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Further to our article dated 16 January 2012 regarding changes to the stamp duty treatment of transactions involving exploration tenements, the Queensland Government has released further information clarifying the application of these changes in the landholder duty context. The clarification advises that exploration tenements are not counted as landholdings of a company where a contract for the acquisition of shares in that company was entered into prior to the Start Time but is to complete after the Start Time.
Last week, the Queensland Government announced significant changes to the stamp duty treatment of transactions involving exploration tenements, effective from 10.30am on 13 January 2012 (Start Time).
Click here to view our article dated 16 January 2012 setting out the details of these changes.
The article stated that the way the announcement (and existing legislation) was drafted suggested that the changes could impact transactions even where an agreement for the acquisition of shares was signed before the Start Time, but is to complete after the Start Time. However, following our discussions with the Office of State Revenue (OSR), an updated information sheet has now been released.
Click here to view the updated information sheet.
The OSR has added the last paragraph to the information sheet, which addresses the issue raised in our previous article. The extra wording indicates that appropriate transitional provisions will be included in the amending legislation to ensure that exploration tenements are not counted as landholdings of a company where a contract for the acquisition of shares in that company was entered into prior to the Start Time but is to complete after the Start Time.
It is still vital to review all transactions (both asset transfers and share dealings) involving Queensland exploration tenements where there was no binding contract in place prior to the Start Time.
McCullough Robertson’s specialist stamp duty team is strongly focused on the resources sector and is able to provide expert advice on the implications of these changes and the possible options for managing your duty liability.
Focus covers legal and technical issues in a general way. It is not designed to express opinions on specific cases. Focus is intended for information purposes only and should not be regarded as legal advice. Further advice should be obtained before taking action on any issue dealt with in this publication.