The
Duties Amendment Bill 2008 (the Bill), which was passed by the lower house of the Victorian Parliament, was stopped by the combined Opposition parties in the upper house on 10 March 2009. The Bill will not be debated by the upper house until a proper public consultation process is undertaken to address widespread concern about the impact of the changes. The Opposition has challenged the Government by saying that if it wants to revive the legislation, the Government will have to withdraw the Bill, commence an extensive rewrite and then undertake genuine, widespread public consultation.
As highlighted at the Hall & Wilcox Breakfast Briefing last month, the Bill would have had far-reaching implications for property transactions if enacted in its current form. The changes were supposed to close a "loophole" involving the use of the long-term leases to avoid transfer duty and a "potential loophole" exposed by a recent court decision concerning an acquisition of land by a property trust. By all accounts, the Government remains committed to make these changes.
Click here for an overview of the Duties Amendment Bill.
Much of the focus has been on the new lease provisions and their impact on retirement villages and retirees and the shortening of the duty payment period to 14 days. There has been little attention given to the more significant "change in beneficial ownership" provisions. We doubt whether these provisions will receive the same attention in the media and from the Opposition parties should the Government proceed with this legislation.
Click here for the Government's response to criticism of the Bill
Hall & Wilcox is hosting seminars on the Duties Act changes and asset protection on Wednesday 25 March and Thursday 2 April. Invitations will be forwarded in the next few days.
The indirect tax specialists at Hall & Wilcox have extensive experience and expertise in this area of tax. To discuss how Hall & Wilcox can assist you, please contact the head of our duties area,
Rodney Richard.
For further information, please contact: