Incoming Premier Iemma (gee that rhymes...must be why they picked him )announced the abolition of vendor duty today. The duty will not apply to any contracts entered into on or after 2 August 2005. Unfortunately the duty will continue to apply to land sale contracts (or share / unit transactions involving land rich companies or trusts that own land in NSW) executed before 2 August.
Obviously there's no legislation yet, but based on information posted on the OSR website, the legislation will contain anti-avoidance provisions aimed at preventing parties that have already executed their contracts from avoiding the duty. For example, it will not be possible avoid vendor duty by rescinding contracts with a view to re-entering those contracts after 2 August.
Cheers
Nigel
Obviously there's no legislation yet, but based on information posted on the OSR website, the legislation will contain anti-avoidance provisions aimed at preventing parties that have already executed their contracts from avoiding the duty. For example, it will not be possible avoid vendor duty by rescinding contracts with a view to re-entering those contracts after 2 August.
Cheers
Nigel
