Authorised Version No Duties Act No. 79 of 2000 Authorised Version incorporating amendments as at 2 July 2018 TABLE OF PROVISIONS

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1 Section Authorised Version No. 115 Duties Act 2000 Authorised Version incorporating amendments as at 2 July 2018 TABLE OF PROVISIONS Page Chapter 1 Preliminary 1 1 Purpose 1 2 Commencement 1 3 Definitions 1 3A What is a controlling interest for the purposes of the definition of foreign corporation? 36 3B What is a substantial interest in a trust estate for the purposes of the definition of foreign trust? 37 3C Commissioner may determine person has a controlling interest in a corporation 38 3D Commissioner may determine person has a substantial interest in a trust 39 3E Exemptions from holding controlling interests in foreign corporations or substantial interests in trust estates of foreign trusts 39 3F Delegation of exemption power 42 3G What is residential property? 43 3H Partners taken to have beneficial ownership of individual partnership property 46 4 Division of Act into Chapters 47 5 Taxation Administration Act Act binds the Crown 48 Chapter 2 Transactions concerning dutiable property 49 Part 1 Introduction and overview 49 7 Imposition of duty on certain transactions concerning dutiable property 49 7A Vesting of land in Victoria by statute law 53 8 Imposition of duty on dutiable transactions that are not transfers 54 9 What form must a dutiable transaction take? What is dutiable property? When does a liability for duty arise? 59 i

2 Section Page 12 Who is liable to pay the duty? The liability of joint tenants Necessity for written instrument or written statement Lodging written instrument or statement with Commissioner When must duty be paid? No double duty What is the rate of duty? 62 18A Foreign purchasers duty in respect of change of use of land Concessions and exemptions from duty 63 19A Foreign purchasers not entitled to concessions 63 Part 2 Dutiable value What is the dutiable value of dutiable property? What is the consideration for the transfer of dutiable property? 64 21A Commissioner may publish percentage 67 21B Records to be kept 67 21C Period of retention 68 21D Power to require documents 68 21E Joint and several liability for additional duty What is the unencumbered value of dutiable property? 69 22A Tenant's fixtures to be included in the value of land 71 22B Interdependent sale of land and business goods Arrangements that reduce the dutiable value of marketable securities Aggregation of certain dutiable transactions 74 24A Dutiable transactions relating to vacant land and construction of residential premises where not constructed Apportionment dutiable property and other property Partitions of marketable securities Partitions of land 82 Part 3 Rates of duty General rate 83 28A Rate for additional duty chargeable for foreign purchasers residential property Marketable securities 84 Part 4 Special provisions Interim payment of duty 85 30A Interim payment of duty in relation to electronic transactions Transfers arising from mortgages of land 87 ii

3 Section Page Part 4A Transactions treated as sub-sales of land 88 Division 1 Introduction 88 32A Definitions 88 Division 2 Transfers involving additional consideration 91 32B Application of Division 91 32C How duty is charged on transfer 94 32D Dutiable value of transactions 97 32E When does the liability to duty arise? 98 32F Who is liable to pay the duty? 98 32G Exemptions and concessions 98 Division 3 Transfers involving land development 99 32I Application of Division 99 32J How duty is charged on transfer K Dutiable value of transactions L When does the liability to duty arise? M Who is liable to pay the duty? N Exemptions and concessions 105 Division 3A Transfers resulting from options involving additional consideration O Application of Division OA How duty is charged on transfer OB Dutiable value of transactions OC When does the liability to duty arise? OD Who is liable to pay the duty? OE Exemptions and concessions 112 Division 4 Transfers resulting from options involving land development P Application of Division Q How duty is charged on transfer R Dutiable value of transactions S When does the liability to duty arise? T Who is liable to pay the duty? U Exemptions and concessions 119 Division 5 Miscellaneous V Provisions for determining consideration W Transactions between relatives X Parties required to provide information to Commissioner 124 iii

4 Section Page Part 5 Exemptions and concessional rates of duty 126 Division 1 Trusts Y References to dutiable property Change in trustees Property vested in an apparent purchaser Transfers to and from a trustee or nominee Property passing to beneficiaries of fixed trusts A Property passing to beneficiaries of discretionary trusts B Property passing to unitholders in unit trust schemes C Effect of certain mortgages on trust exemptions Establishment of a trust relating to unidentified property and non-dutiable property Exemptions from duty under section A Special disability trusts 144 Division 2 Superannuation B References to dutiable property Instruments relating to superannuation Transfer of property from one superannuation fund to another Transfers to trustees or custodians of superannuation funds or trusts A Property passing to beneficiaries of superannuation funds 149 Division 3 Other general exemptions and concessions B References to dutiable property Deceased estates Marriage and domestic relationships transfer of principal place of residence AA Circumstances in which consideration does not include a mortgage A Residence requirement for section 43 exemption B Variation of residence requirement for section 43 exemption C Liability for duty if residence requirement for section 43 exemption not complied with D Persons must notify Commissioner of change in circumstance section 43 exemption Breakdown of marriage and domestic relationships Charities and friendly societies A Health centres and services Co-operatives Government bodies and diplomats A Transfer to Victorian Rail Track Bankruptcies and administrations A Amalgamation of industrial organisations 166 iv

5 Section Page 49 Leases of residential sites in caravan parks A Conversion of land use entitlements to different form of title 167 Division 4 Exemptions and concessions in relation to land B References to dutiable property Public rights of way Government bodies A Joint government enterprise water saving projects Defence service homes Joint tenants and tenants in common Equity release programs Transfers of farms to relatives or charities Subsequent transfer not dutiable if duty paid on lease A Land sold initially to financial institution and natural person and then leased to natural person B Land sold initially to financial institution and then re-sold to natural person C Land sold initially to financial institution and then leased 57D to natural person 177 Land sold initially to natural person, beneficial interest then transferred to financial institution E Change of financial institution F If the natural person dies 179 Division 4A Principal places of residence and first home buyers G Definitions H What is a principal place of residence? I What is a PPR transfer? J Rates of duty for certain PPR transfers JA Exemption or concession for certain first home buyers on PPR transfers JB Requirements first home buyers K Residence requirement L Variation of residence requirement M 57N Liability for duty if residence requirement not complied with 188 Transferee to notify Commissioner of change in circumstances 190 Division 5 Eligible pensioner and eligible first home owner exemptions and concessions Who is an eligible pensioner? Eligible pensioner exemption or concession where dwelling exists at the time of transfer Eligible pensioner exemption or concession where dwelling is constructed after transfer 195 v

6 Section Page 60A Election to receive eligible pensioner exemption/concession Who is an eligible first home owner? Eligible first home owner exemption or concession where dwelling exists at the time of transfer Eligible first home owner exemption or concession where dwelling is constructed after transfer A Temporary suspension of first home owner exemption or concession B Election to receive eligible first home owner exemption/concession or additional first home owner grant Double duty for false or misleading statements 206 Division 6 Exemptions and concessions in relation to marketable securities Co-operatives and co-operative housing societies Loans and temporary transfers Nomineeing transactions unquoted marketable securities Share buy-backs Reduction of duty payment in non-australian jurisdiction 209 Division 7 Young farmers AA Definitions AB Disqualifying interest AC Primary production requirement AD Exemption or concession for young farmers AE Calculation of exemption or concession on transfer of single parcel of land or partial interest in single parcel of land AF Calculation of exemption on transfer of multiple parcels and partial interests of land AG Election to receive young farmer exemption/concession or principal place of residence concession AH Liability for duty if primary production requirement not complied with AI Farmer to notify Commissioner of change in circumstances 219 Division 8 Exemption from additional duty for foreign purchasers AJ Certain foreign purchasers exempt from additional duty under section 28A AK Variation of residence requirement for exemption AL Liability for additional duty if residence requirement not complied with AM Foreign purchasers must notify Commissioner of change in circumstance 222 vi

7 Section Page Part 6 Tax avoidance schemes A Imposition of duty B What is a tax avoidance scheme? C Anti-avoidance provision D Misleading information 226 Chapter 3 Certain transactions treated as transfers 227 Part 1 Introduction and overview Imposition of duty 227 Part 2 Acquisition of interests in certain landholders 228 Division 1 Landholders Meaning of landholder What are land holdings? What does land include? Effect of uncompleted agreements Constructive ownership of land holdings linked entities Constructive ownership of land holdings discretionary trusts 233 Division 2 Charging of duty When does a liability for duty arise? What is a relevant acquisition? What are interests and significant interests in landholders? How may an interest be acquired? Acquisition of economic entitlement Acquisition of control Acquisition statements When must duty be paid? Who is liable to pay the duty? How duty is charged on relevant acquisitions in private landholders How duty is charged on relevant acquisitions in public landholders concessional rate How duty is charged on relevant acquisitions in public landholders non-concessional rate Phasing-in of duty A Reduction in marketable securities duty B Conversion of a private unit trust scheme to a public unit trust scheme C Conversion of a private company to a listed company 248 Division 3 Exemptions and concessions D Exemptions E Duty concession anomalous duty outcome 250 vii

8 Section Page 89F Duty concession acquisitions securing the provision of finance 251 Division 4 Valuation and supplementary calculation provisions G Valuation of land holdings H Maximisation of entitlements on distribution of land holdings I Agreements for sale, transfer or purchase of land J Re-purchase facilities widely held trusts K Re-purchase facilities wholesale unit trust schemes 257 Division 5 Tax avoidance schemes L Imposition of duty M What is a tax avoidance scheme? N Anti-avoidance provision O Misleading information 260 Division 6 Registration of unit trust schemes P Definitions Q Application for registration R Registration of declared public unit trust schemes S Registration of wholesale unit trust schemes T Registration of imminent wholesale unit trust schemes U Registration of declared wholesale unit trust schemes V Duration of registration W Reporting requirements X Disqualifying circumstances for certain unit trust schemes Y Cancellation of registration 271 Part 3 Entitlements arising from capital reductions or rights alterations Definitions When does a liability for duty arise? When must duty be paid? Who is liable to pay the duty? Entitlement to voting shares arising from capital reduction or rights alteration Content of statement Assessment of duty 275 Part 4 Allotment of shares by direction Application of Part When does a liability for duty arise? When must duty be paid? Who is liable to pay the duty? Acquisition of shares by allotment Allotment statement 277 viii

9 Section Page 103 Assessment of duty 277 Part 5 Acquisition of land use entitlements by allotment of shares or issue of units A When does a liability for duty arise? B When must duty be paid? C Who is liable to pay the duty? D Acquisition of land use entitlement E Form of statement F Assessment of duty 279 Chapter 4 Financial sector (business transfer and group restructure) Imposition of duty When does a liability for duty arise? Who is liable to pay the duty? Statement on transfer of property Assessment of duty Exemption 281 Chapter 6 Hire of goods 282 Part 1 Introduction and overview Imposition of duty A Hire of goods duty abolished from January What is a commercial hire business? Hire of goods to which this Chapter applies jurisdictional nexus What are goods? What is a hire of goods? What is an equipment financing arrangement? What form may a hire of goods take? Exclusions from the definition of hire of goods Special hiring agreements What is the rate of duty? What are hiring charges? Payments exempted from hiring charges Credit for duty paid in another Australian jurisdiction Splitting or redirection of hiring charges (anti-avoidance provision) Ascertainment and disclosure of place of use of goods 288 Part 2 Registration of commercial hire businesses and payment of duty Commercial hire businesses must be registered Registration of commercial hire businesses Cancellation of registration of commercial hire business 290 ix

10 Section Page 143 Register of commercial hire businesses Duty base Lodgement of returns and payment of duty Statement of special hiring agreement Lodgement of statement and payment of duty 295 Chapter 7 Mortgages 296 Part 1 Introduction and overview Imposition of duty A Mortgage duty abolished from July What is a mortgage? What is an advance? Who is liable to pay the duty? When does a liability arise? When must duty be paid? How is mortgage duty charged? Extent mortgage is enforceable Where is property located? 300 Part 2 Calculating the amount secured by a mortgage Secured amount Contingent liabilities Mortgages over property not wholly within Victoria Advances secured by mortgage package Stamping before advance Security Exchange of information Collection of duty and endorsement of instruments Collateral securities 309 Part 3 Duty concessions Refinancing of loans Eligible mortgages under concession schemes 312 Part 4 Exemptions Exempt mortgages and supporting instruments Mortgages associated with certain credit contracts Farm machinery and commercial vehicles Certain debentures and related instruments 317 Part 5 Miscellaneous Payment of duty on mortgages associated with debenture issues Unregistered mortgages protected by caveats (anti-avoidance provision) 321 x

11 Section Page 174 Stamping counterpart or collateral instrument if mortgage is lost, destroyed or cannot be produced 322 Chapter 8 Insurance 323 Part 1 Introduction and overview Imposition of duty 323 Part 2 General insurance 324 Division 1 Duty in respect of general insurance What is general insurance? What is a premium in relation to general insurance? When is a premium paid? What duty is payable? Who is liable to pay the duty? Circumstances in which duty is payable by the insured person Records to be kept Refunds where premiums are returned 327 Division 2 How duty is paid by an insurer Who is an insurer? Insurers must be registered Application for registration Cancellation of registration by the Commissioner Cessation of business and cancellation of registration by the insurer Register of insurers Monthly returns and payment of duty Recovery of duty by registered insurer 331 Division 3 Apportionment of premiums and other amounts between States and Territories Application of Division Schedule of Apportionment Apportionment in practice 332 Division 4 Apportionment of premiums and other amounts as between different types of insurance Apportionment between different types of insurance 332 Division 5 Exempt insurance What insurance is exempt from duty? A Life insurance B Life insurance policy riders 336 xi

12 Section Page Division 6 Miscellaneous Effect on contract of insurance of failure to comply with this Chapter 338 Part 4 Transport accident charges Imposition of duty Who is liable to pay the duty? Rate of duty How is duty paid? Refund of duty if transport accident charge is refunded 339 Chapter 9 Motor vehicle duty 340 Part 1 Introduction and overview Imposition of duty Lodgement of statement of dutiable value Who is liable to pay the duty? When does duty become payable? A Assessment of duty What is the rate of duty? What is the dutiable value of a motor vehicle? Prohibition on registration of motor vehicles 347 Part 3 Exemptions Ownership by devolution of title and deceased estates Special dealers trading stock, demonstrator vehicles and driver education Licensed motor car traders trading stock, demonstrator vehicles and driver education Applications by interstate licensed motor car traders Primary producer vehicles AA Mobile plant AB Special purpose vehicles (type P) A Transport for disabled, handicapped or injured B Incapacitated person's vehicle C Private vehicle used to convey incapacitated person D Government or charitable vehicle used to convey incapacitated person E Incapacitated war veteran's vehicle F Fire fighting and emergency response vehicle G Consular vehicle H Repossessions and restorations A Amalgamation of industrial organisations B Financial sector (business transfer and group restructure) Marriage and domestic relationships and their breakdown Minors and trustees Vehicles previously registered in the same name interstate 363 xii

13 Section Page Part 4 Duty on change of use Duty on statement of change of use 364 Part 5 Refund of duty Entitlement to refund 366 Chapter 10 Miscellaneous duties 367 Part 1 Sale of cattle Imposition of duty What is the rate of duty? What is the purchase money? 368 Part 2 Sale of sheep and goats Imposition of duty What is the rate of duty? 369 Part 3 Sale of pigs Imposition of duty What is the rate of duty? What is the purchase money? 370 Part 4 Registration of approved agents A Registration of approved agents B Commissioner to keep register of approved agents 371 Chapter 11 General exemptions from duty 372 Part 1 Security for payment of tax Security for payment of tax 372 Part 2 Corporate reconstructions 373 Division 1 Corporate reconstruction exemption What is a corporate group? A What is an eligible transaction? B Exemption for certain transactions arising out of corporate reconstruction C Conditions of exemption D Revocation of exemption 377 Division 1A Corporate consolidation exemption DA Definitions DB What is a corporate consolidation? DC What is an eligible transaction? DD Exemption for certain transactions arising out of corporate consolidation 381 xiii

14 Section Page 250DE Conditions of exemption DF Revocation of exemption DG Special provision in relation to landholder duty for private unit trust scheme consolidations 385 Division 1B Exchange of stapled ownership interests for ownership interests in a unit trust scheme DH Definitions DI Exemption for relevant acquisitions DJ Conditions of exemption DK Revocation of exemption 388 Division 2 Tax assessment, penalty and interest E Part 5 of Taxation Administration Act 1997 not applicable F Joint and severable liability for duty, penalty and interest G Liability for duty H Reassessment of duty I Penalty for false or misleading application J Penalty for failure to notify K Remission of penalty L Interest M Remission of interest 393 Part 3 Managed investment schemes Managed investment schemes 394 Part 4 Mortgage-backed securities A Mortgage-backed securities B Instruments issued for the purpose of creating, issuing or marketing mortgage-backed securities 397 Chapter 12 Administration and enforcement 398 Part 1 Stamping instruments C Definitions Provision of stamps Limitation on use of designated stamps Form of stamps to be used Stamping of instruments A Authentication of payment of duty using on-line duty payment system When is an instrument duly stamped? Adhesive stamps Licences to deal in stamps Refunds spoiled and unused stamps Reassessments failed instruments 402 xiv

15 Section Page 261 Instruments to be separately charged with duty in certain cases Execution of instruments Counterparts and replicas 404 Part 2 Authorisation of returns systems Authorised persons A Application for authorisation B Conditions of authorisation C Gazettal or service of notices Endorsement of instruments by authorised persons Payment of duty by authorised persons Offset of overpaid amounts Unauthorised endorsement 409 Part 3 Enforcement Registration of instruments Registration of transfer of shares in private companies Registration of transfer of units Receipt of instruments in evidence Valuation of property Ascertainment of value of certain items Impounding of instruments Injunction to prevent unregistered businesses trading First charge on land foreign purchasers of residential property Registration of charge 416 Chapter 13 General Payments from Consolidated Fund Regulations 418 Chapter 14 Repeals, consequential amendments and transitional provisions Transitional provisions 419 Schedules 420 Schedule 1 Special purpose vehicles and mobile plant 420 Schedule 2 Transitional provisions 425 xv

16 Section Page Endnotes General information Table of Amendments Amendments Not in Operation Explanatory details 464 xvi

17 Authorised Version No. 115 Duties Act 2000 Authorised Version incorporating amendments as at 2 July 2018 The Parliament of Victoria enacts as follows: 1 Purpose Chapter 1 Preliminary The main purpose of this Act is to create and charge a number of duties. 2 Commencement 3 Definitions This Act comes into operation on 1 July (1) In this Act acquisition statement, in Part 2 of Chapter 3, means a statement referred to in section 83; S. 3 No. 46/2001 s. 3(2) (ILA s. 39B(1)). S. 3(1) def. of acquisition statement No. 38/2012 s. 6(a). advance, in Chapter 7, has the meaning given by section 150; allotment statement, in Part 4 of Chapter 3, means a statement referred to in section 101; approved means approved by the Commissioner; 1

18 S. 3(1) def of approved agent No. 84/2008 s. 10. S. 3(1) def. of associated person Nos 44/2001 s. 3(Sch. item 32.1(a)), 46/2004 s. 3(1)(a) (c), 38/2012 s. 4(1)(b). approved agent means a person registered as an approved agent under section 248A; associated person means a person who is associated with another person in accordance with any of the following provisions (a) persons are associated persons if they are related persons; (b) natural persons are associated persons if they are partners in a partnership to which the Partnership Act 1958 applies; (c) companies are associated persons if (i) there are minority shareholders common to each company who, if their interests were aggregated, would be majority shareholders in each company; or (ii) any majority shareholder or relative is a majority shareholder in each company; (ca) companies are associated persons if the shares in the companies are "stapled", in that they are unable to be traded other than as if they together represented a single security; (d) trustees are associated persons if any person is a beneficiary common to the trusts (not including a public unit trust scheme) of which they are trustees; (e) a company and a trustee are associated persons if the company or a related body corporate of the company is a 2

19 beneficiary of the trust (not including a public unit trust scheme) of which the trustee is a trustee; (f) a company and the trustee of a unit trust scheme are associated persons if their shares and units are "stapled", in that they are unable to be traded other than as if they together represented a single security; (g) trustees of unit trust schemes are associated persons if the units in each of the unit trust schemes are "stapled", in that they are unable to be traded other than as if they together represented a single security; (h) a qualified investor and a private company are associated persons if the qualified investor is a majority shareholder in the private company; (i) a qualified investor and the trustee of a private unit trust scheme are associated persons if the qualified investor holds 20% or more of the units in the private unit trust scheme; (j) trustees are associated persons if one of the trustees is a beneficiary of the trust (not including a public unit trust scheme) of which the other trustee is a trustee; (k) persons are associated persons if one of those persons is an associated person of a person of whom the other of those persons is an associated person (including a person that is an associated person of the other of those persons because of one or more other 3

20 S. 3(1) def. of associated transaction No. 38/2012 s. 4(1)(a). S. 3(1) def. of ASX No. 28/2011 s. 20(1)(a). S. 3(1) def. of Australian register No. 9/2002 s. 3(Sch. item 4.1(a)). S. 3(1) def. of Australian Stock Exchange substituted by No. 46/2001 s. 3(1)(b), repealed by No. 28/2011 s. 20(1)(b). S. 3(1) def. of authorised deposit-taking institution No. 46/2001 s. 3(1)(a). applications of the paragraphs in this definition); and, for the purposes of Part 2 of Chapter 3, a public company and a subsidiary of a public company are taken to be associated persons; associated transaction, in relation to the acquisition of an interest in a landholder by a person, means an acquisition of an interest in the landholder by another person in circumstances in which (a) those persons are acting in concert; or (b) the acquisitions form, evidence, give effect to or arise from substantially one arrangement, one transaction or one series of transactions; ASX means ASX Limited (A.C.N ); Australian register has the same meaning as in the Corporations Act; * * * * * authorised deposit-taking institution has the same meaning as in the Banking Act 1959 of the Commonwealth; 4

21 calf means any cattle less than 6 weeks of age; cattle means bull, cow, ox, steer, heifer, bison or buffalo; charge includes impose; collateral mortgage means a mortgage that secures all or part of the same amount as another mortgage, security instrument or mortgage package that has been duly stamped under this Act or a corresponding Act; commercial hire business has the meaning given by section 126; commercial vehicle means (a) a motor vehicle or trailer within the meaning of the Road Safety Act 1986 constructed or adapted principally for the carriage of goods but does not include a motor vehicle of the kind known as a utility, a station wagon or a panel van; or (b) a vehicle without motive power of its own and constructed or adapted principally for the carriage of goods and for being drawn by a motor vehicle within the meaning of that Act; Commissioner means the Commissioner of State Revenue referred to in section 62 of the Taxation Administration Act 1997; compliance plate means a plate authorised to be placed on a vehicle, or taken to have been placed on a vehicle, under the Motor Vehicle Standards Act 1989 of the Commonwealth; S. 3(1) def. of cattle No. 67/2015 s. 3. S. 3(1) def. of collateral mortgage No. 46/2001 s. 3(1)(a), No. 79/2001 s. 3. S. 3(1) def. of compliance plate No. 26/2015 s. 3(a). 5

22 S. 3(1) def. of complying superannuation fund No. 46/2001 s. 3(1)(c). S. 3(1) def. of controlling interest No. 26/2015 s. 14. S. 3(1) def. of co-operative No. 9/2013 s. 42(Sch. 2 item 7(1)). S. 3(1) def. of cost repealed by No. 48/2001 s. 5(a). complying approved deposit fund means an entity that is a complying approved deposit fund in accordance with section 43 of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth; complying superannuation fund means an entity that is a complying superannuation fund in accordance with section 42 or 42A of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth and an exempt public sector superannuation scheme and in section 40 includes a complying approved deposit fund and an eligible rollover fund; controlling interest has the meaning given by section 3A; co-operative has the same meaning as in the Co-operatives National Law (Victoria); co-operative housing society has the same meaning as in the meaning of the Co-operative Housing Societies Act 1958; corporation means a body corporate, whether incorporated in this State or elsewhere; corresponding Act means an Act of another State or of a Territory corresponding to this Act; * * * * * counterpart includes a duplicate; 6

23 Crown leasehold means a lease under the Land Act 1958 or any other Act or enactment in respect of which a Crown grant in fee-simple is by law directed or authorised to be made to the lessee on payment of all sums (whether referred to as rent or otherwise) reserved by the lease and on compliance with the other covenants of the lease; * * * * * demonstrator vehicle means a motor vehicle that is used exclusively for the purpose of sale of another vehicle of the same class; S. 3(1) def. of defacto spouse repealed by No. 27/2001 s. 3(Sch. 1 item 2.1(b)). S. 3(1) def. of demonstrator vehicle No. 71/2004 s. 4. discretionary trust means a trust under which the vesting of the whole or any part of the capital of the trust estate, or the whole or any part of the income from that capital, or both (a) is required to be determined by a person either in respect of the identity of the beneficiaries or the quantum of interest to be taken, or both; or (b) will occur if a discretion conferred under the trust is not exercised; or (c) has occurred but under which the whole or any part of that capital or the whole or any part of that income, or both, will be divested from the person or persons in whom it is vested if a discretion conferred under the trust is exercised; 7

24 S. 3(1) def. of domestic partner No. 27/2001 s. 3(Sch. 1 item 2.1(a)). S. 3(1) def. of domestic relationship No. 27/2001 s. 3(Sch. 1 item 2.1(a)), substituted by No. 12/2008 s. 73(1)(Sch. 1 item 17.1), No. 4/2009 s. 37(Sch. 1 item 10.1). S. 3(1) def. of dutiable proportion No. 46/2001 s. 3(1)(a). S. 3(1) def. of economic entitlement No. 38/2012 s. 4(1)(a). domestic partner of a person means a person with whom the person is in a domestic relationship; domestic relationship means (a) a registered domestic relationship; or (b) a relationship between two persons who are not married to each other but who are living together as a couple on a genuine domestic basis (irrespective of gender); dutiable property has the meaning given by section 10; dutiable proportion, for a mortgage, means the proportion of the amount secured by the mortgage worked out under section 159; dutiable transaction has the meaning given by section 7(2); dutiable value (a) of dutiable property has the meaning given by section 20; (b) of a motor vehicle has the meaning given by section 219; economic entitlement, in Part 2 of Chapter 3, has the meaning given by section 81(2); 8

25 eligible first home owner has the meaning given by section 61; eligible pensioner has the meaning given by section 58; eligible rollover fund means an entity that is an eligible rollover fund in accordance with section 242 of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth and includes an entity the trustee of which is satisfied will be an eligible rollover fund within 12 months after the date on which a liability to duty arises (or would otherwise arise); ELN means ELN within the meaning of the Electronic Conveyancing National Law (Victoria); S. 3(1) def. of ELN No. 69/2013 s. 4. * * * * * equivalent exchange means a recognised stock exchange operating in Australia which imposes, as a minimum, the requirements set out in subsection (4A) on an entity applying for quotation of its securities on the relevant market; execute, in relation to an instrument not under seal, means sign; farm machinery means (a) a harvester, binder, tractor, plough or other agricultural implement; or (b) a boat; (c) fishing equipment; S. 3(1) def. of entitled repealed by No. 33/2007 s. 3. S. 3(1) def. of equivalent exchange No. 38/2012 s. 4(1)(a). 9

26 S. 3(1) def. of financial institution No. 71/2004 s. 4, No. 9/2013 s. 42(Sch. 2 item 7(1)). S. 3(1) def. of foreign corporation No. 26/2015 s. 14. (d) any other goods of a class commonly used for the purposes of primary production that are determined by the Commissioner to be farm machinery for the purposes of sections 132(j) and 170 where the goods are acquired for the purposes of primary production; financial institution means (a) an authorised deposit-taking institution within the meaning of the Banking Act 1959 of the Commonwealth; or (b) a co-operative within the meaning of the Co-operatives National Law (Victoria); or (c) a co-operative housing society within the meaning of the Co-operative Housing Societies Act 1958; or (d) a body approved by the Governor in Council by Order published in the Government Gazette; foreign corporation means (a) a corporation that is incorporated outside Australia; or (b) a corporation in which one of the following persons has a controlling interest (i) a foreign natural person; (ii) another foreign corporation; (iii) the trustee of a foreign trust; 10

27 foreign natural person means a natural person who is not any of the following (a) an Australian citizen within the meaning of the Australian Citizenship Act 2007 of the Commonwealth; (b) the holder of a permanent visa within the meaning of section 30(1) of the Migration Act 1958 of the Commonwealth; (c) a New Zealand citizen who is the holder of a special category visa within the meaning of section 32(1) of the Migration Act 1958 of the Commonwealth; foreign purchaser means a transferee (for the purposes of Chapter 2) or a person who makes a relevant acquisition (for the purposes of Chapter 3), and that transferee or person is (a) a foreign natural person; or (b) a foreign corporation; or (c) the trustee of a foreign trust; foreign trust means a trust in which one of the following persons has a substantial interest in the trust estate (a) a foreign corporation; (b) a foreign natural person; (c) another person that holds the substantial interest as trustee of another foreign trust; friendly society means a body that was a society within the meaning of the Friendly Societies (Victoria) Code immediately before the transfer date within the meaning of the S. 3(1) def. of foreign natural person No. 26/2015 s. 14. S. 3(1) def. of foreign purchaser No. 26/2015 s. 14. S. 3(1) def. of foreign trust No. 26/2015 s

28 S. 3(1) def. of general insurer repealed by No. 40/2014 s. 3(b). S. 3(1) def. of GVM No. 26/2015 s. 3(a). Financial Sector Reform (Victoria) Act 1999 or is a friendly society for the purposes of the Life Insurance Act 1995 of the Commonwealth; general insurance has the meaning given by section 176; * * * * * GST has the same meaning as it has in the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth except that it includes notional GST of the kind for which payments may be made under Part 3 of the National Taxation Reform (Consequential Provisions) Act 2000 by a person that is a State entity within the meaning of that Act; GVM has the same meaning as in the Road Safety Act 1986; heavy trailer means a trailer or semi-trailer within the meaning of the Road Safety Act 1986 with an MRC exceeding 4 5 tonnes; hire of goods has the meaning given by section 129; hire purchase agreement has the meaning given by section 130(2); hiring charges has the meaning given by section 135; 12

29 industrial organisation means an association of employees or employers registered as an organisation under the Fair Work (Registered Organisations) Act 2009 of the Commonwealth; instrument includes a written document and a written statement; insurance includes assurance; insurance intermediary means (a) a person who arranges contracts of insurance in Victoria (i) for reward; and (ii) as an agent for a person carrying on a business of insurance; or (b) a financial services licensee (within the meaning of section 761A of the Corporations Act) whose licence covers arranging contracts of insurance as an agent for a person carrying on a business of insurance; or (c) a regulated principal (within the meaning of section 1430 of the Corporations Act) when carrying on business as an insurance broker that the regulated principal is authorised to carry on by Subdivision D of Division 1 of Part 10.2 of that Act; insurer has the meaning given by section 184; S. 3(1) def. of industrial organisation No. 46/2001 s. 3(1)(a), No. 74/2009 s. 11. S. 3(1) def. of insurance intermediary substituted by No. 9/2002 s. 3(Sch. item 4.1(b)). S. 3(1) def. of insurer No. 40/2014 s. 3(a). interest includes an estate or proprietary right; 13

30 S. 3(1) def. of interest No. 46/2004 s. 3(2)(a), No. 38/2012 s. 6(b). S. 3(1) def. of land-related interest No. 26/2015 s. 14. S. 3(1) def. of land development No. 40/2016 s. 3(a). interest in a landholder has the meaning given by section 79(1); land-related interest means an interest or estate in land referred to in section 10(1)(a) to (ac) or (e); land development, in relation to land, means any one or more of the following (a) preparing a plan of subdivision of the land or taking any steps to have the plan registered under the Subdivision Act 1988; (b) applying for or obtaining a permit under the Planning and Environment Act 1987 in relation to the use or development of the land; (c) requesting under the Planning and Environment Act 1987 a planning authority to prepare an amendment to a planning scheme that would affect the land; (d) applying for or obtaining a permit or approval under the Building Act 1993 in relation to the land; (e) doing anything in relation to the land for which a permit or approval referred to in paragraph (d) would be required; (f) developing or changing the land in any other way that would lead to the enhancement of its value; 14

31 land use entitlement means an entitlement to occupy land in Victoria conferred through an ownership of shares in a company or units in a unit trust scheme, or a combination of a shareholding or ownership of units together with a lease or licence; lease means a lease of land in Victoria or an agreement for a lease of land in Victoria; S. 3(1) def. of land use entitlement No. 46/2004 s. 3(2)(b). S. 3(1) def. of lease repealed by No. 48/2001 s. 5(a), new def. of lease No. 39/2009 s. 3. liability date, for a mortgage, means the date the mortgage is liable under section 152 for mortgage duty; S. 3(1) def. of liability date No. 46/2001 s. 3(1)(a). licensed motor car trader has the same meaning as in the Motor Car Traders Act 1986; life insurance has the meaning given by section 196A; * * * * * linked entity has the meaning given in section 75; S. 3(1) def. of life insurance No. 40/2014 s. 3(c). S. 3(1) def. of life insurer repealed by No. 40/2014 s. 3(d). S. 3(1) def. of linked entity No. 46/2004 s. 3(2)(b), No. 38/2012 s. 6(c). 15

32 S. 3(1) def. of linked entity No. 38/2012 s. 4(1)(a), repealed by No. 70/2013 s. 3(Sch. 1 item 15). * * * * * S. 3(1) def. of listed company No. 38/2012 s. 4(1)(a), Nos 41/2013 s. 13(b), 41/2013 s. 14(1)(a), 28/2017 s. 42(2)(a). S. 3(1) def. of listed trust No. 46/2004 s. 3(2)(b), substituted by No. 85/2005 s. 3(1)(b), Nos 28/2011 s. 20(1)(c), 38/2012 s. 4(1)(c), 41/2013 ss 13(c), 14(1)(b), 28/2017 s. 42(2)(b). S. 3(1) def. of load No. 26/2015 s. 3(a). listed company means (a) a corporation all the shares in which are quoted on the ASX or an equivalent exchange; or (ab) a corporation all the shares in which are quoted on the LSE, NYSE or NZX; or (b) a corporation all the shares in which are quoted on any exchange of the World Federation of Exchanges (other than the ASX or an equivalent exchange); listed trust means (a) a unit trust scheme all the units in which are quoted on the ASX or an equivalent exchange; or (ab) a unit trust scheme, all the units in which are quoted on the LSE, NYSE or NZX; or (b) a unit trust scheme all the units in which are quoted on any exchange of the World Federation of Exchanges (other than the ASX or an equivalent exchange); load, in relation to a vehicle, includes anything that is removed from the vehicle when not in use; 16

33 LSE means the London Stock Exchange; majority shareholder in a company means (a) in the case of a company the shares in which are not divided into classes a person entitled to not less than 50% of those shares; and (b) in the case of a company the shares in which are divided into classes a person entitled to not less than 50% of the shares in any of those classes; managed investment scheme means a managed investment scheme within the meaning of Chapter 5C of the Corporations Act; market capitalisation means the total market value of an entity's issued securities, calculated by multiplying the number of the entity's issued securities by the current market value of one of those securities; marketable securities means the following (a) shares referred to in section 10(1)(b); (b) units referred to in section 10(1)(c); (c) an interest in shares or units referred to in paragraph (a) or (b); minority shareholder in a company, means a shareholder in that company who is not a majority shareholder; S. 3(1) def. of LSE No. 28/2017 s. 42(1). S. 3(1) def. of majority shareholder No. 46/2004 s. 3(2)(b). S. 3(1) def. of managed investment scheme Nos 44/2001 s. 3(Sch. item 32.1(b)), 46/2004 s. 3(2)(c). S. 3(1) def. of market capitalisation No. 38/2012 s. 4(1)(a). S. 3(1) def. of minority shareholder No. 46/2004 s. 3(2)(b). 17

34 S. 3(1) def. of mortgage substituted by No. 46/2001 s. 3(1)(d). S. 3(1) def. of mortgagebacked security No. 46/2001 s. 3(1)(a), substituted by No. 30/2002 s. 3(1)(a). mortgage (a) subject to paragraph (b), has the meaning given by section 149; (b) for the purposes of section 251A and the definitions of mortgage-backed security and pool of mortgages means a mortgage of any estate or interest in land, including a leasehold estate or interest in land, whether the land is situated in Victoria or elsewhere, and includes a charge over any such land; mortgage-backed security means (a) an interest in a trust that entitles the holder of or beneficial owner under the interest (i) to the whole or any part of the rights or entitlements of a mortgagee and any other rights or entitlements in respect of a mortgage or any money payable by the mortgagor under the mortgage (whether the money is payable to the holder of or beneficial owner under the interest on the same terms and conditions as under the mortgage or not); or (ii) to the whole or any part of the rights or entitlements of a mortgagee and any other rights or entitlements in respect of a pool of mortgages or any money payable by mortgagors under those mortgages (whether the money is payable to the holder of or beneficial owner under the interest 18

35 on the same terms and conditions as under the mortgages or not); or (iii) to payments that are derived substantially or, if the regulations prescribe the extent, to the prescribed extent, from the income or receipts of a pool of mortgages and that may, in addition, entitle the holder or beneficial owner to a transfer or assignment of the mortgage or mortgages; or (b) a debt security (whether or not in writing) the payments under which by the person who issues or makes the debt security are derived substantially or, if the regulations prescribe the extent, to the prescribed extent, from the income or receipts of a pool of mortgages; or (c) any of the following (i) an interest in a trust creating, conferring or comprising a right or interest (whether described as a unit, bond or otherwise) of or on a beneficiary in a scheme under which any profit or income in which the beneficiaries participate arises from the acquisition, holding, management or disposal of prescribed property, or any instrument that evidences such a right or interest; 19

36 S. 3(1) def. of motor vehicle No. 26/2015 s. 3(b). (ii) a security (whether or not in writing) the payments under which by the person who issues or makes the security are derived substantially from the income or receipts of prescribed property; (iii) an interest in a trust, a debt security (whether or not in writing), an instrument or property that creates an interest in or charge over an interest in a trust, a debt security (whether or not in writing) or other instrument or property, to which paragraph (a) or (b) or subparagraph (i) or (ii) of this paragraph applies but does not include an instrument or property comprising (d) a mortgage; or (e) the transfer of a mortgage; or (f) a declaration of trust; or (g) an instrument of a class or description of instruments, or property of a class or description of property, prescribed not to be a mortgage-backed security for the purposes of this definition; mortgage package has the meaning given by section 160; motor vehicle means (a) a motor vehicle within the meaning of the Road Safety Act 1986; or (b) a heavy trailer, other than in section 233 and Schedule 1; 20

37 MRC (mass rating for charging), in relation to a vehicle, means (a) the maximum mass of the vehicle, including any load, recorded on the compliance plate as the GVM, gross trailer mass rating or aggregate trailer mass of the vehicle; or (b) in relation to a vehicle for which there is no compliance plate its maximum mass, including any load; * * * * * net tangible assets means the value determined by calculating the value of the total assets of an entity, less the value of its total liabilities and the value of any intangible assets; NYSE means the New York Stock Exchange; NZX means the company registered in New Zealand known as NZX Limited; on-line duty payment system means a system for the electronic payment of duty authorised by the Commissioner under a taxation law; S. 3(1) def. of MRC substituted by Nos 85/2005 s. 3(1)(c), 26/2015 s. 3(c). S. 3(1) def. of National Schedule No. 85/2005 s. 3(1)(a), repealed by No. 26/2015 s. 3(g). S. 3(1) def. of net tangible assets No. 38/2012 s. 4(1)(a). S. 3(1) def. of NYSE No. 28/2017 s. 42(1). S. 3(1) def. of NZX No. 41/2013 s. 13(a). S. 3(1) def. of on-line duty payment system No. 36/2010 s

38 S. 3(1) def. of partner No. 27/2001 s. 3(Sch. 1 item 2.1(a)). Note to s. 3(1) def. of person No. 46/2001 s. 3(1)(e). partner of a person means the person's spouse or domestic partner; passenger car means (a) a motor vehicle constructed principally for the carriage of passengers; or (b) a motor vehicle that (i) is designed principally for the conveyance of not more than 8 adults; and (ii) is constructed either on a truck chassis or with special features for off-road operation but does not include (c) a motor cycle; or (d) a motor vehicle having a utility or panel van type body in which the forward part of the body form and the greater part of the mechanical equipment are the same as those in a passenger car manufactured by the manufacturer of the motor vehicle; or (e) a motor vehicle constructed for the carriage of passengers and equipped to seat more than 8 adults (including the driver); person includes an unincorporated association and a partnership; Note person also includes a body corporate see section 38 of the Interpretation of Legislation Act