amounts are secured by a single mortgage, for example a company Deed of Charge, and
the property secured is located both in and out of NSW,
the mortgage is only liable in NSW on a proportion of the advance. This is known as the dutiable proportion.
Similarly, where amounts are secured by two or more instruments of security, where at least one of the instruments is a mortgage securing property in NSW and the other instrument/s secure property outside NSW, duty will be payable on the NSW mortgage - but again, only on a dutiable proportion of the advance.
In the case of a further advance, a mortgage package includes an instrument of security executed after the initial liability date for a mortgage package that secures or partly secures the same money as the mortgage package.
It does not matter when the other instruments of security were first executed.
Dutiable proportion is to be calculated using the following formula*:
DP is the dutiable proportion.
AS is the amount secured by the mortgage or mortgage package.
V is the value of all NSW property affected by the mortgage/s.
T is the total value of all property affected by the mortgage/s.
*This formula applies to advances made on or after 1 July 2006 only. For advances made prior to this date, please contact us for more information.