Stamp duty & land tax

When it comes to land tax and stamp duty, every state and territory is different. Depending on the location and size of your business or your investment, and whether you’re acquiring, transferring or selling assets, land or property – even if you’re a sole investor, trust fund or organisation – there can be a number of land tax, stamp duty and foreign surcharge obligations to navigate. In addition, there can be different requirements to qualify for exemptions and implications for not meeting them.

State land taxes in Australia are complex and multi-layered. Likewise, taxes and stamp duties relating to M&A can be a surprise if not properly dealt with early. There is not just one way to manage either and many businesses and leaders come unstuck with significant costs if the transaction is not structured appropriately. They can also be unavoidable transaction costs for your transactions and beyond and as such, if they are payable, it is important to model them based on the best available information known as the transaction develops.

The tax profile of your transaction will vary from case to case, and it is dependent on a number of factors: the most basic of which are the asset type, who is acquiring, and the state or territory in which your asset lies.

How we help

Grant Thornton takes a national approach to your state land tax and stamp duty tax obligations, and help businesses and personal investors to structure investments and develop asset profiles in the most tax-efficient way. We take a whole-of-life view of your investment strategy, and build a streamlined plan that accounts for tax costs to your business or investment, while avoiding unnecessary double (or more) payments.

In addition, state taxes evolve and change frequently. We foresee the biggest potential change facing taxpayers in 2022 is the broadening of the type of assets that are subject to stamp duty and the introduction of new property taxes such as the windfall gains tax in Victoria. Our team is on the front foot in advising clients as the tax is designed and implemented. You can see our real-time commentary on our website and through our timely thought leadership, webinars and other events.

Our team works with clients from a range of industries on their property and investment portfolios, and provides advice on:

• M&A transactions, including stamp duty due diligence, structuring and post-acquisition assistance
• revenue office investigations (voluntary disclosures, objections and appeals)
• applications for corporate reconstruction exemptions
• foreign surcharges
• land-holding structures
• applications for principal place of residence exemptions
• applications for primary production exemptions
• exclusion clauses
• discretionary trusts

We help our clients by providing the right advice, in a clear manner, and give honest feedback about whether your prospects can obtain a better outcome. We work with clients – ideally at the outset of an acquisition, restructure or other mergers and acquisitions transaction – to develop a plan that takes the most tax-efficient path. We will be with you every step of the way, from design, through to documentation, completion, and ultimately out your best case forward to revenue offices with a view to obtaining your desired outcome.