Queensland Consolidated Acts

DUTIES ACT 2001 - SCHEDULE 4

This example shows how the value of a partnership acquisition or trust acquisition or dutiable value of a relevant acquisition under chapter 3, part 2, is worked out in the following circumstances—

(a) a person acquires a 20% interest in—

(i) for a partnership acquisition—a relevant partnership under section 46; or

(ii) for a trust acquisition—a relevant trust under section 63; or

(iii) for a relevant acquisition under chapter 3, part 2—a corporate trustee;

(b) the relevant partnership, relevant trust or corporate trustee holds dutiable property the unencumbered value of which is $100000 and has a 50% partnership interest in partnership AB;

(c) partnership AB holds dutiable property the unencumbered value of which is $100000 and has a 50% partnership interest in partnership BC;

(d) partnership BC has a 50% partnership interest in partnership CD;

(e) partnership CD holds dutiable property the unencumbered value of which is $100000 and is the sole beneficiary in trust E;

(f) trust E holds dutiable property the unencumbered value of which is $1000000.

In this example—

(a) trust E is the ultimate entity because it holds dutiable property and there is no other partnership or trust lower in the series holding dutiable property; and

(b) under section 46(3)(a), 63(4)(a) or 222(3)(a), partnership CD is the last beneficiary.

The value of the partnership acquisition or trust acquisition or dutiable value of the relevant acquisition is worked out as follows—

Step 1

Partnership CDs trust interest in trust E (100%) is applied to the unencumbered value of the dutiable property held by the trust ($1000000).

The result is $1000000.

Step 2

Partnership BCs partnership interest in partnership CD (50%) is applied to—

(a) the result under step 1 ($1000000); and

(b) the unencumbered value of the dutiable property held by the partnership ($500000).

The result is $750000.

Step 3

Partnership ABs partnership interest in partnership BC (50%) is applied to the amount worked out under step 2 ($750000).

The result is $375000.

Step 4

The partnership interest of the relevant partnership, relevant trust or corporate trustee in partnership AB (50%) is applied to—

(a) the result under step 3 ($375000); and

(b) the unencumbered value of the dutiable property held by the partnership ($100000).

The result is $237500.

Step 5

The acquirer's interest (20%) is applied to—

(a) the result under step 4 ($237500); and

(b) the unencumbered value of the dutiable property held by the relevant partnership, relevant trust or corporate trustee ($100000).

The value of the partnership acquisition or trust acquisition or dutiable value of the relevant acquisition is $67500.