Victorian Current Acts

DUTIES ACT 2000 - SECT 32O

    (1)     This Division applies to a transfer of dutiable property referred to in section 10(1)(a) or (d) if—

        (a)     the owner of the property (the vendor ) grants an option to, or is granted an option by, another person (the first purchaser ); and

        (b)     any of the following persons (a  subsequent purchaser ) obtains or assumes a transfer right in relation to the property —

              (i)     a person other than the first purchaser;

              (ii)     the first purchaser and a person other than the first purchaser;

              (iii)     if there is more than one first purchaser, one or more of the first purchasers in different proportions from those specified in the option; and

        (c)     a subsequent purchaser or an associate of a subsequent purchaser gives or agrees to give additional consideration in order for the subsequent purchaser to obtain or assume the transfer right; and

        (d)     the vendor transfers the property or any part of it to a subsequent purchaser.

    (2)     It is immaterial whether a subsequent purchaser obtains or assumes a transfer right—

        (a)     by way of an assignment, nomination, novation, option, contract of sale or otherwise; and

        (b)     from the first purchaser or from another subsequent purchaser.

    (3)     Each assignment, nomination, novation, option, contract of sale or other arrangement by which a subsequent purchaser obtains or assumes a transfer right is called a subsequent transaction .

    (4)     In this section—

"additional consideration" for a transfer right   means any consideration given or agreed to be given by a subsequent purchaser or an associate of a subsequent purchaser in order for the subsequent purchaser to obtain or assume the transfer right, other than the following—

        (a)     if the subsequent purchaser obtained or assumed the transfer right from the first purchaser, any consideration equal to the amount (if any) that the first purchaser paid to obtain the transfer right;

        (b)     if the subsequent purchaser obtained or assumed the transfer right from another subsequent purchaser, any consideration equal to the amount (if any) that the other subsequent purchaser paid to obtain or assume the transfer right;

        (c)     any reimbursement of excluded costs;

        (d)     any increase in consideration that arises because of the operation of section 32V;

"parallel arrangement "means an arrangement entered into by a subsequent purchaser or an associate of the subsequent purchaser before, at the time or within 12 months after the subsequent purchaser obtains or assumes a transfer right, under which the following occurs—

        (a)     if the subsequent purchaser obtained or assumed the transfer right from a first purchaser—the first purchaser or an associate of the first purchaser is required to construct, or to arrange for the construction of, improvements to the property the subject of the transfer right for consideration;

        (b)     if the subsequent purchaser obtained or assumed the transfer right from another subsequent purchaser—the other subsequent purchaser or an associate of the other subsequent purchaser is required to construct, or to arrange for the construction of, improvements to the property the subject of the transfer right for consideration;

"transfer right" means—

        (a)     a right to enter into a contract of sale of a property or any part of a property; or

        (b)     a right to a transfer of a property or any part of a property; or

        (c)     an obligation to enter into a contract of sale of a property or any part of a property; or

        (d)     an obligation to accept a transfer of a property or any part of a property.

    (5)     For the purposes of the definition of additional consideration in subsection (4), a subsequent purchaser or an associate of a subsequent purchaser who enters into a parallel arrangement is taken to have given or agreed to give the consideration under that arrangement in order for the subsequent purchaser to obtain or assume the transfer right in addition to any other consideration given or agreed to be given in order for the subsequent purchaser to obtain or assume the transfer right.

    (6)     For the purposes of subsection (4) and (5), section 32V(3) does not apply in determining the consideration under a parallel arrangement.

Note

Section 32V(3) provides that in certain circumstances consideration is to be adjusted to exclude any amount paid or payable in respect of the construction of a building to be constructed on land on or after the date of the relevant transaction.

S. 32OA inserted by No. 28/2017 s. 30.