Legal Insights
![Stamp duty imposed on acquisition of units in Hybrid Unit Trust – Ramifications of Victory International Pty Ltd v Commissioner of State Revenue [2025] VSC 484](https://images.squarespace-cdn.com/content/v1/62940022bdc06b31c5ba0c30/1761775246553-MLP35XCQEP222BP4GBHH/unsplash-image-YkXbHOGI8ZY.jpg)
Stamp duty imposed on acquisition of units in Hybrid Unit Trust – Ramifications of Victory International Pty Ltd v Commissioner of State Revenue [2025] VSC 484
Landholder duty issues for Hybrid Unit Trusts highlighted by Victory International Pty Ltd v Commissioner of State Revenue [2025] VSC 484
Changes to the First Home Guarantee Scheme: What does it mean for first homebuyers
From 1 October 2025, changes to the Home Guarantee scheme will come into effect for Australians looking to purchase their first home. The scheme will allow all first home owners eligible under the scheme to purchase a property with a 5% deposit with no income eligibility requirements and increased price caps on the value of property.
Sim – Victorian Foreign Purchaser Additional Duty Triggered by the Spouse of an Australian Citizen
Foreign purchasers living within Australia must be aware of important requirements to fulfill a section 69AJ exemption under the Duties Act 2000 (Vic). The case of Sim v Commissioner of State Revenue [2025] VCAT 349 highlights how all requirements of section 69AJ must be met to receive an exemption to the foreign purchaser additional duty.
New Penalty Tax for Recklessness
The Victorian Government has introduced a new 50% penalty tax for cases of recklessness under state tax laws, as part of the 2025–26 State Budget measures. This penalty applies where a taxpayer or their advisor is found to have acted recklessly, causing a tax shortfall or failing to meet notification requirements.
Previously, penalties ranged from 25% (negligence) to 75% (intentional disregard). There are concerns that this new penalty could be unfairly applied in complex cases, especially involving trusts or foreign interests, where rules are often misunderstood.
Gift and Loan Arrangements – There is more you should know
When considering asset protection, gift, loan and mortgage arrangements are a key strategy, particularly in the context of protecting assets against creditor or insolvency claims as well as parents providing financial assistance to adult children. The effectiveness of the strategy relies upon ensuring that that agreement is correctly documented and implemented.
The implications of Malcolm on Land Tax Joint Assessment
The recent decision of Malcolm v Commissioner of State Revenue [2025] VCAT 218 has impacted the State Revenue Office’s interpretation of section 38(2) of the Land Tax Act 2005 (Vic).
The Short Stay Levy Act 2024 (Vic): Implications for Short-Term Accommodations in Victoria
Effective 1 January 2025, the Short Stay Levy Act 2024 (Vic) introduced a 7.5% levy on short-term accommodation bookings. This levy has widely become known as the “Airbnb tax” and is aimed at addressing the state’s housing shortage by encouraging property owners of current short-stay rentals to transition their properties into long-term leasing options, thereby increasing the availability of permanent housing.
HA Housing Insights: Tax considerations for tackling the housing crisis with Brian Farrelly, Pitcher Partners
In this HA Housing Insights series, we shine a spotlight on the housing crisis and speak with key industry experts to gain a comprehensive understanding of the challenges faced in delivering housing outcomes and potential solutions.
In the fifth instalment of our HA Housing Insights series we speak with Brian Farrelly, Partner and Executive Director at Pitcher Partners Melbourne within the Tax Advisory Group to hear his views.
Shifting views on Victorian Land Tax trust provisions
The recent VCAT decision of Caloutas as trustee for Caloutas Family Trust v Commissioner of State Revenue [2025] VCAT explored how bare or fixed trusts intersect with the Victoria land tax trust surcharge provisions.
ATO declares payment of a death benefit to a spouse’s estate not to be tax-free
In a Private Binding Ruling, the ATO determined that payment of a death benefit to a spouse’s estate is not tax-free under section 302-10(2) of the Income Tax Assessment Act 1997.
Transfers to trustees or custodians of superannuation funds or trusts
A transfer of dutiable property made without monetary consideration to a trustee or custodian of a complying superannuation fund where there is no change in the beneficial ownership of the property.
Victorian Government Introduces New 7.5% Short Stay Levy Bill
The Victorian Government introduces new bill imposing a levy or tax of 7.5% on short-term accommodations
Oliver Hume Decision: Victorian Landholders Duty Applies on Capital Raising based on “substantially one arrangement”
The Victorian Court of Appeal’s recent decision in Oliver Hume Property Funds (Broad Gully Rd) Diamond Creek Pty Ltd v Commissioner of State Revenue [2024] VSCA 175 has settled that, in Victoria, aggregation applies to the acquisition of shares or units by investors, even in circumstances where the investors are unrelated under the one syndication or capital raising process.
Property Transfer – What to do if your property is transferred into the wrong name
Property was mistakenly transferred to an unrelated company. Error was found 10 years later, real owners sought exemption to land transfer (stamp) duty. Costs for the responsible law firm pursued, emphasising the importance of due diligence in property transactions.
High Court Ruling - Land Tax Exemption for Primary Production
The High Court has ruled on the ‘dominant use test’ for the primary production land tax exemption. In the recent Godolphin case, the multifactorial analysis has been confirmed with no one factor being regarded as determinative. The Court has clarified that the ‘dominant use’ requirement qualifies must be both the lands use as well as its purpose.
Land Tax Exemption for Primary Production: Win for the Taxpayer
The land tax exemption for primary production land has been clarified where land is used for multiple purposes. The dominant use test has been interpreted as an objective assessment where profitability is not determinative.
Changes to Holiday Home exemption for Vacant Residential Land Tax
On 4 June 2024, the State Taxation Amendment Act 2024 (Act) received Royal Assent. The Act, amongst other significant taxation changes, amends the holiday home exemption by introducing new provisions to section 88A of the Land Tax Act 2005 (LTA).
Merristock v Commissioner of State Revenue: Primary Production Land Tax Exemption and Discretionary Trusts
Taxpayer successfully appeals against Victorian State Revenue Office (SRO) decision that land owned by them was not eligible for the primary production land tax exemption.
New Land Tax Exemption for Social and Emergency Housing
The Victorian State Budget for 2024/2025 has revealed a new tax measure for land utilised in social and emergency housing. This new land tax exemption aims to clarify existing arrangements, ensuring landowners involved in such housing initiatives are not burdened by excessive land tax obligations.
Improperly Drafted Exclusionary Clause Triggers Foreign Land Tax Surcharge For Discretionary Trust
This ruling from the New South Wales Civil and Administrative Tribunal (the Tribunal) serves as an important reminder for ensuring that discretionary trust deeds are appropriately amended to prevent the activation of "foreign" land transfer (stamp) duty and land tax surcharges