Landholder duty is calculated differently for private and public landholders.
Landholder duty does not apply to exempt acquisitions. Duty may also be reduced in certain circumstances.
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Private landholders
Generally, landholder duty is calculated by multiplying the unencumbered value of all Queensland land-holdings by the interest—or total of the interests—constituting the relevant acquisition in the landholder. Standard transfer duty rates apply.
Example 1
A private company has assets valued at $6 million, including land-holdings in Queensland with an unencumbered value of $2.8 million. John Jones acquires 60% of the shares in the private company.
As John has made a relevant acquisition in a private landholder, duty is calculated on 60% of the unencumbered value of the land-holdings in Queensland (60% x $2.8 million = $1.68 million). John would pay $73,875 in duty.
If an excluded interest exists, duty is calculated on the interest of the landholder as above, minus any excluded interests.
Example 2
John Jones acquired 40% of the shares 4 years before acquiring the remaining 20% in an unrelated transaction. As it was acquired more than 3 years before the relevant acquisition, the 40% interest is excluded.
Landholder duty would be calculated on 20% of the unencumbered value of the land-holdings in Queensland (20% x $2.8 million = $560,000). John would pay $18,225 in duty.
Public landholders
Generally, landholder duty is 10% of the duty that would have applied (at the standard transfer duty rate) to a transfer of all the landholder's Queensland land-holdings as at the date of the relevant acquisition.
Example 1
A public landholder has Queensland land-holdings with an unencumbered value of $10 million.
BigCo Pty Ltd acquires 95% of the shares on 1 August 2011.
As the company has made a relevant acquisition in a public landholder, duty is calculated on the unencumbered value of all the Queensland land-holdings of the landholder (duty on $10 million at the general transfer duty rate = $510,675). BigCo Pty Ltd would pay $51,067.50 in duty (10% of the duty chargeable).
Except in limited circumstances, no further duty is charged if that person's interest subsequently increases.
If an excluded interest exists, duty is calculated after deducting the proportionate value of the excluded interest from the total unencumbered value of all the landholders’ Queensland land-holdings.
Example 2
A public landholder has Queensland land-holdings with an unencumbered value of $10 million.
BigCo Pty Ltd acquired 40% of the shares before 1 July 2011. On 5 August 2011, BigCo Pty Ltd acquired another 55% of the shares in an unrelated transaction. The 40% interest is an excluded interest, as it was acquired before 1 July 2011.
Landholder duty will be calculated on a dutiable value of $6 million ($10 million reduced by the proportion of the excluded interest—40%). Duty at the standard rate is $300,675. BigCo Pty Ltd would pay $30,067.50 (10% of the duty chargeable).