Landholder duty is a state tax that was introduced to impose duty on acquisitions in landholding entities.
The ‘economic entitlement’ provisions of the landholder regime are an integrity measure unique to Victoria. Previously, they applied duty to transactions which provide the acquirer with an economic entitlement that amounts to an interest of 50% or more in a private landholder. This specifically impacts arrangements where developers or builders agree with a landholder to receive 50% or more of the profits or income of a landholder’s land without actually acquiring an interest in the landholding entity.
The new financial year will bring in a number of changes to the property industry. Developers need to plan for these changes to ensure compliance and avoid any delays or other adverse implications once the amendments take effect.
Harwood Andrews recently held an event at the Geelong Library titled Property development - topical tax and commercial issues.
There have been many recent changes in the way that conveyancing is completed for the sale and purchase of property, with property transactions now being handled in the digital environment.
In the case of MSAUS v FC of T the Administrative Appeals Tribunal (AAT) recently held that Division 135 of the A New Tax System \Goods and Services Tax Act (GST Act) did not apply to impose an increasing adjustment (an amount of GST on an otherwise GST-free transaction) to the sale of leased residential apartments.
In RGGW and Commissioner of Taxation  AATA 238, the Administrative Appeals Tribunal (AAT) held that tax losses were not available to a corporate partner in a property development partnership due to poor evidence to support its claim for losses.
The High Court of Australia has recently allowed an appeal against a decision of the Victorian Court of Appeal and found that the Commissioner of State Revenue (Commissioner) was not under a duty to issue amended assessments and refund an excess amount of land tax that was erroneously been paid by a taxpayer.
The Administrative Appeals Tribunal (AAT) recently held in FLZY and Commissioner of Taxation that profit arising from the sale of a building by a family trust that was part of a privately held family group (Group) gave rise to a discount capital gain despite the wider property building, development and investment activities undertaken by the Group. The decision demonstrates the importance of considering a taxpayer’s purpose and intention when acquiring and developing real estate within the broader factual context of the activities undertaken by a taxpayer and any related entities.
Harwood Andrews has been appointed as one of only 23 law firms to the new Victorian Government Legal Services Panel. Appointed to the panels for Property and Planning and Environment, Harwood Andrews is the only regional firm represented on the panel.
A recent VCAT decision has clarified the powers of Owners Corporations to regulate short term leasing. It is common for Owners Corporation Rules to restrict certain activities that can be done in a multi-unit complex.
On 1 May 2015, the President of the Victorian Civil Administrative Tribunal (VCAT) issued an advisory opinion in response to the Victorian Small Business Commissioner’s request as to whether a landlord of commercial premises can pass on the costs of Essential Safety Measures (ESM) and certain repair and maintenance obligations for retail premises to tenants. The term ESM covers measures prescribed by building law for safety and fire protection.
The Victorian Civil and Administrative Tribunal (VCAT) has clarified the interpretation of the provisions in all planning schemes in Victoria concerning the subdivision of land parcels which are in two planning zones.
The Victorian Civil and Administrative Tribunal (VCAT) has found that Owners Corporation special rules purporting to prohibit ‘illegal’ behavior, a relatively common formulation of rule, are unlawful under the legislative regime created by the Owners Corporations Act 2006.
The coming of electronic conveyancing has been touted for over 10 years. Initially planned to provide an online platform for conveyancing commencing with enquiry with an estate agent to final settlement, the reality is a more modest electronic settlement facility. It will be the equivalent of the Australian Stock Exchange for property settlements.