Why 3mths to pay Stamp Duty?

[isaprawn]

Hi

Can anyone tell me when stamp duty is payable in NSW?

I've been told by my solicitor it is payable within 3mths of contract exchange...but is that also the case with 6 or 12mth settlements?

It seems to me unfair that the govt want the duty within 3 mths and if the deal falls over and doesn't settle they will refund your money less $10 admin fee!! and they get the use of my money for the duration (assuming 12mths to settlement)

Any suggestions around this besides paying 12+% interest for not paying within 3mths?

Thanks
Isaprawn

 

[Mondie]

We purchased a NSW property last year OTP and came up against this also. Property didnt settle for 9 months but they came looking for their SD after about 3 months.

Not sure if there is a way around it, but l suspect there isnt.

 

[isaprawn]

It just doesn't make sense to me why stamp duty should be payable at 3 mths, especially on a long term settlement (govt greed perhaps?)
Why not just prior to settlement?

Isaprawn

 

[Mondie]

The ATO works on contract dates and not settlement dates for all their assesments and it seems like state governments do the same.

l agree with you, but l guess they want their money. Greed.....

 

[dantheman]

My Solicitor has told me that stamp duty for NSW in an OTP that I'm buying with 2 years till completion that I can apply for a 12month delay after contract which is what I'll try and do.

See NSW Gov website: http://www.osr.nsw.gov.au/portal/page?_pageid=33,63559&_dad=portal&_schema=OSRPTLT

When is duty paid on an off the plan purchase

Duty must be paid within three months from the date of completion of the agreement, or the assignment of the whole or any part of the purchaser's interest under the agreement, or the expiration of 12 months after the date of the agreement, whichever first occurs.

So if it's not completed for a year or more you can wait until 12 months after contract exchange.

 

[alpina]

how is contract date defined?

julie

 

[dantheman]

Not sure I would think it is when both sides have signed the contract and the date it becomes a binding legal agreement.
Of course always check all of this with your solicitor, if they are just applying the 3month rule to everyone refer them to the website because if it's off the plan the rules differ.

Dan