The Real Property Amendment (Torrens Assurance Levy Repeal)
Bill 2011 received royal assent on 25 May 2011. The effect of
the new legislation is to abolish the controversial Torrens
Assurance Levy introduced by the former NSW Labor Government.
This ad valorem levy applied from 1 July 2010 to all transfers
of land in NSW having a value in excess of $500,000. The levy is
charged based on the value of the land being transferred at the
rate of 0.2% on transfers valued between $500,000 and $1 million,
and 0.25% on transfers over $1 million. The purchaser is
responsible for payment of this levy to the Land and Property
Management Authority NSW (LPMA) in addition to the
usual registration fee charged by the LPMA and stamp duty.
The new legislation will amend the Real Property Act
1900 and the Real Property Regulation 2008 to repeal
the Torrens Assurance Levy with effect from 1 July 2011, while
setting out the transitional provisions put in place for property
transfers in the meantime. Under this transitional regime the
Torrens Assurance Levy will continue to apply to registration of
transfers that relate to the contracts for sale of land entered
into on or after 1 July 2010 and before 1 July 2011, even if such
transfers are lodged for registration at the LPMA on or after 1
July 2011. The levy will not apply to transfers executed to give
effect to sale contracts exchanged after 1 July 2011.
This publication is intended as a general overview and
discussion of the subjects dealt with. It is not intended to be,
and should not used as, a substitute for taking legal advice in any
specific situation. DLA Piper Australia will accept no
responsibility for any actions taken or not taken on the basis of
DLA Piper Australia is part of DLA Piper, a global law firm,
operating through various separate and distinct legal entities. For
further information, please refer to www.dlapiper.com
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