New Commercial and Industrial Property Tax Takes Effect From 1 July 2024 –Key FAQs

New Commercial and Industrial Property Tax Takes Effect From 1 July 2024 –Key FAQs

The new Commercial and Industrial Property Tax reform that progressively abolishes stamp duty on relevant transactions from 1 July 2024 is one of the most significant Victorian property tax reforms in the past 30 years and will impact anyone looking to buy or sell commercial or industrial property.

Water Pipeline Subject To Duty As “Goods” For The Purpose Of The New South Wales Landholder Duty Provisions in Conexa Syndey Holdings

Water Pipeline Subject To Duty As “Goods” For The Purpose Of The New South Wales Landholder Duty Provisions in Conexa Syndey Holdings

On 24 May 2024 the New South Wales Supreme Court held that landholder duty applied to value of a water carrying pipeline in Conexa Sydney Holdings Pty Ltd v Chief Commissioner of State Revenue (2024] NSWSC 628.

New South Wales State Budget 2024-25 – Increase to foreign surcharges and payroll tax relief for GP contractors

New South Wales State Budget 2024-25 – Increase to foreign surcharges and payroll tax relief for GP contractors

The New South Wales State Budget 2024-25 is a mixed bag, containing an increase to foreign surcharges, but also payroll tax relief for GP contractors. The tax-free threshold for land tax will also remain the same, so more landowners will be subject to land tax as property values rise.

Sladen Snippet – Merristock – primary production exemption applies as trust can beneficially own shares

Sladen Snippet – Merristock – primary production exemption applies as trust can beneficially own shares

In a case run by Sladen Legal, Merristock Pty Ltd v Commissioner of State Revenue (Review and Regulation) [2024] VCAT 535, the taxpayer has successfully appealed against a Victorian State Revenue Office (SRO) determination that land owned by the taxpayer was not eligible for the primary production land tax exemption.

Godolphin case: High Court decision considers the “dominant use” test under the NSW land tax primary production exemption

Godolphin case: High Court decision considers the “dominant use” test under the NSW land tax primary production exemption

The High Court has dismissed an appeal by Godolphin Australia Pty Ltd (Godolphin) and confirmed that it cannot claim the primary production land tax exemption, as it was unable to show that the “dominant use” of its properties was for primary production where it also had substantial horseracing activities.  The decision illustrates the issues that can arise when primary production land is used as part of business models that include other interrelated activities.

GP Tax – Payroll tax changes flagged in Victoria

GP Tax – Payroll tax changes flagged in Victoria

In a major backdown, the Victorian State Government has agreed to reduce some of the impact of the recent policy shifts towards taxing general practitioners as employees for payroll tax purposes.

Bill Implementing New Commercial and Industrial Property Tax Replacing Stamp Duty From 1 July 2024 Passed Without Amendments - Future Changes Flagged

Bill Implementing New Commercial and Industrial Property Tax Replacing Stamp Duty From 1 July 2024 Passed Without Amendments - Future Changes Flagged

The new Commercial and Industrial Property Tax reform that progressively abolishes stamp duty on commercial and industrial property from 1 July 2024 is one of the most significant Victorian property tax reforms in the past 30 years.  Anyone looking to buy or sell commercial or industrial property will be impacted.

State Taxation Amendment Bill 2024 – Welcome expansion of holiday home exemption for vacant residential land tax to properties in trusts

State Taxation Amendment Bill 2024 – Welcome expansion of holiday home exemption for vacant residential land tax to properties in trusts

On 14 May 2024, the State Taxation Amendment Bill 2024 (Vic) (the Bill) was released after having its second reading speech in the Victorian Legislative Assembly.

Dwayne Taylor – Primary production land exemption ‘dominant purpose’ test win for taxpayer

Dwayne Taylor – Primary production land exemption ‘dominant purpose’ test win for taxpayer

The recent case of Dwayne Taylor FT Pty Limited as trustee for Dwayne Taylor Family Trust and DA and P Taylor v Chief Commissioner of State Revenue [2024] NSWCATAD 80 is a win for taxpayers, but does illustrates the issues that can arise when primary production land is used as part of business models that include other interrelated activities.

Chloe Adolphi - Foreign Land Tax Surcharge Imposed Due To Ineffective Deed of Rectification

Chloe Adolphi - Foreign Land Tax Surcharge Imposed Due To Ineffective Deed of Rectification

The case of Chloe Adolphi has confirmed the importance of amending a discretionary trust deed prior to the purchase of a property so that foreign owner stamp duty or land tax surcharges are not incurred. 

Victorian State Budget 2024-25 - Small Changes to State Taxes

Victorian State Budget 2024-25 - Small Changes to State Taxes

On 7 May 2024, the Victorian State Government presented the Victorian State Budget for 2024/25.

No substantial tax measures were announced.  There were only new State Tax measures in the Victorian State Budget 2024-25 which are listed within this article.

Bill introduced to implement new Commercial and Industrial Property Tax that progressively replaces Land transfer (stamp) duty from 1 July 2024

Bill introduced to implement new Commercial and Industrial Property Tax that progressively replaces Land transfer (stamp) duty from 1 July 2024

The Victorian State Government has introduced a highly anticipated bill to implement the new Commercial and Industrial Property Tax with only three months to go until the 1 July 2024 start date. Those looking to acquire commercial or industrial properties or plan restructures within existing corporate/family groups should consider the interaction of the new regime with existing taxes.

Significant changes to Victorian land tax assessments to result in higher land tax bills

Significant changes to Victorian land tax assessments to result in higher land tax bills

Land tax assessments are now being issued in Victoria, with landowners finding their land tax bills to be substantially higher than expected, due to significant changes from 1 January 2024.  Hundreds of thousands of taxpayers will also be receiving land tax assessments for the first time altogether.

Victoria’s new commercial and industrial property tax – a tale of two regimes

Victoria’s new commercial and industrial property tax – a tale of two regimes

As we’ve noted previously, commercial and industrial properties sold or transferred on or from 1July 2024, will enter the new commercial and industrial property regime. Broadly, the regime will operate such that future transfers will not trigger land transfer (stamp) duty but rather the property will be subject to a (further) set of land tax, known as commercial and industrial property tax (CIPT).

NSW taxpayer denied Stamp Duty Exemption as Deed ‘Agreement to Transfer’ (and dutiable) and not ‘Transfer of Property’ in Imbree

NSW taxpayer denied Stamp Duty Exemption as Deed ‘Agreement to Transfer’ (and dutiable) and not ‘Transfer of Property’ in Imbree

On 24 January 2024, in Imbree v Chief Commissioner of State Revenue [2024] NSWCATAD 22 (Imbree) the NSW Civil and Administrative Tribunal (Tribunal) held land transfer (stamp) duty was payable with respect to transfer of property to a superannuation fund as the Deed was held to be an ‘agreement to transfer’ (and dutiable) and not a ‘transfer of property’ and therefore did not qualify for exemptions.

Khalil - Discretionary trust triggers foreign land tax surcharge due to incorrectly drafted exclusionary clause

Khalil - Discretionary trust triggers foreign land tax surcharge due to incorrectly drafted exclusionary clause

This is a cautionary tale for ensuring that discretionary trust deeds are amended correctly so that “foreign” land transfer (stamp) duty and land tax surcharges are not triggered. Unfortunately, in the decision of Khalil & Associates Pty Ltd ATF The George Khalil Family Trust v Chief Commissioner of State Revenue [2024] NSWCATAD 23 (Khalil), the NSW Civil and Administrative Tribunal (Tribunal) found the particular amendment did not prevent the triggering of such a surcharge.

Vacant Residential Land Tax Changes and Significant Actions Required by Landowners

Vacant Residential Land Tax Changes and Significant Actions Required by Landowners

Changes to the Victorian vacant residential land tax (VRLT) will take effect from 1 January 2025 and 1 January 2026.

As vacant residential land tax assessments for 2025 will be based on usage from 1 January 2024 to 31 December 2025- it is critical that landowners are across the changes now.

Holiday homes to be hit by Victoria’s vacant residential land tax unless usage documented

Holiday homes to be hit by Victoria’s vacant residential land tax unless usage documented

Expansion of the Vacant Residential Land Tax, from 1 January 2025, will start to capture holiday homes outside of inner/middle Melbourne. Therefore, holiday homeowners should consider their vacant residential land tax position.

New Year – New Changes: Top 20 Victorian State Tax Measures From 1 January 2024, Including Vacant Residential Land Tax Changes

New Year – New Changes: Top 20 Victorian State Tax Measures From 1 January 2024, Including Vacant Residential Land Tax Changes

Victoria has a wide range of significant State tax changes commencing 1 January 2024 which impact numerous individuals, businesses, and land holders. Many were introduced under the State Taxation Acts and Other Acts Amendment Act 2023 which received Royal Assent on 12 December 2023.