Western Australian Consolidated Acts

STAMP ACT 1921 - SECT 86B

86B .         Exemption — refinancing small business loans

        (1)         Duty is not payable on a business mortgage to the extent to which —

            (a)         the secured amount is to refinance a previous secured amount; and

            (b)         the previous secured amount was used for the purposes of carrying on the business.

        (2)         A secured amount is to refinance a previous secured amount if —

            (a)         the secured amount is, or is to be, used to pay out all of the unpaid amount of the previous secured amount;

            (b)         the previous secured amount was secured by a business mortgage (the previous mortgage );

            (c)         the previous mortgage is, or is to be, discharged;

            (d)         the mortgagor, or one of the mortgagors, who executed the previous mortgage is the mortgagor, or one of the mortgagors, who executed the business mortgage;

            (e)         the business owner, or one of the business owners, before the business mortgage is executed is the business owner, or one of the business owners, after the business mortgage is executed; and

            (f)         at least some of the property subject to the business mortgage is the same as some of the property subject to the previous mortgage.

        (3)         Subsection (1) does not apply unless —

            (a)         the unpaid amount of the previous secured amount is less than or equal to $5 000 000;

            (b)         the secured amount is less than or equal to $5 000 000; and

            (c)         mortgage duty was payable on the previous mortgage and all of that duty has been paid, or the previous mortgage was exempt from mortgage duty under this section.

        (4)         A mortgage is a business mortgage if part or all of the secured amount is, or is to be, used for the purposes of carrying on a business.

        (5)         An amount is used for the purposes of carrying on a business if it is used for operating or capital purposes.

        (6)         A business owner , in relation to a business mortgage, is an entity (which may be an individual, a body corporate, a trust or a partnership) that carries on the business (whether alone or with others) for which the amount secured by the business mortgage is, or is to be, used.

        (7)         For the purposes of this section, the amount of the previous secured amount is to be worked out disregarding section 89(2).

        (8)         The mortgagee must discharge the previous mortgage as soon as practicable.

        [Section 86B inserted by No. 34 of 2005 s. 10(1).]