{"componentChunkName":"component---src-templates-news-single-js","path":"/news/amendments-to-sale-of-land-act-1962-vic","result":{"pageContext":{"title":"Amendments to Sale of Land Act 1962 (Vic)","slug":"amendments-to-sale-of-land-act-1962-vic","data":{"title":"Amendments to Sale of Land Act 1962 (Vic)","slug":"amendments-to-sale-of-land-act-1962-vic","acf_json":"{\"thumbnail_image\":{\"ID\":1924,\"id\":1924,\"title\":\"Amendments to Sale of Land Act 1962 (Vic)\",\"filename\":\"Untitled-design-3.png\",\"filesize\":538128,\"url\":\"https:\\/\\/admin.hubpropertygroup.com.au\\/wp-content\\/uploads\\/2024\\/02\\/Untitled-design-3.png\",\"link\":\"https:\\/\\/admin.hubpropertygroup.com.au\\/news\\/amendments-to-sale-of-land-act-1962-vic\\/untitled-design-3\\/\",\"alt\":\"Amendments to Sale of Land Act 1962 (Vic)\",\"author\":\"6\",\"description\":\"Amendments to Sale of Land Act 1962 (Vic)\",\"caption\":\"Amendments to Sale of Land Act 1962 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to Sale of Land Act 1962 (Vic)\",\"filename\":\"Untitled-design-3.png\",\"filesize\":538128,\"url\":\"https:\\/\\/admin.hubpropertygroup.com.au\\/wp-content\\/uploads\\/2024\\/02\\/Untitled-design-3.png\",\"link\":\"https:\\/\\/admin.hubpropertygroup.com.au\\/news\\/amendments-to-sale-of-land-act-1962-vic\\/untitled-design-3\\/\",\"alt\":\"Amendments to Sale of Land Act 1962 (Vic)\",\"author\":\"6\",\"description\":\"Amendments to Sale of Land Act 1962 (Vic)\",\"caption\":\"Amendments to Sale of Land Act 1962 (Vic)\",\"name\":\"untitled-design-3\",\"status\":\"inherit\",\"uploaded_to\":1904,\"date\":\"2024-02-22 05:22:37\",\"modified\":\"2024-02-22 05:23:10\",\"menu_order\":0,\"mime_type\":\"image\\/png\",\"type\":\"image\",\"subtype\":\"png\",\"icon\":\"https:\\/\\/admin.hubpropertygroup.com.au\\/wp-includes\\/images\\/media\\/default.png\",\"width\":1024,\"height\":683,\"sizes\":{\"thumbnail\":\"https:\\/\\/admin.hubpropertygroup.com.au\\/wp-content\\/uploads\\/2024\\/02\\/Untitled-design-3-150x150.png\",\"thumbnail-width\":150,\"thumbnail-height\":150,\"medium\":\"https:\\/\\/admin.hubpropertygroup.com.au\\/wp-content\\/uploads\\/2024\\/02\\/Untitled-design-3-300x200.png\",\"medium-width\":300,\"medium-height\":200,\"medium_large\":\"https:\\/\\/admin.hubpropertygroup.com.au\\/wp-content\\/uploads\\/2024\\/02\\/Untitled-design-3.png\",\"medium_large-width\":768,\"medium_large-height\":512,\"large\":\"https:\\/\\/admin.hubpropertygroup.com.au\\/wp-content\\/uploads\\/2024\\/02\\/Untitled-design-3.png\",\"large-width\":1024,\"large-height\":683,\"1536x1536\":\"https:\\/\\/admin.hubpropertygroup.com.au\\/wp-content\\/uploads\\/2024\\/02\\/Untitled-design-3.png\",\"1536x1536-width\":1024,\"1536x1536-height\":683,\"2048x2048\":\"https:\\/\\/admin.hubpropertygroup.com.au\\/wp-content\\/uploads\\/2024\\/02\\/Untitled-design-3.png\",\"2048x2048-width\":1024,\"2048x2048-height\":683,\"full_width\":\"https:\\/\\/admin.hubpropertygroup.com.au\\/wp-content\\/uploads\\/2024\\/02\\/Untitled-design-3.png\",\"full_width-width\":1024,\"full_width-height\":683,\"medium2\":\"https:\\/\\/admin.hubpropertygroup.com.au\\/wp-content\\/uploads\\/2024\\/02\\/Untitled-design-3.png\",\"medium2-width\":1024,\"medium2-height\":683}},\"video\":false,\"video_embed\":null}],\"news_content\":\"<p>Effective from January 1, 2024, an enforceable amendment was introduced that prohibits any adjustment of land tax or windfall gains tax at settlement on properties valued up to $10 million. It is now an offence for vendors to include provisions in sale contracts adjusting these taxes at settlement for such properties.<\\/p>\\n<p>The key takeaway points on the adjustment of Land Tax:<\\/p>\\n<ul>\\n<li>Provisions in sale contracts adjusting land tax or windfall gains tax are rendered ineffective; and<\\/li>\\n<li>$10 million threshold indexed annually to CPI.<\\/li>\\n<\\/ul>\\n<p>Large changes will now take place through changes in conveyancing practices. Prior to January 1, 2024, the process was as follows;<\\/p>\\n<ul>\\n<li>Vendor owns an investment property<\\/li>\\n<li>Vendor is liable to pay $10,000 in land tax on 1 January<\\/li>\\n<li>Vendor pays his\\/her land tax at the beginning of the year<\\/li>\\n<li>Vendor decides to sell the property on 30 June<\\/li>\\n<li>Conveyancer places land tax adjustment in the contract<\\/li>\\n<li>Purchaser is liable to pay an extra $5,000 at settlement<\\/li>\\n<li>Vendor is reimbursed $5000 for the half of the year that they had paid land tax but haven\\u2019t owned the property<\\/li>\\n<\\/ul>\\n<p>Now the process has been heavily simplified. Process post January 1, 2024:<\\/p>\\n<ul>\\n<li>Vendor picks up entire $10,000 land tax bill.<\\/li>\\n<\\/ul>\\n<p>Reasoning for the implemented changes can be easily explained, with the government stating they are an effective consumer protection measure. In addition, the amendments aim to provide further transparency throughout the sales process. By removing adjustments within the contract, land tax liabilities known before the sale contract should be reflected in the sale price at the contract&#8217;s initiation.<\\/p>\\n<p>Regarding the overall impact on the industry, residential properties will be unaffected due to exemptions. The amendments will have major implications for industrial, commercial, and some residential transactions.<\\/p>\\n<p>The enforcement and penalties connected to the amendments can be severe. Strict fines are imposed for vendors attempting to adjust land tax in violation of the amendments, with $11,539 for individuals and $57,693 for corporate entities.<\\/p>\\n<p>With the possibility of large financial implications for individuals and corporate entities, it is more important than ever that businesses are across the amendments moving forward.<\\/p>\\n\",\"cats\":[{\"term_id\":6,\"name\":\"Market\",\"slug\":\"market\",\"term_group\":0,\"term_taxonomy_id\":6,\"taxonomy\":\"topics\",\"description\":\"\",\"parent\":0,\"count\":28,\"filter\":\"raw\",\"term_order\":\"0\"}],\"seo\":false,\"cats_all\":[{\"wordpress_id\":2,\"title\":\"Construction update\",\"slug\":\"update\"},{\"wordpress_id\":6,\"title\":\"Market\",\"slug\":\"market\"},{\"wordpress_id\":17,\"title\":\"Projects\",\"slug\":\"projects\"},{\"wordpress_id\":5,\"title\":\"Team\",\"slug\":\"team\"}]}","thumbnail_image":{"ID":1924,"id":1924,"title":"Amendments to Sale of Land Act 1962 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05:23:10","menu_order":0,"mime_type":"image/png","type":"image","subtype":"png","icon":"https://admin.hubpropertygroup.com.au/wp-includes/images/media/default.png","width":1024,"height":683,"sizes":{"thumbnail":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3-150x150.png","thumbnail-width":150,"thumbnail-height":150,"medium":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3-300x200.png","medium-width":300,"medium-height":200,"medium_large":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3.png","medium_large-width":768,"medium_large-height":512,"large":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3.png","large-width":1024,"large-height":683,"1536x1536":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3.png","1536x1536-width":1024,"1536x1536-height":683,"2048x2048":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3.png","2048x2048-width":1024,"2048x2048-height":683,"full_width":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3.png","full_width-width":1024,"full_width-height":683,"medium2":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3.png","medium2-width":1024,"medium2-height":683}},"thumbnail_media":{"media_type":"image","image":{"ID":1924,"id":1924,"title":"Amendments 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05:23:10","menu_order":0,"mime_type":"image/png","type":"image","subtype":"png","icon":"https://admin.hubpropertygroup.com.au/wp-includes/images/media/default.png","width":1024,"height":683,"sizes":{"thumbnail":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3-150x150.png","thumbnail-width":150,"thumbnail-height":150,"medium":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3-300x200.png","medium-width":300,"medium-height":200,"medium_large":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3.png","medium_large-width":768,"medium_large-height":512,"large":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3.png","large-width":1024,"large-height":683,"1536x1536":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3.png","1536x1536-width":1024,"1536x1536-height":683,"2048x2048":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3.png","2048x2048-width":1024,"2048x2048-height":683,"full_width":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3.png","full_width-width":1024,"full_width-height":683,"medium2":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3.png","medium2-width":1024,"medium2-height":683}},"video":false,"video_embed":null},"thumbnail_text":"","news_media":[{"media_type":"image","image":{"ID":1924,"id":1924,"title":"Amendments to Sale of Land Act 1962 (Vic)","filename":"Untitled-design-3.png","filesize":538128,"url":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3.png","link":"https://admin.hubpropertygroup.com.au/news/amendments-to-sale-of-land-act-1962-vic/untitled-design-3/","alt":"Amendments to Sale of Land Act 1962 (Vic)","author":"6","description":"Amendments to Sale of Land Act 1962 (Vic)","caption":"Amendments to Sale of Land Act 1962 (Vic)","name":"untitled-design-3","status":"inherit","uploaded_to":1904,"date":"2024-02-22 05:22:37","modified":"2024-02-22 05:23:10","menu_order":0,"mime_type":"image/png","type":"image","subtype":"png","icon":"https://admin.hubpropertygroup.com.au/wp-includes/images/media/default.png","width":1024,"height":683,"sizes":{"thumbnail":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3-150x150.png","thumbnail-width":150,"thumbnail-height":150,"medium":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3-300x200.png","medium-width":300,"medium-height":200,"medium_large":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3.png","medium_large-width":768,"medium_large-height":512,"large":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3.png","large-width":1024,"large-height":683,"1536x1536":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3.png","1536x1536-width":1024,"1536x1536-height":683,"2048x2048":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3.png","2048x2048-width":1024,"2048x2048-height":683,"full_width":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3.png","full_width-width":1024,"full_width-height":683,"medium2":"https://admin.hubpropertygroup.com.au/wp-content/uploads/2024/02/Untitled-design-3.png","medium2-width":1024,"medium2-height":683}},"video":false,"video_embed":null}],"news_content":"<p>Effective from January 1, 2024, an enforceable amendment was introduced that prohibits any adjustment of land tax or windfall gains tax at settlement on properties valued up to $10 million. It is now an offence for vendors to include provisions in sale contracts adjusting these taxes at settlement for such properties.</p>\n<p>The key takeaway points on the adjustment of Land Tax:</p>\n<ul>\n<li>Provisions in sale contracts adjusting land tax or windfall gains tax are rendered ineffective; and</li>\n<li>$10 million threshold indexed annually to CPI.</li>\n</ul>\n<p>Large changes will now take place through changes in conveyancing practices. Prior to January 1, 2024, the process was as follows;</p>\n<ul>\n<li>Vendor owns an investment property</li>\n<li>Vendor is liable to pay $10,000 in land tax on 1 January</li>\n<li>Vendor pays his/her land tax at the beginning of the year</li>\n<li>Vendor decides to sell the property on 30 June</li>\n<li>Conveyancer places land tax adjustment in the contract</li>\n<li>Purchaser is liable to pay an extra $5,000 at settlement</li>\n<li>Vendor is reimbursed $5000 for the half of the year that they had paid land tax but haven’t owned the property</li>\n</ul>\n<p>Now the process has been heavily simplified. Process post January 1, 2024:</p>\n<ul>\n<li>Vendor picks up entire $10,000 land tax bill.</li>\n</ul>\n<p>Reasoning for the implemented changes can be easily explained, with the government stating they are an effective consumer protection measure. In addition, the amendments aim to provide further transparency throughout the sales process. By removing adjustments within the contract, land tax liabilities known before the sale contract should be reflected in the sale price at the contract&#8217;s initiation.</p>\n<p>Regarding the overall impact on the industry, residential properties will be unaffected due to exemptions. The amendments will have major implications for industrial, commercial, and some residential transactions.</p>\n<p>The enforcement and penalties connected to the amendments can be severe. Strict fines are imposed for vendors attempting to adjust land tax in violation of the amendments, with $11,539 for individuals and $57,693 for corporate entities.</p>\n<p>With the possibility of large financial implications for individuals and corporate entities, it is more important than ever that businesses are across the amendments moving forward.</p>\n","cats":[{"term_id":6,"name":"Market","slug":"market","term_group":0,"term_taxonomy_id":6,"taxonomy":"topics","description":"","parent":0,"count":28,"filter":"raw","term_order":"0"}],"seo":false,"cats_all":[{"wordpress_id":2,"title":"Construction update","slug":"update"},{"wordpress_id":6,"title":"Market","slug":"market"},{"wordpress_id":17,"title":"Projects","slug":"projects"},{"wordpress_id":5,"title":"Team","slug":"team"}]}}},"staticQueryHashes":["1567926623","1567926623"]}