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.
Chapter 3, Part 1 of the Duties Act 2001 (the Duties Act) imposes landholder duty on relevant acquisitions of a private landholder1 or public landholder.2
A person makes a relevant acquisition if:
the person acquires a significant interest3 in a landholder
the person acquires an interest4 in a landholder and, when the following are aggregated, the aggregation results in a significant interest in the landholder:
interests held by the person in the landholder
interests acquired or held by related persons of the person in the land holder
having acquired a significant interest in a landholder under paragraph (a) or (b), for which acquisition landholder duty was imposed, the person’s interest in the landholder increases.5
A landholder is an entity that has land-holdings in Queensland, with an unencumbered value of $2,000,000 or more.6
An entity’s land-holdings means:
an interest of the entity (including of any subsidiary) in land and anything fixed to the land that may be separately owned from the land (other than a security interest or interest in a trust)
rights held by the entity (including of any subsidiary) that:
relate to, or affect, the use of the entity’s land and other land
enhance the value of the entity’s land
an interest in land and anything fixed to the land, that is the subject of a purchase or sale agreement made by the entity (or any subsidiary).7
This Public Ruling clarifies the meaning of ‘anything fixed to the land’ in s.167 of the Duties Act.
Ruling and explanation
For s.167 of the Duties Act, the reference to ‘anything fixed to the land’ does not require that the item is a fixture on the land.
ABC Pty Ltd owns land which includes a factory building from which it conducts a manufacturing business. The building contains plant and equipment, some of which is fixed to the land. For s.167 of the Duties Act, all of the items fixed to the land are considered land-holdings regardless of whether or not they are fixtures at law.
Date of effect
This Public Ruling takes effect from the date of issue.
Commissioner of State Revenue
Date of issue: 20 October 2011