Section 19 of the Principal Act is amended by omitting subsection (2) and substituting the following subsections:

(2)  If, as part of an arrangement involving a dutiable transaction over dutiable property agreed by an agreement for sale (the relevant agreement ) –

(a) the transferor or an associated person of the transferor effects improvements (the relevant improvements ) to the dutiable property after the relevant agreement was entered into; and

(b) the relevant improvements –

(i) involve the construction on the dutiable property of a single home (other than a flat, home unit or other similar building) that –

(A) may be lawfully occupied as a place of residence; and

(B) is intended for occupation as a place of residence; and

(ii) are, or will be, work within the meaning of the Building Act 2016 ; and

(c) there is not, at the time of the relevant agreement, a building on the dutiable property that may be lawfully occupied as a place of residence –

the consideration for the dutiable transaction does not include the consideration relating to the relevant improvements performed on the dutiable property after the relevant agreement but before the dutiable transaction.

(3)  For the purposes of subsection (2) , the following do not constitute improvements in relation to a dutiable property:

(a) works that are –

(i) necessary for, or related to, preparation of the site, on which a single home is to be constructed on the dutiable property, to enable the construction to occur; and

(ii) preliminary to the construction of the single home –

including but not limited to works consisting of excavation (other than excavation for the purposes of enabling footings for the single home to be established), levelling of land or the removal of vegetation;

(b) underground infrastructure, and the installation of underground infrastructure, on the dutiable property, including but not limited to underground infrastructure for the purposes of the provision of electricity, water, sewerage or telecommunications services.