29/03/2012

What This Means for Victorian Clients

This amendment, applicable to all dutiable transactions on or after 1 April 2012, reduces the time limit for lodging of documents and paying stamp duty from the current 90 days provision to 30 days from the date of the transaction.

The reduced time limit relates to transactions including transfers of land or motor vehicles, leasing arrangements, declarations of trust and those outlined in Section 7 of the Duties Act 2000 (Vic).

This means that advisors must ensure that relevant documents are prepared and lodged with the State Revenue Office within a much shorter time period.

For limited recourse borrowing transactions where Victorian property is to be acquired we suggest that the holding trust deed is signed as close to settlement as possible to provide sufficient time after settlement to lodge the deed for stamping with the documentary evidence required by the State Revenue Office.

If documents are not lodged and stamp duty is not paid within the 30 days from the date of the dutiable transaction this may be considered by the State Revenue Office a breach of Section 16 of the Duties Act 2000 (Vic) and penalties and interest may be charged under Schedule 1 Subdivision 286 of the Taxation Administration Act 1953.

If you have any questions in relation to this article, please contact TOWNSENDS BUSINESS & CORPORATE LAWYERS on (02) 8296 6222.