Lodgement category (transfers)

Evidentiary requirements

Section	Evidentiary requirement
s36 (1)(c)(i)	Property passing to beneficiaries of fixed trusts
s36 (1)(c)(ii)(A)	Property passing to beneficiaries of fixed trusts
s36 (1)(c)(ii)(B)	Property passing to beneficiaries of fixed trusts

Evidentiary requirements

Section	Evidentiary requirement
s36A (1)(c)(i)	Property passing to beneficiary (not acting as trustee of trust) of discretionary trust
s36A (1)(c)(ii) & (3) para (a)	Property passing to beneficiary (acting as trustee of another trust with natural person beneficaries) of discretionary trusts
s36A (1)(d)	Property passing to beneficiaries of discretionary trusts
s36A (1)(ii) & (3) para (b)	Property passing to a beneficiary of a discretionary trust (where the beneficiary is the trustee of another trust whose beneficiaries include a corporation as trustee of another trust)

Evidentiary requirements

Section	Evidentiary requirement
s36B (2)(a)(i)	Property passing to natural person unit holder absolutely
s36B (2)(a)(ii)	Property passing to unitholders in unit trust schemes
s36B (2)(b)	Property passing to unitholders in unit trust schemes
s36B (2)(c)	Property passing to a unitholder as the trustee of a discretionary trust
s36B (1) & (2)(a)(i)	Property passing to a natural person unitholder absolutely
s36B (2)(d)	Property passing to unitholders in unit trust schemes

Evidentiary requirements

Section	Evidentiary requirement
s38a	Transfer of property to a special disability trust

Evidentiary requirements

Section	Evidentiary requirement
s40 (1)	Transfer of property from one superannuation fund to another

Evidentiary requirements

Section	Evidentiary requirement
s41	Transfers to trustees or custodians of superannuation funds or trusts

Evidentiary requirements

Section	Evidentiary requirement
s41A	Property passing to beneficiaries of superannuation funds

Evidentiary requirements

Section	Evidentiary requirement
s34 (1)(a)	Declarations of trust for land vested in an apparent purchaser
s34 (1)(b)	Property vested in an apparent purchaser

Evidentiary requirements

Section	Evidentiary requirement
s33	Change of trustee

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.

It is also a transfer made by way of re-transfer back to the transferor without any change in beneficial ownership if no person other than the transferor has had a beneficial interest in the property between the transfer to the trustee or nominee and the re-transfer.

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. From 1 July 2018, a full duty exemption will apply on purchases up to $600,000, with a duty concession applying for property purchased between $600,001 and $750,000.

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

Transfer of a family farm to a company, trust or association (that is, to other than a natural person). The transferor must be a natural person, a trustee for a natural person, or a company in which all the 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 water entitlements.

Complete a primary production and water entitlements statutory declaration.

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

Section 24(1) of the Act provides that dutiable transactions relating to separate items or separate parts of dutiable property are to be aggregated and treated as a single dutiable transaction if:

• dutiable transactions occurred within 12 months or contracts of sale are entered into within 12 months
• they together form evidence, give effect to or arise from what is substantially one arrangement relating to all the items or parts of the dutiable property
• there are separate transfers arising out of a single contract as a single arrangement.

Section 24(2) of the Act provides a specific exception from aggregation for vacant land purchased by licensed home builders in certain circumstances. Pursuant to section 24(2) of the Act, dutiable transactions are not aggregated if:

• the dutiable property that is the subject of the dutiable transactions is vacant land
• the transferee is registered as a domestic builder under the Building Act 1993 and is a builder within the meaning of the Domestic Building Contracts Act 1995
• the transferee intends to construct residential premises on the vacant land for the purpose of selling that land to the public.

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

For transfers to a person other than the purchaser named in the contract of sale or agreement or to a person other than the person the vendor granted an option to, including any nominations, assignments or transfer rights.

This also applies to parallel land and building arrangements. These are arrangements where the original purchaser, who is a registered builder under a contract of sale for land, nominates its interest in the land to a home buyer and within 12 months of nomination enters into a building contract with the home buyer to build a home on that land. As a result, sub-sales provisions apply to impose duty on the arrangement as 2 separate transactions.

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 have been 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)).

Related or associated party transfers with concessions including foreign purchasers

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

The PPR concession applies to transfers resulting from contracts of sale entered into on or after 1 January 2007 and the land purchased is intended to be occupied as a principal place of residence by at least one transferee. A rate reduction of 1% will apply for property with a value between $130,000 and $440,000. For properties with a value greater than $440,000 and less than $550,000, a duty reduction of $3,100 will apply.

First home buyer duty exemption, concession or reduction

When you buy your first home and the contract date is on or after 1 July 2017, you may be eligible for a duty exemption or concession. If your contract is dated before 1 July 2017, you may be eligible for a 50% duty reduction.

Both the duty exemption and the 50% duty reduction are available to first home buyers when they purchase a new or established property in Victoria with a dutiable value up to $600,000. The duty concession applies where the dutiable value is more than $600,000 but not more than $750,000. Vacant land can also attract the exemption or concession if you are buying it to build your home.

Pensioner concession

A pensioner buying a home may be eligible for an exemption or concession from duty if they hold one of the relevant concession cards at the date of the transfer, purchase the property for market value, and intend to reside in the home as their principal place of residence.

Eligible pensioners, who have purchased a block of land and have constructed a dwelling on it within 3 years after the transfer date, may also be eligible for a refund.

A full pensioner exemption applies if the value of house and land does not exceed $330,000. Partial exemption applies if the value of house and land is more than $330,000 but does not exceed $750,000. No exemption or concession applies if the value is greater than $750,000.

Section 21 (3) – Related party - land and building concession

Transfer of off-the-plan sales for land and building packages and refurbishments between related parties for full interest with a contract of sale dated on or after 1 October 2008.

A concession applies to transfers involving land and building packages for the construction costs occurring on or after the date of the contract of sale. A concession also applies to transfers involving the refurbishment of a building, being the conversion of an existing building for which a building permit under the Building Act 1993 has been issued. The concession applies to the refurbishment of the lot that occurs on or after the date of the contract of sale.

Section 18A – Foreign purchasers - duty in respect of change of use of land

Section 28A – Rate for additional duty chargeable for foreign purchasers - residential property

For contracts, transactions, agreements and arrangements entered into:

• on or after 1 July 2015 but before 1 July 2016 (even if the settlement date is on or after 1 July 2016), the additional duty rate is 3%
• on or after 1 July 2016, the additional duty rate is 7%
• on or after 1 July 2019, the additional duty rate is 8%.

Deceased estate

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

Transfer of deceased estate under the laws of intestacy or not strictly in accordance with the terms of the will.

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

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 because of the vesting of any dutiable property to a liquidator by an order under section 474(2) of the Corporations Act (Commonwealth).

Transfers to the appointed receiver or trustee in bankruptcy or an appointed liquidator.

Transfers of dutiable property for no consideration to a former bankrupt from the estate of the former bankrupt.

Transfers for consideration of dutiable property previously held by a bankrupt from a trustee in bankruptcy to the spouse or domestic partner of the bankrupt if, after the transfer, the property is the principal place of residence of the bankrupt’s spouse or domestic partner.

Charities and government bodies

Section 45 – Charities and friendly societies 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.

Also includes transfers to or declarations of trusts for friendly societies.

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) - A transfer to the Director of Housing.
• s52 (d) - A transfer to a roads corporation within the meaning of section 3 of the Transport Integration Act 2010.
• s52 (e) - A transfer to a person on behalf of a public department of Victoria or the Commonwealth.

Section 53 – Defence service homes

Certain transfers by the Director of Defence Service Homes.

s53 Defence Service Homes - exemption

No double duty

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

• s17 (1) - If a dutiable transaction is effected by more than one instrument, one instrument is stamped with the duty payable on the dutiable transaction, and each subsequent instrument is denoted indicating the amount and the date of payment of the duty on the primary instrument.
• s17 (2) - No duty is chargeable on a transfer to a trustee of dutiable property subject to a declaration of trust if ad valorem duty has been paid on the declaration of trust in respect of the same dutiable property.
• s17 (3) - No duty is chargeable on a declaration of trust that declares the same trusts as those upon and subject to which the same dutiable property was transferred to the person declaring the trust if ad valorem duty has been paid on the transfer.

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, share transfer or lease

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.

The 50A exemption cannot apply if the land use entitlement was acquired when no ad valorem duty was chargeable on the transfer of marketable securities or land use entitlements, that is, 1 July 2002 to 16 June 2004.

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. The acquisition of a land use entitlement is dutiable.

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

A transfer of dutiable property made solely because of a breakdown of a marriage or domestic relationship is exempt where:

The transferor is:

• a corporation to which the parties of the marriage or domestic relationship are directors
• a trustee of a trust of which no person is a beneficiary other than a party of both parties to the breakdown in marriage or domestic relationship or a dependent child of theirs.

The transferee is:

• a dependent child of a party or both parties to the marriage or domestic relationship, or
• a combination of the parties to the marriage or domestic relationship, and a dependent child of a party or both parties to the marriage or domestic relationship, or
• a trustee of a trust of which no person is a beneficiary other than a party of both parties to the marriage or domestic relationship, or their dependent child.

Equity release program

This category is no longer available.

Section 55 – Equity release programs – exemptions

A transfer made on or after 15 June 2005 under an equity release program that results in a change in beneficial ownership is exempt.

Unrelated transfers with concessions including foreign purchasers

PPR

The PPR concession applies to transfers resulting from contracts of sale entered into on or after 1 January 2007 and the land purchased is intended to be occupied as a principal place of residence by at least one transferee. A rate reduction of 1% applies for property with a value between $130,000 and $440,000. For properties with a value greater than $440,000 and less than $550,000, a duty reduction of $3,100 applies.

First home buyer duty concession, exemption or reduction

When you buy your first home and the contract date is on or after 1 July 2017, you may be eligible for a duty exemption or concession. If your contract is dated before 1 July 2017, you may be eligible for a 50% duty reduction.

Both the duty exemption and the 50% duty reduction are available to first home buyers when they purchase a new or established property in Victoria with a dutiable value up to $600,000. The duty concession applies where the dutiable value is more than $600,000 but not more than $750,000. Vacant land can also attract the exemption or concession if you are buying it to build your home.

Pensioner concession

Pensioners buying a home may be eligible for a full or partial exemption of duty if they hold one of the relevant concession cards at the date of the transfer, purchase the property for market value and intend to reside in the home as their principal place of residence.

Eligible pensioners, who have purchased a block of land and constructed a dwelling on it within 3 years after the transfer date, may also be eligible for a refund.

The full pensioner exemption applies if the value of the house and land does not exceed $330,000. Partial exemption applies if the value of house and land is more than $330,000 but does not exceed $750,000. No exemption or concession applies if the value is greater than $750,000.

Section 21(3) - Related party – land and building concession

Transfer of off-the-plan sales for land and building packages and refurbishments between related parties for full interest with contract of sale dated on or after 1 October 2008. A concession applies to transfers involving land and building packages for the physical construction costs occurring on or after the date of the contract of sale. A concession also applies to transfers involving the refurbishment of a building being the conversion of an existing building for which a building permit under the Building Act 1993 has been issued. The concession applies to the refurbishment of the lot that occurs on or after the date of the contract of sale

Section 18A Foreign purchasers - duty in respect of change of use of land

Section 28A Rate for additional duty chargeable for foreign purchasers – residential property

For contracts, transactions, agreements and arrangements entered into:

• on or after 1 July 2015 but before 1 July 2016 (even if the settlement date is on or after 1 July 2016), the additional duty rate is 3%
• on or after 1 July 2016, the additional duty rate is 7%
• on or after 1 July 2019, the additional duty rate is 8%.

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.