Australian Capital Territory Numbered Acts

DUTIES ACT 1999 (NO. 7 OF 1999) - SECT 118

(1)     This Chapter imposes liability for duty—

        (a)     on a sale or purchase of marketable securities that are quoted on the market operated by the Australian Stock Exchange, if the sale or purchase is—

              (i)     conducted on the market operated by the Australian Stock Exchange; or

              (ii)     reported to it, in accordance with the Business Rules of the Australian Stock Exchange;

        and if an order for the sale or purchase concerned was received in the Territory;

        (b)     on a sale or purchase of marketable securities that are not quoted on the market operated by the Australian Stock Exchange, if the sale or purchase is—

              (i)     of marketable securities of a body corporate incorporated under the law of an Australian jurisdiction that are to be registered on an Australian register;

              (ii)     conducted on a recognised stock exchange; and

              (iii)     made pursuant to an order received in the Territory;

        (c)     on a sale or purchase of marketable securities on a broker's own account, if the sale or purchase is effected in the Territory; and

        (d)     on an associated transaction with a broker in the Territory (being a transaction referred to in paragraph 119 (1) (e), (f) or (g)).

(2)     For the purposes of paragraph (1) (a), an order for a sale or purchase is received in the Territory if—

        (a)     in the case of a manual client order, it is received by an individual who is a broker, or an employee or agent of a broker—

              (i)     who is present in the Territory at the time the order is received; or

              (ii)     who is outside Australia at the time the order is received, and an individual instructs a SEATS operator in the Territory to put the order into the market;

        (b)     in the case of an automated client order, it is received by a broker by electronic means—

              (i)     in the Territory; or

              (ii)     outside Australia and is put by a broker into SEATS in the Territory; or

        (c)     it did not arise from a manual client order or an automated client order, and an individual, being the broker or an employee or agent of the broker, who is present in the Territory, instructed a SEATS operator to report a trade to the market.

(3)     For the purposes of paragraph (1) (c), a sale or purchase on a broker's own account is effected in the Territory if—

        (a)     it arises from a manual broker order that an individual, being the broker or an employee or agent of the broker, who is present in the Territory, instructed a SEATS operator to put into the market;

        (b)     it arises from an automated broker order that was put by the broker into SEATS from the Territory; or

        (c)     it did not arise from a manual broker order or an automated broker order, and an individual, being the broker or an employee or agent of the broker, who is present in the Territory, instructed a SEATS operator to report a trade to the market.

(4)     For the purposes of this Chapter, a reference to a sale or purchase of marketable securities includes a reference to a transaction that, on completion by the parties, results in a company buying back its own shares in accordance with Division 2 of Part 2J.1 of the Corporations Law .

(5)     In this section—