Commissioner of State Revenue Jonathon Root has announced a revised interpretation relating to the application of the Duties Act 2001 (‘the Act’) in respect of Marine Farm Leases (MFLs) issued under the Marine Farming Planning Act 1995.
Until recently the position was that MFLs were not dutiable property for the purposes of the Act on the understanding that such leases did not confer an interest in land under section 9 of the Act.
Developments in case law required a review of the treatment of Marine Farm Leases under the Act, and upon advice the Commissioner has subsequently formed the view that MFLs do generally amount to an interest in land.
As a result of this updated interpretation, the transfer of an MFL within Tasmania’s coastal waters (up to 3 nautical miles under the Coastal Waters (State Title) Act 1980 (Cth)), whether transferred alone or as part of a broader transaction, will now be classified as a dutiable transaction. This change applies to transactions currently lodged for assessment, as well as any future submissions.
However, the Commissioner does not plan to review previously assessed MFL transactions unless they form part of any separate matter that is lodged for assessment.
Likewise, an MFL will also be considered as an interest in land for the purposes of landholder provisions under the Act.
For further clarification, members are encouraged to contact Mark.Boxhoorn@treasury.tas.gov.au.
6 November 2024