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Frequent questions

Transfer of land or business duty

What is a partition?

A partition occurs when property comprised of land in NSW that is held by persons jointly, as joint tenants or tenants in common, is transferred or agreed to be transferred to one or more of those persons.

Is GST payable included in the value?

GST payable by the transferee is included when determining the value.

If the contract does not state the consideration or purchase price is GST inclusive, submit a Declaration to be used for contracts for sale of land containing a special condition relating to GST (ODA 017) form.

How much duty is charged on a transfer made in conformity to an agreement?

Duty of $10 is charged on a transfer of property made in conformity with an agreement for the sale or transfer of the property on which full duty has been paid.

How is duty calculated on a transfer not made in conformity to the agreement?

If the transfer of property is not made in conformity with an agreement for the sale or transfer, the transfer is liable to the general rate of duty. However, duty of $10 is payable if the transfer meets all of the following criteria:

  • the duty on the agreement has been paid

  • the transfer would be in conformity with the agreement if the transferee was the purchaser

  • the transfer occurs at the same time as, or as close to, the completion or settlement of the agreement

  • at the time the agreement was entered into and at the settlement of the agreement the purchaser and the transferee are related persons or if the purchaser is a trustee, the transferee and the beneficiary are related persons.

Note: A statutory declaration must be completed stating:

  • the relationship

  • any documentary evidence confirming this relationship existed at the exchange of contracts and will exist at settlement

  • the contract has not yet settled.

How is duty calculated on a transfer involving multiple instruments?

If a transaction is affected by more than one instrument, one instrument will be stamped with the duty payable on the transaction and each other instrument is liable for duty of $50, if first executed on or after 1 January 2009.

What is a land use entitlement?

Land use entitlement is an entitlement to occupy land within NSW conferred through a transfer or issue of shares in a company or units in a trust scheme, or a combination of a shareholding or ownership of units together with a lease or licence.

How is duty calculated on a land use entitlement?

A sale or transfer of a land use entitlement is liable for duty at the general transfer rate.

Duty is also charged at the general rate if you acquire a land use entitlement by an allotment of shares or issues of units. If you acquire land use entitlements, submit an Acquisition Statement: Acquisitions of Land Use Entitlements by Allotment of Shares or Issue of Units (OSD049) form.

Last updated: 11 November 2016