Marriage Breakdowns - Transfers of Matrimonial Property

Revenue Ruling
Public Ruling

Ruling Number:	PUB-DT-2005-4
Title:	Marriage Breakdowns - Transfers of Matrimonial Property
Tax Line:	Duties
Legislative Reference:	Duties Act 2001
Previous Ruling:
Date of Ruling:	16/11/2005
Attachments:

Preamble
This ruling is to advise taxpayers what evidence is required to satisfy the Commissioner of State Revenue (the Commissioner), in accordance with section 56(1)(a) of the Duties Act 2001(the Act), that a marriage has irretrievably broken down. Provided a transaction satisfies the criteria specified in section 56 of the Act and evidence is available as stipulated in this ruling, the exemption may be applied to the instruments effecting the transfer of dutiable property.

Section 56 of the Act provides that:

(1) No duty is chargeable under this Chapter on a transfer, or an agreement for the sale or transfer, of matrimonial property if –

(a)

the property is transferred, or agreed to be sold or transferred, to the parties to a marriage that is dissolved or annulled (or in the opinion of the Commissioner has irretrievably broken down) or to either of them, or to a child of the marriage under the age of 18; and

(b) the transfer or agreement is effected by or in accordance with –

(i)

a document registered or approved under the

Family Law Act 1975

of the Commonwealth; or

(ia) a financial agreement made under section 90B, 90C or 90D of that Act; or

(ii) an order of a court under that Act; or

(iii) a purchase at public auction of property that, immediately before the auction, was matrimonial property where the public auction is held to comply with any such document or order.

Ruling

The following evidence will be accepted by the Commissioner as indicating that a marriage has irretrievably broken down:

1. a document registered or approved under the Family Law Act 1975 of the Commonwealth between the parties to a marriage concerning the breakdown of their marriage and the consequential distribution of matrimonial property; or

2. an order of a court under the Family Law Act 1975 that effects the transfer of the matrimonial property; or

3. (a) a financial agreement made under section 90B, 90C or 90D of the Family Law Act 1975 of the Commonwealth; and

3. (b) a separation declaration made under section 90DA of the Family Law Act 1975 of the Commonwealth.

If the exemption is claimed (whether by self assessment or by lodging with this Office), the relevant evidence (as outlined above) must be retained in accordance with Part 8 of the Taxation Administration Act 1997.

Enquiries in relation to this Revenue Ruling should be directed to the Revenue Advice and Audit Section on telephone 03 6233 6659 or by e-mail at dutyhelp@treasury.tas.gov.au. Copies of this ruling may be obtained from our website at www.sro.tas.gov.auby following the "Rulings" link.

All rulings must be read subject to Revenue Ruling PUB-GEN-2005-5.

Peter Coe
COMMISSIONER OF STATE REVENUE