Application for registration as a wholesale unit trust scheme or an imminent wholesale unit trust scheme or a declared wholesale unit trust scheme
Duties-Form-59
What is the purpose of this form?
This application form is to be completed by the trustee of a unit trust scheme seeking registration as either a wholesale unit trust scheme, an imminent wholesale unit trust scheme or a declared wholesale unit trust scheme for the purposes of the landholder provisions in Part 2 of Chapter 3 of the Duties Act 2000.
Who can complete this form?
This form can be completed by the authorised representative of the trustee or the trustee of the unit trust scheme.
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Explanatory notes
A private unit trust scheme may be registered as a wholesale unit trust scheme if it meets the following registration criteria:
- It was not established for a particular investor.
- Either:
- its assets include an interest in not less than 3 parcels of land (whether in or outside Victoria) and at least 2 of those interests each have an unencumbered value of $10 million or more, or
- at least 6 unit holders, who are not associated persons, each have a subscription under the trust of not less than $3 million.
- Not less than 70% of the units in the scheme are held by qualified investors.
- No qualified investor, either alone or together with associated persons, holds 50% or more of the units in the scheme.
- Registration is not being sought for the purpose of, or as part of a scheme or arrangement with a collateral purpose of, avoiding or reducing duty that would otherwise be chargeable under Part 2 of Chapter 3 of the Act.
If a private unit trust scheme cannot immediately meet the requirements for registration as a wholesale unit trust scheme, it may be registered as an imminent wholesale unit trust scheme if:
- It will meet the criteria for registration as a wholesale unit trust scheme within 12 months after the day on which the first units in the scheme were issued to a qualified investor.
- Units issued in the scheme, before it meets the criteria for registration as a wholesale unit trust scheme, have been or will be issued only for the purpose of the scheme meeting the criteria.
- Registration is not being sought for the purpose of, or as part of a scheme or arrangement with a collateral purpose of, avoiding or reducing duty that would otherwise be chargeable under Part 2 of Chapter 3 of the Act.
Where a private unit trust scheme has been in existence for some time it may be registered as a declared wholesale unit trust scheme if:
- The scheme falls short of the criteria for registration as a wholesale unit trust scheme and the Commissioner of State Revenue is satisfied that the scheme should be treated as a wholesale unit trust scheme.
- Registration is not being sought for the purpose of, or as part of a scheme or arrangement with a collateral purpose of, avoiding or reducing duty otherwise chargeable under Part 2 of Chapter 3 of the Act.
Registration as a wholesale unit trust scheme or declared wholesale unit trust scheme is for 3 years. For an imminent wholesale unit trust scheme, registration is for 12 months from the date units in the scheme were first issued to a qualified investor. Registration may be backdated to a period before the day on which registration is granted. The Commissioner may cancel registration at any time if a disqualifying circumstance has occurred in respect of the scheme.
An associated person is a person who is associated with another person on the basis of the relationships set out in s3(1) of the Act.
For the purposes of s89S of the Act, the Commissioner may treat 2 or more parcels of land as a single parcel of land if he is satisfied that it is appropriate to do so, having regard to the ownership, the proximity and use of the parcels of land, and any other matter the Commissioner considers relevant.
A qualified investor in a unit trust scheme is a person holding units in the unit trust scheme in any of the capacities listed in s89P of the Act.
A disqualifying circumstance is any circumstance that causes a registered unit trust scheme to fail to meet one or more of the registration criteria. If a disqualifying circumstance occurs, the trustee must notify the Commissioner of the details of the disqualifying circumstance within 28 days of its occurrence. If the trustee fails to notify the Commissioner within 28 days, the trustee may be liable for penalties, and double the amount of any duty payable as a result of the disqualifying circumstance (less any amount of any duty that the trustee or any other person has paid).
