Schedule 2B Rental-purchase schemes
(Section 45AA)
1 The nature of a rental-purchase scheme
(1) A rental-purchase scheme is a scheme under which the operator of the scheme purchases land on which there is a house or on which the operator builds a house, leases the house to a prospective purchaser and grants the prospective purchaser an option to purchase the property within a specified period.(2) In this clause, house includes a lot within a strata plan comprising a dwelling.
2 Approval of operator of scheme
(1) A person who operates or proposes to operate a rental-purchase scheme may apply to the Chief Commissioner to be an approved person for the purposes of this Schedule.(2) An application for such an approval shall be made in the form and manner determined by the Chief Commissioner.(3) The application may be granted unconditionally or subject to conditions or may be refused.
3 Approval of rental-purchase agreement
The Chief Commissioner may, for the purposes of this Schedule, approve rental-purchase agreements entered into or proposed to be entered into by an approved person.
The Chief Commissioner may, by giving 30 days’ notice in writing to an approved person, revoke the approval of the person or the approval of the person’s rental-purchase agreements, or both.
5 Exemption from duty—agreements and conveyances
(1) If an approved person:(a) enters into, as purchaser, an agreement for the sale or conveyance or a conveyance of any land, and(b) satisfies the Chief Commissioner that the land is being purchased for the purpose of entering into an approved rental-purchase agreement or agreements,the agreement or conveyance is exempt from duty.(2) If:(a) any land the subject of an agreement or conveyance referred to in subclause (1):(i) does not become the subject of an approved rental-purchase agreement within 12 months after the execution of the agreement or conveyance, or(ii) is sold otherwise than as a consequence of the exercise of an option under an approved rental-purchase agreement, or(b) the approved person breaches any condition to which the person’s approval is subject, or(c) the person’s approval is revoked,the agreement or conveyance referred to in subclause (1) thereupon becomes liable to duty and becomes so liable as if it were first executed at the time at which it becomes so liable.(3) If, on the occurrence of an event referred to in subclause (2) (a), (b) or (c), part of the land the subject of an agreement or conveyance referred to in subclause (1) has, in accordance with this clause, become the subject of an approved rental-purchase agreement or agreements and part has not, the liability to duty of the agreement or conveyance shall be calculated, at the rates specified in paragraph (1) under the heading “Conveyances of Any Property” in the Second Schedule, on the unencumbered value at the date of the agreement or conveyance of the part that has not become the subject of an approved rental-purchase agreement or agreements.(4) The Chief Commissioner may from time to time, before or after the expiration of the 12-month period referred to in subclause (2) (a) (i), extend that period.
6 Exemption from duty—approved rental-purchase agreement
An approved rental-purchase agreement is exempt from duty.
7 Liability for certain duty not affected
Nothing in this Schedule exempts from duty an agreement for the sale or conveyance of any property or a conveyance of any property entered into as a consequence of the exercise of an option under an approved rental-purchase agreement.