Last year we reported on the introduction of a bill into the New South Wales Parliament which would amend the Duties Act 1997 (NSW) (Act) to impose transfer duty on nominations and novations involving call options over New South Wales land.
That bill was recently passed by the New South Wales Parliament and is now law. However, during its passage through Parliament, all substantive stamp duty changes were removed.
Last week a new bill was introduced into the New South Wales Parliament which reintroduces most of the significant stamp duty changes that had been proposed by the previous bill.
The State Revenue Legislation Further Amendment Bill 2014 (Bill) will amend the Act to deem a transfer of an option to purchase land to occur if, for valuable consideration:
In addition, the Act will be amended so that the consideration for the transfer of land pursuant to the exercise of an option will be taken to include the consideration provided by the transferee for the option (whether for its grant, transfer, exercise or otherwise). However, the duty chargeable on the transfer of land will be reduced by the amount of any duty paid by the transferee on the transfer of the option to the transferee.
These amendments will commence on the date of Royal Assent. The amendments will not apply to options granted or otherwise created before the commencement date.
The Bill also includes a proposed new amendment relating to agreements for lease. Specifically, the novation of an agreement for the lease of land in New South Wales will be deemed to be a transfer of dutiable property.
This amendment will commence on the date of Royal Assent, and will only apply to a novation of an agreement for lease that occurs on or after the commencement date.
The Bill also contains amendments relating to fixed duty payable on certain transactions involving self managed superannuation funds, exemptions from registration duty, and clarifying that a change in partnership arrangements is a dutiable transaction.
The content of this publication is for reference purposes only. It is current at the date of publication. This content does not constitute legal advice and should not be relied upon as such. Legal advice about your specific circumstances should always be obtained before taking any action based on this publication.