Transfer Duty

Transfer Duty is a general revenue tax imposed on all transfers, agreements to sell Real Estate and property purchases in Western Australia. The Buyer must ensure their contract is stamped PRIOR to settlement.

A contract becomes dutiable immediately after it has been signed (executed) by all parties and must be lodged within two months of the date of execution, unless the contract is a 'General Conditional Contract' in which case alternative lodgement periods are available.

Visit the Office of State Revenue's Tax Calculator to find out exactly how much duty you are liable for http://rol.osr.wa.gov.au/taxcal/

Clause 3.2 and 3.3 of the Joint Form of General Conditions stipulate that a Buyer must provide to the Seller a signed and stamped Transfer of Land document within a reasonable time prior to settlement - the Settlement Agents Supervisory Board has determined that 'a reasonable time' is at least five business days. Strict adherence to this recommendation will protect YOUR interests. How can we offer relief?

Only Vicki Philipoff Settlements offers such a wide range of convenient options for you to pay your Transfer Duty prior to settlement.

1. Utilize our same day settlement Transfer Duty Service
2. Utilize our 7 day settlement Transfer Duty Service
3. Forward our office a cheque
4. Transfer funds electronically to our Trust Account with your unique reference
5. Pay by credit card
6. Pay on line via our web site

Paying by credit card has been most popular with our clients who collect bonuses and frequent flyer points. Why not pay for your deposit, settlement shortfall or settlement fee with this method?

All contracts for the purchase of land must be lodged at the Department of Treasury and Finance for assessment within TWO months of execution.

Once assessed the Department will issue an account for the amount of duty payable which must be paid within ONE month otherwise a penalty will be incurred on top of the Duty.

1. if the contract is for the purchase of a commercial or residential property (whether it be developed or vacant land) and is subject to conditions such as a finance approval or the sale of another property, then you do NOT need to lodge the contract for assessment until one month of the condition of that contract has been satisfied. The contract must be lodged no later than 12 months of the date of execution however, unless it is a related party dealing.
2. Contracts for the purchase of broad acres which are conditional on the Buyer obtaining approval from the relevant authorities for development must be lodged within TWO months of acceptance date. These contracts are given 24 months to pay their Transfer Duty without incurring a penalty.
3. Contracts for the Purchase of Strata Dwellings (off-the-plan) that is to be constructed after the contract date must be lodged within TWO months of the contract date but will be given 24 months to pay their Transfer Duty without incurring a penalty.
4. Contracts for the Purchase of Farm Land and Mining Tenements must also be lodged within TWO months of acceptance but will be given 12 months to pay without penalty.

The key is to ascertain which category your contract comes under and apply these conditions to maximize the time available. For detailed and up to the minute information on the Office of State Revenue's requirements, please visit http://www.osr.wa.gov.au

For our full story on Critical Dates - please visit our May 2005 Newsletter

With all the talk of Transfer Duty Increases, decreases, exemptions, discounts and changes to the Act, we'd like to share something exciting with you - a way to transfer property for just $20.00 Transfer Duty!

There are a number of situations in which a transferee will only pay what is called a 'nominal' Transfer Duty fee, usually $20.00 or on some circumstances the duty may be FREE.

If your principle place of residence is in your name and you wish to transfer a half share of the property to someone you're legally married to, or your de-facto partner (this also applies to same sex couples) your Transfer Duty will be FREE.

Under the Stamp Act, a nominal rate of duty also applies to transfers between spouses or de facto partners upon the breakdown of the relationship. Only $20.00 Transfer Duty is payable where the parties have a sealed Family Consent order specifying a property transfer from both parties to one party.

Once you have a court order, we can apply to change the names from Joint Tenants and any Transfer Duty on the transfer is assessed at a nominal rate.

Another example of nominal duty ($20.00) being payable is if you are the beneficiary of a deceased estate.

If you are the beneficiary of a Trust, the Stamp Act provides for the assessment of nominal duty ($20.00) on the transfer of property by a trustee to a beneficiary, except where the trustee is a discretionary trustee or a unit trustee.

There are also certain situations where the Commissioner may exempt Transfer Duty from being payable if you are transferring a property to your superannuation fund.

Farming property also has a chance for a full or partial exemption from Transfer Duty on the transfer of farming property between family members or by a natural person to a discretionary trustee of a discretionary trust, subject to certain conditions.

There are also circumstances when you substitute a new purchaser of a property after the Offer has been accepted and before Settlement occurs. As long as they're considered to be "related party" you will not pay any additional stamp duty.

Each situation is unique, because of variances in certain situations. If you would like to know if your personal situation or a client's may qualify for a FREE or nominal rate of Transfer Duty, please contact one of our Conveyancing Specialists on 6311 4888 or email info at vickiphilipoff dot com.au.

For our full story on Nominal Transfer Duty - please visit our December 2004 Newsletter

A new ruling on the transfer of land using a nominee clause will dramatically affect the way Real Estate Agents word the sale contract. That's because an incorrectly worded nominee clause could result in your clients being liable for double the amount of Transfer Duty.

Revenue Ruling SD 36.0 has just been published by the Commissioner of State Revenue and will replace the Commissioner's Practice SD 1.3.

The purpose of this new ruling is to clarify the operation of the Stamp Act (1921) in the transfer of land, where a contract contains a nominee clause indicating that the purchaser named in the contract is acting for another person.

This ruling reflects a change in practice by the Commissioner in no longer accepting that a nominee relationship falls within the agency provisions provided in section 74(3) of the Act without supporting evidence.

As a consequence, buyers are urged not to use nominee or similar clauses which do not clearly indicate the existence of an agency relationship when entering into contracts on behalf of another person.

Listing the purchaser as "Sue Green and Nominee" for example, will no longer satisfy the Commissioner that an agency relationship exists between the purchaser named in the contract and the nominee.

As a result, the transfer of the property from Sue Green to the nominee will be chargeable with ad valorem conveyance duty as a separate and distinct transaction.

That is, unless there is documentation dated prior to the sale contract which confirms that the purchaser was appointed as agent to purchase the property for the transferee.

The new ruling applies to a transfer instrument subsequent to a contract or agreement, where the contract is executed on or after 1 October 2007.

For full details about all the changes to the use of nominee clauses, please contact one of our Conveyancing Specialists or info@vickiphilipoff.com.au

For our full story on Nominee Clauses - please visit our August 2007 newsletter