Section 25 of the Principal Act is amended by inserting after subsection (2) the following subsections:

(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 a partnership interest, the unencumbered value of all dutiable property of the partnership ( "X" in subsection (1) ) is to be reduced by the unencumbered value of the interest in the land-related asset that is transferred, but only if ad valorem duty has been paid or is payable on the transfer of the interest in the land-related asset.

(4)  For the purposes of subsection (3) , each of the following items of dutiable property is a land-related asset:

(a) land in Tasmania;

(b) a land use entitlement;

(c) an interest in an item of dutiable property referred to in paragraph (a) or (b) .