Legal news
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.
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.
On 11 December 2023, the Victorian State Government released details available here (including a useful information sheet available here) on the design of the new annual commercial and industrial property tax set to eventually replace land transfer (stamp) duty (stamp duty) for qualifying properties.
In our previous article, we discuss Revenue NSW’s announcement that it has determined that NSW surcharge purchaser duty and surcharge land tax are inconsistent with international tax treaties entered into by the Australian Federal Government and certain countries (Treaty Countries).
On 29 May 2023, Revenue NSW has updated its list of Treaty Countries to now include India, Japan, Norway and Switzerland.
On 21 February 2023 Revenue NSW announced that it has been determined that NSW surcharge purchaser duty and surcharge land tax (Surcharge Provisions) are inconsistent with international tax treaties entered into by the Australian Federal Government with New Zealand, Finland, Germany, and South Africa (Treaty Countries).
The introduction of windfall gains tax under the Windfall Gains Tax and State Taxation and Other Acts Further Amendment Act 2021 (Vic) (Act) has been highly controversial from the outset due to real concerns as to whether the tax truly captures a purported “windfall” by landowners who rezone land in Victoria and its punitive tax rate of 50% of such gains.
The Victorian Civil and Administrative Tribunal’s (VCAT) decision in Hartman v Commissioner of State Revenue (Review and Regulation) [2022] VCAT 28 (Hartman Case) is a rare decision on the application of the sub-sale “double duty” provisions in the Duties Act 2000 (Vic) (Act).
In line with the 2021/22 Victorian Budget announcements and following targeted consultations with various stakeholders, the Victorian Government has recently tabled a Bill to introduce the windfall gains tax - Windfall Gains Tax and State Taxation and Other Acts Further Amendment Bill 2021 (Bill).
The recent Supreme Court of Victoria decision of Lotus Oaks Pty Ltd as trustee for the Bozzo Family Trust v Commissioner of State Revenue [2021] VSC 388 is significant as it provides further clarification on the application of the primary production land tax exemption for land located in greater Melbourne in an urban zone. This is part one in a series of three articles on this decision.
Part 2 of our series decision of Lotus Oaks Pty Ltd as trustee for the Bozzo Family Trust v Commissioner of State Revenue [2021] VSC 388 looks at the former requirement in section 67 of the Land Tax Act 2005 (Vic) (Act) which required the principal business of the Bozzo FT to be of the type carried on on the subject land.
This final part of our 3 part series on the Lotus Oaks Pty Ltd as trustee for the Bozzo Family Trust v Commissioner of State Revenue [2021] VSC 388 decision looks at the substantially full-time engagement requirement in section 67 of the Act.
The NSW Chief Commissioner of State Revenue’s (Commissioner) application to the High Court for special leave to appeal the NSW Court of Appeal’s decision in Chief Commissioner of State Revenue v Downer EDI Engineering Pty Ltd [2020] NSWCA 126 has been denied, the High Court finding the appeal “would have insufficient prospects of success”.
Land transfer duty is calculated on the dutiable value of the property. In Commissioner of State Revenue (Vic) v 1043 Melton Highway Pty Ltd [2020] VSC 820, the Supreme Court considered default interest is included in ‘consideration’ for the transfer of dutiable property.
Payroll tax is a state and territory tax. It is assessed where total Australian taxable wages paid or payable to employees by an employer exceed specific thresholds. The tax is self-assessed and as such the obligation falls to employers to ensure they are aware of their total wage bill across Australian states and territories and whether those are taxable.
In CCSR v Benidorm Pty Ltd [2020] NSWCA 285, the NSW Court of Appeal found that a ‘declaration of trust’ did not trigger duty on the basis that it merely acknowledged the existence of an existing trust.
