Duties Amendment (Landholder) Act 2012 No. 38 of 2012 table of provisions Section Page 1 1 Purposes 1 2 Commencement 2 3 Principal Act 2 2000 3 Division 1—Definitions 3 4 Definitions 3 Division 2—Amendments to Chapter 3 of the Duties Act 2000 7 5 New Parts 1 and 2 of Chapter 3 of the Principal Act substituted 7 PART 1—INTRODUCTION AND OVERVIEW 7 70 Imposition of duty 7 8 Division 1—Landholders 8 71 Meaning of landholder 8 72 What are land holdings? 9 73 What does land include? 9 74 Effect of uncompleted agreements 10 75 Constructive ownership of land holdings—linked entities 11 76 Constructive ownership of land holdings— discretionary trusts 12 Division 2—Charging of duty 14 77 When does a liability for duty arise? 14 78 What is a relevant acquisition? 14 79 What are interests and significant interests in landholders? 15 80 How may an interest be acquired? 16 81 Acquisition of economic entitlement 18
to any liabilities of the linked entities) if each linked entity were to be wound up. (7) In this section— linked entity means any person or body, corporate or unincorporated, that may hold property in its own right or for the benefit of any person, and includes a trust but does not include a natural person; person includes a landholder and a linked entity; winding up of a linked entity includes any means by which the entity's property is divested in favour of the persons entitled to it and, in the case of a linked entity that is a trust, includes the vesting of the trust property in the beneficiaries. 76 Constructive ownership of land holdings—discretionary trusts s. 5 (1) A person or a member of a class of persons in whose favour, by the terms of a discretionary trust, capital the subject of the trust may be applied— (a) in the event of the exercise of a power or discretion in favour of the person or class; or (b) in the event that a discretion conferred under the trust is not exercised— is, for the purposes of this section, a beneficiary of the trust. (2) A beneficiary of a discretionary trust is taken to own or to be otherwise entitled to land the subject of the trust, except to the extent (if any) determined by the Commissioner. s. 5
accordance with the terms of appointment of the agent, nominee or custodian; s. 5 (k) as custodian or trustee for an investor directed portfolio service, within the meaning of the relevant ASIC policy statement, if the custodian or trustee holds its interest in the unit trust scheme for no less than 300 clients as investors through the service, none of whom (individually or together with any associated person) is beneficially entitled to more than 20% of the units held by the custodian or trustee in the unit trust scheme; (l) in a capacity approved by the Commissioner under subsection (4); relevant ASIC policy statement means the policy statement "PS 148: Investor Directed Portfolio Services" published by the Australian Securities and Investments Commission, or any other policy statement published by that Commission that the Commissioner from time to time approves for the purposes of this Division. (2) For the purposes of paragraph (f) of the definition of qualified investor in subsection (1), the holding of units by a life company by way of an investment of a statutory fund of the life company is taken to be a holding of units by the life company in a separate capacity from a holding of units by
the scheme meets the criteria for registration as a wholesale unit trust scheme. (2) The criteria for registration as a wholesale unit trust scheme are— (a) the scheme was not established for a particular investor; and (b) either— (i) the trustee of the scheme, as trustee, holds directly or indirectly an interest in not less than 3 parcels of land (whether in or outside Victoria), and at least 2 of those interests each have an unencumbered value of $10 000 000 or more; or (ii) at least 6 of the unit holders in the scheme who are not associated persons each have a subscription under the scheme of not less than $3 000 000; and (c) not less than 70% of the units in the scheme are held by qualified investors; and (d) no qualified investor, either alone or together with associated persons, holds 50% or more of the units in the scheme; and (e) registration is not being sought for the purpose of, or as part of a scheme or arrangement with a collateral purpose of, avoiding or reducing duty otherwise chargeable under this Part. (3) For the purposes of subsection (2)(b)(i), the Commissioner may treat 2 or more parcels of