A WA parliamentary question seeks clarification on the legal basis and revenue implications of stamp duty applied to new partners joining legal or accounting firms. The Treasurer clarifies the existing legislation and confirms it's not a new policy, while revenue data is not specifically tracked.

AnsweredQoN 416Legislative Assembly
Asked
13 September 2005
Portfolio
Treasurer

QuestionView source ↗

(1) Will the Treasurer advise which section of which Act allows the Government to charge stamp duty to a new partner of a legal or accounting firm at the time that they are made a partner?
(2) Will the Treasurer advise how long the Government has been doing this?
(3) Will the Treasurer advise if this is a new policy; and
(a) if so, when it came about and why?
(4) Will the Treasurer advise the annual amount that the Government expects to collect from this revenue stream?

AnswerView source ↗

Answered
11 October 2005
Response time
28 days
(1) The entrance of a new partner to a legal or accounting firm does not generally give rise to an assessment of stamp duty. The exception is where the new partner acquires another partner's interest and the transaction is the subject of a written document. Sections 63, 66 and item 4 of the Second Schedule to the Stamp Act would apply in that case.
(2) The Stamp Act 1921 has always applied in the manner outlined in (1) above.
(3) This is not a new policy.
(a) Not Applicable.
(4) Specific estimates of revenue from this source are not available, as it forms only part of the overall conveyance duty base, and no operational reason exists to collect this data.

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