Sim v Commissioner of State Revenue (Review and Regulation) [2025] VCAT 349

Background

This matter concerns the imposition of foreign purchaser additional duty (FPAD) on a transfer of land in Alphington. The land was transferred solely to the taxpayer who was a South Korean citizen at the time of the transfer.

Issue

The taxpayer said the transfer should be exempt from FPAD under s69AJ of the Duties Act 2000. That exemption applies if the land-related interest in residential property is transferred jointly to the foreign purchaser’s spouse/domestic partner who is an Australian citizen at the relevant time.

She submitted the property was effectively transferred to her and her husband jointly because her husband had an equitable interest in the property by virtue of his contributions to the purchase price.

Decision

On 17 April 2025, the Tribunal handed down its decision, confirming the reassessment of FPAD.

In doing so, among other things, the Tribunal:

• considered the primary issue for determination in this matter was whether the relevant land related interest was transferred ‘jointly’ to the taxpayer and her husband
• agreed with the Commissioner’s submission that the relevant ‘land related interest’ is the fee simple estate that was the subject of the transfer, and as the sole transferee of that interest was to the taxpayer solely, the requirement in s69AJ(b) of the Duties Act was not satisfied.