Victoria's unexpected change to stamp duty rules will hit a range of players beyond development, including real estate managers who set rents and fund managers who receive remuneration based on the value of an asset they have sold, industry players warn.
Changes in the State
Taxation Acts Amendment Bill 2019 introduced to Parliament on
Tuesday, a day after the state budget that made no mention of them, would
dramatically widen the pool of players who can be taxed according to their
economic interest in a site, industry bodies and professionals said.
While the higher stamp duty rates on development
could further dampen a shrinking construction pipeline – official figures last
week showed new dwelling approvals fell 4.7 per cent in March from February –
critics said the broad changes included sweeping measures that went further
than any of the revenue-raising steps announced in Monday's budget.
Measures in the new draft legislation no
longer let developers avoid paying stamp duty by entering into an agreement
with the landowner to develop a site without actually purchasing the land, and
would subject them to 5.5 per cent stamp duty on potentially the entire value
of any piece of land worth more than $1 million.
The State Revenue Office last week said the change was intended
to address a 2016 Supreme Court judgment that curbed an earlier attempt to levy
stamp duty on the economic entitlements of some landowners.
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Saturday, 8 June 2019