Last year we
reported on the introduction of a bill into the New South Wales
Parliament which would amend the Duties Act 1997 (NSW) (Act) to
impose transfer duty on nominations and novations involving call
options over New South Wales land.
That bill was recently passed by the New South Wales Parliament
and is now law. However, during its passage through Parliament, all
substantive stamp duty changes were removed.
Last week a new bill was introduced into the New South Wales
Parliament which reintroduces most of the significant stamp duty
changes that had been proposed by the previous bill.
STAMP DUTY ON CALL OPTION NOMINATIONS AND NOVATIONS
The State Revenue Legislation Further Amendment Bill
2014 (Bill) will amend the Act to deem a
transfer of an option to purchase land to occur if, for valuable
another person is nominated to exercise the option; or
another person is nominated as purchaser or transferee of the
land the subject of the option on or before the exercise of the
the option holder agrees to a novation of the option, or
otherwise relinquishes rights under the option, so that another
person obtains a right to exercise the option or to purchase the
In addition, the Act will be amended so that the consideration
for the transfer of land pursuant to the exercise of an option will
be taken to include the consideration provided by the transferee
for the option (whether for its grant, transfer, exercise or
otherwise). However, the duty chargeable on the transfer of land
will be reduced by the amount of any duty paid by the transferee on
the transfer of the option to the transferee.
Application of the amendments
These amendments will commence on the date of Royal Assent. The
amendments will not apply to options granted or otherwise created
before the commencement date.
STAMP DUTY ON NOVATIONS OF AGREEMENTS FOR LEASE
The Bill also includes a proposed new amendment relating to
agreements for lease. Specifically, the novation of an agreement
for the lease of land in New South Wales will be deemed to be a
transfer of dutiable property.
Application of the amendment
This amendment will commence on the date of Royal Assent, and
will only apply to a novation of an agreement for lease that occurs
on or after the commencement date.
OTHER STAMP DUTY CHANGES
The Bill also contains amendments relating to fixed duty payable
on certain transactions involving self managed superannuation
funds, exemptions from registration duty, and clarifying that a
change in partnership arrangements is a dutiable transaction.
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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