The Court of Appeal held that when a lease is disregarded under s 22(2) of the Duties Act 2000 (Vic) for the purpose of determining unencumbered value, the tenant's statutory ownership of fixtures under s 154A of the Property Law Act 1958 is not thereby also disregarded; rather, s 22A provides a self-contained scheme for the treatment of tenant's fixtures requiring the Commissioner to form a state of satisfaction under s 22A(2) as to whether the fixtures were sold or transferred to the purchaser. The Court also held that 'tenant's fixtures' under s 154A are not limited to fixtures capable of removal without destruction or material injury to the premises, and that leases (including 299-year leases with substantial premiums) are not 'encumbrances' within the meaning of ss 20(1) and 22(1) of the Duties Act, applying Bradney.
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