Property option and stamp duty

Hi All,

Just wanted to check something my Solicitor has said to me which I think is incorrect.

I have a 6 month option to purchase a property in Western Sydney. Once I have a DA approval on it, to build 10 units, I will on sell the option to a developer/builder.

In this situation, I didn't think I needed to pay stamp duty as I never 'owned' the property however my Solicitor believes stamp duty is payable. Is he correct?

Thanks,

Marsmac
 
Hi All,

Just wanted to check something my Solicitor has said to me which I think is incorrect.

I have a 6 month option to purchase a property in Western Sydney. Once I have a DA approval on it, to build 10 units, I will on sell the option to a developer/builder.

In this situation, I didn't think I needed to pay stamp duty as I never 'owned' the property however my Solicitor believes stamp duty is payable. Is he correct?

Thanks,

Marsmac

Yes, this would be a dutiable transaction. see the Duties act s11(k) http://www.austlii.edu.au/au/legis/nsw/consol_act/da199793/s11.html
an option over land is dutiable property

Also chapter 3 part 2 may be relevant.
 
GST could also impact...a partition is considered a supply. Not always subject to GST. Important that personal advice on All taxes is obtained.

There is an important stamp duty reason why I Never form a company in nsw. Ever. It dates back to 1901, I never cease to wonder in why people freely offer to overpay tax.
 
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