Partnerships: duty requirements

If you acquire an interest in a partnership (either by formation of a partnership or by an increase in your interest in a partnership) and the partnership directly or indirectly holds any dutiable partnership property (as defined in section 70 of the Duties Act 2008), provide:

1. The transaction record (such as an agreement to transfer) or transfer duty statement
2. A copy of the partnership agreement and any amendments (or stamped copies if dated before 1 July 2008).
3. Complete financial statements for the partnership at the date of the transaction or at the previous 30 June.
4. If the partnership has an interest in a linked entity entitled to dutiable property – complete financial statements of the entity at the date of the transaction or at the previous 30 June.
   The partnership has an interest in a linked entity if it has a:
   • 90% or greater interest in a listed corporation or a listed unit trust scheme or
   • 50% or greater interest in any other entity including an unlisted corporation, an unlisted unit trust scheme, a partnership or a trustee of a discretionary trust.
5. Details of the percentage of the capital that each partner has given to the partnership and the percentage of the losses of the partnership that each partner will bear.
6. Details of how the consideration for the transaction was calculated.
7. Details of any liabilities taken over under the transaction.
8. Details of any debts released or extinguished under the transaction.
9. If the transaction is a formation of a partnership – details of any property that each partner gave to the partnership, including the market value of the property.
10. Details of any chattels owned by the partnership or a linked entity, including the market value of each chattel.
11. If the partnership owns land, complete either Form FDA27 ‘Duties Valuation – City, Town and Suburban Property’ or Form FDA28 ‘Duties Valuation – Country Land’. These forms are not required if lodging electronically.
    You don’t need to provide a valuation form if you provide a valuation by a qualified valuer described in Commissioner’s Practice TAA 30 ‘Valuation of Land for Duties Purposes’.
    You will also need to complete a Form FDA41 ‘Foreign Transfer Duty Declaration’.
12. If the partnership has a leasehold interest in land only –
    • a copy of the lease agreement. If the agreement was duty endorsed, provide the endorsed copy.
    • confirm if a premium was paid for the grant or transfer of the lease
    • confirm if the tenant has the right to remove any tenant’s fixtures under the lease
    • details of any plant, equipment or other items affixed to the land or premises
    • a depreciation schedule or fixed asset register showing the depreciated book value of the plant, equipment or other items on the premises at the date of the transaction or at the previous 30 June.
13. Any other information that may assist us to assess the duty.

When a person ceases to be a partner in a partnership (either by retirement from the partnership or because the partnership is dissolved) and land in WA or other property held by the partnership is transferred or agreed to be transferred to, or retained by, the person, provide:

1. The transaction record (such as a transfer or agreement to transfer)
2. A copy of the partnership agreement and any amendments (or stamped copies if dated before 1 July 2008).
3. Complete financial statements for the partnership at the date of the transaction or at the previous 30 June.
4. The percentage of the:
   • capital of the partnership that each partner has given and
   • losses of the partnership that each partner will bear.
5. Details of how the consideration for the transaction was calculated.
6. Details of any liabilities taken over under the transaction.
7. Details of any debts released or extinguished under the transaction.
8. Details of any chattels held by the partnership.
9. If the partnership owns land, complete either Form FDA27 ‘Duties Valuation – City, Town and Suburban Property’ or Form FDA28 ‘Duties Valuation – Country Land’. These forms are not required if lodging electronically.
   You don’t need to provide a valuation form if you provide a valuation by a qualified valuer as described in Commissioner’s Practice TAA 30 ‘Valuation of Land for Duties Purposes’.
   You will also need to complete Form FDA41 ‘Foreign Transfer Duty Declaration’.
10. If the partnership has a leasehold interest in land
    • a copy of the lease agreement. If the agreement was duty endorsed, provide the endorsed copy.
    • confirm if a premium was paid for the grant or transfer of the lease
    • confirm if the tenant has the right to remove any tenant’s fixtures under the lease d) details of any plant, equipment or other items affixed to the land or premises
    • a depreciation schedule or fixed asset register showing the depreciated book value of the plant, equipment or other items on the premises at the date of the transaction or at the previous 30 June.
11. Any other information that may assist us to assess the duty.

If no written transaction record exists, or there is a deemed transfer as a result of property being retained, provide a transfer duty statement.

Forms

• Duties valuation forms
• FDA18 ‘Transfer Duty Statement’
• FDA41 ‘Foreign Transfer Duty Declaration’

Publications

• Commissioner’s Practice DA 1 ‘Dutiable Value of a Partnership Acquisition’
• Revenue Ruling DA 20 ‘Partnership Acquisitions: When a Partnership Holds Land’
• Fact Sheet ‘Partnership Acquisitions’
• Fact Sheet ‘Foreign Transfer Duty'