The Victorian lease duty provisions take effect from 21 November
2008 and have the potential to create a headache for
advisors. If applicable, duty is calculated not on the rent
payable under the lease, or the value of any premium, transfer fee,
or surrender fee. Instead, duty is calculated on the
value of the underlying land the subject of the
lease. If advisors get it wrong, the duty liability could be
huge. Read on for tips and traps associated with Victorian
lease duty, together with an update on the recently expressed views
of the Victorian State Revenue Office (SRO).
What Is Victorian Lease Duty?
Leases granted on or after 21 November 2008 are subject to
duty if any consideration other than the "rent reserved"
is paid or agreed to be paid. The surrender of such a lease
is also dutiable. Similarly, a transfer or assignment of a
lease after 21 November 2008 is dutiable if consideration
is paid or payable for the transfer or assignment. Unlike in
other
