The ‘economic entitlement’ provisions are unique in Victoria. Pursuant to the amendments to the legislation as part of the Victorian 2019/20 budget, from 19 June 2019 these provisions now apply to impose duty where an economic entitlement is acquired in relation to Victorian land and any Victorian landholding entity.
The Victorian State Revenue Office (SRO) has recently amended its published website guidance on the economic entitlement provisions, which sheds further clarity on how the SRO will administer these provisions.
What is an economic entitlement?
How is duty calculated?
Notes for taxpayers and advisors
As noted above, these provisions have very broad applications. Any interest, regardless of how cursory, could give rise to duty liability. With that in mind, any taxpayer considering, arranging for or participating any direct or indirect participation in the profits, etc of land should seek further advice.
If you have any questions, please contact our specialist team at: