Application of Division to subdivided tax reform scheme land
69AQC Application of Division to subdivided tax reform scheme land
For the purposes of this Division, if tax reform scheme land is a lot (a child lot) in a registered plan of subdivision of tax reform scheme land (the parent lot)—
the child lot is taken to have an entry interest of the same quantum as the entry interest for the parent lot; and
if a further interest was acquired in the parent lot, the child lot is taken to have been the subject of the acquisition of a further interest of the same quantum as the further interest in the parent lot; and
the entry interest and any further interest in the child lot is taken—
to have been subject to the same duty consequences as the entry interest or further interest in the parent lot; and
to otherwise have the same characteristics, as far as practicable, as the entry interest or further interest in the parent lot.
In this section—
further interest has the same meaning as in section 69AP;
lot has the meaning given by section 3(1) of the Subdivision Act 1988.
Examples
1. Person A acquires a 100% interest in land under a transfer of land. This is a qualifying interest in the land and the dutiable transaction is an entry transaction. Person A registers a plan of subdivision to subdivide the land (the parent lot) into 4 lots (the child lots). Person B acquires the child lots under 4 transfers of land. No duty is chargeable on these tax reform scheme transactions under section 69AP on the basis that the entry interest for each child lot is taken to be a 100% interest.
2. Person A acquires a 50% interest in land under a transfer of land which occurs on 1 January 2026. This is a qualifying interest in the land and the dutiable transaction is an entry transaction. Person B is the beneficial owner of the remaining 50% interest in the land. Person A and Person B register a plan of subdivision to subdivide the land (the parent lot) into 2 lots (the child lots). On 1 July 2027, Person C purchases a 50% interest in each child lot from Person B. Duty is chargeable on these tax reform scheme transactions as the entry interest for each child lot is taken to have the same quantum (50%), characteristics (acquired by Person A) and duty consequences as the entry interest for the parent lot, and the interest acquired by Person C is not the same, nor substantially the same, as the entry interest for each child lot.
S. 69AR inserted by No. 16/2024 s. 37.
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