Western Australian Current Acts

DUTIES ACT 2008 - SECT 35

35 .         Option to acquire dutiable property, duty paid on to be credited

                If —

            (a)         a transaction record for the grant or renewal of an option to acquire dutiable property is duty endorsed; and

            (b)         the consideration for the grant or renewal will form part of the consideration for the transaction if the option is exercised; and

            (c)         the option is exercised,

                the amount of duty payable on the transfer of, or the agreement for the transfer of, dutiable property is to be reduced by the amount of duty paid on the grant or renewal of the option to acquire the property.

        Note for this section:

                For example, consideration is paid for the grant of an option to acquire dutiable property. The transaction provides for the renewal of the right for further consideration.

                The transaction also provides that the consideration paid for the grant and renewal of the option forms part of the consideration for the property if the option is exercised.

                Duty of $200 is charged on the total consideration for the grant and renewal of the option (the first dutiable transaction ).

                The option is exercised after the renewal of the option and an agreement for the transfer of dutiable property is entered into for consideration (the second dutiable transaction ).

                The amount of duty payable on the second dutiable transaction is reduced by the amount of duty paid on the first dutiable transaction.

                If the duty payable on the second dutiable transaction would be $2 000, it is reduced by the duty of $200 paid on the first dutiable transaction. The duty payable on the agreement to transfer the property is therefore $1 800.