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What happens when duty is overdue

Learn about the legal consequences of overdue transfer duty, surcharge purchaser duty and landholder duty in NSW. See the options available to pay your debt.

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You must pay transfer duty, surcharge purchaser duty or landholder duty by the due date.

Please note, property settlements cannot proceed until duty is paid in full.

If you are using a solicitor or conveyancer for your transaction, they will usually arrange payment on your behalf.

When your duty is overdue, it is considered by Revenue NSW to be a tax debt.

If the debt remains unpaid, we may take legal action to recover it.

Payment options for overdue duty

If you believe you will not be able to pay in full by the due date, we encourage you, or your legal representative, to contact us as soon as possible to discuss your options.

Call the Duties Debt Team on 1300 368 710 or +61 2 3814 0266 if you are overseas. Staff are available Monday to Friday, 8.30am to 5.00pm AEST (excluding public holidays).

Pay in full

You can pay overdue duties in full at any time.

Revenue NSW charges daily interest on overdue duties. Call the Duties Debt Team to confirm the exact amount owing.

See the payment methods available.

Debt instalment plan

Call the Duties Debt Team to set up a debt instalment plan.

You will need to make each instalment by the dates agreed in your plan, using one of the payment methods.

We can also set up SMS reminders to help you stay on track.

Please note, we will continue to charge daily interest on the outstanding debt until it is fully paid.

Duties Interest Calculator

Use the Duties Interest Calculator to estimate how much interest you owe on your overdue duty.

Calculate your duties interest
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Debt recovery timeline

This timeline shows the steps Revenue NSW will take to remind you of your overdue duties.

The process ends when we receive payment in full, including any interest or penalties. The days in the timeline are business days.

1

Duties Notice of Assessment

Revenue NSW sends you or your legal representative a Duties Notice of Assessment (Notice of Assessment).

A Notice of Assessment is a document from Revenue NSW that shows how much duty you owe on a transaction.

You must pay duty by the earliest of:

  • the settlement date if your transaction involves a property transfer, or
  • within 3 months of:
    • signing the contract for sale
    • the date you agree to transfer where there is no contract (the date on the transfer form), or
    • the date of the deed.

You may be eligible for a payment deferral if you have purchased an off the plan property.

2

Duty is overdue

Duty becomes overdue if you have not paid in full by the due date.

If your transaction involves a property transfer, you will not be able to proceed with settlement.

NSW Land Registry Services will not register the transfer until all duty has been paid, including any interest or penalties. This means legal ownership cannot be transferred to you.

Revenue NSW will try to contact you or your legal representative to request payment.

If payment remains outstanding, you will be referred to the Duties Debt Team.

They will then contact you to discuss your options, such as setting up a debt instalment plan.

Interest charges

You will be charged interest on the overdue duty. Interest is calculated daily on the overdue amount at a variable interest rate.

Read more about interest and penalty tax.

3

Final Notice

We will cancel any debt instalment plan that has been set up if:

  • you miss two consecutive payments, and
  • we are unable to contact you.

You will receive a Final Notice requesting payment in full within 14 days.

This notice will include interest which increases daily, backdated to the due date.

4

Legal Notice

If your debt remains unpaid after the due date of your Final Notice, we will send you a Notice of Intended Legal Action.

This notice requests payment within 14 days from the date of issue.

5

Legal debt recovery action

If your Notice of Intended Legal Action remains unpaid by the due date, we will commence legal action to recover the unpaid duty.

Financial hardship

Revenue NSW is dedicated to finding ways to help you settle your debt.

If you are going through financial difficulties, we will take the time to understand your circumstances and work to navigate payment options best suited to your personal situation.

The Revenue NSW Hardship Policy explains the service standards you can expect from us and how we make decisions in times of hardship in accordance with our Customer Commitments.

Hardship Review Board

The Hardship Review Board (the Board) is an independent body that can review decisions Revenue NSW has made about fines, fees, taxes, duties, and debt recovery actions.

If you are an individual in genuine hardship and having difficulty paying, the Board may be able to help.

View the Board’s taxes and duties review process.

Remission of interest

Revenue NSW has formal guidelines that explain when interest on duties can be reduced or waived.

Interest may be remitted in some situations.

TAA 001: Remission of Interest Guidelines outlines the strict conditions that must be met for interest to be remitted.

Requests for interest remission

You must submit a written request explaining why the duty was not paid on time or why the assessment was lodged late.

Your request must include supporting evidence to show the circumstances that caused the delay.

Requests can be submitted by your legal representative, or you can lodge them directly with Revenue NSW by emailing taxdebt@revenue.nsw.gov.au.

Enforcement actions

There are consequences if you do not pay your duties.

Overdue transfer duty, surcharge purchaser duty and landholder duty can be recovered as debt by Revenue NSW. See section 44 of the Taxation Administration Act 1996.

We will decide which action to take based on the circumstances of the individual, trust or corporation.

Examination notice

We may send you a formal written notice requiring you to provide detailed information about your financial situation. See section 72 of the Taxation Administration Act 1996.

You may be asked to provide documents, such as:

  • bank statements
  • income tax returns
  • employment records
  • asset ownership documents, or
  • business financial records.

Failing to comply with an examination notice is a criminal offence. Fines apply.

Garnishee your bank account

We can issue an order to your bank to take money directly from your account to pay the debt.

An additional $65 is added for this action.

Garnishee your wages

We can order your employer to deduct money from your pay and send it to us.

Your employer must comply immediately.

An additional $65 is added for this action.

Seize property

A Sheriff’s officer can enter your home or workplace and take your belongings.

These items will be sold at auction to pay your debt.

You will receive 7 days’ notice before items are removed.

An additional $65 is added for this action.

Place a charge on land

If you own property in NSW, and have an outstanding tax liability, we can register a charge on your property title.

This means you cannot sell your property or refinance without contacting us first to resolve your tax liability.

Creditors statutory demand

We may send a demand letter to a registered company.

If we do not receive a response, payment, or payment arrangement within 21 days, we will start wind up proceedings in court.

When winding up the company, a liquidator is appointed to manage the company’s assets and financials.

We may also send a notice under section 46 of Taxation Administration Act 1996 to any third party that holds money on behalf of the landowner or entity.

This notice demands the third party pay the debt.

Director’s Notice

We may send this notice to a current or previous company director relevant to the debt period.

It is issued under section 47B of the Taxation Administration Act 1996.

This notice may make a company director and the company jointly liable for the debt.

If the director does not respond or comply within the 21 days, Revenue NSW will send a:

  • section 46 notice to a third party, or
  • a claim.

Related information

Contact us

Call the Duties Debt Team on 1300 368 710 or +61 2 3814 0266 if you are overseas.

Staff are available Monday to Friday, 8.30am to 5.00pm AEST (excluding public holidays).