Connect With Us

Contact us for more information - (07) 3012 9254

Latest News

FTC Carbon Charge Removed! Building & Construction Industry Alert! FY2015 Payroll Tax Rates FY2015 Fuel Tax Credit Rates Fuel Tax Credit Alert - Refund Opportunity FY15 State Budgets Contractor Toolkit

QLD BUDGET 2013 - Stamp Duty Changes

The Fiscal Repair Amendment Bill 2012 has been introduced into Parliament (‘the Bill’).

CLICK HERE TO VIEW A COPY OF THE BILL

CLICK HERE TO VIEW A COPY OF THE EXPLANATORY NOTES

The purpose of the Bill is to amend various Acts, including the Duties Act 2001 (Qld) (‘the Duties Act’), in light of the Queensland budget announcements for 2012/2013.

The key amendments to the Duties Act include:

Each of these key changes is briefly discussed below.

1. Increased Transfer Duty Rates

The maximum rate of transfer duty in Queensland will increase from 5.25% to 5.75%. This means that Queensland will now have the second highest rate in Australia (behind the ACT). The new schedule of rates is below.

Property Value

Rate

Up to $5,000

Nil

$5,001 to $75,000

1.5%

$75,001 to $540,000

$1,050 + 3.5%

$540,001 to $1,000,000

$17,325 + 4.5%

Over $1,000,000

$38,025 + 5.75%

2. Expanded definition of an Entity’s Land-holdings

Clause 5 of the Bill amends section 167(1)(a) of the Duties Act to expand the definition of an entity’s land-holdings to include:

“the entity’s interest in land, and anything fixed to the land that may be separately owned from the land (whether or not the entity has an interest in the thing fixed to the land)…”[emphasis added]

This amendment seeks to expand the concept of land-holdings to include anything fixed to the land (including items that may be chattels at law) even where the landholder does not hold any legal or beneficial interest in that item.

Whilst the amendment may be an anti-avoidance measure, we can foresee a number of anomalous duty outcomes for genuine transactions. Unlike the position in some other States, the Bill does not amend the Duties Act to give the Commissioner of State Revenue a discretion to deal with anomalous duty outcomes created by this amendment [for example, section 89E Duties Act 2000 (Vic) – Duty concession - anomalous duty outcome].

3. Retrospectivity Period for Exploration Authorities

In accordance with previous announcements, duty will retrospectively apply to direct or indirect transfers of exploration authorities.

Broadly speaking, for the period 13 January 2012 to the date of commencement (‘the Retrospectivity Period’), new section 633 will define land:

(a) “to include:

(i) airspace above land and the coastal waters of the State; and

(ii) an exploration authority; but

(b) does not include an exploration permit under the Petroleum (Submerged Lands) Act 1982.”

Clause 8 of the Bill amends Schedule 6 of the Duties Act to define ‘exploration authority’ to mean:

(a) “an authority to prospect under the Petroleum Act 1923 or Petroleum and Gas (Production and Safety) Act 2004;

(b) an exploration permit or prospecting permit under the Mineral Resources Act 1989;

(c) a geothermal exploration permit under the Geothermal Energy Act 2010;

(d) a CHG exploration permit under the Greenhouse Gas Storage Act 2009.”

We note that transitional provisions apply for agreements to directly or indirectly transfer exploration authorities that were entered into prior to 10:30am on 13 January 2012.

To the extent that transfer duty, landholder duty or corporate trustee duty is payable (or is increased) as a result of these retrospective provisions, the relevant instruments and forms/or must be lodged within 30 days of the commencement date of the amending legislation.

Furthermore, new sections 644 and 645 impose obligations on key persons to give notice to the Commissioner of such dealings during the retrospectivity period. Failure to give notice within 30 days after the commencement date is an offence.

4. Resource Authorities

Clause 8 of the Bill amends Schedule 6 of the Duties Act from the date of commencement. In particular, land will be defined:

(a) “to include:

(i) airspace above land and the coastal waters of the State; and

(ii) a resource authority; but

(b) does not include an exploration permit under the Petroleum (Submerged Lands) Act 1982.”

[emphasis added]

‘Resource Authority’ will be defined in Schedule 6 of the Duties Act to mean any of the following:

(a) “a geothermal tenure under the Geothermal Energy Act 2010;

(b) a GHG authority under the Greenhouse Gas Storage Act 2009;

(c) a mining tenement under the Mineral Resources Act 1989;

(d) the following petroleum authorities under the Petroleum and Gas (Production and Safety) Act 2004 —

(i) an authority to prospect;

(ii) a petroleum lease;

(iii) a data acquisition authority;

(iv) a water monitoring authority;

(v) a pipeline licence;

(vi) a petroleum facility licence;

(e) an authority to prospect or lease under the Petroleum Act 1923;

(f) a sublease under the following —

(i) a geothermal coordination arrangement under the Geothermal Energy Act 2010;

(ii) a GHG coordination arrangement under the Greenhouse Gas Storage Act 2009;

(iii) a coordination arrangement under the Petroleum and Gas (Production and Safety) Act 2004.”

5. Farm-in Arrangements

As mentioned in our previous email, it has been announced that arrangements known as “farm-ins” will be exempted from duty to support Queensland’s junior exploration sector. The scope and technical design of the exemption is to be finalised in consultation with industry. Accordingly, the exemption for farm-ins is not contained in the Bill.