Duties Act 2000

The Commissioner must determine if duty or additional duty is payable on a relevant acquisition, and assess an acquisition statement lodged under Division 2 in respect of the relevant acquisition, if—

when the relevant acquisition was made, the land holdings of the landholder included—

an interest or estate in tax reform scheme land, including a lease of a kind referred to in section 7(1)(b)(v) or (va) over tax reform scheme land; or

an interest in dutiable property referred to in section 10(1)(ad) located on tax reform scheme land; or

an interest in tax reform scheme land that is taken to be beneficially owned under section 32XD; and

the value or part of the value of the land holdings referred to in paragraph (a) was excluded under section 89FA or 89FAB from the calculation of duty payable on the relevant acquisition; and

after the relevant acquisition was made, the tax reform scheme land has a change of use; and

as a result of the change of use, the tax reform scheme land no longer has a qualifying use; and

at the time of the change of use, the land holdings of the landholder include the land holding referred to in paragraph (a)(i), (ii) or (iii) (as the case requires); and

at the time of the change of use, the person who made the relevant acquisition continues to hold an interest in the landholder.

Duty is payable on the relevant acquisition to the extent that the interest that a person is taken to have obtained in land under the relevant acquisition is the same as the interest the person is taken to hold in the land at the time of the change of use.

For the purposes of subsection (2)—

the interest a person is taken to have obtained in land under a relevant acquisition is determined in accordance with section 89FA(5); and

the interest a person is taken to hold in land at the time of the change of use is the interest the person holds in the landholder multiplied by the interest the landholder holds in the land at that time.

The amount of duty calculated under subsection (1) is to be reduced by 10% for each calendar year that has elapsed since the date of the relevant acquisition that is being assessed for duty.

A liability for duty imposed under this section arises on the date of the change of use.