Particular vestings exemption (s.125) toolkit

Under section 125 of the Duties Act 2001, a transaction that vests dutiable property in a receiver or trustee in bankruptcy is exempt.

Assessing a particular vestings exemption

Use the section 125 interactive help to determine if you should apply this exemption to a transaction. As a registered self assessor, if you determine that this exemption will apply to a transaction, you must self assess it in QRO Online .

See our tips below for self assessing the transaction in QRO Online.

How to lodge online

You must complete all mandatory fields under each tab in QRO Online; mandatory fields are marked with a red asterisk. There are some specific data entry requirements.

• Select the appropriate Transaction class based on the type of land.
• Select Vesting of dutiable property as the Type of dutiable transaction.
• Select Land in Queensland as the Type of dutiable property.
• For a vesting of dutiable property resulting from bankruptcy, enter the party declaring bankruptcy as the transferor, and the appointed trustee as the transferee.
• For a trust, enter the following in the Trust name field:
  • full name of the trust
  • the reason for the vesting of dutiable property; for example
    • Property of John Citizen (a bankrupt)
    • John Citizen (statutory trust for sale)
    • John Citizen (statutory trust for partition).
• Answer Yes to the question: Is the consideration for this transaction less than the unencumbered value of the property included in this transaction?
• Enter the unencumbered value of 100% interest in property if known; if unknown, enter $0.00 (nil).
• Answer Yes to the question: Is an exemption being claimed?
• Select s.125 exemption particular vestings from the Exemption type drop-down list.

Non-Australian entity

A non-Australian transferor or transferee must complete an identity details annexure.

For transferors, an email is automatically generated through QRO Online when the transaction is lodged, asking the transferor to complete an online identity details annexure. Contact us for help if you can’t get the transferor’s email address.

Transferees must complete an identity details annexure, which you must then enter in QRO Online.

Records you need to keep

For this type of transaction you must keep:

• a completed dutiable transaction statement (Form D2.2)
• a copy of the national personal insolvency index
• details of trustee in bankruptcy or discharge from bankruptcy.

If applicable, you should also include a copy of the statutory declaration required for the Department of Resources.

For a transaction involving real property, you must also keep the identity details annexure for each non-Australian transferee.

Also consider…

• Read the data entry standards for QRO Online.
• Get help with QRO Online.
• Read our endorsing examples for how to stamp documents for this exemption.
• View the list of approved transactions for self assessors.
• Find out about other transfer duty exemptions.