TIB - April 1993
This item corrects an example in the item on stamp duty and forest sales, which appeared on page 5 of TIB Volume Four, No.8 (April 1993). The example omitted to show that stamp duty was levied on the GST-inclusive value of the transaction. The correct treatment is:
(2) SilviCo Ltd purchases the registered forestry right in a block of land planted in four year old eucalyptus botryoides with the intention of milling them for hardwood in twenty five years. The purchase price is $23,000 plus GST (i.e., $25,875.00 including GST).
The annual payment for the forestry right is $3,000 (i.e., $3,375.00 including GST).
Conveyance duty at $1.00 per $100 or part thereof is levied on the GST-inclusive purchase price ($259.00); and
Lease Duty of $0.40 per $100 or part thereof is levied on the GST inclusive maximum annual payment for the forestry right ($13.60).
The total stamp duty payable is $272.60.