Land rich duty

Certain disposals of interests in land rich landholders are liable to land rich disposal duty. The terms and rates of land rich duty differ by state. Generally an entity with a sufficient ownership in a land rich company may be subject to land rich duty on transfers of ownership in the land rich company calculated on the disposal consideration (the rate of land rich duty may be 5-6 per cent). Therefore, should a change in ownership or restructure occur in a PPP arrangement, the potential land rich duty implications should be considered.