Property: Victorian Stamp Duty Changes & Issues
Septmber 2001 -- revised January 2003
On 1 July 2001, the Duties Act 2000 (Vic) replaced the Stamps Act 1958 (Vic). Apart from being a major redraft containing the applicable rates and exemptions in the body of the legislation, there are major changes especially relating to property acquisitions.
LEASES:
As from 26 April 2001, stamp duty on most Victorian commercial leases has been abolished. No duty has been charged on residential leases since 1985. However, the new Duties Act 2000 does contain anti-avoidance provisions to prevent surrenders by tenants who might have otherwise tried to apply for Stamp Duty refunds.
CONVEYANCING:
In other conveyancing stamp duty changes, the new Duties Act removes stamp duty saving techniques such as contract-splitting or transfer-splitting. Formerly, a purchaser could apportion the price between separate Transfers (where a property consisted of more than one title) to take advantage of the lower stamp duty rate applicable to smaller properties on the progressive stamp duty rate scale. However, now section 24 of the new Act forces an aggregation of all property transactions involving the same transferee or associated persons. This new law applies for contracts entered into after 1 July 2001.
FARM EXEMPTIONS:
Transfers of farm land to relatives or charities are provided an exemption from stamp duty. However, various criteria must be satisfied before the exemption applies. Therefore, the documentation must support these criteria. Baldwins can assist in the preparation of such documentation.
In addition, goods ‘held or used in connection with land used for primary production’ are excluded from the definition of “dutiable property”.
For further information, contact Joe Lederman at BALDWINS, Australian Lawyers & Consultants.
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