A common developer strategy leaves Dragan with an enormous stamp duty liability

Discussion in 'Accounting & Tax' started by Mike A, 11th Jan, 2020.

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  1. Mike A

    Mike A Accountant

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    A popular and common development strategy lands Dragan with an unexpected stamp duty bill

    Many developers are still unaware of this change. Are you like Dragan and still in the dark ?

    Well Dragan did what many other developers do.

    He purchased a block of land in Meltone Victoria to undertake a development in a new discretionary trust.

    Quite common as Dragan knows this seperates some of the development risk from his development company

    He then gets out his old agreement that his lawyer prepared for his last development which allowed his development company to do the development and to receive a large chunk of the profits on sale of the completed development. He makes a few changes to the document and is happy as a pig in mud.

    Dragan didnt know the rules had changed in victoria !!!

    Dragan ends up with a bill he never expected

    Dont be in the dark like Dragan
     
    lixas4 likes this.
  2. Hamish Blair

    Hamish Blair Well-Known Member

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    What rule changed? Enlighten us!
     
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Duties act
     
    Mike A likes this.