Transfer of lease toolkit

This toolkit brings together everything you need to know about self assessing duty on the transfer of a lease.

A lease is an interest in land, therefore any transfer of lease will be dutiable as a transfer of land. If you are a registered self assessor and are dealing with a transfer of lease, you must self assess it in QRO Online.

Calculating transfer duty on a transfer of lease is done the same way as any other land interest transfer—the rate of duty will apply to the higher of the consideration (including GST, if applicable) paid for the transfer or the lease’s unencumbered value.

An exemption may apply in certain cases.

Assessing a transfer of lease

A transfer of lease is usually pursuant to a business contract, so you can stamp it as you would any other pursuant transfer. Find out about endorsing transactions as a self assessor.

If the transfer is not pursuant to a business contract, you will need to treat it as the primary document for the transaction and assess it in QRO Online.

Here are some tips to help you self assess this type of transaction in QRO Online.

How to lodge online

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

• Select Transfer of non-residential land as the Transaction class. You cannot claim a home, first home or first home vacant land concession on non-residential land transactions. If the property is part non-residential and part residential (and a concession is being claimed), you must use the transaction class Transfer of residential land.
• In the Type of dutiable transaction drop-down list, select either:
  • Agreement to transfer dutiable property—for transactions evidenced by an agreement
  • Transfer of dutiable property—for transactions evidenced by a transfer only.
• Select Land in Queensland as the Type of dutiable property.
• Evidence of value is generally not required for transfers of leases where there is nominal consideration.

Records you need to keep

For this type of transaction, you must keep a completed dutiable transaction statement (Form D2.2).

Find out more about your record-keeping obligations.

Section 146 exemption

Section 146 of the Duties Act 2001 provides an exemption for the acquisition of a new right that is the lease of a dwelling (e.g. in a retirement village) or a site agreement.

Exemptions under section 146 cannot be self assessed. If you believe this exemption applies to a transaction, you must lodge the documents, including a cover letter and dutiable transaction statement (Form D2.2), with Queensland Revenue Office for assessment.

Find out more about lodging documents for assessment.

Also consider…

• Read the data entry standards for QRO Online.
• Read the public ruling on dutiable transactions subject to GST (DA011.1).
• Use the transfer duty calculator to work out a transfer duty liability.
• Learn about self assessing a surrender of lease.
• Get help with QRO Online.
• View the list of approved transactions for self assessors.