Changes to the new regime have now been introduced by the
State Revenue Legislation Further Amendment Bill (No 2)
2009, which at the time of writing has been passed by the NSW
parliament and only awaits assent.
The changes will mostly take effect from 1 December 2009.
A brief summary is set out below:
Value of landholdings
Landholder duty applies to acquisitions of significant interests
in landholders which hold NSW land with a "value" of $2
million or more.
Under the existing provisions, value for these purposes is the
market value disregarding any encumbrance to which the property is
Under the changes, where the landholding is a fee simple or
interest in a fee simple, the value will be that appearing in the
NSW Register of Land Values as at 1 July the previous year.
However, for the purposes of determining the liability to
landholder duty, the value of the NSW landholdings remains the
Under the existing provisions, a person who holds interests in a
landholder as trustee for 2 or more trusts may be required to
aggregate those interests when determining whether there has been
an acquisition that triggers liability to landholder duty.
Under the changes, such trustees will be treated as a separate
person in regards to each trust.
Also, where an interest is held in a landholder through a bare
trust, it is now the ultimate beneficial owner and not the trustee
who will be liable for the payment of any landholder duty
Creditors of landholders
Under the existing provisions, creditors of landholders are not
considered to have an interest in the landholder.
Under the changes, only creditor interests which qualify as debt
under the income tax debt/equity rules (in Division 974 of the
Income Tax Assessment Act 1997 (Cth)) will be disregarded.
This means that equity-like debt may constitute an interest in a
Agreements for sale
Under the proposed changes, purchasers under an agreement for
the sale or issue of shares or units in a landholder will be
treated as having acquired the relevant interest in the landholder
12 months after the date the agreement is first executed, if it has
not been completed before then.
This is an anti-avoidance measure to prevent taxpayers avoiding
duty by relying on "terms contracts" and other types of
contracts which delay completion indefinitely.
Mining interests in land
Under the proposed changes, mining leases and mining claims are
to be regarded as an interest in land.
The amendments clarify that various other rights including (but
not limited to) an assessment lease, exploration licence, a carbon
sequestration right and a petroleum title are specifically excluded
from being an interest in land.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Many retail leases include a covenant to trade, requiring the tenant to open the premises for trade during certain hours.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).