Victoria stamp duty laws to hit agents and fund managers (AFR)

Victoria's unexpected change to stamp duty rules will hit a range of players beyond development, including real estate managers who set rents and fund managers who receive remuneration based on the value of an asset they have sold, industry players warn.


Changes in the State Taxation Acts Amendment Bill 2019 introduced to Parliament on Tuesday, a day after the state budget that made no mention of them, would dramatically widen the pool of players who can be taxed according to their economic interest in a site, industry bodies and professionals said.


While the higher stamp duty rates on development could further dampen a shrinking construction pipeline – official figures last week showed new dwelling approvals fell 4.7 per cent in March from February – critics said the broad changes included sweeping measures that went further than any of the revenue-raising steps announced in Monday's budget.


Measures in the new draft legislation no longer let developers avoid paying stamp duty by entering into an agreement with the landowner to develop a site without actually purchasing the land, and would subject them to 5.5 per cent stamp duty on potentially the entire value of any piece of land worth more than $1 million.

The State Revenue Office last week said the change was intended to address a 2016 Supreme Court judgment that curbed an earlier attempt to levy stamp duty on the economic entitlements of some landowners.


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Source: https://www.afr.com/real-estate/residential/victoria-stamp-duty-laws-to-hit-real-estate-agents-fund-managers-20190531-p51t9k


Marlene Liontis
Saturday, 8 June 2019

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