Care needs to be taken to ensure the establishment of a new property fund does not trigger duty twice. Transfer duty will apply to the acquisition of a target site. Further duty, known as “landholder duty”, can also apply if the purchasing entity issues shares or units after contracting to purchase the land and certain thresholds are exceeded.

In Victoria there are two thresholds. First, the entity must own (or have contracted to purchase) land with a value exceeding $1 million. Second, an investor must purchase a “significant interest” in that entity, being 50 per cent or more for a private company or 20 per cent or more for a private trust.