Changing names on a property title is more common than you might think—and for various reasons. Whether correcting a spelling error, reflecting a relationship change, or updating trustee details, it’s important to understand the legal and tax implications involved. In Victoria, this process typically involves the Land Titles Office (LTO) for registration and the State Revenue Office (SRO) for assessing any applicable duties.
1. Fixing a Name Error – Section 32 Application (No Duty Applies)
Sometimes, names are incorrectly recorded on a title—be it due to a typo, misspelling, or administrative oversight. In these cases, you can lodge a Section 32 application with the LTO to correct the error. This type of amendment does not involve a change in beneficial ownership, and therefore, the SRO does not impose duty. It’s a straightforward rectification, often supported by documents such as a birth certificate or marriage certificate to verify the correct name.
2. Adding or Removing a Spouse/Partner – Exemptions Apply, But With Limits
If you’re adding your spouse to the title of your Principal Place of Residence (PPR), or transferring it solely to them, you may qualify for a duty exemption under Section 43 of the Duties Act 2000. However, the exemption is not blanket—it must meet these conditions:
- The parties must be spouses or domestic partners.
- The property must be residential and used as the principal place of residence.
- No consideration (payment) must be exchanged.
- No other person can receive an interest in the property.
- The 12-month residence rule typically applies, meaning the property must be lived in as a PPR for at least 12 months after the transfer.
If the property is not the couple’s PPR or these conditions aren’t met, duty may be payable on the market value share transferred.
3. Change of Trustee – Family or Unit Trust (Duty May Be Exempt)
In trusts, a change in trustee is a technical necessity that doesn’t inherently alter who benefits from the property. Under Section 33 of the Duties Act 2000, such changes may be exempt from duty if:
- The change is solely due to retirement or appointment of a trustee.
- The transfer of the property is made to vest it in the new trustee(s) entitled to hold it.
- There is no change in beneficial ownership.
This applies to both discretionary family trusts and unit trusts, as long as the transaction doesn’t shift who ultimately benefits from the trust assets.
Final Thoughts
Before lodging any documents with the LTO, it’s crucial to determine whether your name change also requires SRO notification or duty assessment. Always consult with a property lawyer or conveyancer to confirm eligibility for exemptions. A simple oversight can trigger unintended tax consequences.
For more information, visit the Land Use Victoria and State Revenue Office Victoria websites or contact our office for a preliminary assessment and quotation.