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.
A is the lessee of a crown lease that can be converted to freehold; for example, a perpetual lease granted under the Land Act. B agrees to take a transfer of the lease on condition that A first applies for and is successful in an application to convert the lease to freehold. B agrees to pay $150,000 to A, and to pay the amount set by the Chief Executive for conversion to freehold. On A’s application, the Chief Executive offers to convert the lease to freehold on the condition of payment of a sum of $200,000. Both the $150,000 and the $200,000 are included in the consideration for the agreement for the transfer of the crown lease from A to B. However, future rental payments payable under the perpetual lease at the time of the dutiable transaction, or paid under the perpetual lease between the agreement for the transfer and ultimate conversion to freehold, are not included in the consideration.
C agrees to transfer its freeholding lease to D. As part of the agreement, D pays C $100,000, and assumes responsibility for repayment of the outstanding periodic payments under the freeholding lease, totalling $200,000. Both amounts are included in the consideration for the agreement for the transfer of the freeholding lease from C to D.
Commissioner of State Revenue
Date of issue: 24 June 2015
|Public Ruling||Issued||Dates of effect|
|DA012.2.2||24 June 2015||24 June 2015||Current|
|DA012.2.1||16 December 2013||16 December 2013||23 June 2015|
|Supersedes Practice Direction DA 25.1||1 March 2002||1 March 2002||23 February 2009|