Commercial and Industrial Property Tax Reform Act 2024
No. 16 of 2024
Version incorporating amendments as at
26 November 2025
TABLE OF PROVISIONS
Section Page
Part 1—Preliminary 1
1 Purposes 1
2 Commencement 1
3 Definitions 1
4 When does land have a qualifying use? 5
4A Valuation of land 6
4B Provisional determination of qualifying use 6
5 Taxation Administration Act 1997 8
6 Act binds the Crown 8
Part 2—Entry of land into tax reform scheme 9
Division 1—Preliminary 9
7 When land enters the tax reform scheme 9
Division 2—Entry transactions 10
8 What is an entry transaction? 10
9 What is a qualifying dutiable transaction? 11
10 Aggregation of interests acquired under qualifying dutiable transactions 12
11 What is a qualifying landholder transaction? 13
12 Determination of interest acquired under qualifying landholder transaction 14
13 Aggregation of interests acquired under qualifying landholder transactions 14
Division 3—Entry consolidations 16
14 What is an entry consolidation? 16
15 Certain land taken to be consolidated on subdivision 16
Division 4—Entry subdivisions 17
16 What is an entry subdivision? 17
Part 3—Commercial and industrial property tax 18
Division 1—Imposition and rate of CIPT 18
17 Imposition of CIPT 18
18 Who is liable for CIPT? 18
19 Rate of CIPT 18
20 When must CIPT be paid? 19
21 CIPT is additional to other taxes and charges 19
Division 2—Assessment of CIPT 19
22 Assessment generally 19
23 Occupancy on land 19
24 Assessment of joint owners 20
25 Certain long-term lessees 20
26 Reassessments 20
Division 3—Security for CIPT 21
27 CIPT is a first charge on land 21
Division 4—Recovery of CIPT 21
28 Recovery from lessee, mortgagee or occupier 21
29 Effect of notice under section 28 22
Division 5—Prohibition on passing on CIPT 23
30 Prohibition on passing on CIPT to renters 23
Division 6—Anti-avoidance 24
31 What is a tax avoidance scheme? 24
32 Anti-avoidance provision 26
Division 7—Notification requirements 27
33 Notice of errors in notice of assessment 27
34 Notice of change of use 28
Part 4—General 29
35 Regulations 29
Part 5—Transitional provisions 30
36 State Taxation Further Amendment Act 2025 30
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Endnotes 31
1 General information 31
2 Table of Amendments 33
3 Explanatory details 34
Version No.004
Commercial and Industrial Property Tax Reform Act 2024
No. 16 of 2024
Version incorporating amendments as at
26 November 2025
The Parliament of Victoria enacts:
Part 1—Preliminary
1 Purposes
The purposes of this Act are—
(a) to reform the taxation of commercial and industrial property; and
(b) to amend the Duties Act 2000, the Taxation Administration Act 1997, the Treasury Corporation of Victoria Act 1992 and other Acts.
2 Commencement
This Act comes into operation on 1 July 2024.
3 Definitions
In this Act—
associated person has the same meaning as in section 3(1) of the Duties Act 2000;
AVPCC means an Australian Valuation Property Classification Code based on the Valuation Best Practice Specifications Guidelines;
BTR land means land that is eligible for a BTR benefit within the meaning of the Land Tax Act 2005;
change of use, in relation to tax reform scheme land, means—
(a) if the land has a qualifying use, a change that results in it no longer having a qualifying use; or
(b) if the land does not have a qualifying use, a change that results in it having a qualifying use;
CIPT means commercial and industrial property tax;
CIPT taxable land, in relation to a tax year, means land that, as at midnight on 31 December immediately preceding that tax year—
(a) was tax reform scheme land; and
(b) was not still within the transition period in relation to that land; and
(c) had a qualifying use; and
(d) was taxable land within the meaning of the Land Tax Act 2005;
commercial and industrial property tax means tax imposed by section 17;
dutiable transaction has the same meaning as in section 3(1) of the Duties Act 2000;
eligible student accommodation means residential premises that are—
(a) designed for occupation by students of a higher education provider; and
(b) occupied or available for occupation by students of a higher education provider; and
(c) commercial residential premises within the meaning of section 195-1 of the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth;
entry consolidation, in relation to land—see section 14(1);
entry date, in relation to tax reform scheme land, means the date specified in section 7(2) as the date on which the land enters the tax reform scheme under Part 2;
entry subdivision, in relation to land—see section 16;
entry transaction, in relation to land—see section 8;
higher education provider has the same meaning as in section 16-1 of the Higher Education Support Act 2003 of the Commonwealth;
interest in a landholder has the same meaning as in section 79(1) of the Duties Act 2000;
joint owners has the meaning given by section 3(1) of the Land Tax Act 2005;
landholder has the same meaning as in section 71(1) of the Duties Act 2000;
S. 3 def. of latest valuation inserted by No. 24/2025 s. 3(a).
latest valuation means the most recent valuation of land under—
(a) section 4A; or
(b) section 21(1)(b) of the Land Tax Act 2005; or
(c) section 13 of the Windfall Gains Tax Act 2021; or
(d) the Valuation of Land Act 1960;
S. 3 def. of lot inserted by No. 24/2025 s. 3(a).
lot has the meaning given by section 3(1) of the Subdivision Act 1988;
owner, in relation to CIPT taxable land—see section 18(2);
S. 3 def. of plan of subdivision inserted by No. 24/2025 s. 3(a).
plan of subdivision has the meaning given by section 3(1) of the Subdivision Act 1988;
S. 3 def. of provisional determination inserted by No. 24/2025 s. 3(a).
provisional determination means a determination made by the Commissioner under section 4B;
qualifying dutiable transaction, in relation to land—see section 9;
qualifying interest, in relation to land, means an interest of 50% or more in the land;
qualifying landholder transaction, in relation to land—see section 11;
qualifying use—see section 4;
relevant acquisition has the same meaning as in section 78(1) of the Duties Act 2000;
tax reform scheme land means land that has entered the tax reform scheme under Part 2;
tax year means a calendar year for or in which CIPT is being assessed;
taxable value, in relation to CIPT taxable land—see section 19(2);
transition period, in relation to tax reform scheme land, means the period of 10 years starting on the entry date in relation to the land;
S. 3 def. of unencum-bered value inserted by No. 48/2025 s. 3.
unencumbered value has the same meaning as in section 3(1) of the Duties Act 2000;
S. 3 def. of Valuation Best Practice Specifications Guidelines amended by No. 24/2025 s. 3(b).
Valuation Best Practice Specifications Guidelines has the same meaning as in section 2(1) of the Valuation of Land Act 1960;
S. 3 def. of Valuer–General inserted by No. 24/2025 s. 3(a).
Valuer‑General means the valuer‑general appointed under section 3(1) of the Valuation of Land Act 1960.
4 When does land have a *qualifying use*?
(1) For the purposes of this Act, land has a qualifying use if—
(a) the land has been allocated one or more than one AVPCC in the latest valuation, all of which are in the following ranges—
(i) 200−499;
(ii) 600−699; or
(b) the land—
(i) has been allocated more than one AVPCC in the latest valuation, one or more of which are in the ranges referred to in paragraph (a) and one or more of which are outside those ranges; and
(ii) is used solely or primarily for a use described in an AVPCC in the ranges referred to paragraph (a); or
S. 4(1)(ba) inserted by No. 24/2025 s. 4(1).
(ba) a provisional determination that the land has a qualifying use is in effect; or
(c) the land is used solely or primarily as eligible student accommodation.
S. 4(2) repealed by No. 24/2025 s. 4(2).
S. 4A inserted by No. 24/2025 s. 5.
4A Valuation of land
For the purposes of this Act, the Commissioner may request the Valuer‑General or a valuer nominated by the Valuer‑General to cause a valuation of any non‑rateable non‑leviable land and to allocate one or more AVPCC to the land.
S. 4B inserted by No. 24/2025 s. 5.
4B Provisional determination of qualifying use
(1) The Commissioner may make a provisional determination that land has or does not have a qualifying use.
(2) A provisional determination may be made in respect of land as at any date, including a date that occurred before the commencement of this section, if as at that date—
(a) in the case of non‑rateable non‑leviable land, more than 12 months have elapsed since the valuation date of the latest valuation; or
(b) the land has not been allocated an AVPCC in the latest valuation of the land; or
(c) the land has not been valued by the Valuer‑General or a valuer nominated by the Valuer‑General.
Examples
Non‑rateable non‑leviable land within the meaning of the Valuation of Land Act 1960 that has not been valued.
A lot created on the registration of a plan of subdivision that has not been valued.
(3) In making a provisional determination, the Commissioner may have regard to any relevant matter, including the following—
(a) the sole or primary use of the land;
(b) if the land is a lot that was created on the registration of a plan of subdivision, the AVPCC (if any) allocated to the land that was subdivided;
(c) the zoning of the land under a planning scheme applying to the land;
(d) any other information available to the Commissioner.
(4) A provisional determination has effect from the date in respect of which it is made and ceases to have effect on the first valuation of the land.
(5) For the purposes of this Act, if a provisional determination is made in respect of a particular date, the AVPCC allocated to the land in the first valuation of the land is taken to have been allocated to the land as at that date and the Commissioner must assess or reassess any duty payable under the Duties Act 2000 or CIPT payable as a result.
(6) In this section—
first valuation, of land subject to a provisional determination, means the first valuation of the land made by the Valuer‑General or a valuer appointed by the Valuer‑General after the date in respect of which the provisional determination was made.
5 Taxation Administration Act 1997
This Act is to be read together with the Taxation Administration Act 1997 which provides for the administration and enforcement of this Act and other taxation laws.
6 Act binds the Crown
(1) This Act binds the Crown in right of Victoria and, so far as the legislative power of the Parliament permits, the Crown in all its other capacities.
(2) Nothing in this Act makes the Crown in any of its capacities liable to be prosecuted for an offence.
Part 2—Entry of land into tax reform scheme
Division 1—Preliminary
7 When land enters the tax reform scheme
(1) Land enters the tax reform scheme if any of the following occur in respect of the land—
(a) an entry transaction;
(b) an entry consolidation;
(c) an entry subdivision.
(2) The date on which land enters the tax reform scheme is—
(a) in the case of an entry transaction, the date on which the transaction occurs; or
(b) in the case of an entry consolidation, the first date on which land that forms part of the consolidation entered the tax reform scheme; or
Example
Two parcels of land are consolidated with three parcels of tax reform scheme land on 1 July 2026. Of the tax reform scheme land, one parcel entered the tax reform scheme on 1 January 2025, another on 1 December 2025 and the third on 1 February 2026. The entry date for the consolidated land is the date on which land first entered the tax reform scheme, 1 January 2025.
(c) in the case of an entry subdivision, the date on which the land that was subdivided entered the tax reform scheme.
Example
A parcel of land (the parent lot) enters the tax reform scheme on 1 November 2025. The parent lot is subdivided into four parcels of land (the child lots) on 1 February 2027. The entry date for each child lot is 1 November 2025.
Division 2—Entry transactions
S. 8 amended by No. 48/2025 s. 4(2) (ILA s. 39B(1)).
8 What is an *entry transaction*?
(1) A transaction in respect of land is an entry transaction if—
(a) the transaction is—
(i) a qualifying dutiable transaction; or
(ii) a qualifying landholder transaction; and
(b) on the date the transaction occurs, the land has a qualifying use; and
(c) the transaction relates to an interest in land—
(i) that is a qualifying interest; or
S. 8(1)(c)(ii) amended by No. 48/2025 s. 4(1)(a).
(ii) that amounts to a qualifying interest in the land when aggregated with other interests in the land in accordance with section 10 or 13; and
S. 8(1)(d) inserted by No. 48/2025 s. 4(1)(b).
(d) in the case of a qualifying dutiable transaction, the transaction has the duty consequences described in subsection (2).
S. 8(2) inserted by No. 48/2025 s. 4(2).
(2) For the purposes of subsection (1)(d), the duty consequences are that—
(a) in the case of a transaction referred to in subsection (1)(c)(i), the amount determined in accordance with the formula in subsection (3) is greater than or equal to 50%; or
(b) in the case of a transaction referred to in subsection (1)(c)(ii), the sum of the amounts determined in accordance with the formula in subsection (3) for each aggregated interest is greater than or equal to 50%.
S. 8(3) inserted by No. 48/2025 s. 4(2).
(3) For the purposes of subsection (2)(a) and (b), the amount is determined in accordance with the following formula—
where—
D is the dutiable value of the land the subject of the qualifying dutiable transaction;
U is the unencumbered value of the whole of the land at the time of the qualifying dutiable transaction.
9 What is a *qualifying dutiable transaction*?
(1) A transaction is a qualifying dutiable transaction if—
(a) the transaction is a dutiable transaction described in section 7(1)(a) or (b) of the Duties Act 2000, other than—
(i) a dutiable transaction described in section 7(1)(b)(v) or (va); or
(ii) the acquisition of an economic entitlement within the meaning of section 32XC of the Duties Act 2000; and
(b) the dutiable property the subject of the dutiable transaction is an estate or interest in land in Victoria described in section 10(1)(a) of the Duties Act 2000; and
S. 9(1)(c) substituted by No. 48/2025 s. 5.
(c) duty is chargeable on the dutiable transaction under the Duties Act 2000; and
(d) the dutiable transaction is not an eligible transaction within the meaning of section 250A of the Duties Act 2000.
(2) However, a dutiable transaction is not a qualifying dutiable transaction if it occurs pursuant to an agreement or arrangement that was entered into before the commencement of this Act.
10 Aggregation of interests acquired under qualifying dutiable transactions
S. 10(1) amended by No. 48/2025 s. 6.
(1) For the purposes of section 8(1)(c)(ii), an interest in land obtained by a person under a qualifying dutiable transaction must be aggregated with another interest in the land obtained under another qualifying dutiable transaction if—
(a) those dutiable transactions are aggregated under section 24 of the Duties Act 2000; or
(b) the dutiable transactions occur within a 3 year period and either—
(i) the transferee under each dutiable transaction is the same person; or
(ii) the transferees under the dutiable transactions are associated persons.
Example
Person A is the transferee under a transfer of land occurring on 1 July 2024 relating to a 35% interest in the land (qualifying dutiable transaction A). Person B is the transferee under a transfer of land occurring on 1 July 2026 relating to a 15% interest in the same land (qualifying dutiable transaction B). Persons A and B are associated persons. The interests they acquired in the land are aggregated and together amount to a qualifying interest. This means qualifying dutiable transaction B is the entry transaction for the land.
(2) For the purposes of subsection (1)(b), a person is not an associated person of another person if the Commissioner is satisfied that the interests of the persons—
(a) were acquired, and will be used, independently; and
(b) were not acquired, and will not be used, for a common purpose.
(3) Subsection (2) does not apply if the persons are associated persons because they are related bodies corporate.
11 What is a *qualifying landholder transaction*?
(1) A transaction is a qualifying landholder transaction if—
(a) the transaction is a relevant acquisition; and
(b) at the time of the relevant acquisition, the landholder holds an interest in land described in section 10(1)(a) of the Duties Act 2000; and
S. 11(1)(c) substituted by No. 48/2025 s. 7.
(c) duty is chargeable on the relevant acquisition under the Duties Act 2000; and
(d) the relevant acquisition is not an eligible transaction within the meaning of section 250A of the Duties Act 2000.
(2) However, a relevant acquisition is not a qualifying landholder transaction if the relevant acquisition is made pursuant to an agreement or arrangement that was entered into before the commencement of this Act.
(3) For the purposes of subsection (1)(b), the interest the landholder holds in land is to be determined in accordance with Part 2 of Chapter 3 of the Duties Act 2000.
(4) An interest in land is to be disregarded for the purposes of subsection (1)(b) if the Commissioner determines under section 89I of the Duties Act 2000 that the land was not, at the time of the relevant acquisition, a land holding of the landholder.
12 Determination of interest acquired under qualifying landholder transaction
(1) The interest in land that a person is taken to have acquired under a qualifying landholder transaction is the interest calculated in accordance with the following formula—
where—
A is the interest acquired in the landholder under the qualifying landholder transaction on which duty is chargeable under Part 2 of Chapter 3 of the Duties Act 2000;
**B** is the interest the landholder holds in the land at the time the relevant acquisition is made.
(2) For the purposes of the variable B, the interest the landholder holds in land is to be determined in accordance with Part 2 of Chapter 3 of the Duties Act 2000.
(3) If, at the time of a relevant acquisition described in section 11(1), a landholder holds more than one interest in land described in section 11(1)(b), the relevant acquisition is taken to be a separate qualifying landholder transaction in respect of each interest in land held by the landholder.
13 Aggregation of interests acquired under qualifying landholder transactions
S. 13(1) amended by No. 48/2025 s. 8.
(1) For the purposes of section 8(1)(c)(ii), an interest in land obtained by a person under a qualifying landholder transaction must be aggregated with another interest in the land obtained under another qualifying landholder transaction if—
(a) the qualifying landholder transactions occur within a 3 year period; and
(b) under each qualifying landholder transaction, a relevant acquisition is made in the same landholder; and
(c) the relevant acquisitions in the landholder are made by the same person or associated persons.
Example
Person A obtains a 20% interest in land under a qualifying landholder transaction occurring on 1 December 2024 (qualifying landholder transaction A). Person B obtains a 40% interest in the land under a qualifying landholder transaction occurring on 1 July 2026 (qualifying landholder transaction B). Person A and Person B are associated persons. The interests Persons A and B acquired in the land are aggregated and together amount to a qualifying interest. This means qualifying landholder transaction B is the entry transaction for the land.
(2) For the purposes of subsection (1)(b), a person is not an associated person of another person if the Commissioner is satisfied that the interests of the persons—
(a) were acquired, and will be used, independently; and
(b) were not acquired, and will not be used, for a common purpose.
(3) Subsection (2) does not apply if the persons are associated persons because they are related bodies corporate.
Division 3—Entry consolidations
14 What is an *entry consolidation*?
(1) A consolidation of land is an entry consolidation if, as a result of the consolidation—
(a) tax reform scheme land is consolidated with any of the following—
(i) land that has not entered the tax reform scheme;
(ii) other tax reform scheme land; and
(b) 50% or more of the area of the consolidated land is tax reform scheme land.
(2) However, tax reform scheme land is taken to no longer be tax reform scheme land if—
(a) the land is consolidated with land that has not entered the tax reform scheme; and
(b) as a result of the consolidation, less than 50% of the area of the consolidated land is tax reform scheme land.
15 Certain land taken to be consolidated on subdivision
(1) Two or more parcels of land are taken to be consolidated for the purposes of this Act if a plan of subdivision is registered in relation to those parcels of land.
(2) The date on which land is taken to be consolidated under subsection (1) is the date on which the plan of subdivision is registered.
Example to s. 15 amended by No. 48/2025 s. 9.
Example
A plan of subdivision is registered on 1 January 2025 in relation to a parcel of land that is tax reform scheme land (Land A) and another parcel of land that is not tax reform scheme land (Land B). The land is taken to be consolidated on 1 January 2025. Section 14 applies to determine whether the consolidation of the land is an entry consolidation.
Division 4—Entry subdivisions
16 What is an *entry subdivision*?
A subdivision of land is an entry subdivision if the land that is subdivided is tax reform scheme land.
Part 3—Commercial and industrial property tax
Division 1—Imposition and rate of CIPT
17 Imposition of CIPT
Commercial and industrial property tax is imposed in respect of each year on all CIPT taxable land.
18 Who is liable for CIPT?
(1) The owner of CIPT taxable land is liable to pay CIPT on the land.
(2) Subject to subsection (3) and section 25, the owner of CIPT taxable land is the same as the owner of the land under the Land Tax Act 2005.
(3) In determining who is the owner of CIPT taxable land, section 18 and Divisions 2A and 2AB of Part 3 of the Land Tax Act 2005 do not apply.
19 Rate of CIPT
(1) The rate of CIPT is—
(a) for land other than BTR land—1% of the taxable value of the land; or
(b) for BTR land—0·5% of the taxable value of the land.
(2) The taxable value of CIPT taxable land or part of CIPT taxable land is the same as the taxable value of the land or part under Division 3 of Part 2 of the Land Tax Act 2005.
20 When must CIPT be paid?
The day specified in a notice of assessment of CIPT must not be less than 14 days after the day the notice is served on the taxpayer.
Note
Section 14 of the Taxation Administration Act 1997 provides for notices of assessment and provides that tax is payable on or before the day specified in the notice.
21 CIPT is additional to other taxes and charges
To avoid doubt, CIPT is imposed on CIPT taxable land in addition to any other taxes and charges imposed on, or calculated by reference to the value of, the land, including land tax, windfall gains tax, local government rates and charges and the fire services property levy.
Note
Duty under the Duties Act 2000 is not chargeable on certain transactions in relation to CIPT taxable land—see Division 9 of Part 5 of Chapter 2 and Division 3A of Part 2 of Chapter 3 of that Act.
Division 2—Assessment of CIPT
22 Assessment generally
A taxpayer is to be assessed for CIPT for a tax year on the taxable value of all CIPT taxable land of which the taxpayer was the owner at midnight on 31 December immediately preceding the tax year.
23 Occupancy on land
The Commissioner may include in a notice of assessment a description of the occupancy on land.
24 Assessment of joint owners
Joint owners of CIPT taxable land are to be jointly assessed for CIPT on the land as if it were owned by a single person.
25 Certain long-term lessees
(1) This section applies if—
(a) a person (the lessee) has a leasehold estate in CIPT taxable land (other than under a lease of Crown land); and
(b) the lessee became entitled to that estate before 30 December 1978.
(2) If this section applies, both the lessee and the owner of the freehold estate in the land are to be assessed for CIPT on the land and, for the purpose of this Act, a reference to the owner of the land includes a reference to the lessee.
(3) The Commissioner may apportion the CIPT payable on the land as between the owner of the freehold estate and the lessee if the Commissioner is of the opinion that the value of the freehold owner's interest in the land is lessened by the covenants of the lease.
(4) If the Commissioner apportions the CIPT under subsection (3), the owner of the freehold estate and the lessee are each liable to pay the proportion of the CIPT determined by the Commissioner.
26 Reassessments
The Commissioner may make a reassessment of CIPT under section 9 of the Taxation Administration Act 1997 more than 5 years after the initial assessment.
Division 3—Security for CIPT
27 CIPT is a first charge on land
(1) Unpaid CIPT (including any interest and penalty tax) is a first charge on the land on which the CIPT is payable.
(2) Subject to section 36S of the Treasury Corporation of Victoria Act 1992, the charge has priority over all other encumbrances to which the land is subject.
(3) Subsections (1) and (2) do not apply to CIPT on Crown land or vested land under Part 3A of the Victorian Plantations Corporation Act 1993.
(4) If a person—
(a) is a bona fide purchaser for value of land; and
(b) obtains a certificate from the Commissioner under section 95AA of the Taxation Administration Act 1997 in respect of the land—
the charge does not secure any amount of CIPT (including any interest and penalty tax) on the land in excess of the amount set out in the certificate.
Note
Notice of a charge under this section may be lodged with the Registrar under section 106B of the Transfer of Land Act 1958.
Division 4—Recovery of CIPT
28 Recovery from lessee, mortgagee or occupier
(1) If a tax default occurs in relation to CIPT, the Commissioner may serve a written notice on a lessee, mortgagee or occupier of the land on which the CIPT is payable requiring the lessee, mortgagee or occupier to pay an amount of CIPT (including any interest and penalty tax) that is payable but remains unpaid.
(2) The Commissioner cannot require a lessee or occupier—
(a) to pay an amount under this section that is greater than the amount of rent the lessee or occupier is required to pay the taxpayer; or
(b) to pay an amount under this section before the day on which the lessee or occupier is required to pay rent to the taxpayer.
(3) Subsection (2) does not apply to a lessee or occupier that is a related corporation or relative of the taxpayer.
(4) A copy of the notice under subsection (1) must be served on the taxpayer.
(5) In this section—
related corporation has the meaning given in section 47 of the Land Tax Act 2005;
relative has the meaning given in section 3(1) of the Land Tax Act 2005.
29 Effect of notice under section 28
(1) An amount specified in a notice under section 28(1) must be paid to the Commissioner on receipt of the notice or by the date specified in the notice, whichever is the later.
(2) Section 45 of the Taxation Administration Act 1997 applies to an amount payable under subsection (1) as if the person required to pay the amount were the taxpayer.
(3) A person who pays an amount under subsection (1) is entitled to recover that amount from the taxpayer as a debt, or to set off the amount against any money owing to the taxpayer.
(4) If a lessee or occupier pays an amount under subsection (1)—
(a) the amount is deemed to have been paid to the Commissioner by the taxpayer; and
(b) the lessee or occupier is deemed to have paid an equal amount of rent to the taxpayer under the lease or agreement or under any applicable tenancy law.
(5) If a mortgagee pays an amount under subsection (1), the amount is deemed to be secured by the mortgage in addition to any other amount secured by it.
Note
General provisions for the recovery of CIPT can be found in Part 7 of the Taxation Administration Act 1997.
Division 5—Prohibition on passing on CIPT
30 Prohibition on passing on CIPT to renters
(1) A provision in a residential rental agreement to the effect that the renter is liable to pay, or to reimburse the residential rental provider in respect of, any CIPT payable by the residential rental provider in respect of the rented premises is void.
(2) In this section—
renter includes a tenant;
residential rental agreement means an agreement, whether or not in writing and whether express or implied, under which a person lets premises as a residence;
residential rental provider includes a landlord.
Division 6—Anti-avoidance
31 What is a *tax avoidance scheme*?
(1) For the purposes of this Division, a tax avoidance scheme is a scheme—
(a) under or in connection with which—
(i) a person has obtained a reduction in, or exemption from, CIPT; or
(ii) land that would otherwise be, or become, tax reform scheme land or CIPT taxable land is not, or does not become, tax reform scheme land or CIPT taxable land; and
(b) in respect of which, having regard to any one or more of the matters referred to in subsection (2), it would be concluded that a person, or one of the persons, who participated in the scheme did so for the purpose of enabling—
(i) a person to obtain a reduction in, or exemption from, CIPT; or
(ii) land that would otherwise be, or become, tax reform scheme land or CIPT taxable land not being, or not becoming, tax reform scheme land or CIPT taxable land—
under or in connection with the scheme.
(2) The factors that may be considered for the purposes of subsection (1)(b) are—
(a) the manner in which the scheme was entered into or carried out;
(b) the form and substance of the scheme;
(c) the time at which the scheme was entered into and the length of the period during which the scheme was carried out;
(d) the result in relation to the operation of this Division that, but for section 32, would have been achieved by the scheme;
(e) any change in the financial position of any person that has resulted, will result or may reasonably be expected to result from the scheme;
(f) any other consequence for the person, or for any other person referred to in paragraph (e), of the scheme having been entered into and carried out;
(g) the nature of any connection (whether of a business, family or other nature) between the person and any other person referred to in paragraph (e).
(3) A reference in subsection (1) to a scheme being carried out by a person for a particular purpose includes a reference to the scheme being entered into or carried out by the person for 2 or more purposes of which that particular purpose is the main purpose.
(4) This section applies to a scheme—
(a) whenever entered into; and
(b) whether the scheme has been or is entered into or carried out in or outside Victoria or partly in and partly outside Victoria.
(5) In this section—
scheme includes the whole or any part of—
(a) a contract, agreement, arrangement, understanding, promise or undertaking (including all steps and transactions by which it is carried into effect)—
(i) whether made or entered into orally or in writing;
(ii) whether express or implied;
(iii) whether or not enforceable; or
(b) a plan, proposal, action, course of action or course of conduct, whether or not unilateral; or
(c) a trust.
32 Anti-avoidance provision
(1) If the Commissioner considers that a person has participated in a tax avoidance scheme, the Commissioner may do any one or more of the following—
(a) disregard the scheme;
(b) determine that land is tax reform scheme land or CIPT taxable land;
(c) determine what CIPT would have been payable but for the scheme;
(d) make an assessment or reassessment under the Taxation Administration Act 1997 of the tax liability of the person or any other person to give effect to that determination.
(2) Without limiting subsection (1), the Commissioner may aggregate interests in land obtained or taken to have been obtained under one or more dutiable transactions and one or more relevant acquisitions if the Commissioner is satisfied that the transactions and acquisitions formed part of a tax avoidance scheme.
Division 7—Notification requirements
33 Notice of errors in notice of assessment
(1) A person who is served with a notice of assessment of CIPT must notify the Commissioner of any error or omission in the notice relating to—
(a) any tax reform scheme land owned by the person at the relevant time that has a qualifying use at that time but is not specified in the notice; and
(b) any land specified in the notice as not subject to CIPT.
(2) Notice of the error or omission must be given to the Commissioner within 60 days after the date of issue of the notice of assessment.
(3) If there is more than one owner of the land specified in the notice of assessment, it is sufficient compliance with this section if one of the owners provides the required information on behalf of all of them.
(4) In this section—
relevant time means midnight on 31 December immediately preceding the tax year to which the notice of assessment relates.
34 Notice of change of use
(1) An owner of tax reform scheme land must notify the Commissioner if the land or part of the land undergoes a change of use.
(2) The notice must be given to the Commissioner within 30 days after the change of use.
(3) If there is more than one owner of the land or part, it is sufficient compliance with this section if one of the owners provides the required information on behalf of all of them.
(4) For the purposes of this section, land or part of land undergoes a change of use if—
(a) the land or part has a change of use as defined in section 3; or
(b) the actual use of the land or part changes from a use described in one or more than one AVPCC in the following ranges to a use not described in any AVPCC in those ranges—
(i) 200−499;
(ii) 600−699; or
(c) the actual use of the land or part changes from a use not described in any AVPCC in the following ranges to a use described in one or more than one AVPCC in those ranges—
(i) 200−499;
(ii) 600−699.
Part 4—General
35 Regulations
(1) The Governor in Council may make regulations for or with respect to any matter or thing that is required or permitted to be prescribed or necessary to be prescribed to give effect to this Act.
(2) Regulations made under this Act—
(a) may be of general or limited application; and
(b) may differ according to differences in time, place or circumstances.
Pt 5 (Headings and ss 36–67) repealed by No. 16/2024 s. 67, new Pt 5 (Heading and new s. 36) inserted by No. 48/2025 s. 10.
Part 5—Transitional provisions
New s. 36 inserted by No. 48/2025 s. 10.
36 State Taxation Further Amendment Act 2025
Sections 3, 8, 9, 10, 11, 13 and 15, as amended by Part 2 of the State Taxation Further Amendment Act 2025, apply, and are taken always to have applied, from 1 July 2024.
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Endnotes
1 General information
See www.legislation.vic.gov.au for Victorian Bills, Acts and current Versions of legislation and up-to-date legislative information.
Minister's second reading speech—
Legislative Assembly: 21 March 2024
Legislative Council: 2 May 2024
The long title for the Bill for this Act was "A Bill for an Act to reform the taxation of commercial and industrial property, to amend the Duties Act 2000, the Taxation Administration Act 1997, the Treasury Corporation of Victoria Act 1992 and other Acts and for other purposes."
Constitution Act 1975:
Section 85(5) statement:
Legislative Assembly: 21 March 2024
Legislative Council: 2 May 2024
Absolute majorities:
Legislative Assembly: 2 May 2024
Legislative Council: 14 May 2024
The Commercial and Industrial Property Tax Reform Act 2024 was assented to on 21 May 2024 and came into operation on 1 July 2024: section 2.
INTERPRETATION OF LEGISLATION ACT 1984 (ILA)
Style changes
Section 54A of the ILA authorises the making of the style changes set out in Schedule 1 to that Act.
References to ILA s. 39B
Sidenotes which cite ILA s. 39B refer to section 39B of the ILA which provides that where an undivided section or clause of a Schedule is amended by the insertion of one or more subsections or subclauses, the original section or clause becomes subsection or subclause (1) and is amended by the insertion of the expression "(1)" at the beginning of the original section or clause.
Interpretation
As from 1 January 2001, amendments to section 36 of the ILA have the following effects:
• Headings
All headings included in an Act which is passed on or after 1 January 2001 form part of that Act. Any heading inserted in an Act which was passed before 1 January 2001, by an Act passed on or after 1 January 2001, forms part of that Act. This includes headings to Parts, Divisions or Subdivisions in a Schedule; sections; clauses; items; tables; columns; examples; diagrams; notes or forms. See section 36(1A)(2A).
• Examples, diagrams or notes
All examples, diagrams or notes included in an Act which is passed on or after 1 January 2001 form part of that Act. Any examples, diagrams or notes inserted in an Act which was passed before 1 January 2001, by an Act passed on or after 1 January 2001, form part of that Act. See section 36(3A).
• Punctuation
All punctuation included in an Act which is passed on or after 1 January 2001 forms part of that Act. Any punctuation inserted in an Act which was passed before 1 January 2001, by an Act passed on or after 1 January 2001, forms part of that Act. See section 36(3B).
• Provision numbers
All provision numbers included in an Act form part of that Act, whether inserted in the Act before, on or after 1 January 2001. Provision numbers include section numbers, subsection numbers, paragraphs and subparagraphs. See section 36(3C).
• Location of "legislative items"
A "legislative item" is a penalty, an example or a note. As from 13 October 2004, a legislative item relating to a provision of an Act is taken to be at the foot of that provision even if it is preceded or followed by another legislative item that relates to that provision. For example, if a penalty at the foot of a provision is followed by a note, both of these legislative items will be regarded as being at the foot of that provision. See section 36B.
• Other material
Any explanatory memorandum, table of provisions, endnotes, index and other material printed after the Endnotes does not form part of an Act.
See section 36(3)(3D)(3E).
2 Table of Amendments
This publication incorporates amendments made to the Commercial and Industrial Property Tax Reform Act 2024 by Acts and subordinate instruments.