Queensland Consolidated Acts

DUTIES ACT 2001 - SECT 246B

246B Charge over interest in land for unpaid transfer duty

(1) This section applies if—

(a) transfer duty including AFAD is imposed on a dutiable transaction; and

(b) all or part of the transfer duty is not paid by the date the amount (the
"outstanding liability" ) is payable.

(2) The outstanding liability is a first charge on the interest of the following person (the
"chargee" ) in the AFAD residential land that is the subject of the transaction—

(a) for a dutiable transaction mentioned in section 9 (1) (a) to (f) —

(i) if AFAD is imposed on the transaction under section 240 (2) and the land has not been transferred to the principal—the acquirer under the transaction; or

(ii) if AFAD is imposed on the transaction under section 240 (2) and the land has been transferred to the principal—the principal; or

(iii) if AFAD is imposed on the transaction under section 241A —the company; or

(iv) otherwise—the foreign acquirer under the transaction;

(b) for a dutiable transaction mentioned in section 9 (1) (g) —each partner who holds the AFAD residential land to which the partnership acquisition relates;

(c) for a dutiable transaction mentioned in section 9 (1) (h) that is the creation of a trust of dutiable property—the person who, under the transaction, starts to hold the AFAD residential land in a way mentioned in section 53 ;

(d) for a dutiable transaction mentioned in section 9 (1) (h) that is the termination of a trust of dutiable property—the person who, under the transaction, starts to hold the AFAD residential land other than as trustee;

(e) for a dutiable transaction mentioned in section 9 (1) (i) that is a trust acquisition—the trustee of the trust in which the trust acquisition is made;

(f) for a dutiable transaction mentioned in section 9 (1) (i) that is a trust surrender—

(i) the trustee of the trust in which the trust interest is surrendered; or

(ii) if there is no longer a trustee as a result of the surrender, the person who holds the AFAD residential land as a result of the surrender.

(3) The charge has priority over all other encumbrances over the chargee’s interest in the land other than a charge under section 156P .

(4) Subsection (3) applies—

(a) whether the other encumbrances over the chargee’s interest in the land—

(i) are registered or unregistered; or

(ii) were created before or after the charge arises under subsection (2) ; and

(b) despite the Land Title Act 1994 , part 3 , divisions 2 and 2A .

(5) The commissioner may lodge, under the Administration Act , part 4 , division 5 , a request to register the charge on the land that is the subject of the transaction.

(6) Despite the Administration Act , section 47B , the registrar must not register the charge if the chargee is no longer the registered owner of the land.

(7) On its registration, the charge is not affected by a disposition of the chargee’s interest in the land.