ARTICLE · 09 SEPTEMBER 2022

SRO in Victoria issues draft ruling on service fees and the economic entitlement provisions

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This draft ruling clarifies the application of economic entitlement provisions in the Duties Act 2000 to service fees.

AustraliaTax

The State Revenue Office (SRO) recently issued Draft Revenue Ruling DA-065 (Draft Ruling). This Ruling clarifies the application of the economic entitlement provisions in the Duties Act 2000 (Vic) (Act) to service fees.

What is an economic entitlement?

The economic entitlement provisions in the Act trigger duty if a person acquires an "economic entitlement" under an arrangement made on or or after 19 June 2019 in relation to relevant land with an unencumbered value of more than $1 million.

You will acquire an economic entitlement if you are entitled to any one or more of the following:

to participate in the income, rents or profits derived from the land
to participate in the capital growth of the land

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