• 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

     

    Partitions and subdivisions of property

    A partition 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 partition 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.

    Nominal duty is chargeable on a transaction entered into to facilitate a subdivision. The Commissioner must be satisfied that the transfer is for the sole purpose of facilitating a subdivision of the land and the transferor will receive the same piece of land back after the subdivision. Duty is charged on any land retained or received by a person after the subdivision that they did not originally contribute.

    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
    (section 29)

    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 Duties Information Requirements.

    Winding up of a unit trust scheme
    (section 29)

    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 Duties Information Requirements.

    Transactions involving an apparent purchaser
    (section 117)

    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 Duties Information Requirements (whichever is applicable).

    Transactions from the trustee to the beneficiary
    (section 116)

    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
    (section 118)

    Nominal duty may be chargeable on transfers of dutiable property to and from a bare trustee upon the re-transfer of the dutiable property from the bare trustee to a person.

    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
    (section 137)

    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
    (section 138)

    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 Duties Information Requirements.

    Transfer by way of security
    (section 120)

    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
    (section 134)

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

    Certain transactions under the Guardianship and Administration Act 1990
    (section 139A)

    Nominal duty is chargeable on a dutiable transaction that is:

    • a transfer to an administrator of dutiable property of a represented person made under the authority of an administration order under the Guardianship and Administration Act; or
    • a vesting in an administrator of dutiable property of a represented person by, or as a consequence of, an order of the State Administrative Tribunal under the Guardianship and Administration Act.

    A request for nominal duty must be accompanied by the information listed in 7.17 of the Duties Information Requirements.

    Farm-in agreement
    (section 135)

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

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