Legislation Introduced To Impose Duty On Victorian Leases

On 2 December 2008, the Duties Amendment Bill 2008 (Bill) was introduced into the Victorian Parliament. The Bill gives effect to the Victorian Government's recent media release announcing that it had moved to close a loophole which allowed the use of complex long-term lease arrangements to escape stamp duty liability. The changes are, however, not limited to long-term leases and may have significant financial implications for all tenants in Victoria. The changes may also affect the products offered by a range of vendors and property developers, in particular retirement village developers.

What types of long-term leases are affected?

The definition of "lease" in the Bill is not restricted to "long-term leases": lease is defined as "a lease of land in Victoria or an agreement for a lease of land in Victoria". No minimum lease term is required.