What is Aggregation?

Section 24(1) of the Duties Act 2000 provides that dutiable property purchases (i.e. more than one) are to be aggregated and treated as a single dutiable transaction if:

• the contracts of sale are entered into within 12 months, and
• the dutiable transactions together form substantially one arrangement.

This means that if you and a friend buy each buy a block of land from the same vendor at the same time from the same selling agent, then the Commissioner of State Revenue would regard this as substantially one arrangement, even if you and your friend are legally unrelated and independent.

For example, suppose only one friend bought land for $240,000.   Stamp duty on this purchase would be $9,470.

But if both of the friends each bought a block of land for $240,000 in substantially the one arrangement, they would each pay stamp duty of $11,935, this being 50% of the stamp duty applying to the aggregated purchase of $480,000.

Glenferrie Conveyancing is your trusted and professional conveyancer in Melbourne. To know more about aggregation and how to avoid it, or learn more about our conveyancing services, please contact us on (03) 9815 2351.