Lend Lease Development Pty Ltd v Commissioner of State Revenue , , Lend Lease Real Estate Investments Ltd , Commissioner of State Revenue , , Lend Lease IMT 2(HP) Pty Ltd and Commissioner of State Revenue

In this case, the respondents, the Commissioner of State Revenue, issued assessment notices to Lend Lease Development Pty Ltd, Lend Lease Real Estate Investments Ltd and Lend Lease IMT 2(HP) Pty Ltd, relating to stamp duty payable in respect of the transfer of seven parcels of land. The respondents included in the assessment notices the amount of contribution payments made under a development agreement for external infrastructure, integrated public art, Grand Plaza and other matters not on the land transferred. Lend Lease Development Pty Ltd, Lend Lease Real Estate Investments Ltd and Lend Lease IMT 2(HP) Pty Ltd sought to have the assessment notices disallowed. The Commissioner sought to expand the case beyond the grounds of disallowance by arguing that the contribution payments were an encumbrance on the land and that they were consideration for the dutiable transaction. The legal issues in this case were whether the contribution payments were consideration for the dutiable transaction and whether the Commissioner was entitled to expand the case beyond the grounds of disallowance. The court found that the contribution payments were not consideration for the dutiable transaction as there was no nexus between the consideration and the transfer of land. The court held that for something to be consideration, it must be money or value passing which ‘moves the transfer’ and that the contribution payments did not meet this test. The court also found that the Commissioner was not entitled to expand the case beyond the grounds of disallowance as the contribution payments were not an encumbrance on the land. The court held that an encumbrance must be a burden or charge on the land and that the contribution payments did not meet this test. The appeals were allowed and the assessment notices were disallowed.