Australian Capital Territory
Duties Amendment Act 2006
A2006-13
    
Contents
	Page
	1	Name of Act	2
	2	Commencement	2
	3	Legislation amended	2
	4	Dutiable property
Section 10 (1) (g), (h) and (i)	2
	5	Section 10 (1) (j) to (l)	2
	6	New section 10 (3)	3
	7	What is the dutiable value of dutiable property?
Section 20 (2)	3
	8	What is the consideration for the transfer of dutiable property?
Section 21 (3)	3
	9	What is the unencumbered value of dutiable property?
Section 22 (2)	3
	10	Apportionment—business assets in this and other jurisdictions
Section 27	4
	11	Certain business assets
Section 33 (1)	4
	12	Section 33 (2)	4
	13	Definitions for ch 5 Section 133, definition of lease, paragraph (c)	5
	14	General rate—franchise arrangements
Section 141A (2)	5
	15	New chapter 14	5
	16	Dictionary, definition of partnership interest	8

Australian Capital Territory
Duties Amendment Act 2006
A2006-13

An Act to amend the Duties Act 1999

    

The Legislative Assembly for the Australian Capital Territory enacts as follows:

1	Name of Act
This Act is the Duties Amendment Act 2006.
2	Commencement
This Act commences on 1 July 2006.
Note	The naming and commencement provisions automatically commence on the notification day (see Legislation Act, s 75 (1)).
3	Legislation amended
This Act amends the Duties Act 1999.
4	Dutiable property
Section 10 (1) (g), (h) and (i)
substitute
	(g)	an interest in a partnership that holds dutiable property mentioned elsewhere in this section (a partnership interest);
Note	Former paragraphs (g) and (h) (covering certain business assets and statutory licences and permissions) were removed from the definition of dutiable property by the Duties Amendment Act 2006. For transitional provisions applying to these paragraphs, see s 400. 
5	Section 10 (1) (j) to (l)
renumber as section 10 (1) (h) to (j)
6	New section 10 (3) 
insert
	(3)	In this section:
holds—a partnership holds dutiable property if (but not only if)—
	(a)	the partners hold the property for the partnership; or
	(b)	the partnership has an indirect interest in the property.
indirect interest—a partnership has an indirect interest in dutiable property if—
	(a)	through a partnership interest or trust interest there is a connection between the partnership and dutiable property of the other partnership or trust; or
	(b)	through a series of partnership interests or trust interests, or a combination of any of them, there is a connection between the partnership and dutiable property of a partnership in the series.
7	What is the dutiable value of dutiable property?
Section 20 (2)
omit
8	What is the consideration for the transfer of dutiable property?
Section 21 (3)
omit
9	What is the unencumbered value of dutiable property?
Section 22 (2)
omit
10	Apportionment—business assets in this and other jurisdictions
Section 27
omit
11	Certain business assets
Section 33 (1)
substitute
	(1)	Duty is chargeable at the determined rate on a dutiable transaction so far as it is in relation to—
	(a)	a partnership interest so far as it is not—
	(i)	an interest in property mentioned in section 10 (1) (a), (b) or (c); or
	(ii)	an interest in property mentioned in section 10 (1) (j) that is dutiable property mentioned in section 10 (1) (a), (b) or (c); or
	(b)	an interest in property mentioned in section 10 (1) (j), other than an interest in dutiable property mentioned in section 10 (1) (a), (b), or (c).
12	Section 33 (2)
omit
subsection (1) (c)
substitute
subsection (1) (a)
13	Definitions for ch 5
Section 133, definition of lease, paragraph (c) 
substitute
	(c)	a franchise arrangement held in relation to a place or area located in the ACT that is granted for—
	(i)	a term of longer than 30 years; or 
	(ii)	an initial term of 30 years or less, but with an option for renewal for 1 or more terms that would, taken together with the initial term, result in a term of longer than 30 years; 
Note	For transitional provisions applying in relation to paragraph (c) as in force on 30 June 2006, see s 401.
14	General rate—franchise arrangements
Section 141A (2)
omit
15	New chapter 14
insert
Chapter 14	Transitional—Duties Amendment Act 2006
400	Application of ch 2 to certain transfers and transactions
	(1)	In this section:
repealed provisions means section 10 (1) (g) and (h) as in force on 30 June 2006. 
Note 1	On 30 June 2006, section 10 (1) (g) and (h) provided as follows:
	(1)	Dutiable property is any of the following:
	(g)	a business asset, being, at any relevant time—
	(i)	the goodwill of a business if, during the previous 12 months, a sale of goods or services, or goods and services, has been made to a territory customer of the business; or
	(ii)	intellectual property that has been used or exploited in the ACT during the previous 12 months, but only if the intellectual property is the subject of a dutiable transaction that is, or forms part of, a sale of a business; or
	(iii)	a statutory license or permission under a Commonwealth law, if the rights under the licence or permission have been exercised, during the previous 12 months, in respect of the ACT or in an area that includes the ACT or a part of the ACT;
	(h)	a statutory licence or permission under a territory law;
Note 2	Section 27 (Apportionment—business assets in this and other jurisdictions) (as in force before 1 July 2006) applied in relation to property mentioned in section 10 (1) (g) and section 33 (Certain business assets) (as in force before 1 July 2006) provided for the rate of duty chargeable in relation to the property.
transaction means a transaction mentioned in section 7 (1) (b). 
	(2)	Despite the repeal of the repealed provisions by the Duties Amendment Act 2006, chapter 2 as in force on 30 June 2006 applies to a transfer or transaction in relation to dutiable property mentioned in the repealed provisions if—
	(a)	the transfer or transaction is a transfer or transaction that replaces a transfer or transaction that—
	(i)	included the dutiable property; and 
	(ii)	was made before 1 July 2006; or
	(b)	the transfer or transaction is a transfer or transaction under which a party had an option to purchase the dutiable property, or a party had an option to require another party to purchase the dutiable property, if the option was granted before 1 July 2006 and is exercised on or after 1 July 2006; or
	(c)	another arrangement was made before 1 July 2006 the only or main purpose of which was to defer the making of the transfer or transaction until 1 July 2006 or later so that chapter 2 would not apply to it.
	(3)	This section is a law to which the Legislation Act, section 88 (Repeal does not end effect of transitional laws etc) applies.
401	Application of ch 5 to certain franchise arrangements
	(1)	In this section:
previous provision means section 133, definition of lease, paragraph (c) as in force on 30 June 2006.
Note	On 30 June 2006, the definition of lease, paragraph (c) provided as follows:
	(c)	a franchise arrangement that is held in respect of a place or area located in the ACT;
	(2)	Despite the replacement of the previous provision by the Duties Amendment Act 2006, chapter 5 (Lease instruments) as in force on 30 June 2006 applies to a lease instrument mentioned in the previous provision if—
	(a)	the lease instrument replaces a lease instrument evidencing or effecting the franchise arrangement that was made before 1 July 2006; or
	(b)	another arrangement was made before 1 July 2006 the only or main purpose of which was to defer the execution of, or a variation to, the lease instrument until 1 July 2006 or later so that chapter 5 would not apply to the lease instrument.
	(3)	This section is a law to which the Legislation Act, section 88 (Repeal does not end effect of transitional laws etc) applies.
402	Transitional regulations—ch 14
	(1)	A regulation may prescribe transitional matters necessary or convenient to be prescribed because of the enactment of the Duties Amendment Act 2006.
	(2)	A regulation may modify this chapter to make provision in relation to anything that, in the Executive’s opinion, is not, or is not adequately or appropriately, dealt with in this chapter.
	(3)	A regulation under subsection (2) has effect despite anything elsewhere in this Act.
	(4)	A regulation under subsection (2) expires 12 months after the day it commences.
403	Expiry—ch 14
This chapter expires on 1 July 2011.
16	Dictionary, definition of partnership interest
substitute
partnership interest—see section 10 (1) (g). 

Endnotes
1	Presentation speech
	Presentation speech made in the Legislative Assembly on 9 March 2006.
2	Notification
	Notified under the Legislation Act on 6 April 2006.
3	Republications of amended laws
	For the latest republication of amended laws, see www.legislation.act.gov.au.

I certify that the above is a true copy of the Duties Amendment Bill 2006, which was passed by the Legislative Assembly on 30 March 2006.

Clerk of the Legislative Assembly

© Australian Capital Territory 2006