Definition of terms—Duties

A

B

Business assets

Business assets can be any of the following:

• goodwill
• a statutory business licence
• a right to use a statutory business licence
• a business name
• a right under a franchise arrangement
• a debt of a business if the debtor lives in Queensland
• a supply right of a business
• intellectual property
• personal property in Queensland (e.g. trading stock).

A full definition can be found in section 35 of the Act.

C

Complying superannuation fund

A complying superannuation fund is one that complies under section 42 or 42A of the Superannuation Industry (Supervision Act) 1993 (Cwlth) or an exempt public sector superannuation scheme under the Superannuation Industry (Supervision) Act.

A full definition can be found in Schedule 6 of the Act

Concession

In certain circumstances, a concession reduces the amount of duty you must pay on a dutiable transaction. Transfer duty concessions are available to first home buyers and buyers of first home vacant land. Concessions also exist for certain family business transfers, superannuation and certain investment schemes.

See Chapter 2—Parts 9, 10, 11 and 12 of the Act for more information.

Consideration

Consideration is generally the Australian dollar value paid for property in property transfers.

A full definition can be found in section 12 of the Act.

Corporate reconstruction

A corporate reconstruction occurs when the property of a corporation (or group of companies) is transferred within the corporation (or group) to make an adjustment to the corporate structure. A corporate reconstruction generally results in an exemption from duty on what would usually be considered a dutiable transaction.

See Chapter 10, Part 1 of the Act for more information.

D

De facto relationship instrument

A de facto relationship instrument is any of the following instruments to the extent it deals with de facto relationship property:

• a recognised agreement under the Property Law Act 1974, section 266
• an order of a court under the Property Law Act, Part 19
• an instrument made under a recognised agreement under the Property Law Act,  section 266
• an instrument made under an order of a court under the Property Law Act, Part 19.

A full definition can be found in section 422 of the Act.

De facto relationship property

De facto relationship property is property of the de facto partners of a de facto relationship or of either of them.

A full definition can be found in section 423 of the Act.

Demonstrator

A demonstrator is a new vehicle used solely or mainly to sell another new vehicle of the same type.

Dutiable property

Dutiable property is property that is involved in a dutiable transaction in Queensland. When dutiable property is bought or sold you are likely to pay duty under the Act. It can be any of the following:

• land in Queensland
• a transferable site area
• an existing right
• a Queensland business asset
• a chattel in Queensland.

This list of property types can be found in section 10 of the Act.

Dutiable transaction

A dutiable transaction is a transaction that you enter into in Queensland where you are likely to pay duty under the Act. It can be any of the following:

• transfer of dutiable property
• an agreement for the transfer of dutiable property
• a surrender of dutiable property in Queensland or a transferable site area
• a vesting under an act, Commonwealth Act or court order of dutiable property
• a foreclosure of a mortgage over dutiable property
• an acquisition of a new right on its creation, grant or issue
• a partnership acquisition
• the creation or termination of a trust of dutiable property
• a trust acquisition or trust surrender.

This list of transaction types can be found in section 9 of the Act.

E

Eligible

Eligible means that you meet certain requirements, usually in relation to concessions or exemptions.

Encumbrance

An encumbrance means anything that affects or limits title of a property, or potentially the value of the title—such as a mortgage, lease or easement. For example, a mortgage affects a property's title by making it security for repayment of the loan.

Exemption

In certain circumstances, you may be eligible for an exemption in paying duty on a dutiable transaction. If you qualify for an exemption, generally, you will not have to pay any duty.

See Chapter 2—Part 13, Chapter 8—Part 7, Chapter 9—Part 4, and Chapter 10 of the Act for more information.

Ex gratia relief

If a taxpayer believes that a revenue law is applied differently to the way intended, in an unreasonable manner or in conflict with government policy, they can lodge an application for ex gratia relief. The decision to provide ex gratia relief is made on a case-by-case basis by the Under Treasurer.

More information about ex gratia relief

F

Family business

A family business is a business where one or more members of one or more families have a significant ownership interest and significant commitments in a business.

See Chapter 2, Part 10 of the Act for more information.

G

General insurer

A general insurer is a person who writes general insurance, whether or not the person is authorised under the Insurance Act 1973 (Cwlth) to carry on an insurance business.

Note: An insurance intermediary is not a general insurer.

H

I

Indigenous land use agreement

An indigenous land use agreement means an indigenous land use agreement registered on the register of indigenous land use agreements under the Native Title Act 1993 (Cwlth), part 8.

Insurance premium

An insurance premium is the total amount of money paid to an insurer by, or for, the insured person for a certain level of insurance cover for a specified period of time. An insurance premium does not include deductions for any amounts paid or payable, allowed or allowable, by way of commission or discount to an insurance intermediary.

Instrument

An instrument is a written document in hard copy form.

This definition can be found in Schedule 6 of the Act.

Interest in land

For the purposes of the Duties Act 2001, land includes an interest in land, airspace above land and Queensland coastal waters.  Under the Acts Interpretation Act 1954, ‘interest’ in relation to land or other property means—

(a) a legal or equitable estate in the land or other property; or

(b) a right, power or privilege over, or in relation to, the land or other property.

For the purposes of the Duties Act 2001, the following do not give rise to an interest in land:

(a) an exploration or prospecting permit under the Mineral Resources Act 1989;

(b) an authority to prospect under the Petroleum Act 1923 or the Petroleum and Gas (Production and Safety) Act 2004; or

(c) an exploration permit under the Petroleum (Submerged Lands) Act 1982.

J

K

L

Landholder

A landholder is a listed unit trust, an unlisted corporation or a listed corporation that has land holdings in Queensland with an unencumbered value of $2 millon or more.

Land-holding

A land-holding includes:

• an interest in land and anything fixed to the land that may be separately owned from the land (except for a security interest or an interest in a trust)
• rights held by the entity that
  • relate to or affect the use of the entity's land and other land
  • enhance the value of the land
• an interest in land, and anything fixed to the land, that is the subject of a purchase agreement or sale agreement made by the entity.

The land-holdings of a listed unit trust, unlisted corporation or listed corporation include the land-holdings and other property held by a subsidiary of the listed unit trust or company.

A full definition can be found in section 167 of the Act.

Legal disability

Legal disability means the lack of capability to perform an act that includes the ability to manage or administer financial affairs as determined by a court. If a person is of a legal disability, a guardian usually oversees their financial affairs.

Life insurer

A life insurer is a person who writes life insurance, whether or not the person is authorised under the Insurance Act 1973 (Cwlth) to carry on an insurance business.

Note: An insurance intermediary is not a life insurer.

Listed unit trust

A listed unit trust means a unit trust whose units are quoted on the market operated by the Australian Securities Exchange or another recognised exchange named in the Duties Regulation 2002.

Listed corporation

A listed corporation means a corporation whose shares are quoted on the market operated by the Australian Securities Exchange or another recognised exchange named in the Duties Regulation 2002.

M

Management rights

Management rights generally relate to the business of on-site caretaking and letting of unit or townhouse complexes.

Management rights are not dutiable on initial their initial grant, but are on transfer or reassignment.

See Schedule 6 of the Act for more information on existing rights.

Matrimonial instrument

A matrimonial instrument is either an:

• agreement registered or approved under the Family Law Act 1975 (Cwlth)
• order of a court under the Family Law Act
• instrument made under an agreement registered or approved under the Family Law Act
• instrument made under an order of a court under the Family Law Act
• instrument made after the start of a proceeding for the dissolution or annulment of a marriage.

It serves to transfer property owned by 1 party to a marriage, to the other (only).

A full definition can be found in section 420 of the Act.

Matrimonial property

Matrimonial property is property of the parties to a marriage (or of either of them) that is:

• residential land, the residence on which is the principal residence of the party to whom it is to be (or is being) transferred
• a vehicle for use for private purposes by the party to whom it is to be (or is being) transferred.

A full definition can be found in section 421 of the Act.

N

Notifiable event

A notifiable event is an event that prevents you from fulfilling the conditions of a concession for residential or vacant land. Notifiable events include: within 1 year, selling or renting any part of the property you claimed a concession for; or, not moving into the residence within 1 year.

A full definition can be found in section 155(3) of the Act.

O

Optional equipment

Optional equipment, for a vehicle as defined for chapter 9 of the Act, means equipment and features that:

• are not included in the vehicle's list price

and

• are fitted to the vehicle or otherwise provided with the vehicle when the purchaser takes possession of it.

P

Partnership

A partnership is a type of business in which people share with each other the profits or losses of the business in which they have invested.

See Chapter 2, Part 7 of the Act for more information.

Prescribed business

A prescribed business is a business involving solely an activity prescribed under a regulation. See the full list.

A full definition can be found in Schedule 6 of the Act.

Principal place of residence

Generally, a residence is your principal place of residence if you live in it (with your personal belongings) on a daily basis. Other factors may be used to determine whether a residence is your principal place of residence, such as:

• where your family lives
• the extent of time you live in the residence
• the address you have your mail delivered to
• whether utilities (e.g. electricity, gas and telephone) are connected to the dwelling and the account(s) are in your name
• if the address of the residence is recorded against your name on electoral rolls.

A full definition can be found in Public Ruling DA085.1—Concession for first homes—occupancy requirements.

Private landholder

A landholder is a private landholder if the landholder is an unlisted corporation.

Public landholder

A landholder is a public landholder if the landholder is a listed unit trust or a listed corporation.

Q

Qualifying exempt purpose

Property of a charitable institution will be exempt if it is used to:

• conduct religious or educational activities (including kindergartens and preschools)
• care for the sick, aged, infirm, afflicted or incorrigible persons
• relieve poverty
• provide full-time care for children by protecting their wellbeing and giving them food, clothing and shelter
• conduct another charitable or public benevolent purpose
• provide residence to a minister or members of a religious order conducting a previously listed activity.
  
  

Note: Property that forms part of an employment or salary package for an employee of an exempt institution is not exempt from duty.

A full definition can be found in section 415 of the Act.

R

Real property

Real property is generally concerned with the law relating to interests in land and buildings on the land. Real property is property that can be registered with the Department of Environment and Resource Management.

Related persons

Entity	Related persons if:
2 individuals	They are family members.
2 corporations	They are related bodies corporate—i.e. one of the corporations is a subsidiary, holding company or subsidiary of a holding company of the other corporation.
An individual and corporation	The individual or a family member is a majority shareholder, director or secretary of the corporation. The individual or a family member is a majority shareholder, director or secretary of the corporation's related body corporate (such as a holding company or a subsidiary). The individual or family member holds a majority interest in the corporation or related body corporate.
Individual and trustee	The individual is a beneficiary of the trust. A related person of the individual—i.e. a family member or family company—is a beneficiary of the trust.
Corporation and trustee	The corporation is a beneficiary of the trust. A related person of the corporation is a beneficiary of the trust.
2 trustees	A person is a beneficiary of both trusts. A person is a beneficiary of one trust and a related person is the beneficiary of the other trust.

 

A person is a related person of another person if the persons acquire interests in a landholder and the acquisitions form, evidence, give effect to or arise from what is substantially 1 arrangement.

Relevant acquisition

For landholder duty, a person makes a relevant acquisition if, through one or more transactions, they (and, in some cases, persons related to them) acquire either:

1. a significant interest in a landholder
2. an interest that, when aggregated with interests held or acquired by the person and related persons, results in significant interest in a landholder


or


3. a further interest in a landholder, if the person or related persons already hold a significant interest in a landholder and landholder duty was imposed on the acquisition of that interest.

A significant interest is an interest of 50% or more in a private landholder or an interest of 90% or more in a public landholder.

Residence

A residence is a building, or part of a building in Queensland that is:

1. fixed to land
2. designed, or approved by a local government, for human habitation by a single family unit
3. used for residential purposes.
   

Residential land

Residential land is land, or the part of land, in Queensland on which a residence is constructed. It also includes the area immediately surrounding the residence if that area is not used commercially.

A full definition can be found in section 86A of the Act.

Residential purposes

The term residential purposes relates to how a property will be used. It means that it will only be used as a residence and not for commercial use.

S

Significant interest

A significant interest is an interest of 50% or more in a private landholder or an interest of 90% or more in a public landholder. 

Special vehicle

A special vehicle means any of the following:

• a vehicle that is, or will be on its registration, registered under the Transport Operations (Road Use Management—Vehicle Registration) Regulation 2010, section 12(2)
• mobile machinery within the meaning of the Transport Operations (Road Use Management—Vehicle Registration) Regulation 2010, Schedule 8, other than mobile machinery built on a truck chassis.

T

Trading stock
(vehicles)

Trading stock means a used vehicle offered or available for sale by a vehicle dealer in the course of the dealer's business, other than a vehicle used:

• solely or mainly by the dealer or a member of the dealer's staff or family
  
  or
  
  
• for the general purposes of the dealer's business.

Trust acquisition

A trust acquisition is when you acquire an interest in a trust that holds dutiable property or has an indirect interest in dutiable property.

A full definition can be found in section 55 of the Act.

Trust surrender

A trust surrender occurs when you surrender an interest in a trust that holds dutiable property or has an indirect interest in dutiable property.

A full definition can be found in section 56 of the Act.

U

Unencumbered value

Unencumbered value is the value of the property being transferred disregarding any encumbrance—for example, money owed under a mortgage.

A full definition can be found in section 14 of the Act.

Unlisted corporation

An unlisted corporation means a corporation whose shares are not quoted on the market operated by the Australian Securities Exchange or another recognised exchange named in the Duties Regulation 2002.

V

Vacant land

Vacant land is land in Queensland on which you intend to build a residence to live in. When you acquire the land, there is to be no building (or part of a building) on the land.

A full definition can be found in section 86C of the Act

Voluntary disclosure

Voluntary disclosure occurs when you inform us that you have failed to comply with an obligation under a tax law.

See Public Ruling TAA060.3—Penalty tax—home concessions for more information.

W

X

Y

Z