ARTICLE · 24 OCTOBER 2025

Economic Entitlements Duty

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Economic entitlements duty was introduced to prevent duty avoidance through creative joint venture structures.

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The "economic entitlements" provisions in Victoria's Duties Act create a tax on certain arrangements where a person acquires a right to share in the economic benefits of land without acquiring the land itself.

This would apply if you receive a percentage of profits, income, or sale proceeds from someone else's land (a common scenario in property development agreements). You can be deemed to have acquired a beneficial interest in that land and required to pay land transfer duty on it.

Economic entitlements duty was introduced to prevent duty avoidance through creative joint venture structures.

As part of our Property Taxes in Victoria series we provide a detailed overview of the most common property duties and land taxes. Please note that tax laws, thresholds and tax rates are subject to annual revisions, so check the relevant government website for the latest information.

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