$9.7million stamp duty reduced to $765

[Terryw]

How do you reduce the stamp duty on the purchase of shopping centre worth approx $357,000,000 which would have been $9,665,492 to just $765?

a few options and a 300 year lease, see

Centro (CPL) Limited v Chief Commissioner of State Revenue [2010] NSWSC 751
http://www.austlii.edu.au/au/cases/nsw/NSWSC/2010/751.html

and a summary here
http://www.blakedawson.com/Templates/Publications/x_publication_content_page.aspx?id=59665

 

[buzzlightyear]

I believe this was used by Myer family when the private consortium purchasing Myer from CML, entered into a long term lease (99yrs for memory?) for the Melbourne CBD flagship building in 2006. So the consortium didn't have to pay stamp duty.

I think this loophole in Vic at least has been closed however as a result.

 

[Aaron Sice]

why not?

stamp duty is only payable on transfer.

no transfer, no duty.

 

[Nathan]

And then the option @ 300 years time to buy the property for its 2010 price

 

[Aaron Sice]

2010 price plus 300%....lol.

 

[Lofty]

Hi All

Victoria did change their rules late last year. Stamp Duty in Victoria is now payable on the strike price of the Option, IF there is a Lease associated with the Option. This is not just limited to Commercial property, as it was originally intended to snare. It covers all property in Victoria. The Vendor Finance Association lobbied the government to exempt residential property from this new set of rules, before they came in, but to no avail.

It's worth noting that you must have both a Lease and an Option on a property for these new Stamp Duty rules to be triggered. If you only have a Lease or an Option separately, no Stamp Duty is payable.

Cheers, Paul

 

[Ausprop]

it's a filthy regressive tax that should have been abolished years ago. It is a blight on our economic landscape.. a soft target and a retreat for socialist labour governments right around the country