Partition

What is the unencumbered value before partition? assuming 50% owners then one has $300,000
What is the value after partition? assuming still 50% owner then one has $300,000

So the after does not exceed the former, so not duty payable. When title is transferred later this is not a dutiable event as it is just from trustee to beneficiary. Perhaps some nominal duty like $50, not sure.

But seek legal advice as this **** is complex.

 

I understand this now...so the actual date of 'partition' is when the deed of bare trust is entered to immediately after acquiring / at the same time of acquisition..NOT when the actual transfer occurs so each person has 1 lot.

 

Note the wording in the section "or agreed to be transferred"

 

Yep - it all makes sense now.

So, essentially if the underlying % of ownership between acquiring the land and entering into the bare trust does not change, then assuming you enter the trust (in the same %) IMMEDIATELY after acquiring the land, there can't possibly be an increase in value.

 

That sounds correct to me.

 

Agreed.

From a procedural perspective, why do individual valuations for the lots/houses (if complete) have to be submitted when interests relinquish and titles are registered solely in each person's name?

 

I don't know the answer to that.

 

Thanks Terry

 

This is a state govt department. They have a large teams of intergrity staff who recheck these things. There is always potential for fraud when development is involved and related parties and non arms length deals and its big $$ revenue. Have seen deed of partitions thrown out too. They can allege fraud and reject it or full duty or double duty even. Its very wise to have the deed stamped and given "approval" as early as possible to avoid this allegation.

Vic Revenue Ruling DA.029 is the reason. Its a antifraud measure. I have seen vals rejected too. OSR have right to appoint one and bill you for it ! Other states have same : NSW Evidence of value requirements and guidelines

 

Thanks for that - I'll have a look at DA.029 tonight. I did see somewhere the SRO provided a list of the valuation procedures and documentations required for partitions and related-party transactions.

I think I saw it on the SRO website...do you know what I'm referring to?

 

The above link !!

You should also note that this ruling is not actually clear and the Commissioner may have specific requirements or not require others. Contact OSR for guidance to avoid unncessary cost.