The Office of State Revenue has released details of the Queensland landholder duty model which is proposed to apply to companies (unlisted and listed) and listed trusts from 1 July 2011.
As mentioned in our previous article ‘Queensland to adopt landholder model from 1 July 2011’,1 the existing Queensland land rich duty provisions will be replaced with a landholder duty model from 1 July 2011. It is expected that the Bill to implement the changes will be introduced on or after 14 June 2011. Details below are from the Queensland Office of State Revenue’s public announcement.
Under the new landholder duty regime:
- A company (listed or unlisted) or a listed trust with Queensland landholdings of $2 million or more will be a landholder.
- Landholder duty will be chargeable if a person acquires an interest of 50% or more in an unlisted company that is a landholder. The rate of duty is up to 5.25%, calculated by reference to the Queensland landholdings of the landholder.
- Landholder duty will be chargeable if a person acquires an interest of 90% or more in a listed company or a listed trust that is a landholder. The amount of duty payable is 10% of the duty otherwise payable (ie, duty is charged at an effective rate of 0.525% of the landholder’s Queensland landholdings).
- Broad aggregation rules apply to determine whether a person acquires an interest of 50% or more, or 90% or more. Additional rules also apply to determine what counts as landholdings.
The landholder model will apply to an acquisition in a landholder that completes on or after 1 July 2011 (even if it occurs pursuant to an agreement entered into before 1 July). However, if duty is payable, certain interests acquired before 1 July 2011 may be excluded.
No change will be made to the imposition of duty on transactions in unlisted trusts. That is, for private unit trusts with Queensland dutiable property, any acquisition in the trust will remain dutiable under existing trust acquisition duty provisions.