• Transaction 1 - Contract of Sale (Contract) for CIP entered pre 1 July 2024 and settled before or after 1 July 2024

  Outcome - The CIP will remain outside the CIPT regime until the next post 1 July 2024 transaction affecting the property.

• Transaction 2 - 100% Contract for CIP entered and settled post 1 July 2024

  Outcome -

  • Duty will be payable for a final time on the CIP, with a purchaser choosing to either pay 100% of the duty at settlement or pay duty via instalments under a Treasury-facilitated ‘transition loan’ (if the purchaser is eligible)
  • At settlement of the Contract the CIP will enter the CIPT regime and no duty will be payable on further transactions of the CIP (provided that the property remains CIP)
  • On the 10th anniversary of settlement of the Contract, the CIP will start to be assessed for CIPT
• Transaction 3 - 100% Contract entered and settled post 1 July 2024 that is duty exempt

  Outcome - No duty payable and the CIP does not enter the CIPT regime.

• Transaction 4 - Single (post 1 July 2024) Contract over two titles – first residential, second CIP

  Outcome -

  • Duty will be payable on each title separately
  • The CIP title will enter the CIPT regime but the residential title will not
  • CIPT will apply to the CIP title on the 10th anniversary of settlement of the Contract
• Transaction 5 - 100% Contract entered and settled 2027 over CIP earlier sold duty exempt in 2025

  Outcome - Provided the 2027 acquisition is not duty exempt, the 2027 acquisition will cause the land to enter into the CIPT regime and CIPT will begin on the 10th anniversary of the settlement of the Contract

• Transaction 6 - 100% Contract entered and settled post 1 July 2024 over CIP exempt from land tax (e.g. primary production)

  Outcome - Duty will be payable on the acquisition and the CIP will enter the CIPT regime.
  If the CIP is exempt from land tax after the 10th anniversary of settlement of the Contract, the CIP will be exempt from CIPT

• Transaction 7 - 100% Contract over CIP rezoned before settlement to non-CIP (e.g. residential zoning)

  Outcome - Duty will be payable and the property will not enter the CIPT regime as at settlement of the Contract the property was not CIP.

• Transaction 8 - 100% Contract over non-CIP rezoned before settlement to CIP

  Outcome - Duty will be payable and the property will enter the CIPT regime as at settlement of the Contract the property was CIP.

• Transaction 9 - 40% Contract over CIP entered and settled post 1 July 2024

  Outcome - Duty will be payable on the 40% stake and the CIP will not enter the CIPT regime.

• Transaction 10 - Same purchaser of 40% acquires a further 40% on 1 July 2028

  Outcome -

  • Duty will be payable on the further 40% acquisition and 100% of the CIP will now enter the CIPT regime (as the purchaser now holds over 50% of the CIP)
  • The CIP will begin to be assessed for CIPT from 1 July 2038
  • A subsequent transaction over the remaining 20% will only trigger duty for the purchaser if it occurs within 3 years of the CIP entering the CIPT regime (i.e. before 1 July 2031)
• Transaction 11 - 75% Contract over CIP entered and settled post 1 July 2024

  Outcome -

  • Duty will be payable on the 75% stake and 100% of the CIP will enter the CIPT regime
  • A subsequent transaction over the remaining 25% will not trigger duty for the purchaser if it occurs within 3 years of the CIP entering the CIPT regime
• Transaction 12 - 75% of shares acquired after 1 July 2024 in company owning CIP only

  Outcome - Duty will be payable on the 75% stake and 100% of the CIP will enter the CIPT regime.

• Transaction 13 - 75% of shares acquired after 1 July 2024 in company owning a mixture of CIP and non-CIP

  Outcome -

  • Landholder duty may be payable on the acquisition
  • Any CIP will enter the CIPT regime and any non-CIPT will remain outside the CIPT regime
• Transaction 14 - 100% Contract over property partly used for commercial or industrial purposes (so called ‘mixed-use properties')

  Outcome -

  • Treatment will depend on whether the property is characterised as ‘commercial’ or ‘industrial’ in nature based on a sole or primary use test.
  • The Commissioner will use various factors in identifying the sole or primary use, including land or floor area, relative intensity, economic and financial significance of each use, and length of time in each use.
  • If the sole or primary use of a property is considered commercial or industrial in nature, it will be classified as CIP and CIPT will apply to 100% of the CIP (no apportionment will apply).
• Transaction 15 - 100% Contract over Build-to-Rent (BTR) land

  Outcome - Duty payable as per usual. If the BTR land is solely or primarily used as CIP at settlement the BTR land will enter the CIPT regime. Once the BTR land begins to be assessed for CIPT, it will benefit from a discounted BTR rate of CIPT (0.5% instead of 1%).

• Transaction 16 - Acquisition of an economic entitlement in CIP

  Outcome - The CIP will not enter the CIPT regime and the economic entitlement will be dutiable in the usual way.

• Transaction 17 - 100% Contract over CIP that is nominated (so sub-sale rules may or may not apply)

  Outcome - The CIP will enter the CIPT regime and duty (and potentially the sub-sale rules) will apply as per usual.

B. CIP Transactions Entitled to Transition Loan

Basic Rules

A transition loan to finance upfront duty payable on CIP will be available from the Victorian Government to purchasers who are:

a) Australian citizens, permanent residents or an Australian business;

b) the first purchaser of CIP on or after 1 July 2024;

c) acquiring CIP for not more than $30 million; and

d) approved for finance from an Authorised Deposit-taking Institution or other approved lender for the CIP.

If a purchaser of CIP does not qualify for a transition loan, 100% of the duty liability must be paid in the ordinary way at settlement of the contract

Ineligibility for a transition loan does not affect the transition of CIP into the CIPT regime. The Treatment for each Transaction outlined in Part A will therefore be the same irrespective of whether or not a purchaser is eligible for a transition loan.

Transition loans will be issued by the Treasury Corporation of Victoria (TCV) and attract interest at TCV bond rate plus a credit risk margin. Principal and interest under the transition loan will be repayable annually over a 10 year period and the loan will be a first ranking charge on the land.

• Transaction 1 - 100% Contract for $25m entered and settled post 1 July 2024 by Australian purchaser

  Outcome - Eligible as purchase price is below $30m threshold

• Transaction 2 - 100% Contract for $25m entered and settled post 1 July 2024 by foreign purchaser

  Outcome - Not eligible as purchaser is foreign

• Transaction 3 - 100% Contract for $35m entered and settled post 1 July 2024

  Outcome - Not eligible as purchase price is above $30m (the loan is not available at all according to Treasury’s Information Sheet, not just on the component of the price above $30 million)

• Transaction 4 - 40% Contract for $10m entered and settled post 1 July 2024

  Outcome - Only CIP transactions of 50% ownership or more will enter the CIPT regime. Therefore the CIP will not enter the CIPT regime and the purchaser is not entitled to the transition loan.

• Transaction 5 - 75% of shares acquired after 1 July 2024 for $20m in company owning CIP

  Treasury guidance indicates that landholder acquisitions will not be eligible for the transition loan.

• Transaction 6 - 50% of units acquired after 1 July 2024 for $16m in unit trust owning CIP

  Treasury guidance indicates that landholder acquisitions will not be eligible for the transition loan.

• Transaction 7 - 100% Contract for $40m entered and settled post 1 July 2024 by Australian purchaser for the purchase of two CIP, for $20m each

  Outcome - As transition loan eligibility is assessed on a per-title basis, the purchaser may be eligible for two separate transition loans as each property was acquired for $20 million.

• Transaction 8 - 100% Contract for CIP already subject to a transition loan

  Outcome -

  • Entitlement to the transition loan ends if the CIP is sold within 10 years. The unpaid balance of the transition loan must be paid at settlement by the seller and it cannot be novated or transferred to a subsequent purchaser or another entity.
  • As long as the property is still classified as CIP, no duty is payable on the subsequent acquisition.

C. Transacting CIP subject to CIPT

If CIP subject to the CIPT regime is transacted, a property clearance certificate may be obtained by the vendor, purchaser or mortgagee from the Commissioner which will confirm that the CIP is within the CIPT regime. If the CIP is in the CIPT regime, the certificate will specify the date the land entered the regime and when the land will start to be assessed for CIPT. Once the CIP is being assessed for CIPT, the certificate will also show any CIPT due (including penalties and interest).

• Transaction 1 - 100% Contract entered August 2028 over CIP earlier transacted in September 2025

  Outcome -

  For the seller:

  • If the seller had a transition loan, it will need to pay down the unpaid balance

  For the buyer:

  • No duty payable as CIP already in the CIPT regime
  • From September 2035 (being the 10th anniversary of the CIP entering the CIPT regime), the CIP will start to be assessed for CIPT
• Transaction 2 - Change in use of CIP to predominantly residential use within 10 year transition period

  Outcome -

  The landowner will need to notify the Commissioner within 30 days of the change of use.

  The following will then occur:

  • the property will exit the CIPT regime
  • the balance of any transition loan will be repayable in full to Treasury to enable the transfer to take place. The loan is a first ranking charge on the land
  • any future transfers of the land will be dutiable
  • CIPT will not apply
• Transaction 3 - Change in use of CIP to predominantly residential use after 10 year transition period

  Outcome - The landowner will need to notify the Commissioner within 30 days of the change of use and the property will no longer be in the CIPT regime.

• Transaction 4 - Change in use of 30% of CIP to residential use

  Outcome - The property may still be considered to be ‘solely or primarily’ used for commercial or industrial use as only 30% of the property is no longer CIP. Therefore no change will occur and the property will continue to be treated as within the CIPT regime.

• Transaction 5 - Change in use of CIP to 100% residential and subsequent 100% sale within 10 year transition period

  Outcome -

  When the change of use occurs:

  • owner will need to notify the Commissioner within 30 days of the change of use
  • transition loan balance will be repayable
  • property will no longer be subject to CIPT at 10th anniversary of entry into the CIPT regime
  • if the property was recently transacted within the CIPT regime (for no duty), ‘change in use duty’ will apply, calculated as the amount of duty otherwise payable on the recent transaction but reduced by 10% for every 31 December date that has passed since that transaction

  
  At sale:

  • no transition loan will be available for a new purchaser
  • duty will be payable as the property is now outside the CIPT regime
• Transaction 6 - CIP subject to CIPT (after 10 year period) is sold but the new owner later changes use to 100% residential

  Outcome - The new owner will not pay duty on the purchase, but may be subject to ‘change of use duty’ on the later change of use to residential use.

  The property will exit the CIPT regime and will not be assessed for CIPT

• Transaction 7 - Change in use of CIP to 100% residential and subsequent 100% sale, but a duty exemption applies

  Outcome - The same as above, however, even though the land is outside the CIPT regime and back in the duty regime, at the sale event duty may not be payable if a duty exemption applies.

• Transaction 8 - CIP becomes land tax exempt (e.g. primary production exemption)

  Outcome - The CIP will be exempt from any assessment of CIPT.

• Transaction 9 - Existing owner elects to repay transition loan at end of year 5

  Outcome - Early repayment of a transition loan is permitted, but a break fee will be payable (how this will be calculated is yet to be announced).

• Transaction 10 - CIP subject to CIPT is sold and new owner changes use to 40% residential

  Outcome - The property may still be considered to be ‘solely or primarily’ used for commercial or industrial use as only 40% of the property is no longer CIP. Therefore no change will occur and the property will continue to be treated as being within the CIPT regime.

• Transaction 11 - Non-commercial or industrial property is sold and new owner post sale changes use to 100% commercial or industrial.

  Outcome - The purchaser will pay duty on the transfer and no refund of duty is available once the use changes to commercial or industrial use.

• Transaction 12 - Subdivision of CIP subject to CIPT

  Outcome - CIPT will continue to apply to the new child titles created by the subdivision. If the subdivision is effected within the 10 year transition period, CIPT will apply to the new child titles on the 10^th anniversary of the date the original (parent) title was transacted into the CIPT regime, not 10 years from the date of creation of the child titles.