Duty is governed by the Duties Act 2000 and administered by the State Revenue Office. All contracts for land transfer duty must be completed using the Digital Duties Form, which collects the information needed for any concession or exemption and requires the vendor to confirm that the consideration is full market value and that no goods are being sold under a separate contract, so the full consideration is disclosed.
In an electronic settlement the network transfers the duty to the State Revenue Office and lodges the title with Land Services Victoria at the same time as settlement. Where the system determines a lodgement to be complex, the State Revenue Office assesses it manually, and supporting documents must be uploaded and submitted a set period before the scheduled settlement date.
Duty is calculated on the price inclusive of GST, however the contract expresses it. Concessions and exemptions can apply, including principal place of residence, first home buyer, pensioner, off the plan, young farmer, family farm, special disability trust and deceased estate, each with its own rules.
CMK Legal's property and conveyancing team can act on matters like this.
Duty is generally the buyer's largest upfront cost after the deposit, and it is assessed on the GST inclusive price. A complex assessment needs supporting documents lodged well before settlement to avoid delay.
Law referenced: Duties Act 2000; Taxation Administration Act 1997; Digital Duties Form.