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.
Significant interest
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).
Relevant acquisition
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.
Also consider…
- Find examples of how landholder duty is calculated.
- Learn about exemptions from landholder duty.
- Understand how AFAD applies to landholder duty.
- Read the following rulings and directions:
- Learn about trusts and transfer duty.