All land transfers in New South Wales will be subject to an ad valorem Land Transfer Charge from 1 July 2010, following an announcement by the NSW Government and the partial assent of the State Revenue Legislation Amendment Bill 2010.
The Land Transfer Charge will be levied as an ad valorem tax on the purchaser (based on the purchase price paid by a purchaser) and payable at the time a transfer document is lodged for registration with Land & Property Information (a division of the Land & Property Management Authority, previously known as Department of Lands).
When will the Land Transfer Charge commence?
The Land Transfer Charge will apply to all transfers of land lodged for registration with Land & Property Information on or after 1 July 2010.
Who does the Land Transfer Charge apply to and does it replace stamp duty?
The Land Transfer Charge will apply to residential and commercial properties purchased and will be payable by the purchaser in addition to existing stamp duty obligations.
However, the Land Transfer Charge will not apply to transfers that relate to a Contract for Sale or other agreement entered into before 1 July 2010 which are lodged after 1 July 2010 (or the date of commencement of the amendments to the Real Property Act 1900, whichever is later).
The rates for the Land Transfer Charge will be:
Land Transfer Charge
Less than $500,000
The standard flat fee applies
(currently $190, but increasing to $194 on 1 July 2010)
Greater than $500,000 but
less than $1million
$4.00 (Torrens assurance levy) plus
0.2% of the purchase price over $500,000
$1,004 plus 0.25% of the purchase price over $1 million
Note: All levies are to be rounded down to the nearest dollar.