Commissioner of State Revenue v Lend Lease Funds Management Ltd

The Commissioner of State Revenue sought to review the determination of Lend Lease Funds Management Ltd regarding a dutiable transaction under the Duties Act 2000 (Vic). The central dispute revolved around the transfer of an estate in fee simple, specifically whether the transaction was exempt from duty because it was made "solely because of … change in trustees" under section 33(3) of the Act, and if the transferor held the property on trust for the responsible entity, which would affect the dutiable value of the property. The matter was heard in the Supreme Court of Victoria.

The primary legal issues that the court had to address were whether the transferor held the property on trust for the responsible entity and, if so, whether the transfer was made solely because of a change in trustees. Additionally, the court had to determine the dutiable value of the property transferred, which depended on whether the transfer constituted a "bare legal title" under section 20 of the Act. The court examined the nature of the proprietary interest transferred and the implications of the custody agreement between the parties.

The court found that the transferor did not hold the property on trust for the responsible entity, as the custody agreement did not impose such a trust. The transfer was not made solely because of a change in trustees, as the transfer occurred after the termination of the custody agreement. Furthermore, the court determined that the transfer did not constitute a "bare legal title," as the transferor retained certain rights and obligations, which affected the dutiable value of the property. Consequently, the court held that the transfer was not exempt from duty under section 33(3) of the Act, and the dutiable value was correctly assessed.

The court dismissed the appeal, affirming the Commissioner's determination that Lend Lease Funds Management Ltd was liable for duty on the transaction. The court's decision was based on the analysis of the custody agreement, the nature of the proprietary interest transferred, and the statutory provisions of the Duties Act 2000 (Vic).