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DUTIES ACT 1997 - SECT 29
Partnership interests
(1) The dutiable value of a partnership interest (
"DV" ) is to be determined in accordance with the following formula--
![graphic](../images/1997-123_g2.gif)
"A" is the value of the partnership interest, or so much of the consideration
for the dutiable transaction as relates to the partnership interest, whichever
is the greater, and
"X" is the unencumbered value of all dutiable property of the partnership, and
"Y" is the unencumbered value of all assets of the partnership.
(2) For the
purposes of this section and despite subsection (1), the unencumbered value of
dutiable property that is a business asset to which section 28 applies is the
dutiable value of the business asset determined in accordance with section 28.
(3) If the property of a partnership includes a land-related asset and an
interest in the land-related asset is transferred as a result of the transfer
of the partnership interest, the dutiable value of the partnership interest is
to be reduced by the dutiable value of the interest in the land-related asset
that is transferred, but only if ad valorem duty under this Chapter has been
paid or is payable on the transfer of the interest in the land-related asset.
Note : For example, 3 partners jointly hold land valued at $9 million and
other non-dutiable property valued at $3 million. The partnership has
liabilities of $6 million. One partner retires, and is paid $2 million for his
or her partnership interest. The retiring partner transfers a one-third
interest in the land to the remaining partners. Duty is payable at an ad
valorem rate on the transfer of the one-third interest in the land. The
transfer of the interest in land has a dutiable value of $3 million. Under
this section, the partnership interest has a dutiable value of $1.5 million
(DV = $2M × $9M/$12M). As the dutiable value of the interest in land
transferred exceeds the dutiable value of the partnership interest
transferred, the minimum duty would be payable on the transfer of the
partnership interest.
(3A) The minimum duty chargeable in respect of a
transfer of a partnership interest to which subsection (3) applies is $100.
(4) For the purposes of subsection (3), each of the following items of
dutiable property is a
"land-related asset" -- (a) land in New South Wales,
(b)
transferable floor space,
(c) a land use entitlement,
(d) an interest in an
item of dutiable property referred to in paragraph (a), (b) or (c).
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