Do the aggregation of interests in a landholding unit trust include exempt transfers?

In this article, we explore the Razzy decision1 which looks at the application of the landholder provisions in Ch 3 of the Duties Act 2000 (Vic) (the Duties Act) relating to the aggregation of interests in a private unit trust, including where exempt transactions are involved. In addition, this article examines two other aspects of the Razzy decision: the applicability of the superannuation fund to superannuation fund duty exemption in s 40 of the Duties Act in the case of non-land transfers (here, a redemption of units), and what satisfies the roll-over requirements for that exemption.

In practice, it is often the case that an adviser will assume that an exempt transfer under the Duties Act will not be deemed by the Commissioner to constitute part of what constitutes a dutiable acquisition under Ch 3 of the Duties Act.

The Supreme Court of Victoria’s decision in Razzy is seminal as it provides much sought clarification on whether the aggregation of interests in a landholder, in this case, a private unit trust, includes exempt transfers.

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