Victorian Government To Impose Duty On Long-Term Leases

On 21 November 2008, the Victorian Government issued a 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 take effect immediately. However, the media release provides little detail as to the exact types of long-term leases that are affected.

What types of long-term leases are affected?

The media release provides that "long-term lease schemes allow a small number of parties to use and control leased land equivalent to ownership without having to pay the appropriate stamp duty" and that effectively "a purchaser can acquire rights which are equivalent to ownership but not pay duty".