Stamp duty change in vic for development agreement ventures

'A massive change': Victoria rewrites stamp duty rules for developers

Basically developers in vic need to pay stamp duty on development agreement deals where they partner with the landowner to do a development, even though the ownership of the property stays in the landowners name until development complete.

What are peoples thoughts?

For the accountants/lawyers- when does the duty payment need to be made? On signing the development agreement or at the end of the development when the sales proceeds come in?

Is there a fact sheet on this provided by the SRO? I couldnt find it.

 

duty is payable within 30 days of a dutiable transaction and entering a development agreement would be a dutiable transaction.

 

That'll catch many capital poor/knowledge rich (JV developers) getting back into the market when they have to stump up extra cash before the project gets off the ground.

 

Wonder if the other states will introduce it as well

 

Information regarding this issue can be found at the following SRO link Sub-sales and duty | State Revenue Office it is payable within 30 days of settlement. If there is a bank providing finance it has to be paid at settlement.