Financial Agreements—application of Part VIIIA of the Family Law Act 1975 (Cwlth)

Part VIIIA of the Family Law Act 1975 (Cwlth) (FLA), provides for certain agreements to be exempt from duty. Financial agreements made in accordance with Part VIIIA of the FLA, are exempt under section 90L of the FLA.

To determine if a financial agreement or transaction is exempt under section 90L of the FLA, please use the flow charts below.

 

Financial agreement or other agreement

Transactions made in accordance with a financial agreement

 For audit purposes, you must keep:

• the agreement or a certified copy of the agreement
• a copy of the instrument (evidencing the transaction)
• approved Form 2.2
• a separation declaration if not contained within the agreement.

You must keep all records for 5 years in accordance with section 118 of the Taxation Administration Act 2001.

Example 1

A husband and wife own an investment property. A financial agreement made in accordance with s.90C of the FLA is executed in respect of a property settlement between the husband and wife. 

Under the terms of the agreement the husband is to transfer his interest in the property to the wife. The property is clearly identified in the agreement. The agreement further indicates that the parties have separated, contains a separation declaration clause and contains certificates of legal advice.

The instrument transferring the husband’s interest in the property to the wife is exempt from duty under s.90L of the FLA and must be self assessed.

For more information, please refer to the SA1—Self assessment of transfer duty—Instructions for registered self assessors (PDF 1,355 K).