Value of certain tax reform scheme land holdings to be excluded from duty assessment
89FA Value of certain tax reform scheme land holdings to be excluded from duty assessment
S. 89FA(1) substituted by No. 50/2024 s. 10(2).
This section applies if—
a relevant acquisition is made in a landholder; and
the land holdings of the landholder are comprised wholly or partly of an interest or estate in tax reform scheme land, other than a lease of a kind referred to in section 7(1)(b)(v) or (va); and
on the date of the relevant acquisition, the tax reform scheme land has a qualifying use.
The unencumbered value of land referred to in subsection (1) is to be excluded from any calculation under section 86 or 87 of the duty chargeable on the relevant acquisition if—
S. 89FA(2)(a) substituted by No. 50/2024 s. 10(3).
a period of at least 3 years has elapsed between the entry date for the tax reform scheme land and the date on which a contract or other agreement or arrangement for the relevant acquisition is entered into; or
the entry interest for the land was a 100% interest; or
the entry interest and any further interest acquired before the relevant acquisition amounts to a 100% interest.
The unencumbered value of land referred to in subsection (1) is to be excluded from any calculation under section 86 or 87 of the duty chargeable on the relevant acquisition to the extent that the interest a person is taken to have obtained in the land under the relevant acquisition is the same or substantially the same as either or both of the following—
the entry interest for the land;
S. 89FA(3)(b) amended by No. 24/2025 s. 12.
any further interest a person is taken to have obtained in the land before the relevant acquisition.
The Commissioner may treat the interest a person is taken to have obtained in land under a relevant acquisition as the same or substantially the same as an interest described in subsection (3) if the Commissioner is satisfied that it is appropriate to do so in the circumstances.
Example
Person A acquires a 50% interest in a landholder under a relevant acquisition which occurs on 1 September 2025. The landholder holds a 100% interest in land. This relevant acquisition amounts to an interest of 50% in the land which is a qualifying interest and the qualifying landholder transaction is an entry transaction. Person B holds the remaining 50% interest in the landholder. On 1 January 2026, Person C acquires a 100% interest in the landholder from Person A and Person B. The value of the land holding of the landholder is to be excluded from the calculation of duty to the extent that the interest acquired by Person C is the same, or substantially the same, as the entry interest for the land (50%). The value of 50% of the land is included for the purposes of assessing duty on the relevant acquisition made by Person C.
In this section, the interest a person is taken to have obtained in land under a relevant acquisition is the interest the person acquires in the landholder under the relevant acquisition, and on which duty would otherwise be chargeable, multiplied by the interest the landholder holds in the land at the time the relevant acquisition is made.
In this section, a further interest in land means an interest that is—
obtained under a qualifying dutiable transaction or a qualifying landholder transaction, other than the relevant entry transaction for the land; and
a different interest to the entry interest for the land and any other further interest obtained in the land.
S. 89FAB inserted by No. 50/2024 s. 11.
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