Commercial Lease with Premium

About this form

Duty is charged on commercial lease agreements where a premium is paid by the lessee for the lease. A premium is considered to be any consideration (whether monetary or non monetary) that is paid, or agreed to be paid, for the lease. The payment of a large premium is indicative of a de facto land transfer occurring; the charging of duty on a premium is an anti-avoidance measure.

Duty will be levied once the premium amount exceeds the determined threshold of 25 per cent above market rent over the term of the lease. This threshold ensures that where a minor premium is paid for a lease (for example, in a competitive market) the transaction will not become liable for duty.

A premium does not include any payments that could reasonably be considered as rent reserved. Rent reserved includes rent paid or payable during the term of the lease that is market rent, and any reasonable amount paid or payable for the right to use the land under the lease (for example: rates; services and utilities; turnover rent or administration).


Please note: 

If you are a solicitor or agent lodging on behalf of a client you will need to print the applicable declaration for your client to complete and sign, which much be scanned and attached to this submission.

If you are a self lodger and your transaction involves more than one buyer or applicant, additional declarations will need to be printed, completed and attached to this submission.


ACT Revenue Office

Phone: (02) 6207 0028

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