The Victorian State Revenue Office has recently released General Information Bulletin GEN 2/14 in relation to recent duty and land tax changes that received Royal Assent on 17 June 2014. Of particular note is the change to the area defined as “Greater Melbourne” for the purposes of the Primary Land Tax Exemption.
As a result of this change, from 2015 land tax year, some land currently located outside the former greater Melbourne boundary that was previously exempt from land tax will now fall within the new boundary. Further, some land may also fall in an urban zone area. Affected land will be subject to more stringent primary production exemption criteria. However, there are grandfathering rules which allow such land to qualify for the land tax exemption under the existing rules unless a trigger event occurs in relation to the land. A trigger event includes a sale or subdivision of the land or if an adjoining parcel of land is purchased.
For further Information please contact:
03 9611 0174