Glossary
Landholder duty
Landholder duty is a duty charged when someone acquires a significant interest in a company or unit trust that holds land above a threshold. It stops duty being avoided by buying the entity rather than the land. Each jurisdiction sets its own rules.
An example
An investor buys a controlling interest in a company whose main asset is a commercial property. The acquisition may attract landholder duty even though the land itself is not transferred.
Why it matters
Landholder duty can apply to restructures and investments that do not look like property purchases. Anyone acquiring interests in land-rich entities should check the rules in each state where land is held.
Points to check
Before buying shares or units in an entity that owns land, ask whether landholder duty could apply and in which states the land is located. Thresholds and rules differ between jurisdictions, and the duty can be payable even though no land is transferred directly. Due diligence should include the entity's land holdings and their values. Get advice before signing, because the duty can add significantly to the funds needed.
Related terms
Further reading: NT Government