Changes to NSW Duty from 1 July 2016

As the end of the financial year draws so near, this is a reminder regarding the pending changes to NSW Duty, which come into effect from 1 July 2016, and specifically, how they will impact SMSF limited recourse borrowing arrangements.

On and from 1 July 2016 the following duties will be abolished:

  • duty on mortgages;
  • duty on further advances under pre-existing mortgages;
  • duty on a caveat protecting an interest under an unregistered mortgage;
  • duty on transfer of business assets being goodwill, intellectual property or statutory licence;
  • duty on transfer of shares in a NSW-registered company;
  • duty on transfer of units in a unit trust registered in NSW;
  • duty on transfer of units in a unit trust registered outside Australia where the unit trust scheme manager is located in NSW.

 

Duty is still payable in respect of the following:

  • the transfer of land or an interest in land;
  • the transfer of NSW goods (excluding stock in trade) if the transfer is the subject of an arrangement that includes a dutiable transaction over other dutiable property such as land;
  • the transfer of shares or units in ‘landholder’ entities (e.g. an entity holding land worth $2 million or more);
  • the transfer of shares or units in a company title dwelling or land use entitlement.