Practitioners are often engaged by a client to ‘do the conveyancing’ associated with the sale or purchase of real property. Typically, they are not specifically instructed to provide taxation or stamp duty advice, but there is usually no transaction relating to real property that doesn’t have taxation or duty implications
The purpose of this guide is to make practitioners aware of the potential taxes and duties that may apply to property dealings in Victoria, so they can ask appropriate questions and, if relevant and required, alert and advise their client.
The guide is not a comprehensive resource on the intricacies of tax and duty issues, but an overview to improve awareness with links to additional resources for more information. It also identifies some common claims and areas of risk that practitioners should focus on when completing real property work with tax and duty implications.
Guide by property tax type
Download the full Property Taxes Guide Victoria
Property Taxes Guide Victoria 2025.pdf
Actions to reduce risk
- Look for the tax and duty implications associated with the transfer of real property and associated transactions (like share transfers) to alert clients and, if appropriate and required, provide advice or direct the client to seek expert advice.
- Read the guidance and the information provided to improve your understanding and awareness.
- Identify complexities beyond your expertise and refer clients for expert advice.
- Use a checklist or prompt at the start of a matter to identify tax and duty issues.
- Always check the details in the legislation and SRO guidelines before advising clients and keep records to confirm any advice given.
- Establish, update and maintain comprehensive advice letters and resources that you can adapt for each specific client matter to ensure relevant advice is given to clients and confirmed in writing.
- Maintain a focus on tax and duty in all property and property conveyancing matters.
Practitioners should know their limits of expertise
In all matters of tax and duty it is important for practitioners to know their limits and identify when to refer the client to an appropriate tax expert.
For example, a lawyer may inform a vendor client that Capital Gains Tax might be payable but recommend that the client speaks with their accountant before entering a contract of sale for the property. The accountant should know the cost base and would be able to discuss with the client off setting any losses against gains and timing for the sale. It may be that there is a benefit to selling in the current financial year compared to the next or vice versa.
Another example, referring the client to an expert is in the case of a Goods and Services Tax issue. A client who is selling a mixed supply of real estate, part input taxed and part taxable, would usually need advice from a valuer about a fair and reasonable apportionment of the price between the two supplies.
Some tax issues can be very complicated, both because the law itself is complex and the factual situation can be complex or have poor historical records. For example, when a client is entering into a joint venture to develop land, understanding the application of the 'economic entitlement' provisions in the Duties Act can be challenging. In these situations, the client will benefit from speaking with an expert in tax matters, such as a practitioner or barrister who specialises in state taxes.
All tax and duty exemptions are subject to meeting strict criteria and therefore informing the client of all relevant definitions and criteria is important. This is not an area where practitioners can be general, and the detail is critically important. Always check the legislation and relevant case law and confirm advice in writing. Moreover, it is essential that the client understands any advice provided, including any qualifications and limitations.
