The NSW Premier Barry O'Farrell yesterday released the new
State Government's 100 Day Action Plan, which confirms the
Coalition's pre-election promises to axe the Torrens assurance
levy and to extend the 'empty nesters' transfer duty
Extension of the 'empty nesters' exemption for over
Last year, the Keneally Government introduced a special two-year
stamp duty exemption for over 65s to enable them to 'down
size' and to encourage new home construction. It is now
proposed that this exemption will be available to people over 55
for sales between 1 July 2011 and 30 June 2012.
The exemption applies to a new home purchase, or an off-the-plan
purchase, if made in connection with a residence relocation by an
eligible senior. If there is more than one purchaser then each of
them must be an eligible senior. No other purchasers are permitted
and the exemption and can only be accessed once.
The eligible seniors must sell, or have sold, their previous
home and occupy the new home as their principal place of residence.
The previous home must be sold either:
within 12 months before the eligible purchase agreement;
within 6 months after completion of the eligible purchase
The previous home must have been affixed to land in New South
Wales and the new home must be occupied as the purchaser's
principal place of residence for a continuous period of at least 12
months, with that occupation starting within 12 months after
completion of the eligible purchase agreement.
Torrens assurance levy to be axed
The O'Farrell Government has confirmed its pre-election
promise to abolish the Torrens assurance levy. The levy is
currently imposed at the rate of 0.2% on property transfers valued
between $500,000 and $1 million and at 0.25% on property transfers
valued above $1 million. It is proposed that the levy will be
abolished from July 2011 and, depending on the final form of the
legislative provisions, new buyers may benefit from deferring
completion of their purchase contracts until 1 July 2011.
The article discusses the legislative requirements and then provides some comments on common mistakes made by caveators.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).