Public Ruling DA124.3.2 Exemption for deceased person’s estate—extension to certain statutory vestings

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. This public ruling sets out the terms of an administrative arrangement that extends the exemption under s.124 of the Duties Act 2001 (Duties Act) to certain dutiable transactions involving the vesting of dutiable property.
  2. The Duties Act imposes transfer duty on the dutiable value of dutiable transactions.1 Dutiable transactions are listed in s.9 of the Duties Act. A vesting of dutiable property by, or expressly authorised by, statute law of Queensland or another jurisdiction (statutory vesting) is a dutiable transaction.2
  3. Section 45 of the Succession Act 1981 (Succession Act) provides that property to which a deceased person was entitled, for an interest not ceasing on their death, shall devolve to and vest in that person’s executor or the public trustee. Upon the court granting probate of a will or letters of administration of the estate, the property will thereafter devolve to and vest in the person to whom the grant, or any subsequent grant, is made. Where the property includes dutiable property, the Duties Act can apply to make these vestings liable for transfer duty.
  4. Sections 69A and 96 of the Aboriginal and Torres Strait Islander Land Holding Act 2013 (Aboriginal and Torres Strait Islander Land Holding Act) provide for the vesting of an interest in a lease granted under the Aboriginal and Torres Strait Islander Land Holding Act, or the Aborigines and Torres Strait Islanders (Land Holding) Act 1985, in the person identified in a certificate issued under s.60 of the Aboriginal and Torres Strait Islander Communities (Justice, Land and Other Matters) Act 1984 as being entitled to succeed to a deceased holder’s interest.
  5. Section 124 of the Duties Act provides an exemption from transfer duty for a dutiable transaction that is:
    1. a transfer, or agreement for the transfer, of dutiable property to the extent that it gives effect to a distribution in the estate of a deceased person
    2. the creation of a trust of dutiable property to the extent that it gives effect to a distribution in the estate of a deceased person
    3. a transfer, or agreement for the transfer, of dutiable property to the extent that it gives effect to a court order under part 4 of the Succession Act.
  6. A statutory vesting is not a transaction to which s.124 currently applies.
  7. On 3 April 2017 an administrative arrangement was approved, pending legislative amendment, to enable the exemption in s.124 of the Duties Act to apply to a dutiable transaction that is a vesting of dutiable property pursuant to s.45 of the Succession Act, to the extent that the vesting gives effect to a distribution in the estate of a deceased person.
  8. On 6 August 2019 an extension to the administrative arrangement was approved to enable the exemption in s.124 of the Duties Act to apply to a dutiable transaction that is a vesting of dutiable property pursuant to ss.69A and 96 of the Aboriginal and Torres Strait Islander Land Holding Act, to the extent that the vesting gives effect to a distribution in the estate of a deceased person.

Ruling and explanation

  1. From 3 April 2017, the exemption in s.124 of the Duties Act applies to a dutiable transaction that is a vesting of dutiable property pursuant to s.45 of the Succession Act, to the extent that the vesting gives effect to a distribution in the estate of a deceased person.
  2. From 6 August 2019, the exemption in s.124 of the Duties Act also applies to a dutiable transaction that is a vesting of dutiable property pursuant to ss.69A and 96 of the Aboriginal and Torres Strait Islander Land Holding Act, to the extent that the vesting gives effect to a distribution in the estate of a deceased person.

Date of effect

  1. This public ruling takes effect from the date of issue.

 

Melinda Kross
Acting Commissioner of State Revenue
Date of issue: 19 December 2019

References

 Public Ruling Issued  Dates of effect
From To
DA124.3.2 19 December 2019 19 December 2019 Current
DA124.3.1 12 February 2018 12 February 2018 18 December 2019

Footnotes

  1. Section 8 of the Duties Act
  2. Section 9(1)(d)(i) of the Duties Act