On 13 June 2012 as part of the NSW Government's State
Budget, the Treasurer Mr Mike Baird, announced that the proposed
date for the abolition of mortgage duty had been delayed from 01
July 2012 to 01 July 2013.
In 2006 the then NSW Labour Government announced as part of its
2007 – 2008 budget, that stamp duty on mortgages would be
abolished in three stages:
stamp duty in respect of residential housing loans for
individuals effective from 01 July 2007 (Phase
stamp duty in respect of investment housing loans for
individuals effective from 01 July 2008 (Phase 2);
stamp duty in respect of all other mortgages was to come into
effect on 01 July 2009 (Phase 3).
This was intended to bring NSW into line with all other States
and Territories in Australia where there would be no duty payable
Phase 1 and Phase 2 have been legislated and are contained
within ss.221B and 221C of the Duties Act 1997 (NSW).
These sections provide an exemption from the payment of stamp
duty on mortgages for residential property, whether for the purpose
of owner occupied or investment housing, on the fulfillment of a
number of conditions contained within those sections, including
that the borrower must be a natural person.
Mortgage duty - Phase 3
The abolition of mortgage duty for Phase 3 has been delayed by
subsequent NSW State budgets and on 13 June 2012 the Treasurer
announced that the abolition of mortgage duty would now again be
delayed until 01 July 2013.
The Treasurer also announced that the abolition of the following
duties would also be delayed until 01 July 2013:
unquoted marketable securities duty; and
duty on transfers of non-land business assets such as goodwill,
patents, trademarks and other intellectual property.
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.
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The income tax treatment of any property lease incentive will vary, depending on the nature of the inducement provided.
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