Landholder duty decision tools

Key information

You may be liable to pay landholder duty when you acquire an interest in a company or a unit trust scheme that has land holdings in Victoria valued at $1 million or more. 

Use these decision tools to check whether landholder duty applies to your acquisition of an interest in a landholder.

There are separate tools for the following types of landholder:

• private companies
• private unit trust schemes
• listed companies and trusts.

You need to know the percentage interest you acquired before using a tool.

Calculating your percentage interest

If there is only one class of shares or units on issue and you acquire a certain number of those shares, your percentage interest is calculated by dividing the total number of shares or units acquired by the total number of shares or units on issue. For example, 50 shares acquired out of a total of 100 shares on issue represents a 50% interest.

If there are multiple classes of shares or units on issue with different entitlements, the interest you acquire is calculated by reference only to shares or units which have an entitlement to a distribution of property on a winding up of the landholder. 

You can also acquire an interest in a landholder without acquiring shares or units. This typically can occur when shares or units in a landholder are redeemed or cancelled and the interests of all the remaining shareholders or unit holders increase. In such cases, the interest acquired by the remaining shareholders/unit holders is equal to the interest represented by the shares or units that were redeemed. 

For example, where there are 4 unit holders each holding 100 units in a unit trust scheme and the trustee redeems one unit holder’s units, the remaining 3 unit holders would be taken together to have acquired a 25% interest in the trust.

For more information about calculating interests, see Revenue Ruling DA-056v2 - Acquisitions of interests in a landholder (landholder provisions).

Private company

If you acquired an interest in a private company, use this decision tool to determine whether your acquisition is liable for landholder duty.

Private unit trust scheme

If you acquired an interest in a private unit trust scheme, use this decision tool to determine whether your acquisition is liable for landholder duty. A unit trust scheme can include a hybrid trust in certain circumstances.

Listed company or trust

If you acquired an interest in a listed company or listed trust, use this decision tool to determine whether your acquisition is liable for landholder duty.

Registered unit trust schemes and widely held trusts

If you acquired an interest in a widely held trust or a registered unit trust scheme, these decision tools do not apply. See our landholder duty pages for information about whether landholder duty may apply or contact us on 03 9628 0123.