When a relevant acquisition is made in a landholder, important lodgement and payment obligations arise in respect of the relevant acquisition as outlined in ss. 83-85, 89B(4) and 89C(4) of the Duties Act 2000 (the Act).
Lodgement requirements and timelines
Under the Act, both the person who made the relevant acquisition and the landholder in which the acquisition was made (or if the landholder is a unit trust scheme, the trustee of the landholder), have to prepare and lodge an acquisition statement. This must be done within 30 days of the date of the relevant acquisition.
The duty on the relevant acquisition must also be paid within this period of time otherwise a tax default will occur under the Taxation Administration Act 1997.
In cases involving the conversion of a private unit trust scheme to a public unit trust scheme or a private company to a listed company, it is the trustee of the public unit trust scheme or the listed company that is required to lodge the acquisition statement and pay the duty, rather than the persons who made the relevant acquisition.
Additional duty obligations relating to foreign purchasers
If a foreign purchaser acquires an interest in a landholder that owns or is entitled to residential property in Victoria, additional duty may be payable in respect of the acquisition.
The additional duty applies to interests acquired pursuant to agreements and arrangements entered into on or after 1 July 2015. Please refer to our information on foreign purchaser additional duty to see if it applies to your transaction.
If additional duty applies, you must complete Part G of the acquisition statement.
Concession on lodgement and payment obligation
To reduce compliance costs and to prevent double duty issues arising, the Commissioner will not require a landholder to separately lodge an acquisition statement and pay duty if the person who made the relevant acquisition lodges a statement and pays the duty within the required timeframe.
The above concession does not apply to a conversion of a private unit trust scheme to a public unit trust scheme or a private company to a listed company as the only person obligated to lodge a statement and pay duty is the trustee of the public unit trust scheme or the listed company itself.
In cases where more than one person may be regarded as having made the relevant acquisition (such as an acquisition by a trustee on behalf of a particular person), the Commissioner will treat each parties’ lodgement and payment obligations as being satisfied if one of the parties lodges an acquisition statement and pays the duty within the required timeframe.
In either case, if the landholder becomes aware that the person or persons who may be regarded as having made the relevant acquisition do not intend on preparing and lodging an acquisition statement, the landholder will be required to either complete and lodge the statement itself, or cause the person(s) who made the relevant acquisition to complete and lodge a statement. If neither lodges a statement or pays the applicable duty within the time required by the Act, penalties may be imposed.
Please refer to ss. 83-85, 89B(4) and 89C(4) of the Act and more information about making a relevant acquisition and calculating duty (Revenue Ruling DA-055v3).