Succession and Probate Duties Act Amendment Act 1971 (Qld)

680 Q11cE xtslaxtbr ANNO VICESIMO ELIZABETHAE SECUNDAE REGINAE No. 52 of 1971 An Act to Amend the Succession and Probate Duties Act 1892-1969 in a certain particular [ASSENTED TO 15TH NOVEMBER, 1971] BE IT ENACTED by the Queen's Most Excellent Majesty, by and with the advice and consent of the Legislative Assembly of Queensland in Parliament assembled, and by the authority of the same, as follows:- 1. Short title and citation . (1) This Act may be cited as the Succession and Probate Duties Act Amendment Act 1971. (2) The Succession and Probate Duties Act 1892-1969 is in this Act referred to as the Principal Act. (3) The Principal Act as amended by this Act may be cited as the Succession and Probate Duties Act 1892-1971. 2. New s. 12E. The Principal Act is amended by inserting after section 12D the following section:- " 12E. Rebates of duty in respect of estates of primary producers. (1) Subject to this section, there shall be allowed in manner hereinafter provided, in respect of duty payable under this Act attributable to rural property, a rebate of duty- (a) to any successor who is a person related to the predecessor by blood or marriage and who is domiciled in the Commonwealth;

Succession and Probate Duties Act Amendment Act 1971, No. 52 681 (b) in respect of the proportion of the probate or administration duty payable under this Act which is attributable to the value of the rural property subject to that duty included in the succession to persons related to the predecessor by blood or marriage and who are domiciled in the Commonwealth. (2) The amount of the rebate allowable is the prescribed percentage of the amount of the duty attributable to the rural property included in the estate. (3) For the purposes of this section, the prescribed percentage is- (a) where the value of the estate is $120,000 or less-fifty per centum; (b) where the value of the estate is more than $120,000 but not more than $200,000-fifty per centum less one-tenth per centum for each $200 or part of $200 by which the value of the estate exceeds $120,000; (c) where the value of the estate is more than $200,000- ten per centum. (4) The aggregated value of the property ascertained in accordance with provisions (2) and (2A) of section 12 of this Act shall be the value of the estate for the purposes of this section. (5) The rebate of duty shall not be allowable unless- (a)-the land on which the business of primary production was conducted at the time of the death of the predecessor was used exclusively for that purpose by- (i) the predecessor; (ii) a primary producer's company of which the predecessor was a member; (iii) a person related to the predecessor by blood or marriage; or (iv) any of the aforesaid in partnership with any other person, for a period of five years immediately prior to the death of the predecessor; or (b) the predecessor was engaged solely or principally in the business of primary production for not less than five years during the seven years immediately prior to his death. (6) (a) The rebate of duty shall not be allowable in respect of any addition to the value of rural property of the predecessor resulting from the purchase by him, or by a primary producer's company or primary producer's partnership of which he was. a member at the time of purchase, within two years immediately prior to his death, of land or land and other rural property connected with- the land. (b) Paragraph (a) of this subsection does not apply where, in the case of a purchase as aforesaid within two years immediately prior to the death of the predecessor, the predecessor or a primary producer's company or primary producer's partnership of which

682 Succession and Probate Duties Act Amendment Act 1971, No. 52 he was a member has, not earlier than twelve months immediately prior to the commencement of the said period of two years, in diminution of the value of rural property of the predecessor, sold land, or land and other rural property connected with the land, of the predecessor, the primary producer's company or the primary producer's partnership, as the case may be, for a consideration not less than that paid in respect of the purchase as aforesaid. (c) Where the predecessor or a primary producer's company or primary producer's partnership of which he was a member at the time in question has purchased land or land and other rural property connected with the land as aforesaid within two years immediately prior to the death of the predecessor, and has, not earlier than twelve months immediately prior to the commencement of the said period of two years, sold land or land and other rural property connected with the land as aforesaid for a consideration less than that paid in respect of the purchase as aforesaid, the rebate of duty allowable in respect of the rural property of the predecessor shall be allowable on the value of such rural property less the difference between the diminution of its value due to the sale and the addition to its value due to the purchase. (7) The rebate of duty shall not be allowable in respect of any addition to the value of rural property of the predecessor which comprises a shareholding in a primary producer's company or an interest in a primary producer's partnership, resulting from any variation of the relative proportions of the shareholding or partnership interest, as the case may be, of the predecessor and of other persons within' two years immediately prior to the death of the predecessor except to the extent that the Commissioner is satisfied that consideration was not given by the predecessor in respect of such addition or that any consideration given by him was required bona fide by the company or the partnership for use in the conduct of the business of primary production. (8) The rebate of duty shall not be allowable- (a) unless the interest of the successor in the rural property is an interest that is vested in him and cannot be divested from him; (b) where rural property is devised or bequeathed to a successor for a term of years (other than an interest for his life); (c) in the case of an annuity or bequest secured by or charged upon rural property. (9) For the purposes of this section, the value of an interest in rural property shall be taken to be the value of the successor's share in the property less the amount proportionate to his share, as at the date of death- of the predecessor, of any charge or encumbrance to which such property was subject at that time and subject to which it is derived. (10) (a) In this section- " person related to the predecessor by blood or marriage" means- (i) spouse of the predecessor; (ii) parent, step-parent or other lineal ancestor of the predecessor or of the spouse of the predecessor; (iii) child or other lineal descendant of the predecessor or of the spouse of the predecessor;

Succession and Probate Duties Act Amendment Act 1971, No. 52 683 (iv) brother or sister , or half-brother or half-sister, of the predecessor or of the spouse of the predecessor; (v) child of a person to whom the last preceding paragraph applies; or (vi) spouse of a person to whom any of the last three preceding paragraphs applies; " primary production " means production resulting directly from the cultivation of land or the maintenance of animals for the purpose of selling them or their bodily produce , including the natural increase: The term includes forestry , poultry farming , apiculture, and the manufacture of dairy produce by the person who produced the raw material used in the manufacture; " primary producer ' s company " means a proprietary company incorporated under the laws of Queensland in which, immediately prior to the death of the predecessor , ninety per centum at the least of the issued share capital thereof was beneficially owned by the predecessor or by persons who were related to the predecessor by blood or marriage and which the Commissioner is satisfied is wholly or principally engaged in the business of primary production; " primary producer ' s partnership " means a partnership which the Commissioner is satisfied was formed for the purpose of carrying on the business of primary production and carries on that business either wholly or principally; " rural property ", in relation to a predecessor, means any property , or any interest in property, consisting of land, animals and poultry, farm produce and plant and machinery used or held at the time of the death of the predecessor wholly and exclusively for the purpose of carrying on a business of primary production, but excluding motor vehicles designed primarily for the conveyance of persons , household furniture, furnishings and appliances , and also excluding property whereon or in relation to which the only or principal business carried on is the breeding or rearing of horses or dogs for racing purposes or animals for sale as domestic pets. The term includes any land that is within or adjacent to land used at the time of the death of the predecessor wholly and exclusively for the purpose of carrying on the business of primary production as aforesaid , where such first- mentioned land was at that time used for the purpose of a residence occupied by- (i) the predecessor; (ii) a person related to the predecessor by blood or marriage; (iii) an employee or tenant who was employed or engaged in the business of primary production as aforesaid carried on on the said land that such first-mentioned land was within or adjacent to; or

684 Succession and Probate Duties Act Amendment Act 1971, No. 52 ( iv) a share - farmer. The term also includes- (i) in the case of the interest in a primary producer's partnership of the predecessor at the time of his death , the same proportion of the value of the interest of the predecessor in that partnership as the gross value of the rural property (as defined in this subsection ) of the partnership bears to the gross value of all assets of the partnership; (ii) in the case of shares held in a primary producer's company by the predecessor at the time of his death, the same proportion of the value of the shares so held by the predecessor in that company as the gross value of the rural property ( as defined in this subsection) of the company bears to the gross value of all assets of the company. (b) For the purposes of the definition of " person related to the predecessor by blood or marriage " in paragraph (a) of this subsection , relationships referred to in that definition shall be taken to include illegitimate relationships and relationships by adoption and relationships that are traced through illegitimate relationships or relationships by adoption.".