In NSW, you may be liable for ‘landholder duty’ when you acquire shares in a company or units in a trust that owns land (“a landholder”) with a threshold value of $2 million or more.
The liability arises when you acquire a significant interest in a landholder (entitling you to 50% or more of the property of a private landholder or 90% or more of the property in a public landholder), or you acquire an interest that amounts to a significant interest when aggregated with other interests you own or with interest(s) owned by an associated person (e.g. a related company entity). Landholder duty is charged at the same rate as the transfer duty (formerly known as stamp duty) charged on normal land acquisitions.
As of 24 June 2020, the State Revenue Legislation Further Amendment Act 2020 (NSW) (“the Act”) has introduced changes to:
- how the threshold value of land is determined,
- the meaning of land, and
- who is liable for landholder duty.