Stamp duty consequences of infrastructure and development agreements
Source: Taxation In Australia Journal Article
Published Date: 1 Jun 2015
The High Court has delivered a significant blow to the property development, infrastructure and mining sectors with its decision in Commissioner of State Revenue v Lend Lease Development Pty Ltd. These sectors generally use development or infrastructure agreements when a purchaser agrees to acquire an interest in property (such as land, infrastructure assets or mining tenements) from a seller and also carry out or fund the future development of the property or its surrounding area. In Lend Lease Development, the High Court unanimously held that payments and non-monetary development commitments given by a property developer under a development agreement could be brought to duty as consideration for a dutiable transaction arising under a separate contract providing for the sale of land.
This article examines the implications of this decision for the property development, infrastructure and mining sectors and answers the burning question: is this the end of development and infrastructure agreements in Australia?
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Details
- Published By: Jared Clements
- Published On:1 Jun 2015
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