The 2019 Victorian budget contained a sleeper in the form of the amendments to the Victorian economic entitlement provisions.
As has been standard fare for the property industry over the last few years, a new financial year will bring in a number of changes to the development and sales process. It is important that developers are aware of these changes, and begin taking steps to comply with the new requirements in order to avoid any delays or other adverse implications once the amendments take effect.
On 7 February 2018 the Commonwealth Government introduced into Parliament legislation which if enacted will, subject to a transitional rule (discussed further below), require from 1 July 2018 that purchasers of taxable supplies of new residential premises or new subdivisions of potential residential land pay either 1/11, or 7% if the margin scheme applies, of the purchase price to the Australian Taxation Office (ATO) at settlement (the Legislation).
Partnering with our client Resi Ventures, Sladen Legal has rolled out e-Contracts for use in sales at the Accolade and Monument estates. The use of e-Contracts aligns with Resi Ventures’ goals of implementing fresh ideas and best practices in creating communities and the way it deals with its customers.
It was announced as part of the 2017 Federal Budget that from 1 July 2018, purchasers of “newly constructed residential premises” or “new land subdivisions” will be required to remit GST directly to the Australian Taxation Office as part of settlement. Details have not yet been provided on how this measure will be implemented or operate.
The Supreme Court of Victoria has recently handed down the first decision interpreting the ‘economic entitlement’ provisions in the Duties Act 2000 (Vic) (Duties Act). These provisions were introduced in 2012 as part of the shift from a “land rich” to a “landholder” model for assessing duty in Victoria on the acquisition of interests in certain land owning entities.
From 9 November 2015, all dealings with Victoria’s Land Registry will require parties to satisfy strict verification of identity requirements (generally referred to as “VOI”). In addition, these VOI requirements also apply to persons who are given custody of a certificate of title.
The new requirements aim to reduce fraud by placing an obligation on conveyancing professionals to take reasonable steps to verify that a person signing a document is who they say they are and that they have the right to transact with the land.
The President of the Victorian Civil Administrative Tribunal (VCAT) issued an advisory opinion on 1 May 2015, responding 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. Measures prescribed by building law for safety and fire protection are covered by the ESM.
Sladen Legal is a proud sponsor of the Women in Property Committee of the Urban Development Institute of Australia (Vic Division) (UDIA).
Last night, Sarah Rizk, a Principal in Sladen Legal’s Property and Development Group and Chair of the Women in Property Committee, moderated a Minute Mentoring event jointly hosted by the Women in Property Committee and Outlook Committees of the UDIA. The aim of the event was to provide young and mid-level members of the UDIA access to senior people in the industry who they may not otherwise have a chance to interact with. The event launched a new series of events to be run by the Committees that will provide greater opportunities for “up and comers” in the urban development industry to make better, more valuable connections.
The Victorian Government has recently passed legislation that will affect a vendor’s disclosure obligations when selling property in Victoria. The changes relate to the information to be contained in the statement provided to purchasers under section 32 of the Sale of Land Act 1962 before they sign a contract of sale (commonly called a Section 32 Statement, or Vendor’s Statement).
The Victorian Government has announced that effective from 1 July 2015, it will change the way it collects contributions towards the provision of infrastructure from developers.
At present, developers of land may be required to pay infrastructure levies at different rates and using different methods of calculation depending on whether the land is in a development contributions plan (DCP), the use of the land, the area of land being developed, and other criteria determined by the municipality in which the land is located. It is widely believed that the existing system is onerous, expensive, lacks flexibility and accountability and delays the development approval process.