You may be liable to pay landholder duty when you acquire an interest in a landholder (being a company or a unit trust scheme whether incorporated/established in or outside Victoria that has or is deemed to have land holdings in Victoria of $1 million or more).
Ordinarily, an interest is acquired in a landholder on the acquisition of shares or units in the landholder. However, it is not necessary to acquire shares or units in a landholder for an interest to be acquired. For example, an interest can be acquired where shares or units in a landholder are redeemed or cancelled and the interests of all the remaining shareholders or unit holders increase.
About these decision tools
The decision tools below will assist you in determining whether there is a liability to landholder duty on your acquisition of an interest in a landholder that is a private company, a private unit trust scheme or a listed company or unit trust scheme.
These tools will require you to quantify acquisitions in a landholder as percentage interests. Where there is only one class of shares or units on issue, the percentage interest will ordinarily be calculated by determining the number of shares or units being acquired divided by the total number of shares or units on issue (i.e. 50 shares out of a total of 100 shares on issue represents a 50% interest). However, in cases where there are multiple classes of shares/units on issue with different entitlements, the interest acquired is calculated by reference to only those shares or units which have an entitlement to a distribution of property on a winding up of the landholder. For more information on interests and how they may be acquired, please see Revenue Ruling DA.56v2.
If you have acquired an interest in a landholder that is a private company (being any corporation that is not a listed company), please use the decision tool below to determine whether your acquisition is liable for landholder duty.
Private unit trust scheme
If you have acquired an interest in a landholder that is a private unit trust scheme (being any unit trust scheme that is not a wholesale unit trust scheme, a listed trust or a widely held trust), please use the decision tool below to determine whether your acquisition is liable for landholder duty. Please note that a unit trust scheme is defined broadly under the Act and can include a hybrid trust in certain circumstances.
Listed company or trust
Registered unit trust schemes and widely held trusts
If you have acquired an interest in landholder that is a widely held trust or a registered unit trust scheme please see the landholder duty pages for more information on when a liability to duty may arise. Alternatively, you can contact the Landholder Acquisitions Branch for assistance on 03 9628 0123.