Van Dairy owner to battle state government in court over $20 million stamp duty bill

The owner of Circular Head dairy giant, Van Dairy, will fight the Tasmanian government over a $20 million stamp duty bill. Discover the history behind the stoush.

Xianfeng Lu at Woolnorth. Mr Lu will fight what he calls an “unfair” $20 million state government stamp duty bill in the wake of his 2016 purchase of the property.

The owner of Circular Head dairy giant, Van Dairy, will fight the Tasmanian government over a $20 million stamp duty bill.

The two-day hearing, brought by Van Dairy owner Xianfeng Lu, is expected to be held on Tuesday and Wednesday in the Hobart Magistrates Court.

On Monday, Mr Lu issued a statement to say he would fight what he called an “unfair move” by the Tasmanian government to charge him “triple stamp duty”.

He said when he bought the historic Woolnorth Property in the state’s far northwest, in 2016, he paid $8 million in stamp duty as part of the transaction.

The purchase came as Mr Lu bought what was then Australia’s biggest dairy operation, the Van Diemen’s Land Company, for $280 million.

“Now the Tasmanian government wants me to pay a further $20 million in stamp duty, claiming an internal restructure of my business affairs amounted to the property changing hands three times prior to settlement,” Mr Lu said.

An image of the Van Diemen’s Land Company in 2011, when it was the biggest dairy farm in Australia and the largest supplier of milk in the country.

“Since purchasing the property in 2016, Van Dairy has paid $63 million in local and federal taxes, and we are proud to employ more than 100 people in Tasmania.

“We pay our way and have paid tens of millions of dollars in taxes, as and when they fall due, but to ask us to pay stamp duty three times is simply unfair and wrong.”

The controversial 2016 purchase – including 24 dairy farms and about 18,000 cows – was subsequently dogged by complaints over animal welfare, effluent management and workplace issues.

Mr Lu has since sold a number of the farms, including Woolnorth to the TRT Pastoral Group in late 2021.

Van Dairy remains one of the biggest dairy companies in Tasmania.

On Monday, Mr Lu also noted he’d set aside 1800 hectares of land in the northwest – the equivalent of five dairy farms – to provide habitat for the Tasmanian devil.

He said the land was previously earmarked for development, to be “a significant financial investment”.

The state government has been contacted for comment over the stamp duty case.

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Originally published as Van Dairy owner to battle state government in court over $20 million stamp duty bill