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Stamp Duty on Off the plan

Discussion in 'Accounting & Tax' started by tegs77, 16th Oct, 2015.

  1. tegs77

    tegs77 Member

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    Hi I purchased an "off the plan" apartment in Liverpool back in Dec 2013 (which in hindsight now isnt generally the smartest thing to do which I have now educated myself on) although this deal should work out ok thanks to the strong growth in Sydney.
    The question I have is I think I heard the other day a investment property adviser say that if you buy an off the plan property you need to pay your stamp duty in the 1st 12 months of signing the contract and if you havent you will need to pay interest? is this the case? if so my solicitor will need to answer so questions.

    cheers
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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  5. tegs77

    tegs77 Member

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    Thank for the reply Terry, so the fact that I signed the contract in Dec2013 it is now 21 months since then, I will be penalised and have to pay more stamp duty? Shouldnt my solicitor have advised me about this? How much is the penalty?
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Yes, you have committed a tax default. Interest will be payable.
    see s22 Taxation Administration Act 1966 (NSW)
    http://www5.austlii.edu.au/au/legis/nsw/consol_act/taa1996269/s22.html

    Maybe also penalty tax under s26
    Whether your solicitor should have advised you will depend on the terms of your contract.
     
  7. tegs77

    tegs77 Member

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    I just looked it up its going to be about 90% on top of the normal stamp duty amount.....I cant believe it.
    I also just looked at email correspondence from when I purchased and I did actually ask them when the stamp duty was payable and they replied that if the stamp duty was coming from bank finance i could pay at settlement. Its going to be an interesting chat with them on Monday.
     
    Terry_w likes this.
  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    You can ask for a remission of interest too.