Relevant acquisitions in a landholder
You generally make a relevant acquisition and are liable for duty when you acquire:
- a significant interest in a landholder
- an interest that, when combined with other interests held by you or related persons, results in a significant interest.
A ‘landholder’ is defined by section 165 of the Duties Act 2001 as an entity that has land-holdings in Queensland with an unencumbered value of $2 million or more.
You have an interest in a landholder if you have an entitlement as a shareholder or unit holder to a distribution of the landholder’s property either:
- on its winding up, if the landholder is a corporation
- on its termination, if the landholder is a listed unit trust.
A significant interest is an interest of 50% or more in a private landholder (unlisted corporation) or 90% or more in a public landholder (listed corporation or listed unit trust).
You also make a relevant acquisition when:
- you have an existing significant interest in a landholder and your interest increases
- the interest you acquire is aggregated with
- pre-existing interests you hold in the landholder
- interests that a related person acquires or holds in the landholder.
A husband and wife each acquire a 30% interest in a private landholder. As related persons, together they hold a 60% interest in a private landholder, which is a relevant acquisition.
Generally, it is the acquirer who must pay landholder duty imposed on a relevant acquisition.
Lodging relevant acquisitions for assessment
You must complete and lodge a landholder duty statement (Form D3.3) with Queensland Revenue Office within 30 days of making a relevant acquisition.
This form must be lodged with:
- a covering letter listing the documents that you are lodging
- the contract or share transfer agreement
- a valuation of the land-holdings and fixtures in Queensland of the landholder company and its subsidiaries.
We may also need the following documents; if you supply these at the same time, it may lead to a faster decision:
- any valuations obtained to prepare the transaction (e.g. from a due diligence process)
- the most recent company financial statements and fixed assets register.
After you have lodged the documents, we will either issue a notice of assessment or ask you for more information.
Once we issue an assessment, you must pay the amount owing on or before the due date stated in the notice.
- Find examples of how landholder duty is calculated.
- Learn about exemptions from landholder duty.
- Understand how AFAD applies to landholder duty.
- Read the following public rulings:
- Learn about trusts and transfer duty.