Consideration and value

What is the monetary consideration (if any) for the transfer of the property (including any goods transferred)?

The dutiable value of dutiable property is the greater of:

  • the consideration (if any) for the dutiable transaction (being the amount of monetary consideration or the value of non-monetary consideration), and
  • the unencumbered or market value of the dutiable property.

The unencumbered value of dutiable property is the amount for which the property might reasonably have been sold on the open market, free from any encumbrances such as a charge on the land or a mortgage.

Consideration means the price paid for the transfer of the property in this dutiable transaction.

Goods are dutiable if they are the subject of an arrangement that includes a dutiable transaction over an estate or interest in land (such as an estate in fee-simple or a land use entitlement).

Goods include ‘chattels’ or items that can be removed from the property, such as fridges, furniture, washing machines, etc.

If goods, other than those transferred in the contract, are transferred at the same time as an estate or interest in land but it is claimed that their transfer is not subject to the same arrangement as the estate or interest in land, you should explain the basis of the claim. If you don't, the additional goods will be assessed with the estate or interest in land.

For more information, please see s10(1)(d) of the Duties Act 2000 and refer to Revenue Ruling DA-054.

Rebate/discount provided by transferor (if applicable)

Sometimes, the contract of sale contains various conditions which, if satisfied, allow for a discounted price (for example, if settlement is effected on or before a specified date).                     

Where those conditions are satisfied and settlement is effected at a discounted price, duty is assessed on the discounted price (that is, on the actual consideration paid).

However, if the discounted price is to be accepted for duty purposes, a statutory declaration by the vendor must identify the effect of the special conditions and declare that they have been met by the purchaser.

For more information see Revenue Ruling DA-012 – Contracts of sale of land with a discount condition.

Does the total market value of the property (including any goods transferred) differ from the monetary consideration paid?

Where the market value is greater than the consideration, select ‘Yes’.

For transactions where the transferor and transferee are associated or related persons, evidence of the market value of the property is required in the form of:

  • A letter of appraisal from a licensed real estate agent, or
  • A valuation by a certified practising valuer who is a member of the Australian Property Institute or by a member of the Real Estate Institute of Victoria with sworn valuer accreditiation.

The total market value of the property is that stated in a sworn valuation by a certified practising valuer who is a member of the Australian Property Institute (API) or a member of the Real Estate Institute of Victoria (REIV) with a sworn valuer accreditation.

Please provide the date that the appraisal or valuation was made.

Is there a related sale of goods to one of the transferees, or to any other person, that forms substantially one arrangement with the sale of the property declared above?

The goods referred to in this section may be goods sold as part of the sale of a business.

Business goods are goods used in connection with a business carried on or in connection with land.

Business goods are normally dutiable. However, business goods are not dutiable, subject to section 22B(3), if:

  • An estate or interest in land and business goods relating to that land are sold to different persons who are not associated persons, and
  • The Commissioner of State Revenue is satisfied that the contract of sale for the land and the contract of sale for the business goods are not substantially one transaction, and
  • At least one of the contracts is conditional on the other.