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ARTICLE · 16 SEPTEMBER 2011

Victorian Landholder Duty - proposed model released for consultation

Victoria State Budget indicates intention to adopt a landholder duty model in place of the landrich regime.

AustraliaTax

Following in the footsteps of most other States and Territories in Australia, Victoria announced in the 2011-2012 State Budget that it intended to adopt in its Duties Act a landholder duty model in place of the landrich regime. On 12 September 2011, the first details of the proposed model were released through a Consultation Paper available at the State Revenue Office's website www.sro.vic.gov.au.

This Paper reveals an intention to adopt a landholder model which is different in some significant respects to that adopted in other States and Territories. Disappointingly, there is to be a broadening of the tax base without the quid pro quo of a relaxation of the duty thresholds.

The proposed new regime is to commence on 1 July 2012.

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