Stamp duty on 2 properties settling close together

Sounds like it is these 2 transactions (ppor and ip) it has picked up. Although settlement was far apart the 2 contracts were not and contracts are reported to OSR after signing not at settlement time.
You can ask for a review but be prepared that they might not agree.
I bought a few off one entity this year and had to factor in aggregated stamp duty on the deal. It did hurt but was the price of doing the deal.

 

Can I ask, just for purely learning purposes, would one of the intents behind this legislation be to stop a scenario like this....

Person A agrees to sell person B a property in 12 instalments over a year. Taken together the stamp duty would be $xx,xxx, however if 12 contracts were issued for the person to accumulate 8.33% per month, duty would be reduced or nil because all 12 contracts were issued for lower amounts?

I gather this is something the OSR tax man would be keen to stop...

 

I thought (and it's probably not the only reason) but it was to stop people that negotiate a bulk discount on sales from one person, therefore buying under market value and only paying incremental stamp duty instead of the bulk rate.

Personally I think it's a fair system. I had a purchase of 5 lots - there is 2 company 'owners'/vendors but essentially the same people, there was 3 contract dates and 2 settlements but it was transparent from the get go that stamp duty would be assessed as one purchase.

 

That's it Westminster.

Imagine someone buying a block of units. They could otherwise save a fortune by entering into a contract for each unit separately compared to one contract for the whole block.

 

To be aggregated the transaction must be negotiated together ie conditional upon each other, one price negotiated for multiple properties, possibly one payment etc. The case law talks about an essential oneness of the transaction. 2 transactions even with the same parties months apart negotiated separately and not conditional upon each other should not be aggregated - if they are you should object.

 

There are several members here who have bought multiple properties within the same area in QLD in a very short space of time (less than 24 months), how come they didn't get pinged for the aggregate stamp duty?

 

Presumably they were different vendors/sellers. Aggregation usually only occurs when the seller is the same or a related party to the seller.

 

My apologies for adding to a 10 month old post!
Purchased a rural property with a equal share partner with a option to purchase the remaining portion within a three year period!
Understandably aggregated for transfer duty being related parties for initial purchase but not particularly fond of paying full duty again on land I've already paid duty on!
Anyone care to comment on whether I could expect any joy contesting this?
Thanks...

 

But you haven't paid duty on his share - he has. You are proposing to buy his share of the property so will pay stamp duty on this as per normal.

 

Correct but have paid a higher transfer duty % because of land I didn't purchase which now I will be paying duty on when I do.

 

Ah, I see.

Have you sought legal advice - perhaps could have bought it in a unit trust and later transferred the units (without stamp duty in some states).

Or buy it 90%/10% perhaps.

 

Looked at other options but decided when you added setup plus time/trouble was easier to pay the extra duty!
Legal firm seem a bit shy on challenging OSR on anything now days and just hoped to find someone that has seen similar issues.
Could purchase in two tranches over 2 years but may still be caught under the very broad wording in legislation.
Thinking this isn't a common situation?

 

Consider a resulting trust? You supply the deposit and the other party act as your trustee. Nominal duty on the transfer.

You also have to factor in CGT - or the other party does.

Is it farm land? There are various duty concessions for transfer of farmland to family members.