I’ve Been Everywhere
Last month we explained how recent changes to the Duties Act 2000 (Vic) (Duties Act), mean that many types of land development arrangements in Victoria may now be subject to duty. This month, we look at a more positive amendment to the Duties Act – the introduction of duty concessions for transfers involving commercial and industrial land in regional Victoria.
Contracts entered into on or after 1 July 2019 to purchase commercial and industrial properties in regional Victoria that are primarily used for a qualified purpose (such as retail, office premises, manufacturing, warehouses or even car parks or advertising screens), may now be subject to a duty concession.
Timing is important, as the property must be used for the qualifying purpose for a continuous period of at least 12 months, commencing within 2 years after acquisition, otherwise a reassessment of duty may be applied at the non-concessional rate.
The stamp duty concession to be applied is to gradually increase between 2019 and 2023 as follows:
|
Date of contract, arrangement or agreement |
Stamp duty concession percentage |
|
On or after 1 July 2019 but before 1 July 2020 |
10% |
|
On or after 1 July 2020 but before 1 July 2021 |
20% |
|
On or after 1 July 2021 but before 1 July 2022 |
30% |
|
On or after 1 July 2022 but before 1 July 2023 |
40% |
|
On or after 1 July 2023 but before 1 July 2024 |
50% |
*The Australian version of I’ve Been Everywhere was made popular by Lucky Starr in 1962 https://www.youtube.com/watch?v=-UAh7ogwAYQ.