Duty on the transfer of business assets or a declaration of trust over 'business assets' (other than land) will be abolished from 1 July 2016.
Transfer of land or business duty (formerly known as stamp duty) is a duty on the following transactions:
a sale or transfer of land, including improvements in NSW
a sale or transfer of business assets in NSW
a declaration of trust over dutiable property in NSW
The purchaser or transferee is liable to pay the duty.
Your liability for duty arises when the sale or transfer occurs. However, if the sale or transfer is affected by a written instrument (contract or agreement or transfer), liability arises when the instrument is first executed.
If you do not have a written instrument that evidences the purchase or transfer of a business or property, you must submit a Statement of Dutiable Transaction not Effected by a Written Instrument form (OSD 046) . The form must be submitted within three months after the liability arises.
If you or the seller are related or 'not acting in good faith', we will require a valuation from
A registered valuer for purchase/transfer of land
An independent accountant for purchase/transfer of business assets.
An instrument is first executed when it is signed and sealed, or signed by any party to it.
However, acceptance of an offer contained in an instrument is taken to be first executed when the offer is accepted, that is, date of exchange.
Duty must be paid within three months from the liability arising.
When purchasing property 'off the plan', the duty must be paid within three months from the date of:
completion of the agreement
the assignment of the whole or any part of the purchaser's interest under the agreement
the expiration of 12 months after the date of the agreement, whichever occurs first.
For a full list of payment options, see the pay your transfer of land or business duty page.
If the sale or transfer agreement is rescinded or annulled, it is not liable for duty.
To apply for a refund, submit an Application for Reassessment and Refund: Cancelled Agreements for the Sale or Transfer of Dutiable Property (ODA 015) form.
Your application for a refund on an agreement must be made within:
five years of the initial assessment, or
12 months after the agreement is rescinded or annulled, whichever is the later.
The application form must be completed by each purchaser / transferee and lodged with the original stamped contract and transfer. A photocopy of the Deed of Rescission signed by both parties or letters from both parties confirming the agreement has been rescinded is also required.
If you are completing transactions relating to separate items of property, or separate parts of or interests in property they could be aggregated and treated as a single transaction.
For more information, see Revenue ruling DUT 036.
Duty is calculated on the total dutiable value of the property subject to the transaction.
For more information, visit the calculating dutiable value page.
The current rates and thresholds are outlined in the table below:
|Value of the property subject to the transaction||Rate of duty|
|$0 - $14,000||$1.25 for every $100 or part of the value|
|$14,001 - $30,000||$175 plus $1.50 for every $100, that the value exceeds $14,000|
|$30,001 - $80,000||$415 plus $1.75 for every $100, that the value exceeds $30,000|
|$80,001 - $300,000||$1,290 plus $3.50 for every $100, that the value exceeds $80,000|
|$300,001 - $1m||$8,990 plus $4.50 for every $100, that the value exceeds $300,000|
|over $1m||$40,490 plus $5.50 for every $100, that the value exceeds $1,000,000|
|Premium Property Duty: over $3m||$150,490 plus $7.00 for every $100, that the value exceeds $3,000,000.|
Premium property duty is only payable on residential land. For more information on, see the Premium Property Duty factsheet (OFS DUT11).
For more information on the assessment of duty over land and improvements, see Revenue ruling DUT 018.
Client identification for individuals is evidence of their date of birth and for companies it is their ABN/ACN/ARBN number.
An original or certified copy of client identification is required for all conveyancing matters lodged for assessment.
We collect client identification information for all parties liable to or exempt from Transfer of land or business duty.
For more information, download Duties Client Identification factsheet.
There are four main drivers for collecting this information:
Our readiness for National Electronic Conveyancing System (NECS).
Transaction verification with Land and Property Information (LPI).
Better upfront compliance programs for property taxes and grants we administer (duties, land tax and First Home Owner Grant Scheme).
Residential land includes:
land on which there is a single dwelling or flat, or where a single dwelling or flat is being constructed
a strata lot that is lawfully occupied as a separate dwelling or suitable for the purpose
a land use entitlement, if it confers an entitlement to occupy a building, or part of a building, as a separate dwelling
vacant land that is zoned or designated for residential or principally for residential purposes.
Knowing what to do, where to start and what to look out for can save buyers time and money when purchasing a home.
Housing NSW has produced a number of free publications that explain the home buying process. The publications are available for downloading here, or they can be ordered from the Home Purchase Advisory Service by email or telephone 1800 422 322.
The A-Z of Home Purchase guides potential buyers through the different purchase options of buying an existing home or unit, buying ‘off the plan’, acquiring land to build on or buying a land and house package. It also explains in detail the steps and processes to assist purchasers to buy wisely. In doing so it examines the role of solicitors and conveyancers, the different ways to buy property, and what steps to follow right through from the decision to buy to final settlement. The booklet includes a list of useful telephone numbers of organisations and associations that can be of assistance.
The Home Buyer's Checklist enables a purchaser to quickly identify and note the particular features of a property being considered to assist in determining whether it meets their needs and requirements.
The joy of becoming a new homeowner can soon disappear if the purchaser becomes financially over-extended. The Home Buyer's Budget Planner is a handy tool to assist in determining if the desired purchase is affordable.
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