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Stamp Duty
> Overview of Duty Types and Rates
Overview of Duty Types and Rates
The Stamp Duty Act imposes duty on dutiable instruments and
transactions. The instruments liable to duty are generally described in
Schedule 1 to the Act. Exempt instruments and transactions are generally
described in Schedule 2 to the Act.
The following is a general overview of the documents and transactions
liable to stamp duty including the rates, exemptions, and concessions.
For precise details, reference should be made to the Act.
Conveyances of dutiable property (land, business property etc)
i.
Dutiable Property
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A conveyance or an agreement
to convey dutiable property is liable to stamp duty. Where dutiable
property is acquired without being evidenced by a dutiable document,
the person acquiring the property is required to complete a statement
detailing the transaction. The type of property, which is liable to
duty on its acquisition, is limited to:
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1. |
Land in the Northern Territory.
Land includes: |
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i. |
a lease of land; |
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ii. |
a mining tenement (from 1 July 2008, a mining tenement includes exploration rights to explore for resouces such as exploration licences and exploration retention licences; and |
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iii. |
a fixture to land (including a tenant's
fixture or a fixture associated with mining operations conducted,
or formerly conducted, on the land). |
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2. |
Business property in the
nature of: |
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i. |
the goodwill of a business (which also
includes any amount for the value of any restrictive covenant including
a restraint of trade agreement, which would protect or enhance the
value of the business to the purchaser); |
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ii. |
intellectual property rights and other
rights connected with a business undertaking carried on or to be carried
on in the Northern Territory being: |
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a right to use a business
name , trading name or trade mark; |
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a right to use a thing, system or process
that is the subject of a patent, a registered design or copyright;
and |
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a right to use information or technical
know how. |
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iii. |
a patent or registered design or a copyright
itself; and |
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iv. |
statutory business licence
for the carrying out of a business activity (ie. fishing licence,
liquor licence etc.). |
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3. |
Other property being: |
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i. |
an option to purchase any dutiable property;
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ii. |
chattels (goods wares and merchandise),
except the following, but only if acquired with other dutiable property.
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Stock in trade (eg. finished goods or
goods purchased for resale); |
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Material held for manufacture (eg. raw
materials being made into finished goods); |
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Goods under manufacturer (eg. work in
progress) |
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Livestock; |
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Motor vehicles which are required to be
registered or the registration transferred; |
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Cash or money in an account at call; and
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negotiable instruments (eg. bills of exchange)
or money on deposit. |
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It also includes an estate
or interest in dutiable property, such as a partnership interest. |
ii. Rates
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Duty is calculated on the
purchase price or unencumbered value of the dutiable property, whichever
is the greater, as follows: |
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Where the dutiable value does
not exceed $525 000 in accordance with the follow formula:
D = (0.06571441 x V2 ) + 15V
Where
D = the duty payable in $
and
V = the dutiable value
1000
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Where the dutiable value exceeds
$525 000 – 4.95 per cent of that amount. |
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For an estimate of the duty
payable, click here. |
iii. Concession
iv. Exemptions
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The following are the most
common exemptions provided under the stamp duty legislation and some
other statutes. Where an application form is required to claim the
exemption or further detail of the exemption is provided in a Revenue
Circular, a link is provided to that form or circular. |
| Exemption |
Form |
Circular |
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Corporate reconstructions |
F-SD-009
F-SD-010 |
SD023
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Family farms |
F-SD-005 |
CG-SD-003 |
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Family homes – into joint names of spouses |
F-SD-007 |
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Property settlements – De facto relationships |
F-SD-006
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Property settlements – section 90 of the Family Law Act (Cwlth) |
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Trust/estate distributions - item 9A(b), (ba) and (c) of Schedule
2 of the Stamp Duty Act) |
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Public benevolent institutions, Public Hospitals, Public education
institutions other than for a commercial purpose item 36 of Schedule
2 of the Stamp Duty Act) |
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Trustees – change and addition of - item 9A(a) of Schedule 2 of the
Stamp Duty Act) |
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Deeds relating to trusts
Stamp duty of $20 is payable on deeds not otherwise chargable with conveyance duty that constitute a trust, vary a trust in any way, deal with actual, potential or contingent interests or entitlements under a trust or extinguishes a trust. All parties to the Deed are jointly
liable for the payment of the duty.
General insurance policies
General insurance policies that relate to property or risk that may occur
in the Northern Territory are liable to stamp duty at a rate of 10 per cent of
the premium paid for the policy. Where the policy also relates to a risk
or property outside of the Territory, the premium is apportioned accordingly
(refer to Commissioner's Guideline CG-SD-006
for details).
Where an Australian insurer effects the policy, the insurer must register
(F-SD-016) and remit duty generally by
monthly return. The insurer usually passes the cost of the duty on to
their customers. Where an overseas insurer effects the policy, the insured
is required to lodge a return (F-SD-018)
and remit the duty of effecting the insurance.
Various policies are either not liable or exempt from duty including:
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re-insurance effected with another insurer; |
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the insurance of a hull of a floating
vessel that is being used primarily for commercial purposes; |
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the insurance of goods or merchandise
or the freight of goods or merchandise carried by sea, land or air; |
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a policy of insurance taken out in pursuance
or as a requirement under the Work Health Act; and |
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a policy of insurance entered into in
the course of a health insurance business, conducted by a registered
health benefits organisation within the meaning of Part IV of the
National Health Act (Cwlth), but only if the registered health benefits
organisation issued the policy. |
Leases
Lease duty on 'rent' was abolished on 1 July 2006. However, the grant
of a non-residential lease remains liable to duty at the same rate as
an acquisition of land where valuable consideration (i.e. a premium) other
than rent is payable for the grant of the lease.
Duty is calculated on the amount or value, of the consideration payable.
The lessee is liable for the payment of the duty.
Exemptions:
Leases of residential property.
Land-Holding Corporations and Unit Trusts
Conveyance duty applies to an acquisition (by any means – transfer, allotment,
cancellation etc) of a significant or a further interest in a land-holding
corporation or a unit trust scheme that is entitled to land in the Northern
Territory that has an unencumbered value of not less than $500 000. Land
entitlements include those of ‘linked entities’ of the corporation or
unit trust scheme.
A significant interest in relation to a corporation is 50 per cent or
more and for a unit trust scheme, 20 per cent or more. Land includes a
lease, mining tenements and anything fixed to the land irrespective of whether it would be regarded as a fixture at common
law. As from 1 July 2008, a mining tenement includes rights to explore for resources such as exploration licences and exploration retention licences under the Mining Act.
The provisions do not apply to:
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corporations whose shares are quoted on a recognised financial market unless the quotation is, or is part of, a tax avoidance scheme; or |
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unit trusts that are not private unit trust schemes. |
For precise details of the land-holding provisions, refer to Part 3,
Division 8A of the Stamp Duty Act and relevant Revenue Circulars.
Life insurance policies
Life insurance policies relating to a person residing in the Northern
Territory are liable to stamp duty at a rate of 10 cents per $100 (or
part thereof) of the sum insured. Term or temporary policies are liable
to duty at a rate of 5 per cent of the first year’s premium.
The insurer must register (F-SD-015) and
remit duty generally by monthly return. The insurer usually passes the
cost of the duty on to their customers.
Motor vehicle certificates of registration and transfers
Stamp duty is payable on the issue or transfer of a motor vehicle certificate
of registration. Duty is calculated at the rate of $3 per $100 (or part
thereof) of the purchase price of the vehicle including additional equipment
and accessories fitted to the vehicle if the transaction is made on normal
commercial terms. In any other case, duty is calculated on the greater
of the market value (including additional equipment and accessories) at
the time of the transaction or at the time the application for registration
or transfer is made.
For a more detailed summary of the scheme refer to the brochures ’Stamp
duty and motor vehicles‘ and ’Exemption
from stamp duty on motor vehicle‘. To estimate the duty payable,
click here.
For details on general administrative matters including lodgement and
payment time requirements, refunds, objections, address details and office
hours, click here. For details on information
required when lodging a document or statement for assessment of duty,
refer to the Stamp Duty Lodgement Guide.