The Bill amends the Duties Act 2000 (Vic) and
does the following:
replaces the Commissioner's discretion not to aggregate
dutiable transactions with a specific exception to the aggregation
of dutiable property where vacant land is bought by registered
builders of homes where the homes are completed before on-sale
makes provision for certain parallel arrangements (including
parallel home building contracts) effectively imposing double duty
on those arrangements
removes the exemption from duty for a grant of any Crown lands
by the Crown in right of Victoria.
When will it come into operation?
The amendments will come into operation the day after the Bill
receives Royal Assent except for the amendments concerning Motor
Vehicle Duty at Division 3 of Part 2 and Consequential
Provisions/Penalties at Part 3, which will commence on 1 July
How the changes will work?
Under existing rules, the Commissioner may exercise his
discretion not to aggregate dutiable transactions in certain
circumstances. This is replaced with a specific exception for
transactions involving vacant land purchased by registered builders
of homes where the homes are completed before on-sale.
The amendments also confirm that certain parallel
arrangements and building contracts are subject to duty under
the sub-sales provisions.
Generally, a parallel arrangement is
an arrangement entered into by a subsequent purchaser or an
associate of the subsequent purchaser.
An example of a parallel arrangement
a builder (first purchaser) enters into a sale
contract to purchase vacant land from a developer
the first purchaser nominates a home buyer (subsequent
purchaser) who will receive the vacant land from the
developer under the sale contract
at or around the same time as the subsequent
purchaser acquires the rights under the sale contract, he
or she enters into a separate, parallel building contract with the
first purchaser to build a home on the vacant
land. Entering the building contract is integral to the
subsequent purchaser obtaining the transfer
Grant of Crown Land
The Bill also implements the proposal announced in the 2012-2013
Budget to remove the exemption from duty for a grant of any Crown
lands by the Crown in right of Victoria with exceptions relating to
right of ways.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.Madgwicks is a member
of Meritas, one of the world's largest law firm
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Exemptions or concessions on stamp duty could apply when contemplating the purchase or transfer of NSW real estate.
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