Interests and acquisitions
Prior 1 July 2012, if you acquired an interest, such as shares or units, in a company or unit trust scheme that is a land rich landholder, you may be liable for land rich duty.
From 1 July 2012, the landholder provisions apply.
The following information outlines the operation of the land rich duty provisions in respect of acquisitions of interests in land rich landholders that occurred prior to 1 July 2012. All references to the Duties Act 2000 are to the Act in force prior to 1 July 2012.
An interest in a landholder is an entitlement by a person (other than as a creditor or other person to whom the landholder is liable), whether directly or through another person, to a distribution of property from the landholder on a winding up of the landholder.
A person may acquire an interest in a landholder by any means, including the purchase, gift, allotment or issue of a unit or share, the cancellation, redemption or surrender of a unit or share, the abrogation or alteration of rights pertaining to a unit or share and a change in the beneficial ownership of a unit or share. A liability to duty arises if a person makes a relevant acquisition in a land rich landholder.
To remove doubt, the land rich provisions declare that it is not necessary to have a transfer of units or shares for a person to acquire an interest in a land rich landholder.
Please refer to ss.76 and 77 of the Duties Act 2000.