Duties Act 1999

This Act is the Duties Act 1999.

The dictionary at the end of this Act is part of this Act.

Note 1 The dictionary at the end of this Act defines certain terms used in this Act, and includes references (signpost definitions) to other terms defined elsewhere in this Act or other legislation.

For example, the signpost definition ‘Crown lease—see the Land Titles Act 1925, dictionary.’ means that the term ‘Crown lease’ is defined in that dictionary and the definition applies to this Act.

Note 2 A definition in the dictionary applies to the entire Act unless the definition, or another provision of the Act, provides otherwise or the contrary intention otherwise appears (see Legislation Act, s 155 and s 156 (1)).

A note included in this Act is explanatory and is not part of this Act.

Note See the Legislation Act, s 127 (1), (4) and (5) for the legal status of notes.

Other legislation applies in relation to offences against this Act.

Note 1 Criminal Code

The Criminal Code, ch 2 applies to all offences against this Act (see Code, pt 2.1).

The chapter sets out the general principles of criminal responsibility (including burdens of proof and general defences), and defines terms used for offences to which the Code applies (eg conduct, intention, recklessness and strict liability).

Note 2 Penalty units

The Legislation Act, s 133 deals with the meaning of offence penalties that are expressed in penalty units.

The Taxation Administration Act is incorporated and is to be read as one with this Act.

The Territory is not liable to pay duty under this Act.

Note Prescribed territory entities are not exempt from paying duty (see Taxation (Government Business Enterprises) Act 2003, s 9).

A duty payable under this Act is, when a liability to pay the duty is created, a debt due to the Territory.

Chapter 2 Transactions concerning dutiable property

Part 2.1 Introduction and overview

In this chapter:

cancelled—

means rescinded, annulled or otherwise terminated without completion; and

includes abandoned.

commercial lease means a lease granted for—

commercial purposes only; or

more than 1 purpose including commercial purposes.

commercial lease with premium—see section 6A.

commercial purposes does not include residential purposes or the purposes of primary production.

Examples—commercial purposes

 industrial use

 business use

 retail use declaration of trust means any declaration (other than by a will or testamentary instrument) that any identified property vested or to be vested in the person making the declaration is or is to be held in trust for the person or people, or the purpose or purposes, mentioned in the declaration although the beneficial owner of the property, or the person entitled to appoint the property, may not have joined in or assented to the declaration.

market rent, in relation to a commercial lease, means the rent (worked out as at the date the lease was granted) that would be charged by the lessor if the land the subject of the lease was leased by a willing lessor to a willing lessee—

dealing with each other at arm’s length; and

each of whom had acted knowledgeably, sensibly and without compulsion.

premium, in relation to a commercial lease, means any consideration (being the amount of a monetary consideration or the value of a non‑monetary consideration) that is paid or agreed to be paid in relation to the lease, other than rent reserved.

primary production means—

production resulting directly from—

cultivation of land; or

keeping animals for their sale, their bodily produce or natural increase; or

fishing operations; or

forest operations; and

the manufacture of dairy produce by the person who produced the raw material used in that manufacture.

rent reserved, in relation to a commercial lease, means—

the rent paid or payable during the term of the lease that is market rent; and

any reasonable amount paid or payable for the right to use the land under the lease.

Examples—payments for right to use land under commercial lease

 rates

 maintenance and repairs

 services and utilities

 legal costs payable by lessee on behalf of lessor in relation to grant of lease

 insurance premiums

 car park contributions

 turnover rent

 fit-out costs

 security

 land rent

 gardening and landscaping

 lifts

 administration

In this chapter:

commercial lease with premium means a commercial lease in relation to which there is a premium that is more than the amount (if any) determined by the commissioner.

A determination is a disallowable instrument.

This chapter charges duty on—

a transfer of dutiable property; and

the following transactions:

an agreement for the sale or transfer of dutiable property;

a declaration of trust over dutiable property;

a grant of a Crown lease;

a grant of a declared land sublease;

a grant of a commercial lease with premium.

A transfer or transaction mentioned in subsection (1) is a dutiable transaction for this Act.

In this section:

grant—

of a Crown lease over land, includes the grant of a new lease following the surrender or determination of the Crown lease over land that includes part or all of the land over which the new lease is granted; and

of a declared land sublease, includes the grant of a new land sublease following the surrender or determination of the sublease over land that includes part or all of the land over which the new sublease is granted.

transfer does not include a transaction treated as a transfer by chapter 3.

Note Ch 3 treats certain transactions as transfers (eg, acquiring an interest in a landholder—see s 85 and s 86). Duty may be payable under ch 3 on those transfers. These may involve the vesting of property under a court order, which would otherwise be a transfer for s (1) (a) or (b) (i) (see dict, def transfer, par (a) (v)).

The duty payable under this chapter on a dutiable transaction mentioned in section 7 (1) (b) is payable as if each such dutiable transaction were a transfer of dutiable property.

For the purpose of paying duty under this chapter, in relation to a dutiable transaction mentioned in column 2 of an item in table 8:

the property mentioned in the item, column 3 is taken to be the property transferred (and a reference in this Act to property transferred includes a reference to such property);

a person mentioned in the item, column 4 is taken to be the transferee of the dutiable property (and a reference in this Act to a transferee includes a reference to such a person);

the transfer of the dutiable property is taken to have happened at the time mentioned in the item, column 5 (and a reference in this Act to the time when a transfer occurs includes a reference to such a time).

Table 8 column 1 item column 2 dutiable transaction column 3 property transferred column 4 transferee column 5 when transfer happens

1 agreement for sale or transfer the property agreed to be sold or transferred the purchaser or transferee when the agreement is entered into

2 declaration of trust the property vested or to be vested in the declarant the person declaring the trust when the declaration is made

3 grant of a Crown lease (or declared land sublease) the leasehold interest the lessee (or for a declared land sublease, the sublessee) when the lease (or declared land sublease) is granted

4 grant of a commercial lease with premium the leasehold interest the lessee when the lease is granted

It is immaterial whether or not a dutiable transaction is effected by an instrument or by any other means, including electronic means.