Australian Capital Territory Numbered Acts

REVENUE LEGISLATION AMENDMENT ACT 2015 (NO. 49 OF 2015) - SECT 6

New section 69 (2) to (4)

insert

    (2)     Subsection (3) applies if a transfer of dutiable property is made under, but only partly in conformity with, a trust contained in the will of a deceased person or arising on an intestacy (the trust ).

    (3)     The dutiable value of the property is worked out as follows:

"X" means, if all the dutiable property were transferred in conformity with the trust—the unencumbered value of the property.

"Y" means the unencumbered value of the express beneficial interest in the property transferred in conformity with the trust.

Example—dutiable value

Under a will, Brad is entitled to a 2/3 share in a house and Josh is entitled to a 1/3 share. The unencumbered value of the house is $480 000. Josh and Brad agree that Brad will buy Josh's share in the house. With the consent of Josh and Brad, the legal personal representative of the deceased person under the will transfers the whole of the interest in the house to Brad (the relevant transfer ). The commissioner determines that the unencumbered value of the express beneficial interest in the property transferred to Brad in conformity with the trust under the will is $320 000. The dutiable value of the relevant transfer is $160 000.

Note     An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act

, s 126 and s 132).

    (4)     For subsection (3), a person does not have an express beneficial interest in property the subject of a discretionary trust.