Aggregation of Stamp Duty in VIC

Hi there

I found an interesting article in a legal newsletter that I subscribe to.

Apparently in VIC when the SRO (State Revenue Office) is assessing stamp duty, they are sometimes able to aggregate the values of two or more properties being purchased, even when separate contracts are involved.

This can occur if the purchases:
• occur within 12 months of each other from the same vendor;
• the transferee is the same or the transferees are associated persons and;
• the dutiable transactions together give effect to “substantially one arrangement”
For example:
Two lots are purchased by the same purchaser from the same vendor with separate contracts of sale. Normally the duty would be levied as follows:
Lot 1 purchased for $200,000 stamp duty = $7,660
Lot 2 purchased for $230,000 stamp duty = $9460
Total stamp duty based on separate contracts of sale = $17,120
However, the SRO may treat the two purchases as “substantially one arrangement” and aggregate the prices on lots 1 and 2 to a total dutiable consideration of $430,000.
Total stamp duty on combined contracts of sale = $21,460
An additional $4,340 stamp duty is therefore payable.
Ouch

VIC already has the highest stamp duty rates in Australia!

Terryw
Discover Home Loans
North Sydney
[email protected]