Application of Division
32B Application of Division
This Division applies to a transfer of dutiable property referred to in section 10(1)(a) or (d) if—
a person (the vendor) enters into a contract (the sale contract) to sell or transfer the property to another person (the first purchaser); and
S. 32B(1)(b) substituted by No. 84/2008 s. 4(1).
any of the following persons (a subsequent purchaser) obtains the right (a transfer right) to have the property or any part of it transferred, on completion of the sale contract, to the subsequent purchaser—
a person other than the first purchaser; or
the first purchaser and a person other than the first purchaser; or
if there is more than one first purchaser, one or more of the first purchasers in different proportions from those in the sale contract; and
S. 32B(1)(c) amended by No. 84/2008 s. 4(2).
a subsequent purchaser or an associate of a subsequent purchaser gives or agrees to give additional consideration in order for the subsequent purchaser to obtain the transfer right; and
the vendor transfers the property or any part of it to a subsequent purchaser.
It is immaterial whether a subsequent purchaser obtains a transfer right—
by way of an assignment, nomination, novation or otherwise; and
from the first purchaser or from another subsequent purchaser.
Each assignment, nomination, novation or other arrangement by which a subsequent purchaser obtains a transfer right is called a subsequent transaction.
In this section—
S. 32B(4) def. of additional consideration amended by No. 84/2008 s. 4(3)(a).
additional consideration for a transfer right means any consideration given or agreed to be given by the subsequent purchaser or an associate of the subsequent purchaser in order for the subsequent purchaser to obtain the transfer right (other than reimbursement of excluded costs or any increase in consideration that arises because of the operation of section 32V)—
if the subsequent purchaser obtained the transfer right from the first purchaser—that exceeds the consideration given or agreed to be given to the vendor by the first purchaser under the sale contract in respect of the property the subject of the transfer right;
if the subsequent purchaser obtained the transfer right from another subsequent purchaser—that exceeds the consideration given or agreed to be given by that other subsequent purchaser or an associate of that other subsequent purchaser in order for that other subsequent purchaser to obtain a transfer right, to the extent that the consideration relates to the first-mentioned transfer right;
S. 32B(4) def. of excluded costs repealed by No. 84/2008 s. 4(3)(b).
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S. 32B(4) def. of parallel arrangement inserted by No. 42/2012 s. 5(1).
parallel arrangement means an arrangement entered into by a subsequent purchaser or an associate of the subsequent purchaser before, at the time or within 12 months after the subsequent purchaser obtains a transfer right under a sale contract, under which the following occurs—
if the subsequent purchaser obtained the transfer right from a first purchaser—the first purchaser or an associate of the first purchaser is required to construct, or to arrange for the construction of, improvements to the property the subject of the sale contract for consideration; or
if the subsequent purchaser obtained the transfer right from another subsequent purchaser—the other subsequent purchaser or an associate of the other subsequent purchaser is required to construct, or to arrange for the construction of, improvements to the property the subject of the sale contract for consideration.
S. 32B(5) inserted by No. 42/2012 s. 5(2).
For the purposes of the definition of additional consideration in subsection (4), a subsequent purchaser or an associate of a subsequent purchaser who enters into a parallel arrangement is taken to have given or agreed to give the consideration under that arrangement in order for the subsequent purchaser to obtain the transfer right in addition to any other consideration given or agreed to be given in order for the subsequent purchaser to obtain the transfer right.
S. 32B(6) inserted by No. 42/2012 s. 5(2).
For the purposes of subsections (4) and (5), section 32V(3) does not apply in determining the consideration under a parallel arrangement.
Note to s. 32B(6) amended by No. 28/2017 s. 5.
Note
Section 32V(3) provides that in certain circumstances consideration is to be adjusted to exclude any amount paid or payable in respect of the construction of a building to be constructed on land on or after the date of the relevant transaction.
S. 32C inserted by No. 36/2005 s. 10.
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