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.
Background
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 1);
- stamp duty in respect of investment housing loans for individuals effective from 01 July 2008 (Phase 2); and
- 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 on mortgages.
Current situation
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.
Other changes
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.
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