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Sub-sale provisions

A subsequent transaction (sub-sale) occurs when a vendor enters into an agreement with the first purchaser, but transfers the property to a subsequent purchaser who obtains the right to take a transfer of the property (transfer right).

If the transfer right is acquired from the first purchaser, any amount paid that exceeds the consideration under the agreement is additional consideration. However, a payment made to the first purchaser to reimburse a deposit paid to the vendor is not regarded as additional consideration.

A sub-sale occurs when the subsequent purchaser (or an associate) pays additional consideration (monetary or otherwise) to the first purchaser (or an associate) for the transfer right. A sub-sale also occurs where a second subsequent purchaser pays additional consideration for the transfer right.

Dutiable value

Dutiable value of the first transaction is:

the greater of the consideration under the agreement; and
the unencumbered value of the property transferred, as at the date the agreement was entered into.

Dutiable value of any sub-sale is the greater of:

the consideration for the subsequent transaction; and
the unencumbered value of the property transferred, as at the date the agreement was entered into.

Duty liability

First transaction - for the first transaction (as if the agreement had been completed), the first purchaser is the liable party; for any subsequent transactions that are sub-sales, the respective subsequent purchaser is the liable party.

Subsequent purchaser - if the transferee (subsequent purchaser) elects to pay all of the duty liable to enable registration of the transfer to occur, the Duties Act 2001 allows the transferee to recover from the liable party that portion of the duty paid for which they are not liable to pay.

Evidence requirements

Section 36I of the Duties Act 2001 requires that a statutory declaration must be provided if a subsequent transaction has occurred. That is, where dutiable property (or any part of the property) under an agreement is transferred to a person who is not the first purchaser.

Each transferee not named on the agreement, must provide a:

Subsequent transactions including sub-sales statutory declaration to be used to determine whether a sub-sale has occurred.

The transferee must disclose in the declaration whether any additional consideration has been paid to the first purchaser (or to another subsequent purchaser) in order to receive the transfer right.

How to lodge

To submit by mail, you will need:

Completed forms, including;

Duty Lodgement Sheet; and
Duty Transferor Information Form for each transferor on the transfer instrument; and
Duty Transferee Information Form for each transferee on the transfer instrument; and
Transaction Information Form
or
Transferee transaction certificate

Original fully executed Transfer instrument
A copy of the agreement for sale (if applicable)
A completed Subsequent transaction including sub-sales statutory declaration

To submit via Tasmanian Revenue Online, you will need:

A copy of the original Transfer instrument
A copy of the agreement for sale (if applicable)
A copy of the completed Subsequent transaction including sub-sales statutory declaration

Self assessed subsequent transactions

Subsequent transactions can only be self-assessed on Tasmanian Revenue Online (TRO) if a sub-sale has not occurred.

Where no additional consideration has been paid by a subsequent Purchaser/transferee to the first purchaser (or to any other subsequent purchaser), then a sub-sale has not occurred. The transfer can be self-assessed on TRO in the usual manner.

A completed Subsequent transactions including sub-sales statutory declaration must be retained as part of the TRO evidence requirements.

Additional information

For additional information, refer to:

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