In brief - Use of land for educational purposes may exempt the
purchaser from stamp duty
If a school or college purchases land and intends to use the
whole or part of that land for educational purposes, there are
provisions under the
Duties Act 1997 which may exempt the purchaser from stamp
duty on the transfer and mortgage.
Approval by Chief Commissioner of State Revenue required
You may have a similar instance where an organisation with a
broader purpose purchases land to be used for a school, but the
organisation has many other objectives apart from educational
purposes. In this case there may be an exemption available under
section 275(3)(b) of the Act.
The organisation can apply for an exemption. The Chief
Commissioner must be of the opinion that the institution or
organisation is of a charitable or benevolent nature and the
dutiable transaction is for such purposes as the Chief Commissioner
may approve in accordance with the guidelines approved by the
Treasurer. The organisation may also be acting as trustee for a
body corporate, society or institution.
Utilisation of property key to obtaining approval
The purchasing body must satisfy the Chief Commissioner as to
the use of that property. For example, a house with acreage in a
residential area may be bought for the purpose of being used in
conjunction with a school for which that organisation is purchasing
the land. There may be a residence, tennis court or swimming pool
on the land. The intention of buying the property is to use the
tennis court for the students.
Pursuant to section 275A of the Act, if the Chief Commissioner
is satisfied that the land is to be used by the purchasing
organisation for an exempt purpose, ie for the promotion of
education in Australia, then the dutiable value of the land is
reduced by the portion of the value which corresponds to the
portion of land used for an exempt purpose. An assessment for
exemption may be made on the basis of the value of the proportion
of the land which is taken up by the tennis court.
The Sportscraft refunds and returns policy limitations went beyond consumer's rights under the Australian Consumer Law.
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