Not in Common Ownership (NICO) Subdivisions in Victoria: A Complete Guide

Jonathan Hourigan , Lauren Cullen & Brianna Batey
11 September 2025

Introduction

In Victorian property development, boundaries are rarely as simple as they appear on a title plan. Neighbours may want to exchange strips of land to fix irregular boundaries, developers may wish to combine adjoining holdings into one coordinated subdivision, or an owners corporation may seek to allocate common property differently. In these cases, the mechanism available under the Subdivision Act 1988 (Vic) is the Not in Common Ownership (NICO) plan of subdivision.

A NICO plan is a powerful but technically complex tool. It enables multiple landowners to combine their land under one subdivision plan even though they do not share common ownership. It also creates significant procedural and tax considerations. This guide explains how NICO plans work, when they are used, the requirements for registration with Land Use Victoria, the State Revenue Office (SRO) duty implications, and common risks to be aware of.

At Best Hooper, we regularly assist landowners and developers with NICO plans. This article aims to provide a practical reference point for anyone considering such a subdivision in Victoria.

What is a NICO Plan of Subdivision?

A NICO plan of subdivision involves two or more parcels of land held by different registered proprietors. Instead of each owner subdividing their own parcel separately, the owners combine their land into one plan. Upon registration, the new titles that issue may be ‘not in common ownership’, meaning more than one owner is shown on the title for a single lot, corresponding to the parts of that lot contributed by each original owner.

Crucially, a NICO plan does not itself transfer ownership between the parties. The subdivision merely re-draws the lot boundaries. To achieve the intended ownership outcome (for example, each owner taking full ownership of the lot they agreed to receive), instruments of transfer must be lodged simultaneously with the plan.

The benefit of NICO Subdivisions

NICO subdivisions provide flexibility where multiple ownerships intersect and may provide the following benefits:

• Boundary realignment – neighbours can correct title irregularities or exchange land in one coordinated process rather than negotiating successive subdivisions and transfers.
  
• Joint development – allows developers to subdivide across adjoining parcels for a coherent layout of roads, open space and lots.
  
• Common property adjustments – owners corporations can alter boundaries between lots and common property in a legally recognised way.
  
• Statutory and planning compliance – the Subdivision Act 1988 (Vic) explicitly permits multi-owner plans, provided all proprietors consent and they otherwise allow the subdivision and transfer of land typically precluded by minimum lot size requirements.
  
• Costs – as a NICO plan effectively comprises a subdivision, transfer and consolidation in one process, cost and time efficiencies may be observed.

Common scenarios

• Neighbouring boundary swap – two adjoining landowners agree to swap equal strips to straighten a boundary. A NICO plan creates two new lots. Initially, both owners appear on title for each new lot. Simultaneous transfers then vest the intended lot in each sole owner.
  
• Incorporating common property – a townhouse owner wishes to enlarge their courtyard by absorbing part of the common driveway. With unanimous lot owner approval, a NICO plan can reallocate that common property to the lot. The owners corporation and the individual shall remain joint proprietors on the resulting title until a transfer is lodged.
  
• Multi-owner subdivision for development – two developers own adjoining farmland. They wish to create one coordinated estate with roads and residential lots. A NICO plan covers both titles. The plan creates all the new lots and roads, then simultaneous transfers vest the agreed lots in the appropriate developer.

Distinction from partition

NICO plans differ from a partition of co-owned land. Partition applies where the same owners divide land they already own jointly. NICO applies where the owners of separate parcels agree to redistribute land between them.

Lodging Requirements at Land Use Victoria

Because NICO plans involve multiple proprietors, the lodgement process is more involved than a standard subdivision.

• Step 1 – Survey, Planning permit and certification – the surveyor prepares the plan of subdivision, surveyor’s report and abstract of field records. Most NICO plans require a planning permit from council and boundary realignments may fall under the VicSmart fast-track pathway. The surveyor may submit the plan of subdivision for certification. After conditions are met, the plan is certified and a Statement of Compliance issued.
  
• Step 2 – Owners’ consent – all registered proprietors of the land must sign the application to register the plan. Where common property is involved, the owners corporation must pass the required resolution and sign.
  
• Step 3 – Mortgagee consent – if titles are mortgaged, lender consent is essential. NICO plans may result in a mortgage covering only part of a new lot, which lenders generally avoid. Partial discharges or refinanced mortgages are usually required.
  
• Step 4 – Nomination of titles –all affected certificates of title must be nominated electronically or produced in paper.
  
• Step 5 – Overlay diagram – since November 2022, Land Use Victoria requires an overlay diagram with every NICO plan. This diagram overlays the old title boundaries onto the new subdivision, making clear which portion of each original parcel becomes part of which new lot.
  
• Step 6 – Accompanying transfers and dealings – Land Use Victoria will not register a NICO plan unless the necessary transfers are lodged at the same time. This ensures that no NICO title remains unresolved after registration. Transfers must be correctly prepared with all joint owners as transferors and the intended sole owner as transferee.
• Step 7 – Stamp duty – as land is being transferred simultaneously with the registration of the NICO plan of subdivision, land transfer stamp duty assessments need to be completed by the SRO.
• Step 8 – Lodgement method – Plans are usually lodged electronically via SPEAR. Transfers and dealings are lodged through PEXA. All documents must be linked for simultaneous registration.

Stamp Duty

NICO subdivisions involve a transfer of land between different owners. Unless an exemption applies, the Duties Act 2000 (Vic) treats each transfer as a dutiable transaction.

Each owner pays duty on the land they acquire that they did not previously own. Duty is assessed on the greater of consideration paid or market value. Even where land is swapped without payment, duty is payable on the market value of the area received. 

Unlike partitions of jointly owned land, there is no general exemption for NICO transactions. Unless a specific concession applies (such as a spousal exemption), full duty is payable.

SRO evidentiary requirements

To assess the land transfer stamp duty on the instruments of transfer, the SRO requires:

• a digital duties form;
  
• statutory declaration by transferor detailing the subdivision, description of land transferred, area and market value;
  
• a copy of the overlay plan identifying land being transferred;
  
• a copy of the certified plan of subdivision; and
  
• any agreements or supporting documents.

The transfers cannot be registered until duty has been paid or a duty certificate issued.

Risks and Traps

• Document the agreement in writing – without a binding deed between the parties, disputes can derail the process. Always formalise the arrangement.
  
• Unequal value – if one party receives land of greater value, duty increases and payment obligations may be disputed. Independent valuation is recommended from the outset.
  
• GST – be careful of the GST treatment on the price of the land being transferred or exchanged. Tax advice is recommended especially where unequal land values are being exchanged.
  
• Mortgage issues – mortgagees must consent by nominating titles this may require refinancing. Engage early with lenders.
  
• Owners corporation consent – unanimous resolution is often required. Failure to secure it will prevent registration.
• Liability for duty – each party must budget for duty. In swaps of equal value, both still pay duty separately.
  
• Payment of contributions – while simple boundary realignments usually avoid open space contributions, more complex NICO plans that increase lot numbers may trigger contributions or trigger GAIC or MSA liabilities.
  
• Procedural errors – missing consents, incorrect transfer details, or absent overlay diagrams will cause requisitions and delays.
  
• Costs – surveying, legal, duty and lender costs need to be considered. Parties should agree upfront how expenses are shared.

How Best Hooper Lawyers Can Assist

NICO plans require careful coordination between parties, surveyors, mortgagees, caveators, the SRO and Land Use Victoria. At Best Hooper, we provide:

• strategic advice on whether a NICO plan is the best tool for your objectives;
  
• drafting and negotiation of deeds and agreements between owners;
  
• liaison with surveyors during plan preparation;
  
• obtaining and documenting consents from owners corporations, mortgagees and caveators;
  
• stamp duty management, including preparation of statutory declarations and submissions to the SRO;
  
• preparation and lodgement of transfer instruments alongside the plan;
  
• problem-solving if requisitions or disputes arise; and
  
• post-registration support, including ensuring titles issue as intended and owners corporation schedules are updated.

Best Hooper has extensive experience guiding landowners, developers and owners corporations through the full spectrum of NICO subdivision scenarios. We manage every step of the process, ensuring compliance with Land Use Victoria’s technical requirements and the State Revenue Office’s duty obligations, while also addressing mortgagee, caveator and owners corporation issues.

By combining legal precision with a commercial focus, we protect our clients’ interests and help deliver outcomes that align with their long-term property strategies. Whether your objective is to unlock development potential, resolve a boundary irregularity, or restructure landholdings across multiple owners, our expertise ensures your subdivision is completed smoothly, efficiently and with reduced risk.

If you are considering a NICO plan of subdivision, contact Jonathan Hourigan, Partner, Lauren Cullen, Associate or Brianna Batey, Associate, for tailored advice.

This article is intended as general information only and is not legal advice. You should seek specific advice tailored to your circumstances before acting on any of the matters discussed.