Transfer of land or business duty
Duty on the transfer of business assets or a declaration of trust over 'business assets' (other than land) will be abolished from 1 July 2016.
Transfer of land or business duty is a duty on the following transactions:
a sale or transfer of land, including improvements in NSW
a sale or transfer of business assets in NSW
a declaration of trust over dutiable property in NSW
Who pays the duty?
The purchaser or transferee is liable to pay the duty.
When am I liable for the duty?
Your liability for duty arises when the sale or transfer occurs. However, if the sale or transfer is affected by a written instrument (contract or agreement or transfer), liability arises when the instrument is first executed.
What if I do not have a written instrument?
If you do not have a written instrument that evidences the purchase or transfer of a business or property, you must submit a Statement of Dutiable Transaction not Effected by a Written Instrument form (OSD 046). The form must be submitted within three months after the liability arises.
If you or the seller are related or 'not acting in good faith', we will require a valuation from
A registered valuer for purchase/transfer of land
An independent accountant for purchase/transfer of business assets.
When is an instrument first executed?
An instrument is first executed when it is signed and sealed, or signed by any party to it.
However, acceptance of an offer contained in an instrument is taken to be first executed when the offer is accepted, that is, date of exchange.
Paying the transfer of land or business duty
When is the duty paid?
Duty must be paid within three months from the liability arising.
When purchasing property 'off the plan', the duty must be paid within three months from the date of:
completion of the agreement
the assignment of the whole or any part of the purchaser's interest under the agreement
the expiration of 12 months after the date of the agreement, whichever occurs first.
How do I pay the duty?
For a full list of payment options, see the pay your transfer of land or business duty page.
What if the sale or transfer agreement is rescinded or annulled?
If the sale or transfer agreement is rescinded or annulled, it is not liable for duty.
To apply for a refund, submit an Application for Reassessment and Refund: Cancelled Agreements for the Sale or Transfer of Dutiable Property (ODA 015) form.
Your application for a refund on an agreement must be made within:
five years of the initial assessment, or
12 months after the agreement is rescinded or annulled, whichever is the later.
The application form must be completed by each purchaser / transferee and lodged with the original stamped contract and transfer. A photocopy of the Deed of Rescission signed by both parties or letters from both parties confirming the agreement has been rescinded is also required.
Buying a number of properties
What if I am completing transactions on a number of separate properties?
If you are completing transactions relating to separate items of property, or separate parts of or interests in property they could be aggregated and treated as a single transaction.
For more information, see Revenue ruling DUT 036.
How is duty calculated?
Duty is calculated on the total dutiable value of the property subject to the transaction.
For more information, visit the calculating dutiable value page.
What are the current rates and thresholds?
The current rates and thresholds are outlined in the table below:
|Value of the property subject to the transaction||Rate of duty|
|$0 - $14,000||$1.25 for every $100 or part of the value|
|$14,001 - $30,000||$175 plus $1.50 for every $100, that the value exceeds $14,000|
|$30,001 - $80,000||$415 plus $1.75 for every $100, that the value exceeds $30,000|
|$80,001 - $300,000||$1,290 plus $3.50 for every $100, that the value exceeds $80,000|
|$300,001 - $1m||$8,990 plus $4.50 for every $100, that the value exceeds $300,000|
|over $1m||$40,490 plus $5.50 for every $100, that the value exceeds $1,000,000|
|Premium Property Duty: over $3m||$150,490 plus $7.00 for every $100, that the value exceeds $3,000,000.|
Premium property duty is only payable on residential land. For more information on, see the Premium Property Duty factsheet (OFS DUT11).
For more information on the assessment of duty over land and improvements, see Revenue ruling DUT 018.
What is client identification?
Client identification for individuals is evidence of their date of birth and for companies it is their ABN/ACN/ARBN number.
An original or certified copy of client identification is required for all conveyancing matters lodged for assessment.
We collect client identification information for all parties liable to or exempt from Transfer of land or business duty.
For more information, download Duties Client Identification factsheet.
Why do you collect client identification information?
There are four main drivers for collecting this information:
Our readiness for National Electronic Conveyancing System (NECS).
Transaction verification with Land and Property Information (LPI).
Better upfront compliance programs for property taxes and grants we administer (duties, land tax and First Home Owner Grant Scheme).
What is residential land?
Residential land includes:
land on which there is a single dwelling or flat, or where a single dwelling or flat is being constructed
a strata lot that is lawfully occupied as a separate dwelling or suitable for the purpose
a land use entitlement, if it confers an entitlement to occupy a building, or part of a building, as a separate dwelling
vacant land that is zoned or designated for residential or principally for residential purposes.