Abolished Duties

On 1 July 2016 several duties were abolished in New South Wales.

Mortgage Duty

All mortgages executed on or after 1 July 2016 will not be liable to stamp duty. Further money advanced under a mortgage on or after 1 July 2016 will not be liable for mortgage duty, irrespective of the date the mortgage was executed.

As a result of the above, mortgages entered into on or after 1 July 2016 do not need to be stamped at the Office of State Revenue.

Business Asset Duty

The following types of property are no longer dutiable:

  1. The following business assets:
    1. the goodwill of the business if the business supplies goods or services in NSW; or
    2. intellectual property which has been used or exploited in NSW; or
    3. a statutory licence or permission under a Commonwealth law provided that the rights can be exercised in NSW.
  2. A statutory licence or permission issued under NSW law.
  3. A gaming machine entitlement as defined in the Gaming Machines Act 2001.

Stamp duty is not payable on the value of the above types of property which are included in a dutiable transaction entered into on or after 1 July 2016.

Market Securities (shares and units) Duty

From 1 July 2016 the following types of property ceased to be dutiable property:

  1. Shares in a company which is incorporated in Australia.
  2. Shares in a corporation which is incorporated outside of Australia but are registered on an Australian register.
  3. Units in a unit trust scheme which is registered on a NSW registry.
  4. Units in a unit trust scheme which are not registered on a NSW registry, but the manager or trustee of the unit trust is a NSW company or is a natural person who resides in NSW.

Although the market security duty has been abolished, if the unit trust or company has land holdings in NSW which are valued over $2,000,000 then transactions could attract landholder duty.

Stephen Rush

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