DUTIES ACT 2000

Victorian Consolidated Legislation

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DUTIES ACT 2000

No. 79 of 2000
Version incorporating amendments as at 18 June 2008

TABLE OF PROVISIONS

Section Page

CHAPTER 1 PRELIMINARY

1. Purpose
2. Commencement
3. Definitions
4. Division of Act into Chapters
5. Taxation Administration Act 1997.
6. Act binds the Crown

CHAPTER 2 TRANSACTIONS CONCERNING DUTIABLE PROPERTY

PART 1-INTRODUCTION AND OVERVIEW

7. Imposition of duty on certain transactions concerning
dutiable property
7A. Vesting of land in Victoria by statute law
8. Imposition of duty on dutiable transactions that are not
transfers
9. What form must a dutiable transaction take?
10. What is dutiable property?
11. When does a liability for duty arise?
12. Who is liable to pay the duty?
13. The liability of joint tenants
14. Necessity for written instrument or written statement
15. Lodging written instrument or statement with Commissioner
16. When must duty be paid?
17. No double duty
18. What is the rate of duty?
19. Concessions and exemptions from duty

PART 2-DUTIABLE VALUE

20. What is the dutiable value of dutiable property?
21. What is the consideration for the transfer of dutiable property?
21A. Commissioner may publish percentage
21B. Records to be kept
21C. Period of retention
21D. Power to require documents
21E. Joint and several liability for additional duty
22. What is the unencumbered value of dutiable property?
22A. Tenant's fixtures to be included in the value of land
22B. Interdependent sale of land and business goods
23. Arrangements that reduce the dutiable value of marketable securities
24. Aggregation of certain dutiable transactions
25. Apportionment-dutiable property and other property
26. Partitions of marketable securities
27. Partitions of land

PART 3-RATES OF DUTY

28. General rate
29. Marketable securities

PART 4-SPECIAL PROVISIONS

30. Interim payment of duty
30A. Interim payment of duty in relation to electronic transactions
31. Repealed
32. Transfers arising from mortgages of land

PART 4A-TRANSACTIONS TREATED AS SUB-SALES OF LAND

Division 1-Introduction

32A. Definitions

Division 2-Transfers involving additional consideration

32B. Application of Division
32C. How duty is charged on transfer
32D. Dutiable value of transactions
32E. When does the liability to duty arise?
32F. Who is liable to pay the duty?
32G. Exemptions and concessions
32H. No double duty

Division 3-Transfers involving land development

32I. Application of Division
32J. How duty is charged on transfer
32K. Dutiable value of transactions
32L. When does the liability to duty arise?
32M. Who is liable to pay the duty?
32N. Exemptions and concessions
32O. No double duty

Division 4-Transfers resulting from options

32P. Application of Division
32Q. How duty is charged on transfer
32R. Dutiable value of transactions
32S. When does the liability to duty arise?
32T. Who is liable to pay the duty?
32U. Exemptions and concessions

Division 5-Miscellaneous

32V. Provisions for determining consideration
32W. No duty for transactions between relatives
32X. Parties required to provide information to Commissioner

PART 5-EXEMPTIONS AND CONCESSIONAL RATES OF DUTY

Division 1-Trusts

33. Change in trustees
34. Property vested in an apparent purchaser
35. Transfers to and from a trustee or nominee
36. Property passing to beneficiaries of fixed trusts
36A. Property passing to beneficiaries of discretionary trusts
36B. Property passing to unitholders in unit trust schemes
36C. Effect of certain mortgages on trust exemptions
37. Establishment of a trust relating to unidentified property and non-dutiable property
38. Exemptions from duty under section 37.
38A. Special disability trusts

Division 2-Superannuation

39. Instruments relating to superannuation
40. Transfer of property from one superannuation fund to
another
41. Transfers to trustees or custodians of superannuation funds
or trusts
41A. Property passing to beneficiaries of superannuation funds

Division 3-Other general exemptions and concessions

42. Deceased estates
43. Marriage and domestic relationships
44. Breakdown of marriage and domestic relationships
45. Charities and friendly societies
45A. Health centres and services
46. Co-operatives
47. Government bodies and diplomats
48. Bankruptcies and administrations
48A. Amalgamation of industrial organisations
49, 50. Repealed
50A. Conversion of land use entitlements to different form of title

Division 4-Exemptions and concessions in relation to land

51. Crown grants and public rights of way
52. Government bodies
53. Defence service homes
54. Joint tenants and tenants in common
55. Equity release programs
56. Transfers of farms to relatives or charities
57. Subsequent transfer not dutiable if duty paid on lease
57A. Land sold initially to financial institution and natural person and then leased to natural person
57B. Land sold initially to financial institution and then re-sold to natural person
57C. Land sold initially to financial institution and then leased to natural person
57D. Land sold initially to natural person, beneficial interest then transferred to financial institution
57E. Change of financial institution
57F. If the natural person dies

Division 4A-Principal place of residence concession

57G. Definitions
57H. What is a principal place of residence?
57I. What is a PPR transfer?
57J. Concessional rate of duty for PPR transfers
57K. Residence requirement
57L. Variation of residence requirement
57M. Liability for duty if residence requirement not complied with
57N. Transferee to notify Commissioner of change in circumstances
57O. Repealed

Division 5-Pensioner and first home owner exemptions and concessions

58. Who is an eligible pensioner?
59. Eligible pensioner exemption or concession where dwelling exists at the time of transfer
60. Eligible pensioner exemption or concession where dwelling is constructed after transfer
60A. Election to receive eligible pensioner exemption/concession or additional first home owner grant
61. Who is an eligible first home owner?
62. Eligible first home owner exemption or concession where dwelling exists at the time of transfer
63. Eligible first home owner exemption or concession where dwelling is constructed after transfer
63A. Temporary suspension of first home owner exemption or concession
63B. Election to receive eligible first home owner exemption/concession or additional first home owner grant
64. Double duty for false or misleading statements

Division 6-Exemptions and concessions in relation to
marketable securities

65. Co-operatives and co-operative housing societies
66. Loans and temporary transfers
67. Nomineeing transactions-unquoted marketable securities
68. Share buy-backs
69. Reduction of duty-payment in non-Australian jurisdiction

PART 6-TAX AVOIDANCE SCHEMES

69A. Imposition of duty
69B. What is a tax avoidance scheme?
69C. Anti-avoidance provision
69D. Misleading information

CHAPTER 3 CERTAIN TRANSACTIONS TREATED AS TRANSFERS

PART 1-INTRODUCTION AND OVERVIEW

70. Imposition of duty

PART 2-ACQUISITION OF INTERESTS IN CERTAIN LANDHOLDERS

Division 1-Landholders

71. Meaning of landholder
72. What are land holdings?
73. Effect of uncompleted agreements
74. Constructive ownership of land holdings and other
property: linked entities
75. Constructive ownership of land holdings and other
property: discretionary trusts

Division 2-Acquisitions of interests in landholders

76. What are interests and significant interests in landholders?
77. How may an interest be acquired?

Division 3-Charging of duty

78. When does a liability for duty arise?
79. What is a relevant acquisition?
80. Acquisition statements
81. When must duty be paid?
82. Who is liable to pay the duty?
83. How duty is charged on relevant acquisitions
84. Phasing-in of duty

Division 4-Exemptions, concessions and supplemental provisions

85. Exemptions
86. Maximisation of entitlements on distribution of property
87. Valuation of property
88. Agreements for sale, transfer or purchase of land and other property
89. Duty concession acquisitions securing financial
accommodation
89A. Re-purchase facilities-widely held trusts
89B. Disqualifying circumstances for certain unit trust schemes
89C. Sale of private unit trust scheme through conversion to
public unit trust scheme

Division 5-Conversion of public unit trust schemes to private unit trust schemes

89D. Interpretation and application of Division
89E. When public unit trust scheme becomes a private unit trust scheme
89F. Interstate security duty

Division 6-Tax avoidance schemes

89G. Imposition of duty
89H. What is a tax avoidance scheme?
89I. Anti-avoidance provision
89J. Misleading information

Division 7-Registration of unit trust schemes

89K. Definitions
89L. Application for registration
89M. Registration of imminent public unit trust schemes
89N. Registration of declared public unit trust schemes
89O. Registration of wholesale unit trust schemes
89P. Registration of imminent wholesale unit trust schemes
89PA. Registration of declared wholesale unit trust schemes
89Q. Duration of registration
89R. Reporting requirements
89S. Cancellation of registration

PART 3-ENTITLEMENTS ARISING FROM CAPITAL REDUCTIONS OR RIGHTS ALTERATIONS

90. Definitions
91. When does a liability for duty arise?
92. When must duty be paid?
93. Who is liable to pay the duty?
94. Entitlement to voting shares arising from capital reduction
or rights alteration
95. Content of statement
96. Assessment of duty

PART 4-ALLOTMENT OF SHARES BY DIRECTION

97. Application of Part 98. When does a liability for duty arise?
99. When must duty be paid?
100. Who is liable to pay the duty?
101. Acquisition of shares by allotment
102. Allotment statement
103. Assessment of duty

PART 5-ACQUISITION OF LAND USE ENTITLEMENTS BY ALLOTMENT OF SHARES OR ISSUE OF UNITS

103A. When does a liability for duty arise?
103B. When must duty be paid?
103C. Who is liable to pay the duty?
103D. Acquisition of land use entitlement
103E. Form of statement
103F. Assessment of duty

CHAPTER 4 FINANCIAL SECTOR (TRANSFERS OF
BUSINESS)

104. Imposition of duty
105. When does a liability for duty arise?
106. Who is liable to pay the duty?
107. Statement on transfer of property
108. Assessment of duty
109. Exemption

CHAPTER 5 Repealed

PARTS 1-4-Repealed

110-124. Repealed

CHAPTER 6 HIRE OF GOODS

PART 1-INTRODUCTION AND OVERVIEW

125. Imposition of duty
125A. Hire of goods duty abolished from January 2007.
126. What is a commercial hire business?
127. Hire of goods to which this Chapter applies-jurisdictional
nexus
128. What are goods?
129. What is a hire of goods?
130. What is an equipment financing arrangement?
131. What form may a hire of goods take?
132. Exclusions from the definition of hire of goods
133. Special hiring agreements
134. What is the rate of duty?
135. What are hiring charges?
136. Payments exempted from hiring charges
137. Credit for duty paid in another Australian jurisdiction
138. Splitting or redirection of hiring charges (anti-avoidance provision)
139. Ascertainment and disclosure of place of use of goods

PART 2-REGISTRATION OF COMMERCIAL HIRE BUSINESSES AND PAYMENT OF DUTY

140. Commercial hire businesses must be registered
141. Registration of commercial hire businesses
142. Cancellation of registration of commercial hire business
143. Register of commercial hire businesses
144. Duty base
145. Lodgement of returns and payment of duty
146. Statement of special hiring agreement
147. Lodgement of statement and payment of duty

CHAPTER 7 MORTGAGES

PART 1-INTRODUCTION AND OVERVIEW

148. Imposition of duty
148A. Mortgage duty abolished from July 2004.
149. What is a mortgage?
150. What is an advance?
151. Who is liable to pay the duty?
152. When does a liability arise?
153. When must duty be paid?
154. How is mortgage duty charged?
155. Extent mortgage is enforceable
156. Where is property located?

PART 2-CALCULATING THE AMOUNT SECURED BY A MORTGAGE

157. Secured amount
158. Contingent liabilities
159. Mortgages over property not wholly within Victoria
160. Advances secured by mortgage package
161. Stamping before advance
162. Security
163. Exchange of information
164. Collection of duty and endorsement of instruments
165. Collateral securities

PART 3-DUTY CONCESSIONS

166. Refinancing of loans
167. Eligible mortgages under concession schemes

PART 4-EXEMPTIONS

168. Exempt mortgages and supporting instruments
169. Mortgages associated with certain credit contracts
170. Farm machinery and commercial vehicles
171. Certain debentures and related instruments

PART 5-MISCELLANEOUS

172. Payment of duty on mortgages associated with debenture
issues
173. Unregistered mortgages protected by caveats (anti-
avoidance provision)
174. Stamping counterpart or collateral instrument if mortgage is lost, destroyed or cannot be produced

CHAPTER 8 INSURANCE

PART 1-INTRODUCTION AND OVERVIEW

175. Imposition of duty

PART 2-GENERAL INSURANCE

Division 1-Duty in respect of general insurance

176. What is general insurance?
177. What is a premium in relation to general insurance?
178. When is a premium paid?
179. What duty is payable?
180. Who is liable to pay the duty?
181. Circumstances in which duty is payable by the insured
person
182. Records to be kept
183. Refunds where premiums are returned

Division 2-How duty is paid by a general insurer

184. Who is a general insurer?
185. General insurers must be registered
186. Application for registration
187. Cancellation of registration by the Commissioner
188. Cessation of business and cancellation of registration by
the general insurer
189. Register of general insurers
190. Monthly returns and payment of duty
191. Recovery of duty by registered insurer

Division 3-Apportionment of premiums and other amounts
between States and Territories

192. Application of Division
193. Schedule of Apportionment
194. Apportionment in practice

Division 4-Apportionment of premiums and other amounts
as between different types of insurance

195. Apportionment between different types of insurance

Division 5-Exempt insurance

196. What insurance is exempt from duty?

Division 6-Miscellaneous

197. Effect on contract of insurance of failure to comply with
this Chapter

PART 3-LIFE INSURANCE

Division 1-Duty in respect of life insurance

198. What is life insurance?
199. Obligation to make out and execute policies of life insurance
200. What duty is payable?
201. Who is liable to pay the duty?

Division 2-Approved life insurers

202. Who is a life insurer?
203. Approval of life insurers
204. Cancellation of registration by the Commissioner
205. Cessation of business and cancellation of registration by the insurer
206. Register of approved life insurers
207. How duty is paid by approved life insurers

Division 3-Exemptions

208. Exemptions from life insurance duty

PART 4-TRANSPORT ACCIDENT CHARGES

209. Imposition of duty
210. Who is liable to pay the duty?
211. Rate of duty
212. How is duty paid?
213. Refund of duty if transport accident charge is refunded

CHAPTER 9 MOTOR VEHICLE DUTY

PART 1-INTRODUCTION AND OVERVIEW

214. Imposition of duty
215. Lodgement of statement of dutiable value
216. Who is liable to pay the duty?
217. When does duty become payable?
217A. Assessment of duty
218. What is the rate of duty?
219. What is the dutiable value of a motor vehicle?
220. Prohibition on registration of motor vehicles

PART 2-Repealed

221-228. Repealed

PART 3-EXEMPTIONS

229. Ownership by devolution of title and deceased estates
230. Special dealers-trading stock, demonstrator vehicles and driver education
231. Licensed motor car traders-trading stock, demonstrator vehicles and driver education
232. Applications by interstate licensed motor car traders
233. Primary producer vehicles
233A. Transport for disabled, handicapped or injured
233B. Incapacitated person's vehicle
233C. Private vehicle used to convey incapacitated person
233D. Government or charitable vehicle used to convey
incapacitated person
233E. Incapacitated war veteran's vehicle
233F. Fire fighting and emergency response vehicle
233G. Consular vehicle
233H. Repossessions and restorations
234. Repealed
234A. Amalgamation of industrial organisations
234B. Financial sector (transfers of business)
235. Marriage and domestic relationships and their breakdown
236. Minors and trustees
237. Vehicles previously registered in the same name interstate

PART 4-DUTY ON CHANGE OF USE

238. Duty on statement of change of use
239. Repealed

PART 5-REFUND OF DUTY

240. Entitlement to refund

CHAPTER 10 MISCELLANEOUS DUTIES

PART 1-SALE OF CATTLE

241. Imposition of duty
242. What is the rate of duty?
243. What is the purchase money?

PART 2-SALE OF SHEEP AND GOATS

244. Imposition of duty
245. What is the rate of duty?

PART 3-SALE OF PIGS

246. Imposition of duty
247. What is the rate of duty?
248. What is the purchase money?

CHAPTER 11 GENERAL EXEMPTIONS FROM DUTY

PART 1-SECURITY FOR PAYMENT OF TAX

249. Security for payment of tax

PART 2-CORPORATE RECONSTRUCTIONS

Division 1-Corporate reconstruction exemption

250. What is a corporate group?
250A. What is an eligible transaction?
250B. Exemption for certain transactions arising out of
corporate reconstruction
250C. Conditions of exemption
250D. Revocation of exemption

Division 1A-Corporate consolidation exemption

250DA. Definitions
250DB. What is a corporate consolidation?
250DC. What is an eligible transaction?
250DD. Exemption for certain transactions arising out of
corporate consolidation
250DE. Conditions of exemption
250DF. Revocation of exemption
250DG. Special provision in relation to land-rich duty for
private unit trust scheme consolidations

Division 2-Tax assessment, penalty and interest

250E. Part 5 of Taxation Administration Act 1997 not
applicable
250F. Joint and severable liability for duty, penalty and interest
250G. Liability for duty
250H. Reassessment of duty
250I. Penalty for false or misleading application
250J. Penalty for failure to notify
250K. Remission of penalty
250L. Interest
250M. Remission of interest

PART 3-MANAGED INVESTMENT SCHEMES

251. Managed investment schemes

PART 4-MORTGAGE-BACKED SECURITIES

251A. Mortgage-backed securities
251B. Instruments issued for the purpose of creating, issuing
or marketing mortgage-backed securities

CHAPTER 12 ADMINISTRATION AND ENFORCEMENT

PART 1-STAMPING INSTRUMENTS

252. Provision of stamps
253. Limitation on use of designated stamps
254. Form of stamps to be used
255. Stamping of instruments
256. When is an instrument duly stamped?
257. Adhesive stamps
258. Licences to deal in stamps
259. Refunds-spoiled and unused stamps
260. Reassessments-failed instruments
261. Instruments to be separately charged with duty in certain
cases
262. Execution of instruments
263. Counterparts and replicas

PART 2-AUTHORISATION OF RETURNS SYSTEMS

264. Authorised persons
264A. Application for authorisation
264B. Conditions of authorisation
264C. Gazettal or service of notices
265. Endorsement of instruments by authorised persons
266. Payment of duty by authorised persons
267. Offset of overpaid amounts
268. Unauthorised endorsement

PART 3-ENFORCEMENT

269. Registration of instruments
270. Registration of transfer of shares in private companies
271. Registration of transfer of units
272. Receipt of instruments in evidence
273. Valuation of property
274. Ascertainment of value of certain items
275. Impounding of instruments
276. Injunction to prevent unregistered businesses trading

PART 4-Repealed

277-281. Repealed

CHAPTER 13 GENERAL

282. Payments from Consolidated Fund
283. Regulations
284, 285. Repealed

CHAPTER 14 REPEALS, CONSEQUENTIAL AMENDMENTS AND TRANSITIONAL PROVISIONS

286. Transitional provisions
__________________
SCHEDULE 1-Repealed
SCHEDULE 2-Transitional Provisions
1. Definitions
2. Savings and transitional regulations
3. Application of Interpretation of Legislation Act 1984.
4. Instruments
5. Provisions relating to Chapter 2 (Transactions concerning dutiable property)
6. Provisions relating to Chapter 3 (Certain transactions
treated as transfers)
7. Provisions relating to the abolition of stamp duty on leases
8. Provisions relating to Chapter 6 (Hire of goods)
9. Provisions relating to Chapter 7 (Mortgages)
10. Provisions relating to Chapter 8 (Insurance)
11. Provisions relating to Chapter 9 (Motor vehicle duty)
12. Duty paid under the former Act
13. Stamping under the former Act
14. Exemptions from duty under the former Act
15. Continuation of former Act and regulations
16. Authorised persons
17. State Taxation Legislation (Further Amendment) Act 2002.
18. State Taxation Acts (Further Tax Reform) Act 2002.
19. State Taxation Acts (Miscellaneous Amendments) Act 2003.
20. State Taxation Acts (Tax Reform) Act 2004.
21. State Taxation Acts (General Amendment) Act 2005.
22. Duties and Land Tax Acts (Amendment) Act 2005.
23. State Taxation (Reductions and Concessions) Act 2006.
24. State Taxation Legislation Amendment (Housing Affordability) Act 2006.
25. State Taxation and Gambling Legislation Amendment (Budget Measures) Act 2007.
26. Payroll Tax Act 2007.
27. State Taxation Acts Amendment Act 2008.
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ENDNOTES
1. General Information
2. Table of Amendments
3. Explanatory Details

CHAPTER 1
PRELIMINARY

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