About 200,000 properties change hands in Victoria each year. 

Buying Property

You pay land transfer duty when you buy a home.

The transfer duty & title registration fee are determined by the date of contract, contract price and the type of the contract. It is a complicated calculation, therefore, if you would like to find out the transfer duty & title registration fee of the property that you are interested in, please do not hesitate to contact our office.

Sub-Sale of Property

You may be liable for duty when you, as a purchaser under a contract or option arrangement, redirect the transfer of all or some of the property to someone else.

1. a contract of sale for land is entered into by a party (first purchaser) where another party (subsequent purchaser) obtains a right (transfer right) to have the land transferred to it (by nomination or otherwise) and either:
   – ‘additional consideration’ is paid by the subsequent purchaser or a related party for the transfer right
   – ‘land development’ occurs prior to the subsequent purchaser obtaining the transfer right.
2. an option over land is granted to a party (first purchaser) and another party (subsequent purchaser) obtains or assumes a transfer right in relation to the land under the option and ‘additional consideration’ or ‘land development’ occurs in circumstances as set out above relating to land contracts.

The provisions are complicated and contain intricacies and carve outs in certain circumstances, which need be considered carefully prior to a developer making any nominations or assignments under a contract of sale of land or a call option over land.

In particular, we have found that developers have encountered issues with the sub-sale provisions in circumstances where an entity signs the initial contract of sale and subsequently sets up a new structure to settle the property. (Particular care needs to be taken prior to nomination, especially if developers are considering undertaking any ‘land development’ after signing the contract of sale.)

‘Land development’ for the purposes of the sub-sale provisions is defined very broadly and can include:

• applications for planning or building permits (including amendment applications)
• appointment of consultants such as architects, planners or builders
• preparing a plan of subdivision or taking steps to have it registered
• developing or changing the land in any other way that would lead to its enhancement of value.

Generally, it does not matter which party actually undertakes the land development.

If the sub-sale provisions is applicable, duty is imposed on both the party that signed the sale contract (or was granted the option) and on the party that takes a transfer of the land. The provisions therefore result in duty being paid twice for the one land acquisition.

Summary of Transitional Provisions for Sub-Sale Transaction

In Victoria, rules and laws in relations to sub-sale transactions have been changed in a number of occasions. In certain circumstances, FPAD (“Additional Foreign Acquirer Duty“) will be applicable. Please see below a summary for your ease of reference:

New Legislative Update

The State Taxation Acts Amendment Bill 2019 (Vic) received Royal Assent on 18 June 2019, and has now come its entirety. Key changes are summarised below.

Foreign Resident Charges Increases

The stamp duty surcharge for certain transactions involving the acquisition of Victorian ‘residential’ land by ‘foreign’ entities has increased from 7% to 8% for contracts entered into on or after 1 July 2019.

Certain Fixtures and Items Fixed to Land Will Become Dutiable.

An interest in certain fixtures and items fixed with a total value of $2M or more acquired independently of land (including tenants’ fixtures) are now also dutiable property. This affects a sale and leaseback of fixtures.

Duty is phased in if the value of the fixtures (taken as a whole) is between $2M and $3M. If the value is $3M or more, full duty will be payable.

The new provisions only apply to arrangements made after 19 June 2019.