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Legal Tip 89: Stamp duty on Off the Plan purchases in NSW

Discussion in 'Legal Issues' started by Terry_w, 16th Oct, 2015.

  1. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Sydney
    With property purchases in NSW liability to pay stamp duty arises on execution of the contract of sale. s12(2) Duties Act 1997 (NSW) http://www5.austlii.edu.au/au/legis/nsw/consol_act/da199793/s12.html


    But payment can be deferred for up to 3 months because of s17 http://www5.austlii.edu.au/au/legis/nsw/consol_act/da199793/s17.html (however where the property is being mortgaged the duty will need to be paid about 2 weeks before settlement).


    BUT, where the property is off the plan the rules are different. s49A makes the liability arise on the earlier of
    • settlement,

    • assignment, or

    • 12 months after the date of the contract
    http://www5.austlii.edu.au/au/legis/nsw/consol_act/da199793/s49a.html


    However, you will still have up to 3 months to pay because of s17.


    Off the plan is defined at s49A(4) as:

    “"off the plan purchase agreement" means an agreement for the sale or transfer of dutiable property, being land on which a residence is to be erected or developed before completion of the sale or transfer.”