|---|
| up to $200,000 | $20 or $0.70 per $100 or part thereof, whichever is greater |
| $200,001 to $300,000 | $1,400 plus $1.20 per $100 or part thereof by which the value exceeds $200,000 |
| $300,001 to $500,000 | $2,600 plus $1.90 per $100 or part thereof by which the value exceeds $300,000 |
| $500,001 to $750,000 | $6,400 plus $2.39 per $100 or part thereof by which the value exceeds $500,000 |
| $750,001 to $1,000,000 | $12,375 plus $3.15 per $100 or part thereof by which the value exceeds $750,000 |
| $1,000,001 to $1,499,999 | $20,250 plus $3.40 per $100 or part thereof by which the value exceeds $1,000,000 |
| $1,500,000 and over | A flat rate of $5.00 per $100 applied to the total acquisition value |
Paying duty
Within 90 days of your acquisition, you need to complete a Landholder Transfer of Unlisted Shares, Units and Interests SmartForm. You need to attach supporting documentation to the SmartForm including the transfer executed by both parties.
If your acquisition is exempt from landholder duty or if no duty is payable, you still need to lodge a SmartForm and provide us the required documentation.
Be sure that all of the details in your documentation are true and correct; giving false or misleading information is a serious offence.
After you lodge, we’ll email a Notice of Assessment to you and your legal representative (if applicable). You also have 90 days from your acquisition to pay. If the Notice of Assessment has a nil balance, you do not have to take further action.
For more information please refer to the Barrier Free page or contact the ACT Revenue Office on (02) 6207 0028.