Re-design of Tasmanian Revenue Online for Duty transactions and Land Tax Search
Tasmanian Revenue Online for Duty Transactions/Land Tax Search is being re-designed to improve its online functionality and to accommodate third party reporting required by the Commonwealth.
The proposed ‘new’ system builds on the same TRO platform now in use for Payroll Tax and Insurance Duty, which was successfully released in May 2016.
Please read this factsheet about the expected new functionality.
Introduction of a landholder model and exemptions for corporate reconstruction and consolidation transactions
Duties Act 2001
New Landholder provisions
From 6 December 2016, a new landholder model has replaced the former land rich provisions in Chapter 3 of the Duties Act 2001. ‘Land rich’ had charged duty on indirect acquisitions of land via the ownership of a majority interest in private companies and private unit trust schemes but that duty is now charged under the now expanded landholder model.
The key features of the new landholder model include the extension of the provisions to public companies and public unit trust schemes, and the abolition of the land threshold test (which required a comparison of the entity’s land holdings to its other assets in order to determine if the entity was land rich). All companies and unit trust schemes now constitute landholders where the unencumbered value of their landholdings (including the landholdings of any linked entities) is $500 000 or more. The acquisition of a significant interest in such an entity results in a duty liability being incurred.
For a detailed summary of the new landholder provisions, please refer to the Introduction to Landholder Provisions Guideline.
The new landholder model is accompanied by duty exemptions for property transfers and relevant acquisitions in landholders that occur as a consequence of a genuine:
i) corporate consolidation; or
ii) corporate reconstruction.
For a detailed summary of these provisions, please refer to the Corporate Reconstruction and Consolidation Transaction Exemption Provisions Guideline.
For the landholder and corporate reconstruction/consolidation webpage, go here.
2016-17 fees for Land Tax Search and Duties Administration
The fee for issuing a Land Tax Search certificate will increase from $11.33 to $11.47 from 1 July 2016.
The SRO’s Duties Administration Fee for processing optional Duties Instruments will rise from $37.75 to $38.25 from 1 July 2016.
The fee increases at 1 July each year in accordance with the CPI adjustment factor provided for under Section 5 of the Fee Units Act 1997.
Retrospective exemption from duty on certain statutory vesting transactions
The Taxation and Related Legislation (Miscellaneous Amendments) Act 2016 introduced a retrospective exemption from duty (effective 1 July 2001) for certain statutory vesting transactions, including where dutiable property vests as the consequence of the registration or cancellation of a strata plan under the Strata Titles Act 1998.
If you have paid duty as a consequence of the vesting of dutiable property upon the registration or cancellation of a strata plan, you may be entitled to a refund of duty. If you consider you may be entitled to a refund, please email email@example.com and attach a copy of the stamped instrument(s) upon which duty was paid.
10 November 2016
Increase to the First Home Owner Grant - Tasmania
The Tasmanian Government has announced that, as part of the 2016-17 State Budget, the existing $10 000 First Home Owner Grant will be temporarily increased to $20 000 for applicants who comply with additional building criteria.
The increased $20 000 payment is available for eligible transactions entered into on or after 1 January 2016 but before 1 July 2017 for the purchase or construction of a new home. Please note that, for eligible transactions entered between 1 January 2016 and 30 June 2016, the increased grant is paid partly by way of an administrative arrangement.
For eligible transactions entered from 1 July 2017 onwards (or for eligible transactions that do not meet the requirements for the increased grant), the grant amount is $10 000.
The existing eligibility requirements for receiving the First Home Owner Grant will apply to applicants for the increased grant.
Eligible transactions are as follows:
- a comprehensive home building contract for a new home;
- the building of a new home by an owner builder (which includes the relocation of a new moveable building);
- an off-the-plan purchase of a new home; or
- the purchase of a new home (for example, a spec. home).
Where the eligible transaction relates to the construction of a new home, the eligible transaction must be completed (ie. the home must be built) within 24 months of entry into the eligible transaction (eg. within 24 months of entering the building contract or, in the case of an owner builder, within 24 months of commencing the laying of foundations for the home).
For detailed information about the revised First Home Owner Grant and how it applies to eligible transactions, please read the Guideline - First Home Owner Grant.
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