The foreign purchaser additional duty ("FPAD")
provisions were introduced in Victoria with effect from 1 July
2015.
The additional duty provisions for foreign purchasers were
incorporated in section 28A of the Duties Act 2000 (Vic) ("the
Act")
A foreign purchaser is either a foreign natural person,
corporation or the trustee of a foreign trust.
A foreign trust means a trust in which a substantial interest
(i.e. more than 50%) is held by either a foreign corporation,
foreign natural person or person holding a substantial interest of
another foreign trust.
The Act also states that should the trustee of the trust have a
power or discretion as to the distribution of the capital of the
trust estate to a person(s), that person is taken to have a
beneficial interest in the maximum percentage of the capital of the
trust (i.e. 100%).
