Property update: Bill passes imposing new duty obligation on developersJun 7, 2019
The State Taxation Acts Amendment Bill 2019, imposing duty on developers entering development agreement with landowners, passed the Legislative Council last night.
The passing of the Bill creates significant uncertainty and increases exposure to duty risk for property developers.
The government considers the Bill closed a 'loophole' in the duties regime, created by a 2016 Supreme Court of Victoria decision against the State Revenue Office.
The Bill passed without amendment, despite extensive representations from across the property industry and submissions from the Law Institute of Victoria.
The LIV believes that the Bill extends duty to transactions beyond the ambit or intention of the original duties legislation.
The changes will not apply to any Development Agreements entered into prior to the date of Royal Assent.
For detail on how the changes will affect you, read our property update titled Development agreements — new duty obligations for developers.
For more information on the Bill, or to discuss how the proposed changes might affect you, please contact: Morgan Scholz, Senior Associate on (03) 8600 8890 or firstname.lastname@example.org; Geoff Kliger, Senior Special Counsel, on (03) 8600 8878 or email@example.com; or Mark Yaskewych, Principal Lawyer (03) 8600 8870 or firstname.lastname@example.org.
Note: This update is a guide only and is not intended to constitute legal advice.