Late payment of stamp duty

Hi all,

I brought OTP in September 2009 and qualified for the 50%
stamp duty benefit introduced in NSW last year.

There were a few issues with the developer, but construction has now started.

I believe (after reading the state OSR website) that I should have paid the stamp duty within 3 months of the agreement date which was 23rd December.

Couple of things (while I wait for my conveyencor to get back to me)

1) Do I still qualify for the 50% reduction
2) Or do I pay a penalty for being late, and if so, what are the penalty rates?
3) Should I reasonably expect my conveyencer to have prompted me for payment, and/or re-prompted me as we got close to the payment due date?

I feel a bit of an idiot missing the payment date, and am annoyed with myself for taking my eye off the ball.

Thanks

Neil.
 
Hi Neil,

According to this publication: http://www.osr.nsw.gov.au/lib/doc/factsheets/fs_hcap1.pdf you need to fill out a form ODA 014 for an OTP purchase.

According to this ODA 014 form: http://osr.nsw.gov.au/lib/doc/forms/oda014.pdf
the penalties look to only be interest, if in fact your conveyancer has dropped the ball. (and I'm not certain that they have).

The way that my non-legally qualified eyes are reading it is that the options are to pay stamp duty within 3 months of either:
1) The completion of agreement for sale;
2) The assignment of whole or part of the purchasers' interest under the agreement for sale, or
3) The expiration of 12 months after the date of the agreement for sale.

Whichever occurs first.....

Now normally I'd reckon that an exchange of contracts is as 1) says "the completion of agreement for sale". However, if this were the case why would they offer 3) "The expiration of 12 months after the date of the agreement for sale"? This 3) option looks to me as though it is geared for an OTP purchase but they will only wait 15 (12 +3) months max. for their stamp duty money to be paid even if the construction takes longer.

I am therefore taking an educated guess that says 1) "the completion of agreement for sale" actually means settlement not exchange......and you might therefore be needlessly concerned.

There is also a phone number on that form that you can call in Parramatta.

Worst case scenario is that you are up for interest penalty - but you'd have paid interest on the SD anyway had you paid it already....but I reckon you are still possibly OK.

*edit* Actually on reflection the worst case scenario is that your conveyancer who carries PI has to pay penalties - so you're off the hook as you hired a professional. It is never going to be your fault.
 
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Worst case scenario is that you are up for interest penalty - but you'd have paid interest on the SD anyway had you paid it already....but I reckon you are still possibly OK.

*edit* Actually on reflection the worst case scenario is that your conveyancer who carries PI has to pay penalties - so you're off the hook as you hired a professional. It is never going to be your fault.

Thanks Alan.

I'm feeling happier knowing I'd only be up for interest.

The conveyancer says they sent out the OSR form in September. I don't recall getting this, but, even if I did, is it unreasonable to expect some follow up from the conveyancer?

Can't say I relish the idea of tackling a PI claim with them!

Cheers
Neil
 
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