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Duties-Form-60

Document last modified: 19 Jun 2017

This application form is to be completed by a unit trust scheme seeking registration as a declared public unit trust scheme for the purposes of the landholder provisions in Part 2 of Chapter 3 of the Duties Act 2000.

Important change

To save your time, this form has been replaced with an online SmartForm

 

Registration criteria and explanatory notes

A private unit trust scheme may be registered as a declared public unit trust scheme if:

a) The Commissioner of State Revenue is satisfied that the scheme should be registered as a declared public unit trust scheme; and

b) Registration is not being sought for the purpose of, or as part of a scheme or arrangement with a collateral purpose of, avoiding or reducing duty that would otherwise be chargeable under Part 2 of Chapter 3 of the Act.

The matters the Commissioner will consider when making a determination as to whether a scheme should be registered as a declared public unit trust scheme include (but are not limited to):

a) Whether the scheme was established for a particular investor or group of investors;
b) Whether units in the scheme were issued to the public/an appreciable section of the public;
c) The degree of ownership and/or control a particular investor or group of investors has/have over the scheme;
d) The total number of unit holders in the scheme and whether units are widely held by persons who are not associated with each other; and
e) Whether the purpose and nature of the scheme is effectively public.

Registration as a declared public unit trust scheme is for a duration of three years from the date specified by the Commissioner. Registration may be backdated to a period before the day on which registration is granted.

A public unit trust scheme is any of the following unit trust schemes – a listed trust, a widely held trust and a registered declared public unit trust scheme – but does not include a unit trust scheme that is, or was at any time, a wholesale unit trust scheme, an imminent wholesale unit trust scheme, a declared wholesale unit trust scheme or eligible for registration as such.

A listed trust is a unit trust scheme all the units of which are listed for quotation on the Australian Stock Exchange, or an equivalent exchange and that is declared by the Commissioner under section 3(4) of the Act to be a listed trust.

A widely held trust is a unit trust scheme:

a) That has not less than 300 registered unit holders; and
b) In which none of the registered unit holders, either individually or together with associated persons, holds or is entitled to more than 20 per cent of the units in the scheme.

A wholesale unit trust scheme is a private unit trust scheme that may be registered as a wholesale unit trust scheme if it meets the following criteria:

a) It was not established for a particular investor; and
b) Either:

i.   Its assets include an interest in not less than three parcels of land (whether in or outside Victoria), and at least two of those interests each have an unencumbered value of $10 million or more; or

ii. At least six unit holders, who are not associated persons, each have a subscription under the trust of not less than $3 million; and

c)Not less than 70 per cent of the units in the scheme are held by qualified investors; and

d) No qualified investor, either alone or together with associated persons, holds 50 per cent or more of the units in the scheme; and

e) Registration is not being sought for the purpose of, or as part of a scheme or arrangement with a collateral purpose of, avoiding or reducing duty that would otherwise be chargeable under Part 2 of Chapter 3 of the Act.

An imminent wholesale unit trust scheme is a private unit trust scheme that may be registered as an imminent wholesale unit trust scheme because:

a) It will meet the criteria for registration as a wholesale unit trust scheme within 12 months after the day on which the first units in the scheme were issued to a qualified investor; and

b) Units issued in the scheme, before it meets the criteria for registration as a wholesale unit trust scheme, have been or will be issued only for the purpose of the scheme meeting the criteria; and

c) Registration is not being sought for the purpose of, or as part of a scheme or arrangement with a collateral purpose of, avoiding or reducing duty that would otherwise be chargeable under Part 2 of Chapter 3 of the Act.

A declared wholesale unit trust scheme is a private unit trust scheme that may be registered as a declared wholesale unit trust scheme if it meets the following criteria:

a) The Commissioner determines that the scheme should be registered as a declared wholesale unit trust scheme; and

b) Registration is not being sought for the purpose of, or as part of a scheme or arrangement with a collateral purpose of, avoiding or reducing duty that would otherwise be chargeable under Part 2 of Chapter 3 of the Act.

An associated person is a person who is associated with another person on the basis of the relationships set out in section 3(1) of the Act.

A qualified investor in a unit trust scheme is a person who holds units in the unit trust scheme in any of the capacities listed in section 89P of the Act.

A disqualifying circumstance is any circumstance that causes a registered unit trust scheme to fail to meet one or more of the registration criteria. If a disqualifying circumstance occurs, the trustee must notify the Commissioner of the details of the disqualifying circumstance within 28 days of its occurrence. If the trustee fails to notify the Commissioner within 28 days, the trustee may be liable for penalties of just over $1000 and double the amount of any duty payable as a result of the disqualifying circumstance (less any amount of duty that the trustee or any other person has paid).