Duties Act 2001

This section applies if—

transfer duty including AFAD is imposed on a dutiable transaction; and

all or part of the transfer duty is not paid by the date the amount (the outstanding liability) is payable.

The outstanding liability is a first charge on the interest of the following person (the chargee) in the AFAD residential land that is the subject of the transaction—

for a dutiable transaction mentioned in section 9(1)(a) to (f)—

if AFAD is imposed on the transaction under section 240(2) and the land has not been transferred to the principal—the acquirer under the transaction; or

if AFAD is imposed on the transaction under section 240(2) and the land has been transferred to the principal—the principal; or

if AFAD is imposed on the transaction under section 241A—the company; or

otherwise—the foreign acquirer under the transaction;

for a dutiable transaction mentioned in section 9(1)(g)—each partner who holds the AFAD residential land to which the partnership acquisition relates;

for a dutiable transaction mentioned in section 9(1)(h) that is the creation of a trust of dutiable property—the person who, under the transaction, starts to hold the AFAD residential land in a way mentioned in section 53;

for a dutiable transaction mentioned in section 9(1)(h) that is the termination of a trust of dutiable property—the person who, under the transaction, starts to hold the AFAD residential land other than as trustee;

for a dutiable transaction mentioned in section 9(1)(i) that is a trust acquisition—the trustee of the trust in which the trust acquisition is made;

for a dutiable transaction mentioned in section 9(1)(i) that is a trust surrender—

the trustee of the trust in which the trust interest is surrendered; or

if there is no longer a trustee as a result of the surrender, the person who holds the AFAD residential land as a result of the surrender.

The charge has priority over all other encumbrances over the chargee’s interest in the land other than a charge under section 156P or 246V.

Subsection (3) applies—

whether the other encumbrances over the chargee’s interest in the land—

are registered or unregistered; or

were created before or after the charge arises under subsection (2); and

despite the Land Title Act 1994, part 3, divisions 2 and 2A.

The commissioner may lodge, under the Administration Act, part 4, division 5, a request to register the charge on the land that is the subject of the transaction.

Despite the Administration Act, section 47B, the registrar must not register the charge if the chargee is no longer the registered owner of the land.

On its registration, the charge is not affected by a disposition of the chargee’s interest in the land.