1Purpose
The main purpose of this Act is to create and charge a number of duties.
Parliamentary material from legislation.vic.gov.au and the Parliament of Victoria. Links open the official source in a new tab.
Bill homepage (legislation.vic.gov.au)The main purpose of this Act is to create and charge a number of duties.
This Act comes into operation on 1 July 2001.
S. 3 amended by No. 46/2001 s. 3(2) (ILA s. 39B(1)).
For the purposes of section 3A(1)(d), the Commissioner may determine that a person has a controlling interest in a corporation if, in the Commissioner's opinion, the person has the capacity to determine or influence, directly or indirectly, the outcome of decisions about the corporation's financial and operating policies, taking into account—
the practical influence the person can exert in addition to any rights the person can enforce; and
any practice or behaviour affecting the corporation's financial or operating polices (even if that practice or pattern of behaviour involves the breach of an agreement or a breach of trust).
This section applies regardless of any interests that any other person has in the corporation.
S. 3D inserted by No. 26/2015 s. 15.
For the purposes of section 3B(1)(b), the Commissioner may determine that a person has a substantial interest in a trust estate if, in the Commissioner's opinion, the person has the capacity to determine or influence the outcome of decisions about the administration and conduct of the trust, taking into account—
the practical influence the person can exert in addition to any rights the person can enforce; and
any practice or behaviour affecting the trustee's administration and conduct of the trust (even if that practice or pattern of behaviour involves the breach of an agreement or a breach of trust).
This section applies regardless of any interests that any other person has in the trust estate.
S. 3E inserted by No. 26/2015 s. 15.
3E Exemptions from holding controlling interests in foreign corporations or substantial interests in trust estates of foreign trusts
Despite sections 3A, 3B, 3C and 3D, a person is taken not to have a controlling interest in a foreign corporation, or a substantial interest in the trust estate of a foreign trust, if the person has an exemption under subsection (2).
The Treasurer, for the purposes of subsection (1), may, in writing, exempt a person who has a controlling interest in a foreign corporation, or a substantial interest in the trust estate of a foreign trust, if the Treasurer is satisfied that, having regard to any one or more of the following matters, the person should not be taken to have that interest—
in the case of a person who has a controlling interest in a foreign corporation—
the nature and degree of ownership and control the person has in the corporation;
the practical influence the person exerts or any rights the person enforces to determine or influence, directly or indirectly, the outcome of decisions about the corporation's financial and operating policies;
any practice or behaviour of the person affecting the corporation's financial or operating policies;
any other relevant circumstances;
in the case of a person who has a substantial interest in the trust estate of a foreign trust—
the nature and degree of the person's beneficial interest in the capital of the estate of the trust;
the practical influence the person exerts or any rights the person enforces to determine or influence, directly or indirectly, the outcome of decisions about the administration and conduct of the trust;
any practice or behaviour of the person affecting the trustee's administration and conduct of the trust;
any other relevant circumstances.
S. 3E(3) amended by No. 38/2023 s. 3.
At least once every 12 months the Treasurer must cause to be laid before each House of Parliament, and publish on an appropriate government website, a report setting out—
in respect of the exemptions (if any) granted by the Treasurer under subsection (2) during the period covered by the report—
the number of exemptions; and
the name of each foreign corporation or foreign trust in relation to which an exemption was granted; and
the value of each exemption, being the amount of duty foregone, or likely to be foregone, by the State because of the exemption; and
in respect of the exemptions (if any) granted by the Commissioner or a member of staff of the State Revenue Office during the period covered by the report under a delegation under section 3F—
the number of exemptions; and
the total value of the exemptions, being the total amount of duty foregone, or likely to be foregone, by the State because of the exemptions.
The Treasurer must issue guidelines for the exercise of the power of exemption under subsection (2).
The Treasurer must cause guidelines issued under subsection (4) to be published in the Government Gazette.
Guidelines issued under subsection (4) are not a legislative instrument within the meaning of the Subordinate Legislation Act 1994.
S. 3F inserted by No. 26/2015 s. 15.
The Treasurer may delegate, by instrument, to the Commissioner—
the power of the Treasurer to exempt a person under section 3E(2);
the power to delegate the power delegated under paragraph (a).
If power has been delegated under subsection (1)(b), the Commissioner may, subject to the terms of the instrument of delegation, sub-delegate, by instrument, to a member of staff of the State Revenue Office the power that is the subject of the delegation, other than the power of sub‑delegation.
Subject to subsection (4), sections 42 and 42A of the Interpretation of Legislation Act 1984 apply in relation to a sub-delegation in the same manner as they apply in relation to a delegation.
Despite section 42A(1)(a) of the Interpretation of Legislation Act 1984, the Treasurer cannot exercise the power to exempt a person under section 3E(2) while a delegation under subsection (1)(a) is in effect.
In this section—
member of staff of the State Revenue Office means—
an employee referred to in section 67 of the Taxation Administration Act 1997; or
a consultant or contractor engaged under section 68 of that Act.
S. 3G inserted by No. 40/2016 s. 4.
Residential property is—
land capable of being used solely or primarily for residential purposes and that may lawfully be used in that way; or
land which includes a building, or part of a building, that a person intends to refurbish or extend so the land is capable of being used solely or primarily for residential purposes and may lawfully be used in that way; or
land—
on which a person intends to construct a building so the land is capable of being used solely or primarily for residential purposes and may lawfully be used in that way; or
in respect of which a person has undertaken or intends to undertake land development for the purposes of—
constructing a building so the land is capable of being used solely or primarily for residential purposes and may lawfully be used in that way; or
enabling another person to construct a building so the land is capable of being used solely or primarily for residential purposes and may lawfully be used in that way.
Despite subsection (1), residential property does not include any of the following—
land—
capable of being used solely or primarily as commercial residential premises, a residential care facility, a supported residential service or for the purposes of a retirement village and that may lawfully be used in that way; and
that a person intends to use solely or primarily as commercial residential premises, a residential care facility, a supported residential service or for the purposes of a retirement village;
land which includes a building, or part of a building, that a person intends to refurbish or extend so the land is capable of being used solely or primarily as commercial residential premises, a residential care facility, a supported residential service or for the purposes of a retirement village and that may lawfully be used in that way;
land—
on which a person intends to construct a building so the land is capable of being used solely or primarily as commercial residential premises, a residential care facility, a supported residential service or for the purposes of a retirement village and that may lawfully be used in that way; or
in respect of which a person has undertaken or intends to undertake land development for the purposes of—
constructing a building so the land is capable of being used solely or primarily as commercial residential premises, a residential care facility, a supported residential service or for the purposes of a retirement village and that may lawfully be used in that way; or
enabling another person to construct a building so the land is capable of being used solely or primarily as commercial residential premises, a residential care facility, a supported residential service or for the purposes of a retirement village and that may lawfully be used in that way.
In this section—
commercial residential premises has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth;
refurbish means to undertake building work that requires a building permit to be issued under the Building Act 1993 for the conversion of an existing building;
residential care facility has the same meaning as in section 76 of the Land Tax Act 2005;
retirement village has the same meaning as in the Retirement Villages Act 1986;
S. 3G(3) def. of supported residential service amended by No. 37/2021 s. 391.
supported residential service has the same meaning as in section 214 of the Social Services Regulation Act 2021.
Examples
1 A person purchases a fee simple interest in land on which there is a free standing home that was designed and constructed as a residence. The land is capable of being used solely or primarily for residential purposes and may lawfully be used in that way. The person has acquired a land-related interest in residential property.
2 A person purchases a fee simple interest in a warehouse that was designed and constructed for industrial purposes. The person purchases the interest with the intention of refurbishing the warehouse into residential apartments. At the time of purchase, the land is not capable of being used solely or primarily for residential purposes and may not lawfully be used in that way. However, the person has acquired a land‑related interest in residential property.
3 A person purchases a fee simple interest in an apartment on the tenth floor of a building. The premises on the ground floor of the building were designed and constructed as shops. The person has acquired a land-related interest in residential property because the person has purchased an interest in land that is capable of being used solely or primarily for residential purposes and may lawfully be used in that way.
S. 3H inserted by No. 22/2018 s. 9.
For the purposes of this Act, a partner in a partnership is taken to have beneficial ownership of each item of partnership property in the same proportion as the partner's partnership interest.
S. 3H(1A) inserted by No. 47/2020 s. 4.
Without limiting subsection (1), if the partnership property of a partnership (first partnership) includes an interest in another partnership, whether directly or indirectly through one or more other partnerships, a partner in the first partnership is also taken to have beneficial ownership of each item of the partnership property of each other partnership—
to the extent of the direct or indirect interest in the other partnership; and
in the same proportion as the partner's partnership interest in the first partnership.
The value of the partner's beneficial ownership of an item of partnership property must be determined without regard to any liabilities of the partnership.
Example
A partnership consists of 4 partners each of whom has contributed equally to the capital of the partnership and would be entitled to a 25% share of any surplus on dissolution of the partnership in respect of capital. The sole partnership property is land with an unencumbered value of $4 million. The registered proprietor of the land is a person who holds the land as custodian for the benefit of the partnership. The liabilities of the partnership are $3 million. Under this section, each partner is taken to have 25% beneficial ownership of the land without regard to any liabilities of the partnership. For example, if a partner left the partnership and another partner joined the partnership on the same terms, there would be a change of beneficial ownership in the land to the value of $1 million.
To avoid doubt, for the purposes of section 75, partnership property is taken to be held by the partnership for the benefit of each partner in the same proportion as the partner's beneficial ownership referred to in subsection (1).
To avoid doubt, for the purposes of Part 2 of Chapter 11, if partnership property consists of or includes shares or units, a partner is taken to have the ability to cast, or to control the casting of, the votes attaching to the shares or units of which the partner is taken to have beneficial ownership under subsection (1).
In this section—
partnership interest, of a partner, means the proportion of any surplus to which the partner would be entitled in respect of capital if the partnership were to be dissolved;
partnership property has the same meaning as in section 24(1) of the Partnership Act 1958.
S. 3I inserted by No. 22/2021 s. 4.
For the purpose of assessing duty chargeable under this Chapter, including the application of any exemptions or concessions, on a transfer of land to a person who purchases the land under a shared equity arrangement, no account is to be taken of any beneficial ownership the State has in the land.
S. 3IA inserted by No. 10/2025 s. 12.
For the purposes of assessing duty chargeable under this Chapter, including the application of any exemptions or concessions, on a transfer of land to a person who purchases the land under a Help to Buy arrangement, no account is to be taken of any beneficial ownership the Commonwealth or Housing Australia has in the land.
In this section—
Help to Buy arrangement has the same meaning as in the Help to Buy Act 2024 of the Commonwealth;
Housing Australia has the same meaning as in the Housing Australia Act 2018 of the Commonwealth.
S. 3J inserted by No. 18/2023 s. 4.
For the purposes of this Act, each sub-fund of a CCIV is taken to be a unit trust scheme of which—
the CCIV is the trustee; and
the business, assets and liabilities of the sub‑fund are the trust property; and
the members of the sub-fund are the beneficiaries.
Example
A CCIV has 2 sub-funds: sub-fund A and sub-fund B. The assets of sub-fund B include land with an unencumbered value of $5 million. Each sub-fund is taken to be a separate unit trust scheme. In the case of sub-fund B—
• the CCIV is the trustee; and
• the land is the trust property; and
• the members of the sub-fund are the beneficiaries of the unit trust scheme.
For a sub-fund that is taken to be a unit trust scheme under subsection (1)—
a share in the CCIV that is referable to that sub-fund is taken to be a unit in the unit trust scheme; and
a shareholder of that share, as a member of that sub-fund, is taken to be a registered unitholder of the unit in the unit trust scheme; and
any rights, entitlements, obligations and other characteristics attaching to that share are taken, as far as practicable, to be the same rights, entitlements, obligations and other characteristics attaching to the unit; and
a winding up of the sub-fund is taken to be a winding up of the unit trust scheme; and
a person who has an entitlement, whether directly or through another person, to a distribution of property on the winding up of the sub-fund is taken to have the same entitlement to a distribution of property on the winding up of the unit trust scheme.
Examples
1 A CCIV has one sub-fund: sub-fund C. The shares that are referable to sub-fund C entitle the shareholders to a distribution of property on the winding up of the sub‑fund. Sub-fund C is taken to be a unit trust scheme for which—
• a share that is referable to the sub-fund is taken to be a unit in the unit trust scheme; and
• a shareholder of that share is taken to be a unitholder of the unit in the unit trust scheme; and
• the entitlement of that shareholder to a distribution of property on the winding up of the sub-fund is taken to be the entitlement of a unitholder to a distribution of property on the winding up of the unit trust scheme.
2 A CCIV has 2 sub-funds: sub-fund D and sub‑fund E. The assets of sub-fund E include land with an unencumbered value of $10 million. Each sub-fund is taken to be a separate unit trust scheme. The unit trust scheme that is sub-fund E is a landholder for the purposes of Part 2 of Chapter 3. The CCIV, in respect of sub-fund D, then acquires 100% of the shares referable to sub-fund E. That acquisition is a relevant acquisition within the meaning given by section 78. In accordance with section 75, the unit trust scheme that is sub-fund E is then a linked entity of the unit trust scheme that is sub‑fund D.
For the purposes of this Act, a CCIV is taken to be a separate person in relation to each unit trust scheme of which it is the trustee under subsection (1).
This Act does not apply to a CCIV or the members of a sub-fund of a CCIV except as provided in this section.
S. 3K inserted by No. 48/2025 s. 22.
For the purposes of paragraph (c) of the definition of foreign natural person and determining a liability for duty, a New Zealand citizen is taken to be a resident of Australia if the Commissioner is satisfied that the person has complied with, or will comply with, the residence requirement specified in subsection (2) in relation to—
a dutiable transaction under which a land-related interest in residential property is transferred to the person; or
an acquisition by the person of an interest in a landholder that holds a land-related interest in residential property.
For the purposes of subsection (1), the residence requirement is that the person ordinarily resides in Australia for a continuous period of at least 6 months within a period—
commencing 12 months prior to the date of the dutiable transaction or relevant acquisition; and
ending 12 months after the date of the dutiable transaction or relevant acquisition.
If satisfied that there is a good reason why a person cannot satisfy the residence requirement specified in subsection (2), the Commissioner may—
reduce the duration of the period for which the person must ordinarily reside in Australia; or
extend the period within which a person must complete a period of ordinarily residing in Australia.
S. 3L inserted by No. 48/2025 s. 22.
If a New Zealand citizen does not comply with the residence requirement specified in section 3K(2) in relation to a dutiable transaction or relevant acquisition referred to in section 3K(1)—
the person is a foreign purchaser in respect of the dutiable transaction or relevant acquisition; and
the Commissioner may reassess duty on the dutiable transaction or relevant acquisition accordingly.
A liability for any additional duty imposed because of subsection (1) arises when the residence requirement specified in section 3K(2) is not complied with.
Note
Section 16 provides that a tax default does not occur if the duty is paid within 30 days after the liability for the duty arises.
A reassessment referred to in subsection (1)(b) is authorised if more than 5 years have passed since the initial assessment was made.
Note
Section 9(3)(c) of the Taxation Administration Act 1997 allows a reassessment to be made more than 5 years after the initial assessment if this is authorised by a taxation law.
S. 3M inserted by No. 48/2025 s. 22.
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