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.
Common examples of land use entitlements are the rights attaching to shares in share flat and home unit companies and alpine lease ownership arrangements.
Where the acquisition of a land use entitlement is through the allotment of shares or the issue of units, rather than the transfer of existing shares or units, the acquisition is dutiable under Part 5 of Chapter 3 of the Act.
A person who has acquired a land use entitlement, either by an allotment of shares in a company or issue of units in a unit trust scheme or by a transfer of shares or units, must complete and lodge our Digital Duties Form.
The form must be lodged within 30 days after the entitlement is acquired.
Information required when lodging your land use entitlement
The following information and supporting documents are needed to lodge your land use entitlement:
- details of transferor and transferee
- name, address and ABN/ACN of the relevant company/unit trust scheme
- contract date and property details of the acquisition
- the original share or unit transfer form
- copy of the contract/s for the sale of the land use entitlement
- completed Digital Duties Form
- any other relevant supporting evidence.
Submit your lodgement
Conversion of land use entitlements must be lodged via 'Retrieve and Claim Settlement Statement' in Duties Online as a Paper Transfer.