New laws have now been passed by the Victorian Parliament that
impose Victorian stamp duty on many types of property development
agreements, joint ventures and funding arrangements.
Any contracts whereby a developer or financier participates in
sales revenue or profits associated with Victorian land could now
be subject to duty, as if the developer or financier had bought the
land directly.
What has changed?
The State Taxation Acts Amendment Act 2019 (Vic) is now
awaiting royal assent (expected next week), after the bill passed
through the Victorian Parliament without any changes.
The Act introduces new 'economic entitlement' provisions
that impose stamp duty on the acquisition of an entitlement to
participate in (or receive an amount calculated by reference to)
the income, rents, profits, capital growth or sale proceeds from
Victorian land worth more than $1 million.
