Economic entitlements – how to lodge and pay duty

Published on 26 February 2025

We have recently updated our website to help you understand the legislation surrounding the economic entitlement provisions of the Duties Act 2000 and how to pay when a duty liability arises.

What is an economic entitlement?

An economic entitlement entitles a person to any one or more of the below:

• To participate in the income, rents or profits derived from the land.
• To participate in the capital growth of the land.
• To participate in the proceeds of sale of the land.
• To receive any amount determined by reference to any of the above matters.
• To acquire any entitlement described above.

The relevant land must have an unencumbered value of more than $1 million.

You can learn more about the economic entitlement provisions under Part 4B of Chapter 2 of the Duties Act 2000 on our website, including frequently asked questions.

How do I pay duty on the acquisition of an economic entitlement?

If you acquire an economic entitlement and a duty liability arises, you must lodge the acquisition with us for a duty assessment and pay the duty liability.

This guide demonstrates how to prepare the Digital Duties Form, lodge the documents with us for a duty assessment and make an estimated pre-payment of duty.

Our website provides information about the documents you need to lodge as part of the duty assessment:

1. Digital Duties Form (Change of Beneficial Ownership).
2. A valuation of the land showing the unencumbered value at the time that the economic entitlement is acquired.
3. All contracts and agreement surrounding development and the interest of the parties.

To avoid penalty tax and interest, you must pay duty within 30 days of the acquisition of the economic entitlement. Our website gives you payment details to make an estimated pre-payment of duty.