Categories of land transfer transactions

Section 35 – Transfers to and from a trustee or nominee

Transfer to a trustee or nominee of a bare trust and re-transfer back to the transferor without change of beneficial ownership.

A declaration of trust by a trustee or nominee where the property is held on trust solely for the transferor, without any change in beneficial ownership.

Primary production

Section 69 – Young farmer exemption

Transactions involving the first-time purchase of farmland property by a young farmer or a young farmer business entity. The young farmer must be under the age of 35 and the land purchased must be used or intended to be used primarily for the business of primary production. A young farmer may have previously owned residential property but cannot have previously owned farmland in order to receive the exemption. 

Section 56 – Family farm transfer other than to a natural person

Transfer of a family farm to a natural person, company, trust or association. The transferor must be a natural person, a trustee for a natural person, or a company in which all shares are owned by related natural persons. The transferee must be a relative, a trustee of certain types of trust, or a shareholder of the transferring company.

Sections 10(1)(a) & (d)(iv) & (v) – Primary production, water entitlement, goods and livestock

Transfer of primary production property that is subject to or involves primary production goods and livestock and/or water entitlements. Duty is payable on the contract price less the value of the goods and livestock and/or water entitlements.

Section 24 (2A) – Non-aggregation of primary production land

Transfers in respect of an estate in land referred to in sections 65, 66 or 67 of the Land Tax Act 2005 are not to be aggregated if the land continues to be used for primary production.

Aggregation

Section 24 – Aggregation of land that is not primary production

Dutiable transactions relating to separate items or parts of dutiable property that form part of the same arrangement may be aggregated and treated as a single dutiable transaction.

An exemption from aggregation may apply in limited circumstances for vacant land purchased by domestic builders.

More information in Revenue Ruling DA-026v2 – Aggregation of dutiable transactions and the exception form aggregation for domestic builders where residential premises are to be constructed.

Sub-sale

Section 32A – 32X – Sub-sales

Transfers to a person other than the purchaser named in the contract of sale or the holder of an option, including any nominations, assignments or transfer rights, are treated as sub-sales and may give rise to more than one dutiable transaction.

Sale of business/goods

Section 10(1)(a) & (d) s22B, s24 – Transfers of land and business

For transfers of land on which a business is conducted and where both the freehold and the business are sold within 12 months.

Duty is assessed on the aggregated value of the land and value of business goods.

Section 24 of the Act applies to aggregate the value of land and value of the business goods where the land and a business conducted on the land are sold by one vendor (or associated vendors) to one purchaser (or associated purchasers (s22B)).

Transactions with concessions for purchases of a principal place of residence

Sections 57J-60 – Concessions in relation to principal place of residence (PPR) and/or first home buyer duty reduction or pensioner concession

The PPR concession applies to transfers where the land is intended to be occupied as a principal place of residence by at least one transferee.

First home buyer duty exemption, concession or reduction

First home buyer transfers where a duty exemption or concession may apply, including purchases of vacant land intended to be used to build a home. 

Pensioner concession

Transfers where an eligible pensioner buys a home and may be eligible for an exemption or concession, provided they hold a relevant concession card at the date of the transfer, purchase the property for market value, and intend to occupy the home as their principal place of residence.

Section 21(3) – Off-the-plan concession

Transfer of off-the-plan sales for land and building packages and refurbishments between related parties for full interest.

A concession may apply to transfers involving land and building packages and to transfers involving the refurbishment of a building.

Deceased estate

Section 42(1), 42(2), s42(3) – Deceased estate

Vesting of a dutiable property pursuant to section 13 of the Administration and Probate Act 1958.

Transfer of property from a deceased estate that is not strictly in accordance with the terms of the will or the laws of intestacy.

Partition/NICO

Section 27 – Partition

Transfers of land relating to the partition of jointly owned land.

Where a dutiable transaction effects a partition or division of an interest in land, duty is payable on the value less any beneficial interest held by the transferee prior to the transaction.

Section 10(1)(a) & (d) – NICO transfers

Transfer as a result of a not in common ownership (NICO) plan of subdivision.

Re-alignment of boundaries and discontinued roads

Section 10(1)(a) & (d) – Re-alignment of boundaries

Transfer of property relating to the re-alignment of boundaries.

Note: Any land acquired by the transferee in relation to which they were not on title to prior to any subdivision of the properties is dutiable.

Section 10(1)(a) & (d) – Discontinued roads

Transfer of land as a result of a discontinued road.

Fractional interest

Section 7, s261

Interest titles for fractional interests, complex fractional interest transfers, assignment, surrender, disclaimer, life and remainder interests not involving deceased estates.

Bankruptcy matters

Section 48(b)-(c) and 48(ca) – Bankruptcies and administrations

Transfers of dutiable property made because of bankruptcy, receivership or liquidation may be exempt from duty.

Charities and health centres and services

Section 45 – Charities exemption

Transfers or declarations of trust for religious, charitable or educational purposes or to a corporation or body of persons established for religious, charitable or educational purpose.

The land transfer duty exemption for friendly societies was removed with effect from 4 December 2024.

Section 45A – Health centres and services exemption

Transfers of dutiable property to or declarations of trust over dutiable property to be held on trust for a public health service or related health body may be exempt from duty. See definitions under s45A(3) of the Duties Act 2000.

Section 47 – Government bodies

• Transfer to the crown in right of Victoria.
• Transfer to a council within the meaning of the Local Government Act 1989.
• Transfer to the Municipal Association of Victoria.
• Transfer to an authority within the meaning of the Water Act 1989.
• Transfer to any person on behalf of any of the above persons.

Section 52 – Government bodies

• s52 (a) – A transfer to the Minister administering the Crown Land (Reserves) Act 1978.
• s52 (b) – A transfer to the Minister administering the Planning and Environment Act 1987.
• s52 (c) – Homes Victoria (within the meaning of section 4(1) of the Housing Act 1983).
• s52 (d) – The Head, Transport for Victoria within the meaning of the Transport Integration Act 2010. 
• s52 (e) – A transfer to a person on behalf of a public department of Victoria or the Commonwealth.

No double duty

Section 17 – No double duty, primary instruments and rectification of errors

Where a dutiable transaction is effected by more than one instrument, duty is generally chargeable only once, with subsequent instrument not subject to further duty.

Adjustment to dutiable value

Section 22(2), (2A) (3) & (4) – Agreement that reduces the value of the property

In determining the amount for which land or goods might reasonably have been sold free from encumbrances, the Commissioner takes into account the effect of any interest, agreement or arrangement that reduces the value of the land and/or goods.

s(10), s(20) – Transferee improvements

Where land, which is the subject of a conveyance or transfer of land, has been improved by the transferee, the cost of those improvements may be deducted from the market value of the land in certain circumstances for the purpose of assessing the duty payable.

More information in Revenue Ruling DA-010 – Transferee's improvements in transfer of land valuations.

Conversion of land use entitlements

Section 50A – Conversion of land use entitlement

No duty is chargeable on a transfer of land resulting from the conversion of a land use entitlement to an estate in fee simple in a lot on a registered plan of subdivision.

Transfer of land use entitlement

Land use entitlements, which entitle the owner to exclusive use and occupation of a specific property, are regarded as dutiable property under s7(1)(a) of the Duties Act 2000 (the Act).

A land use entitlement includes an entitlement to occupy land in Victoria through the ownership of shares in a company or units in a unit trust scheme, or a combination of a shareholding or ownership of units together with a lease or licence.

Spousal or breakdown of relationship transfer to parties other than the spouse

Includes transfers to another party(s) as a result of:

• Spouse – For natural love and affection
• Spouse – Breakdown of relationship
• Spouse – Breakdown of relationship – pursuant to a court order
• Spouse – Breakdown of relationship – pursuant to a binding financial agreement

Section 44(3), 44(1)(b)(ii) – Transfer of property as a result of a breakdown in marriage or domestic relationship to parties other than the parties to the marriage or domestic relationship

Transfers of dutiable property made solely because of a breakdown of a marriage or domestic relationship may be exempt from duty.

Change in the manner of holding – more than 2 parties

Change in the manner of holding from tenants in common in equal shares to joint proprietors or vice versa where there are more than 2 parties on the title.

Lodgement category (declaration of trusts)

Complex declaration of trust over dutiable property

A declaration of trust in relation to any identified property.

Complex declaration of trust over non-dutiable property

A declaration of trust for unidentified property.