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Land use entitlements, which entitle the owner to exclusive use and occupation of a specific property, are regarded as dutiable property under the Duties Act 2000 (the Act). 

A land use entitlement is defined in the s3 of the Act and includes an entitlement to occupy land in Victoria through the ownership of shares in a company or units in a unit trust scheme or a combination of a shareholding or ownership of units together with a lease or licence.

A transfer of a land use entitlement is liable to duty under s7(1)(a) of the Act.

Common examples of land use entitlements are the rights attaching to shares in share flat and home unit companies and alpine lease ownership arrangements.

Where the acquisition of a land use entitlement is through the allotment of shares or the issue of units, rather than the transfer of existing shares or units, the acquisition is dutiable under the landholder provisions.

A person who has acquired a land use entitlement either by an allotment of shares in a company or issue of units in a unit trust scheme or by a transfer of shares or units, must complete and lodge our digital duties form. This form must be used if the acquisition took place on or after 1 July 2017. It can also be used for acquisitions before 1 July 2017, although the land use entitlement acquisition statement can still be lodged.

The form or statement must be lodged within 30 days after the entitlement is acquired.