Changes to the time period for payment of stamp duty effective 1 April 2012
The introduction of the State Taxation Acts Further Amendment Act 2011 (Vic) on 29 November 2011 resulted in a number of significant amendments to the Duties Act 2000 (Vic).
For the property and development sector, the key change is the reduced period allowed for the payment of stamp duty and the lodgement of documents for assessment by the State Revenue Office.
From 1 April 2012, the time period will be reduced from three months to 30 days.When purchasing land,the 30 days usually commence on the settlement date.
How will you be affected?
- The change will affect dutiable transactions, such as the transfer of land or the establishment of a trust, and relevant acquisitions occurring on or after 1 April 2012.
- A transitional period will apply from 1 April 2012 to 30 June
2012. During this period for transactions occurring on or after 1
April 2012:
- no penalty tax will be imposed for late payments of duty
- no premium interest will be imposed for late payments of duty.
However, market interest will be imposed on late payments of duty during the transitional period, unless the payee can demonstrate that there were special circumstances for the late payment.
How should you prepare for the changes?
Be aware:
- of any dutiable transactions due to settle, or dutiable acquisitions occurring, on or after 1 April 2012, and the 30 days payment period
- that late payments made during the transitional period will still incur market interest
- that late payments made after the transitional period may incur penalty tax and premium interest calculated from the date payment was due.
It is important to ensure sufficient funds are available to meet duty payments within the 30 days period, and that payment is made on time.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
