If two or more transactions are entered into by the same or related parties, we determine whether they form, evidence, give effect to or arise from what is part of substantially one arrangement before issuing an assessment.
Transactions that are substantially one arrangement will be aggregated and treated as a single dutiable transaction. This generally results in a greater amount of duty payable.
A transaction involving only chattels is dutiable if it is aggregated with a dutiable transaction or relevant acquisition in a landholder.
See information about what is substantially one arrangement for landholder duty purposes.
Revenue Ruling DA 25 ‘Substantially One Arrangement’ provides information about the factors that will be considered when determining if two or more transactions should be aggregated.
What to provide
Show moreIf two or more transactions are entered into by the same or related parties, provide:
- the transaction records (such as the transfer or agreement to transfer)
- a completed Foreign Transfer Duty Declaration Form for each purchaser
- a written statement letting us know if you do or don't consider the transactions to be substantially one arrangement.
If you don't consider the transactions to be substantially one arrangement, your written statement must include detailed answers to the following questions:
- Why were multiple items of property purchased?
- Why were separate instruments prepared for each item?
- To what extent are the transactions conditional upon each other?
- What are the items, e.g. land or business assets?
- Is there a connection between the items, e.g., the acquisition of a business and the land on which the business is run?
- If all items are land, are they adjoining or in close proximity to each other?
- If the purchaser(s) were not able to purchase one (or more) of the items, would they have purchased the others?
- If the vendor(s) were not able to sell one (or more) of the items, would they have sold the others?
- Was the purchase of all items negotiated for a single price that was apportioned between the instruments or were separate negotiations conducted for the sale of each item?
- Was a discount given for the purchase of multiple items?
- Is there any relationship between the purchaser(s) and vendor(s), e.g., by blood or marriage, business or legal (either currently or by prior arrangement), common directors or shareholders, etc.?
- At the date each agreement was entered into, how did the purchaser(s) intend to use each of the items?
- Were the items of property advertised or offered for sale as a total package or as separate items? Provide evidence showing how the items were marketed for sale, e.g., newspaper or internet advertisements, brochures, etc.
- Who negotiated the sale of the items on behalf of:
- the vendor(s)?
- the purchaser(s)?
- Will the purchaser(s) finance the transactions by:
- cash?
- vendor finance?
- a single loan from a financial institution which will cover all items? If so, why a single loan rather than individual loans?
- individual loans from a financial institution for each item?
- Is there anything else you can tell us that may assist us to assess the duty.
An assessment of duty will not be issued until all required information is provided.
