Rules for duty when you lease, transfer or surrender land.
Key information
Duty applies when a lease is granted, transferred or assigned and consideration other than rent is paid for:
- the lease; or
- other rights or options in relation to the land such as rights or options to purchase or obtain a transfer of the land.
It can apply to residential and commercial leases including agreements for lease, subleases or concurrent leases.
Duty is also payable if a dutiable lease of the above kind is surrendered to you, with or without consideration.
Consideration is anything provided to move the grant, transfer or assignment of the lease. It can be monetary or non-monetary, but does not include rent reserved. Rent reserved is the rent paid or payable during the term of the lease and any amount paid or payable for the right to use the land under the lease.
Duty can apply to leases for sites in caravan parks, alpine resorts, golf resorts and lifestyle villages.
Duty generally does not apply to:
- retail leases under the Retail Leases Act 2003 (RLA) as the RLA prohibits the payment of a premium over and above the rent payable
- the transfer or assignment of a standard commercial lease as part of the sale of the business on the leased premises if only nominal consideration is provided for the lease for enforceability purposes
- licences without exclusive possession of the land.
You can find out more information on the types of leases that are dutiable and the meaning of consideration and rent reserved in Revenue Ruling DA-052v2, Revenue Ruling DA-053 and Revenue Ruling DA-050.
If you are not sure whether duty applies to your circumstances, you can request a private ruling.
Rates and calculations
Duty is payable at the land transfer (stamp) duty rates. It is payable on the higher of:
- the consideration, other than rent reserved, that is paid or agreed to be paid for the grant, transfer or assignment of the relevant lease
- the unencumbered value of the land that is the subject of the lease.
The calculator does not factor in exemptions or concessions that may apply.
Exemptions and concessions
Certain exemptions and concessions are available, including exemptions/concessions for:
- a lease of a site in a caravan park used as a principal place of residence
- a lease of a unit in a retirement village
- the transfer of the leased land to the lessee where duty was paid on the lease
- a lease of tax reform scheme land.
You can find more information on these and other exemptions and concessions in Revenue Ruling DA-052v2.
Lodge and pay
You must pay duty within 30 days of the date of the grant, transfer, assignment or surrender of the lease.
It is not enough to lodge the documents within that timeframe. You must also pay the duty. If you do not pay on time, you may have to pay penalty tax and interest.
Follow the instructions for how to lodge and pay. Do not lodge via the Duties Online portal.
