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Definitions of transfer duty terms

The following definitions relate to terms that come from the Duties Act 2001.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

 

AFAD residential land

Land in Queensland that is or will be used solely or primarily for residential purposes, including:

  • established homes and apartments
  • vacant land upon which a home or apartment will be built
  • land for development for residential use, such as:
    • smaller unit block developments
    • housing subdivisions
    • major developments with a residential component
  • buildings refurbished, renovated or extended for residential use.

Other types of residential property such as retirement villages and student accommodation are considered on a case-by-case basis.

AFAD residential land does not include land used for hotel and motel purposes.

See the definition of residential land.

Ancestor

A person’s or their spouse’s parent or grandparent, or the spouse of the parent or grandparent.

Concession

A reduction in the amount of duty you must pay on certain dutiable transactions.

Transfer duty concessions are available to home buyers, first home buyers and buyers of vacant land on which to build their first home. Concessions also exist for superannuation, certain family business transfers and certain investment schemes.

See the following parts of Chapter 2 of the Act for more information.

Consideration

Generally, the Australian dollar value paid for property in property transfers.

Consideration includes monetary and non-monetary payments, such as assumption of liabilities.

See section 12 of the Act for a full definition.

De facto relationship instrument

Any of the following instruments to the extent that it deals with de facto relationship property:

  • a recognised agreement under the Property Law Act 1974 section 266
  • an order of a court under the Property Law Act, Part 19
  • an instrument made under a recognised agreement under the Property Law Act, section 266
  • an instrument made under an order of a court under the Property Law Act, Part 19.

See section 422 of the Act for a full definition.

De facto relationship property

Property of the de facto partners in a de facto relationship, or property of either partner.

See section 423 of the Act for a full definition.

Defined relative

Your spouse or any of the following people related to you or your spouse:

  • a parent
  • a grandparent
  • a brother, sister, nephew or niece
  • a child or grandchild
  • an aunt or uncle
  • the spouse of any person mentioned above.

For transactions between 23 May 2017 and 22 May 2018, a defined relative includes a first cousin and their spouse.

Dispose

Relating to land or a residence, means transferring, leasing or otherwise granting exclusive possession of part or all of the property to another person.

This may include selling the property or renting out 1 or more rooms.

Where a concession relates to leasehold land, you dispose of the land when you surrender the lease.

You do not dispose of the property when:

  • the transferor continues to occupy the property after the transfer date but vacates it within 6 months of the transfer date
  • the existing tenants continue to occupy the property after the transfer date but vacate it at the end of the current lease term or within 6 months of the transfer date, whichever happens first. However, the lease arrangement needs to have been in place before the transfer date
  • an intervening event occurs, such as a natural disaster, or the death or incapacity of the transferee
  • you transfer part of the land to your spouse and the transfer is exempt from duty under section 151 of the Duties Act
  • you are acquiring residential land that is an accommodation unit in a retirement village and you enter into a retirement village leasing arrangement for the unit.

See the Residential Tenancies Authority for more information on leasing arrangements and obligations on giving tenants notice to leave.

Dutiable property

Property that is involved in a dutiable transaction in Queensland.

When you buy or sell dutiable property, you’re likely to pay duty. This can include:

  • land in Queensland
  • a transferable site area
  • an existing right
  • a Queensland business asset
  • a chattel in Queensland.

Read section 10 of the Act for more on property types.

Dutiable transaction

A transaction that you enter into in Queensland where you’re likely to pay duty.

This can involve:

  • a transfer of dutiable property
  • an agreement for the transfer of dutiable property
  • a surrender of dutiable property in Queensland or a transferable site area
  • a vesting under a state or Commonwealth Act, or court order of dutiable property
  • a foreclosure of a mortgage over dutiable property
  • an acquisition of a new right on its creation, grant or issue
  • a partnership acquisition
  • the creation or termination of a trust of dutiable property
  • a trust acquisition or trust surrender.

Read section 9 of the Act for more on transaction types.

Encumbrance

Mortgages, security interests or other charges and liabilities that are or can be attached to a property.

Exclusive possession

Generally, the right to exclude all others, including the owner, from all or part of a property.

Whether exclusive possession has been granted depends on the:

  • terms of the written agreement, where there is one
  • facts and circumstances of the arrangement, where there is no written agreement.

Exclusive possession may also be granted by law. For example, the Residential Tenancies and Rooming Accommodation Act 2008 applies to certain renting arrangements. You should seek professional advice before arranging to rent out all or any part of your home.

See the Residential Tenancies Authority for more information on leasing arrangements and obligations.

Exemption

Release from any obligation to pay duty on a dutiable transaction, generally meaning you don’t have to pay anything.

See Chapter 2—Part 13, Chapter 8—Part 7, Chapter 9—Part 4, and Chapter 10 of the Act for more information.

Ex gratia relief

Relief from paying tax when a taxpayer believes that a revenue law has been applied differently to the way intended, in a way that’s unreasonable or in conflict with government policy.

The Under Treasurer decides whether to provide ex gratia relief on a case-by-case basis. Read more about ex gratia relief.

Family business

A business of primary production or a prescribed business, carried on by one or more members of a particular family, family trust or family partnership.

See Chapter 2—Part 10 of the Act for more information.

Home

A residence that the owner has occupied as their principal place of residence within 1 year of the transfer date for the residential land.

Identity details annexure

Each non-Australian transferor and transferee must lodge an identity details annexure for a transfer of real property. The annexure complements certain transfer duty forms.

Indigenous land use agreement

An agreement registered on the Register of Indigenous Land Use Agreements under the Native Title Act 1993 (Cwlth), Part 8.

Indirect interest

For partnerships, an interest held in dutiable property if:

  • through a partnership interest or trust interest, there is a connection between the partnership and dutiable property of the other partnership or trust
  • through a series of partnership interests or trust interests, or a combination of these, there is a connection between the partnership and dutiable property of a partnership or trust in the series.

For trusts, an interest held in dutiable property if:

  • through a trust interest or partnership interest, there is a connection between the trust and dutiable property of the other trust or partnership
  • through a series of trust interests or partnership interests, or a combination of these, there is a connection between the trust and dutiable property of a trust or partnership in the series.

For corporate trustees, an interest held in dutiable property if:

  • the corporate trustee has a partnership interest or trust interest in an ultimate entity
  • through a series of partnership interests or trust interests, or a combination of these, there is a connection between the corporate trustee and dutiable property of a partnership or trust in the series.

Instrument

A written document in hard copy form.

Intervening event (home concessions)

Any of the following:

  • a natural disaster (including fire or flood)
  • the death or incapacity of a transferee or lessee who was granted the home concession
  • another event prescribed under a regulation.

See Schedule 6 of the Act for a full definition.

Land

For the purposes of the Duties Act, includes:

  • airspace above land and Queensland coastal waters
  • a resource authority.

The definition doesn’t include an exploration permit under the Petroleum (Submerged Lands) Act 1982.

A reference to ‘land’ includes a reference to an interest in land. Under the Acts Interpretation Act 1954, ‘interest’ in relation to land or other property means either a:

  • legal or equitable estate in the land or other property
  • right, power or privilege over, or in relation to, the land or other property.

Legal disability

The lack of capability to perform an act that includes the ability to manage or administer financial affairs as determined by a court. If a person has a legal disability, a guardian usually oversees their financial affairs.

Management rights

Generally relates to the business of on-site caretaking and letting of unit or townhouse complexes.

Management rights are generally not dutiable when first granted, but are when transferred or reassigned.

See Schedule 6 of the Act for information on existing rights.

Matrimonial instrument

May be an:

  • agreement registered or approved under the Family Law Act 1975 (Cwlth)
  • order of a court under the Family Law Act
  • instrument made under an agreement registered or approved under the Family Law Act
  • instrument made under an order of a court under the Family Law Act
  • instrument made after the start of a proceeding for the dissolution or annulment of a marriage.

This instrument serves to transfer property owned by one party to a marriage to the other party (only).

See section 420 of the Act for a full definition.

Matrimonial property

Property of the parties to a marriage (or either party) that is:

  • residential land (the residence on which is the principal residence of the party to whom it is to be or being transferred)
  • a vehicle for private use by the party to whom it is to be or being transferred.

See section 421 of the Act for a full definition.

New building

A new building is residential premises that is one of the following:

  • has not previously been sold or transferred as residential premises (e.g. purchasing a new home directly from a developer)
  • has been built, or contains a building that has been built, to replace demolished premises on the same land
  • has been created through substantial renovations.

Substantial renovations are generally renovations in which all, or most, of the structural or non-structural components of a building are removed or replaced. Most of the rooms in the previous building must have been affected, and the renovations must have affected the building as a whole. The sale of substantially renovated residential premises generally attracts GST.

Non-Australian entity

A transferor or transferee is a non-Australian entity if they are:

  • an individual who is not an Australian citizen (non-Australian individuals include permanent residents)
  • a company incorporated outside Australia
  • a trust with a country of tax residence that is not Australia
  • another body (e.g. body politic, corporation sole) formed outside Australia.

Notifiable event

An event that prevents you fulfilling the conditions of a concession for residential or vacant land.

Notifiable events include:

  • selling or renting any part of the property for which you claimed a concession within 1 year
  • not moving into the residence within 1 year.

See section 155(3) of the Act for a full definition.

Partnership

A type of business in which people share with each other the profits or losses of the business in which they have invested.

See Chapter 2—Part 7 of the Act for more information.

Prescribed business

A business solely involving an activity prescribed under Schedule 3 of the Duties Regulation 2013, such as:

  • excavating and earthmoving
  • picture framing
  • gunsmithing
  • locksmithing
  • manufacturing, processing and packaging
  • any of the following
    • beauty salon or barber shop
    • bus service
    • cinema
    • crematorium
    • engineering workshop
    • laundry or laundrette
    • newsagency, travel agency or real estate agency
    • repair and service workshop
    • rental business
    • restaurant or café
    • service station
    • sports complex or gymnasium
    • warehouse or bulk storage complex
  • undertaking or funeral directing
  • printing and publishing
  • boot and shoe repairing
  • retailing and wholesaling, whether or not it involves repairing or installing goods sold
  • upholstering.

Principal place of residence

A residence you live in (with your personal belongings) on a daily basis.

Other factors may determine whether a residence is your principal place of residence, such as:

  • where your family lives
  • the extent of time you live in the residence
  • the address you have your mail delivered to
  • whether utilities (e.g. electricity, gas and telephone) are connected to the dwelling and the accounts are in your name
  • whether the residence address is recorded against your name on electoral rolls.

See the public ruling on occupancy requirements for home and first home concessions (DA085.1).

Qualifying exempt purpose

The use of property by a charitable institution that is exempt, such as:

  • conducting religious or educational activities (including kindergartens)
  • caring for sick, aged, infirm, afflicted or incorrigible people
  • relieving poverty
  • providing full-time care for children by protecting their wellbeing and giving them food, clothing and shelter
  • conducting another charitable or public benevolent purpose
  • providing residence to a minister or members of a religious order conducting a previously listed activity
  • promoting the public good.

Property that forms part of an employment or salary package for an employee of a charitable institution is not exempt from duty.

See section 415 of the Act for a full definition.

Real property

Property that is generally concerned with the law relating to interests in land and buildings on the land (e.g. houses, apartments, business premises or vacant land).

Real property is property that can be registered with the Department of Natural Resources, Mines and Energy.

Related persons

Entities Related persons
2 individuals If they are family members
2 corporations If they are related bodies corporate—that is, one of the corporations is a subsidiary, holding company or subsidiary of a holding company of the other corporation
An individual and corporation If the individual or a family member:
  • is a majority shareholder, director or secretary of the corporation
  • is a majority shareholder, director or secretary of the corporation's related body corporate (such as a holding company or a subsidiary)
  • holds a majority interest in the corporation or related body corporate
Individual and trustee If:
  • the individual is a beneficiary of the trust
  • a related person of the individual—that is, a family member or family company—is a beneficiary of the trust
Corporation and trustee If:
  • the corporation is a beneficiary of the trust
  • a related person of the corporation is a beneficiary of the trust
2 trustees If a person is a beneficiary of:
  • both trusts
  • one trust and a related person is the beneficiary of the other trust
Partners in a partnership Only for the purposes of additional foreign acquirer duty (AFAD)

Relevant transaction

A dutiable transaction on which transfer duty is imposed, or a relevant acquisition on which landholder duty or corporate trustee duty is imposed.

Residence

A building or part of a building in Queensland that is:

  • fixed to land
  • designed, or approved by a local government, for human habitation by a single family unit
  • used for residential purposes.

Residential land

Land or the part of land in Queensland on which a residence is constructed.

This includes the area immediately surrounding the residence if that area is not used commercially.

See section 86A of the Act for a full definition.

Read the definition of AFAD residential land

Residential off-the-plan purchase

A residential off-the-plan purchase occurs when a person enters into a contract to purchase new residential property before construction is completed. An off-the-plan purchase generally involves a proposed lot where the title is yet to be registered. Settlement of the contract cannot occur until certain events have happened (e.g. where the owner of the land has not completed all capital works required before the title can issue, such as boundaries, roads, and telephone and electricity connections; or where an apartment block is being built).

Residential purposes

When land is used only for a residence and not for commercial use.

See the public ruling on the residential purposes for the transfer duty concession for homes and first homes (DA087.1).

Resource authority

Any of the following:

  • a geothermal tenure under the Geothermal Energy Act 2010
  • a greenhouse gas (GHG) authority under the Greenhouse Gas Storage Act 2009
  • a mining tenement under the Mineral Resources Act 1989
  • the following petroleum authorities under the Petroleum and Gas (Production and Safety) Act 2004
    • an authority to prospect a petroleum lease
    • a data acquisition authority
    • a water monitoring authority
    • a pipeline licence
    • a petroleum facility licence
  • an authority to prospect or lease under the Petroleum Act 1923
  • a sublease under the following
    • a geothermal coordination arrangement under the Geothermal Energy Act
    • a GHG coordination arrangement under the Greenhouse Gas Storage Act
    • a coordination arrangement under the Petroleum and Gas (Production and Safety) Act.

Self assessor

A taxpayer or tax agent required or permitted to lodge a transaction statement.

See Chapter 12 of the Act for information.

Spouse

A person who is:

  • married
  • a de facto partner (who has lived and is living with the other person on a genuine domestic basis for 2 years or more, regardless of gender)
  • a civil partner (under the Civil Partnerships Act 2011).

Transfer date

The date you’re entitled to possess the property.

This is usually the date of settlement or the date the land is vested in your name.

See the public ruling on concessions for home and first homes (DA085.1).

Trust acquisition

Acquisition of an interest in a trust that holds dutiable property or has an indirect interest in dutiable property.

See section 55 of the Act for a full definition.

Trust surrender

Surrender of an interest in a trust that holds dutiable property or has an indirect interest in dutiable property.

See section 56 of the Act for a full definition.

Unencumbered value

The value of the property being transferred disregarding any encumbrance; for example, money owed under a mortgage.

See section 14 of the Act for a full definition.

UTI

Unpaid tax interest.

Learn about unpaid tax interest and when it applies.

Vacant land

For the purposes of the first home vacant land concession, land in Queensland on which you intend to build a residence to live in.

When you acquire the land, there must be no building (or part of a building) on the land.

See section 86C of the Act for a full definition.

Voluntary disclosure

When you inform us that you’ve failed to comply with an obligation under a tax law.

Read the public ruling about penalty tax for home concessions (TAA060.3).