• Nominal Duty Transactions

    Nominal duty of $20 is chargeable on certain transactions.

     

    Transactions resulting from marriage/de facto breakdown

    After the breakdown of a marriage or de facto relationship property is often transferred to one of the parties to the relationship.  For further information refer to:

    How to apply

    Lodge your request for nominal duty with the Commissioner together with the transaction record and the information listed in 7.3 of the Information Requirements.

     

    Deceased estate transactions

    A transaction involving a transfer of dutiable property is chargeable with nominal duty where:

    • the transaction involves the distribution of the estate under a will or on an intestacy of a deceased person; and
    • no consideration is paid for the transfer. 

    For further information refer to Commissioner’s Practice DA 29 'Nominal Duty for Certain Transactions Relating to Deceased Estates'.

    How to apply

    Lodge your request for nominal duty with the Commissioner together with the transaction record and the information listed in 7.2 of the Information Requirements.

     

    Superannuation fund transactions

    A transfer of dutiable property to a superannuation fund, between superannuation funds, or from a superannuation fund to a member of the fund may be chargeable with nominal duty if certain conditions are satisfied. More information is available in Duties Fact Sheet 'Superannuation Transactions'.

    How to apply

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    Transactions related to changes in trustees

    Nominal duty is chargeable on a transfer of dutiable property to a trustee when a trustee retires or a new trustee is appointed.

    How to apply

    Lodge your request for nominal duty with the Commissioner together with the transaction record and the information listed in 2.6 of the Information Requirements.

     

    Discretionary trust transactions

    Nominal duty is chargeable on a transfer of dutiable property to either:

    • a taker in default on the vesting or termination of the discretionary trust if there is no consideration for the transaction;
    • or
    • a beneficiary of a discretionary trust upon exercise of the trustee’s power of appointment if there is no consideration for the transaction; and
    • the beneficiary is an individual who does not intend to hold the property as agent, trustee or on behalf of any other person; and
    • at the time when the trustee acquired the property, the transferee was named or described as a beneficiary or as a member of a class of beneficiaries in the instrument which created the power of appointment for the trustee to appoint the property.

    How to apply

     

    Subdivision of property

    A subdivision occurs when property (some or all of which is dutiable property) that is held by persons jointly (as joint tenants or tenants in common) and beneficially is transferred or agreed to be transferred to one or more of those persons.

    Nominal duty is chargeable on a dutiable transaction that effects a subdivision when property (some or all of which is dutiable property) that is transferred to one of the persons is equal to or less than the value of the person’s entitlement to the property at that time. Duty remains chargeable on any excess entitlement received.

    How to apply

    Lodge your request for nominal duty with the Commissioner together with the transaction record and the information listed in 7.8 of the Information Requirements.

     

    Fishing licence

    Nominal duty is chargeable on a dutiable transaction relating to a business licence held under the Fish Resources Management Act 1994 if the Commissioner is satisfied that the transaction has not passed a beneficial interest in the business licence.

    For further information refer to Commissioner's Practice DA 11 'Dutiable Transactions Involving a Unit Entitlement Under the Fish Resources Management Act 1994'.

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    Other transactions charged with nominal duty

    Winding up of a corporation

    Nominal duty is chargeable on a dutiable transaction that is a transfer of corporation property if the total value of the transaction to the shareholder, when the winding up begins, is equal to or less than the value of the shareholder’s entitlement to the net assets of the corporation at that time.

    A request for nominal duty must be accompanied by the information listed in 7.4 of the Information Requirements.

    Winding up of a unit trust scheme

    Nominal duty is chargeable on a dutiable transaction that is a transfer of unit trust scheme property if the total value of the transaction to the unit holder, when the winding up begins, is equal or less than the value of the unit holder’s entitlement to the net assets held in the unit trust scheme at the time.

    A request for nominal duty must be accompanied by the information listed in 7.5 of the Information Requirements.

    Transactions involving an apparent purchaser

    Nominal duty may be chargeable on –

    • a declaration of trust in which a person (the apparent purchaser) declares they hold identified dutiable property upon trust for another person (the real purchaser); or
    • a transfer of dutiable property from the apparent purchaser to the real purchaser -
    if the Commissioner is satisfied that when the property was first acquired, the real purchaser provided or will provide the purchase money for the property and any improvements made.

    A request for nominal duty must be accompanied by the information listed in 2.5 or 7.6 of the Information Requirements (whichever is applicable).

    Transactions from the trustee to the beneficiary

    Nominal duty is chargeable on a transfer of dutiable property by the trustee of a trust, other than a unit trust scheme or a discretionary trust, to a beneficiary of the trust if:

    • there is no consideration for the transfer or agreement; and
    • the transfer is under and in conformity with the trusts contained in the declaration of trust.

    Transfers to and from a trustee

    Nominal duty is chargeable on a transfer of dutiable property that is -

    • made by a transferor to a trustee (other than a trustee of a unit trust or discretionary trust) to be held solely as trustee for the transferor without any change in the beneficial ownership of the dutiable property; or
    • made by way of re-transfer to the transferor, if no other person has had a beneficial interest in the property between the transfer to the trustee and the re-transfer.
    Further details on how transfers of dutiable property to and from a trustee will be assessed are available in Commissioner’s Practice DA 3 'Transfers of Dutiable Property To and From a Trustee'.

    Change in tenancy

    Nominal duty is chargeable on a transfer that effects a change in the ownership of property from joint tenants to tenants in common or vice versa, if the value of the co-owners’ interests at the time of the transaction is not changed.

    Correction of clerical errors

    Nominal duty may be chargeable on a dutiable transaction to correct a clerical error in a previous dutiable transaction if there is no additional consideration paid/payable and the beneficial interests in the property change only to the extent necessary to correct the error.

    A request for nominal duty must be accompanied by the information listed in 7.12 of the Information Requirements.

    Transfer by way of security

    Nominal duty is chargeable on the transfer of dutiable property if:

    • there has been a previous duty endorsed transfer of the dutiable property by way of security, and
    • the property is transferred back to the person that transferred it by way of security or is transferred to a person to whom the property has been transmitted by death or bankruptcy.

    Transfer of certain lots under a planning scheme

    Nominal duty is chargeable on the transfer of a lot under a planning scheme where it is transferred to in order to carry out or facilitate the carrying out of the scheme.

    Farm-in agreement

    Nominal duty is chargeable on a farm-in agreement if no consideration is paid for the agreement.

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