Real property amendment (Torrrens Assurance Levy Repeal) Bill 2011
The NSW State Parliament has passed legislation to abolish the Torrens Assurance Levy which was an additional tax on property purchases introduced by the former Government.
The above Bill has been passed by both house of NSW Parliament and has received royal assent. The Bill abolishes the Torrens Assurance Levy which was created by the former Government and applied to Contracts for Sale of Land entered into after 1 July 2010.
The levy applied where the purchase price was above $500,000.00.
For transfers where the purchase price is above $500,000.00 but less than $1,000,000.00 the levy was calculated as $4.00 plus 0.2% of the amount by which the purchase price exceeds $500,000.00.
For properties purchased for $1,000,000.00 or more the levy was $1,004.00 plus 0.25% of the amount by which the purchase price exceeds $1,000,000.00.
Although the Act abolishes the levy, the levy is still payable as if the provisions had not been repealed in respect of a dealing that is:
a. A Transfer executed to give effect to a Contract for the Sale of Land entered into on or after 1 July 2010 but before 1 July 2011; and
b. Lodged with the Registrar General after 1 July 2011.
Where you are purchasing a property for over $500,000 with settlement due after 1 July 2011, contact us and we can suggest ways to structure the purchase.
Joe Polkinghorne
Special Counsel
T: +61 2 9390 8335