Business advice
and accounting

Our purpose is to help you on your journey as you grow. Learn more about our history, partners and purpose.

Our purpose is to help you on your journey as you grow. Learn more about our history, partners and purpose.

Your partners for Business Service and Advisory, Taxation, Audit, Fraud and Risk.

Whatever your business, industry or family office, from local or international institutions we bring extensive expertise.

We're one team with a purpose and passion for what we do. Learn about our culture and career opportunities available to you.

Uncovering insights, trends and inspiration to help business grow in an ever-changing world.

We are always looking for ways to engage and give back to our community.

Telephone: +612 9283 1666
Email: admin@esvgroup.com.au

Level 13, 68 York Street,
Sydney NSW 2000

Why us

Our purpose is to help you on your journey as you grow. Learn more about our history, partners and purpose.

What we do

Your partners for Business Service and Advisory, Taxation, Audit, Fraud and Risk.

Who do we help

Whatever your business, industry or family office, from local or international institutions we bring extensive expertise.

Work with us

We're one team with a purpose and passion for what we do. Learn about our culture and career opportunities available to you.

What we think

Uncovering insights, trends and inspiration to help business grow in an ever-changing world.

Working to give back

We are always looking for ways to engage and give back to our community.

Contact us

Telephone: +612 9283 1666
Email: admin@esvgroup.com.au

Level 13, 68 York Street,
Sydney NSW 2000

NSW Stamp Duty and Land Tax changes

7 July 2022

by David Prichard and Georgia Bell

A number of amendments have been made to the NSW Duties Act and Land Tax Act which will have significant ripple effects. The changes may impact how commercial deals are structured as well as whether individuals have a Land Tax surcharge liability on their home.  So, what has changed?

Duties Act

Under the former Duties Act, duty was chargeable on certain transactions of dutiable property (think the sale of land), however, the changes enacted in May now mean that duty can be levied on a transaction that “results in a change in beneficial ownership of dutiable property”.  In other words, the scope of transactions on which duty is payable has expanded and importantly, there does not need to be a change in ownership for duty to be payable.

Under the new law, the following will be dutiable:

  • the granting of an option over dutiable property with the grant fee being dutiable;
  • the transfer of options with duty on the purchase price plus the nomination novation fee;
  • the transfer of put and call options over dutiable assets with duty implications arising for the nominator and the nominate.

In addition to the above, the changes impact the acknowledgement of a trust.  Historically this was not subject to duty, however, duty is now imposed on the making of a statement that purports to be a declaration of trust over dutiable property. The person making the statement will be liable for duty, at the time the statement is made. This means that care must be taken when drafting documents to ensure no unintended duty on liability arises.

Land Act

Changes have been enacted in relation to the principal place of residence (PPR) exemption for permanent residents.  The rules have been tightened such that to obtain the PPR exemption an individual must “use and occupy” the residence as their PPR for a continuous period of 200 days in the land tax year.  The amendments now require that permanent residents be physically in Australia for the 200 days (except in limited circumstances).

Permanent residents should take care to ensure that they meet the requirements.  One should note that revenue authorities have access to data from the Department of Immigration and are matching this to ownership records to determine whether the 200-day test is met.

If you have any questions regarding these changes and how it may affect your tax position, please reach out to your ESV Engagement Partner.