Life, Death and Taxes – Insights by Andrew Henshaw
BREAKING: STAMP DUTY TO APPLY TO DEVELOPMENT AGREEMENTS IN VICTORIA
The Victorian Government handed down their 2019-20 Budget on Monday 27 May. Under the Budget, various changes to certain state taxes were announced (including duty, land tax and payroll tax). Two days later, the Bill (State Taxation Acts Amendment Bill 2019) containing those changes had passed the Legislative Council (lower house of Parliament). Lightning speed compared to Federal income tax!
The Bill includes radical changes regarding how ‘economic entitlements’ concerning land are treated for duty purposes. These changes will dramatically affect parties involved in property development arrangements (agreements where a developer agrees to develop land owned by the landowner, for a fee).