Duties Amendment Regulations 2019 (WA)

8 October 2019 GOVERNMENT GAZETTE, WA 3617

TREASURY AND FINANCE

TR3OI

Duties Act 2008

Duties Amendment Regulations 2019

Made by the Governor in Executive Council.

Part 1 - Preliminary

1.           Citation

These regulations are the Duties Amendment Regulations 2019.

2.            Commencement

These regulations come into operation as follows -

(a) Part 1 - on the day on which these regulations are

published in the Gazette(gazettal day);

(b)	Part 3— when the Community Titles Act 2018 section 11 comes into operation;
(c)	the rest of the regulations - on the day after gazettal day.

3. Regulations amended
These regulations amend the Duties Regulations 2008.

Part 2 - Amendments commencing on day after

gazettal

4.           Regulation 2A inserted

issued under the scheme.

After regulation 2 insert:

2A.	Listed entity demergers and hybrid demergers
(1)	In this regulation — entity has the meaning given in section 148(1) of the Act; listed entity means a listed corporation or a listed unit trust scheme (as those terms are defined in section 148(1) of the Act); security means -

(a)	in relation to a corporation - an issued share of the corporation; or
(b)	in relation to a unit trust scheme - a unit

3618 GOVERNMENT GAZETTE, WA 8 October 2019

(2) In this regulation, an entity (entity A) is a wholly-
owned subsidiary of a listed entity if the listed entity,
or the trustee of the listed entity as trustee (if it is a unit
trust scheme), directly or indirectly -

(a)	holds 100% of the securities of entity A; and
(b)	controls (either by being able to cast or to control the casting of) 100% of the votes that may be cast at a general meeting of entity A.

(3) In these regulations, a listed entity demerger is an
arrangement that is made in relation to a wholly-owned
subsidiary (the demerged entity) of a listed entity if—

(a)	under the arrangement, each person (a listed entity security holder) who holds securities of the listed entity on the date nominated by the listed entity may acquire securities of the demerged entity; and
(b)	the arrangement does not provide for any acquisition of securities of the demerged entity otherwise than by a listed entity security holder; and
(c)	financial market, or the Commissioner is satisfied that the demerged entity will be listed on a prescribed financial market, before the day

the demerged entity is listed on a prescribed first acquisition of securities under the arrangement occurs.

(4) In these regulations, a hybrid demerger is an
arrangement that is made in relation to a wholly-owned
subsidiary (the demerged entity) of a listed entity if—

(a) under the arrangement, each person (a listed entity security holder) who holds securities of

the listed entity on the date nominated by the

listed entity may acquire securities of the
demerged entity; and

(b)	the arrangement also involves a public float of securities of the demerged entity; and
(c)	the arrangement does not provide for any acquisition of securities of the demerged entity otherwise than -

(i)     by a listed entity security holder: or

(ii)      in the public float.

(5)	For the purposes of subregulations (3) and (4), a person may, without limitation, acquire securities by the purchase, gift, allotment or issue of the securities.
(6)	For the purposes of subregulations (3) and (4), an acquisition of securities for a listed entity security

8 October 2019 GOVERNMENT GAZETTE, WA 3619

holder by a person nominated for that purpose by the listed entity is taken to be an acquisition by the listed entity security holder.

5. Regulations 5A to 5 replaced
Delete regulations 5A to 5 and insert:

4A.	Special dutiable property prescribed (Act s. 18(h))
(1)	In this regulation - timber sharefarming profit a prendre means a profit a prendre created under a timber sharefarming agreement under the Conservation and Land Management Act 1984 or the Forest Products Act 2000.
(2)	For the purposes of section 18 of the Act, dutiable property that is any of the following is prescribed as special dutiable property -

(a)	a profit a prendre other than a timber sharefarming profit a prendre;
(b)	a timber sharefarming profit a prendre, if there is or will be consideration for the surrender of the timber sharefarming profit a prendre;
(c)	under the Tree Plantation Agreements a plantation interest created under an agreement the surrender of the plantation interest.

4B.	Dutiable transactions on which nominal duty is chargeable prescribed (Act s. 140)
(1)	In this regulation—

lot has the meaning given in the Land Tax Assessment

Act 2002 Glossary clause 2(1);

timber sharefarming profit a prendre has the meaning
given in regulation 4A(1).

(2) For the purposes of section 140 of the Act, the
acquisition of new dutiable property by the creation of
a timber sharefarming profit a prendre (the new profit a
prendre) is prescribed as a dutiable transaction on
which nominal duty is chargeable if—

(a) the new profit a prendre is created to replace another timber sharefarming profit a prendre (the old profit a prendre) that has been

surrendered for no consideration; and

(b) the old profit a prendre was registered under the whole of a lot, but the benefit of the old profit a Transfer of Land Act 1893 in relation to the

3620 GOVERNMENT GAZETTE, WA 8 October 2019

prendre was in relation to a portion of the lot

only; and

(c)	the new profit a prendre is created in relation to that portion of the lot only; and
(d)	the person or persons who had the benefit of the old profit a prendre are the same as the persons acquiring the benefit of the new profit a

prendre; and

(e) there is no consideration, or agreement for consideration, for the acquisition.

5.	Circumstances in which persons acquiring interests under 1 arrangement or in concert are not related persons prescribed (Act s. 162(1A)(b))
(1)	For the purposes of section 162(1 A)(b) of the Act, section 162(1)(h) and (i) of the Act do not apply in circumstances where the acquisitions are made as part
of—

(a)	a listed entity demerger; or
(b)	a hybrid demerger.

(2)	This regulation applies in determining under section 162 of the Act whether persons are related persons in relation to an acquisition of an interest in a landholder if the acquisition occurs (as determined under section 176 of the Act) on or after 13 June 2019.
(3)	In this regulation, a reference to a provision of the Act includes a reference to that provision as applied by section 205ZE of the Act.

6.            Regulation 7 amended

(1) In regulation 7(1) delete the definitions of:

carriage ofpassengers or goods between prescribed places

Interstate Road Transport Act

(2) In regulation 7(2):

(a) in paragraph (b) delete "plant;" and insert:

plant.

(b) delete paragraph (c).

(3)	Delete regulation 7(3) and insert:
(3) For the purposes of section 244(b) of the Act, the class of persons who own a tractor or tractor plant for which the vehicle licence charge is reduced under the Road

S October 2019 GOVERNMENT GAZETTE, WA 3621

Traffic (Vehicles) Regulations 2014 regulation 81 is

prescribed.

(4) In regulation 7(4):

(a) in paragraph (d) delete "purposes;" and insert:

purposes.

(b) delete paragraph (e).

7.           Regulation 8A inserted

After regulation 8 insert:

8A. Events that do not result in automatic revocation of

exemption for relevant reconstruction transaction

prescribed (Act s. 264A(3)(b))

(1) For the purposes of section 264A(3)(b) of the Act,
section 264A of the Act does not apply to a notifiable
event that occurs in relation to a relevant reconstruction
transaction if the notifiable event results from —

(a)	a listed entity demerger; or
(b)	a hybrid demerger.

(2) This regulation applies to a relevant reconstruction

transaction that occurs on or after 13 June 2019.

Part 3 — Amendment commencing when Community

Titles Act 2018 section 11 comes into operation

8. Regulation 4C inserted

After regulation 4B insert: 

4C. Subdivisions of land excluded from s. 120A and

120B prescribed (Act s. 120D(b))

For the purposes of section 120D(b) of the Act,

sections 120A and 120B of the Act do not apply to a
subdivision of land under a community titles (building)

scheme registered under the Community Titles

Act 2018, other than a community titles (building)

scheme in which no lot, or part of a lot, is above or below another lot, or part of a lot, in the community scheme.

R. NEILSON, Clerk of the Executive Council.