ARTICLE · 15 FEBRUARY 2020

Changes to Victorian additional foreign purchaser duty

McCullough Robertson

Explore more from McCullough Robertson

Discretionary trusts owning Victorian land pay additional foreign purchaser duty if the trust benefits a foreign person.

AustraliaTax

Author LinkedIn connections

WHO SHOULD READ THIS

Trustees of discretionary trusts that may purchase direct or indirect interests in Victorian residential land, and their advisers.

WHAT YOU NEED TO KNOW

The Victorian State Revenue Office has announced that discretionary trusts that own Victorian land will be subject to additional foreign purchaser duty if there is potential that the trust may benefit a foreign person.

WHAT YOU NEED TO DO

Review your trust deed to identify any potential beneficiaries that are 'foreign persons' you seek advice about varying the trust deed to include a foreign beneficiary exclusion clause.

The Victorian State Revenue Office (VSRO) has announced that from 1 March 2020, a discretionary trust that has any potential foreign beneficiaries will be considered to be a foreign trust, and subject to an additional 8% foreign purchaser duty on the acquisition of residential land in Victoria. This signals the end of the 'practical approach' the VSRO

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

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.

Related Articles

Spotlight On The Australian Tax Landscape: Three Recent Developments

Corrs Chambers Westgarth

Foreign Resident CGT Changes And Implications For M&A Transactions

Herbert Smith Freehills Kramer LLP

JONES DAY PRESENTS®: Navigating Australia's Toughening Tax Controversy Landscape (Video)

Navigating Australia's Toughening Tax Controversy Landscape (Video)

Changes To Tasmanian Duty And Land Tax

Herbert Smith Freehills Kramer LLP

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

Comparative Guide

Tax Disputes

Comparative Guide

Tax

See more popular content from

Tax

Update On Status Of Key Tax Measures Announced In Budget 2026-27

Australia's 2026-27 Budget introduces sweeping changes to capital gains tax, negative gearing, and discretionary trust taxation, fundamentally reshaping decades of established tax policy. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 has now received Royal Assent, but significant controversy surrounds key provisions including the new 30% minimum tax on discretionary trusts and restrictions on corporate beneficiaries. How will these reforms affect existing trust structures, investment strategies, a

Holding Redlich

Minimum Tax On Discretionary Trusts: What The Exposure Draft Means For Trustees

The Australian Government has released exposure draft legislation for a proposed 30% minimum tax on discretionary trusts, effective from 1 July 2028. Trustees now face three strategic pathways: remain within the minimum tax regime, restructure using transitional rollover relief, or elect into the new excluded election trust (EET) regime with restricted distribution flexibility.

Holding Redlich

Cross-border software payments and royalties: implications of final taxation ruling and practical compliance guideline Read More

The Australian Taxation Office has issued its final ruling on cross-border software payments, dramatically expanding what constitutes a royalty subject to withholding tax. With retroactive application to July 2021 and a broad interpretation of copyright law, multinational companies face significant compliance risks and potential exposure across software distribution, cloud services, and digital intermediation arrangements.

Corrs Chambers Westgarth

Federal Budget 2026–27: Key Tax Changes And What Clients Need To Know

On Tuesday, 12 May 2026, the Treasurer, Dr Jim Chalmers, handed down the 2026–27 Federal Budget. The Federal Budget introduces the most significant tax reforms aimed at reshaping how income and wealth are taxed in Australia. The Government is seeking to rebalance the system by reducing tax on income from work and increasing tax on income from assets, and then using that difference to fund personal tax relief and influence housing behaviour.

Bartier Perry Solicitors

Federal Budget 2026-27: Three Tax Changes Reshaping Investment, Trust Structures And Business Planning

Australia's 2026-27 Federal Budget introduces sweeping tax reforms that fundamentally reshape investment planning, trust structures, and business operations. The replacement of the 50% CGT discount with indexed gains and a 30% minimum tax, restrictions on negative gearing to new builds only, and a 30% minimum tax on discretionary trusts create unprecedented challenges for property investors, professional services firms, and family businesses. Understanding how these three interconnected measures work togeth

Holding Redlich

ATO audit warning - family trust elections - when an interposed entity election is appropriate

It is important to determine whether your arrangements within your family trusts are compliant with schedule 2F of the ITAA.

Pointon Partners

Australian Federal Budget 2026-2027–Key Tax Measures And Instant Insights

The Australian Federal Budget for 2026-2027 introduces sweeping reforms to the tax system, including a controversial 30% minimum tax on discretionary trusts, abolition of the 50% CGT discount in favor of cost base ...

Property Taxes In Victoria Series: Land Tax

Land tax is an annual tax on land ownership in Victoria, assessed on the total unimproved (which is the value of the land alone, without considering any improvements) value of taxable land that you own in the state.

The ATO’s Firmer Approach To Small Business Debt Collection

The Australian National Audit Office's recent review of the ATO's management of small business collectable debt reveals significant findings that will reshape how tax authorities approach debt recovery. With small business debt reaching $35.9 billion and the ATO accepting all eight recommendations for reform, advisers and business owners face a new landscape of firmer collection activity and heightened accountability. Understanding these changes and their implications for unpaid tax liabilities, director pe

Hilton: Part IVA, Alternative Postulates And The Evidence Problem

'Hilton International Australia Pty Ltd v Commissioner of Taxation (No 2) [2026] FCA 1325' examines Part IVA's treatment of alternative postulates and the critical role of evidence in tax benefit analysis. The Federal Court's decision establishes that multiple reasonable alternatives may exist, and that a Part IVA scheme cannot serve as a valid counterfactual to another Part IVA scheme.