Public Ruling DA000.16.3 Administrative arrangement—duty exemptions for eligible small business restructures

A public ruling, when issued, is the published view of the Commissioner of State Revenue (the Commissioner) on the particular topic to which it relates. It therefore replaces and overrides any existing private rulings, memoranda, manuals and advice provided by the Commissioner in respect of the issue(s) it addresses.

Where a change in legislation or case law (the law) affects the content of a public ruling, the change in the law overrides the public ruling—that is, the Commissioner will determine the tax liability or eligibility for a concession, grant or exemption, as the case may be, in accordance with the law.

What this ruling is about

  1. The purpose of this ruling is to withdraw Public Ruling DA000.16.2.
  2. Public Ruling DA000.16.2 sets out the terms of an administrative arrangement that, pending amendment of the Duties Act 2001 (Duties Act), enables the Commissioner to administer the Duties Act as if it provides for an exemption from transfer duty and vehicle registration duty for certain transactions relating to restructures of small business entities.
  3. The administrative arrangement was first approved on 25 September 2020. It provided exemption for eligible transactions entered into on and from 7 September 2020, relating to a transfer or agreement for transfer of small business property to an unlisted corporation from any of:
    1. an individual, where the individual is a shareholder of the corporation
    2. one or more members of a partnership, where all the partners of the partnership are shareholders of the corporation
    3. the trustee of a discretionary trust, where all the beneficiaries of the trust are shareholders.
  4. On 28 June 2021, an expansion of the administrative arrangement was approved to provide an exemption to eligible transactions entered into on and from that date relating to the transfer or agreement for transfer of small business property from the trustee of a discretionary trust to an unlisted corporation of which the trustee is the sole shareholder.
  5. The Revenue Legislation Amendment Act 2022 amended the Duties Act to include ss.413A-413I to give effect to the administrative arrangement.
  6. The amendments in ss.413F-413H of the Duties Act are taken to have had effect from 7 September 2020.1
  7. The amendment in s.413I of the Duties Act is taken to have had effect from 28 June 2020.2
  8. Public Ruling DA000.16.2 is to be withdrawn.

Ruling and explanation

  1. Public Ruling DA000.16.2 is no longer in effect.

Date of effect

  1. This public ruling takes effect from 30 June 2022.

 

Mark Jackson
Commissioner of State Revenue
Date of issue: 30 June 2022

References

 Public Ruling Issued  Dates of effect
From To
DA000.16.3 30 June 2022 30 June 2022 Current
DA000.16.2 21 July 2021 21 July 2021 29 June 2022
DA000.16.1 9 October 2020 9 October 2020 20 July 2021

Footnotes

  1. Section 677(1) of the Duties Act
  2. Section 678(1) of the Duties Act