In this article, we will:
- provide a quick refresher on how and when transfer duty and
call option assignment duty is assessed under the Duties
Act 1997 (NSW) (Duties Act); and
- provide an update on the proposed changes on transfer duty
after announcement of the 2021-2022 State Budget.
PART 1 – A SUMMARY ON THE EXISTING
FRAMEWORK
When does the payment liability occur?
Liability of transfer duty payment kicks in immediately on
transfer of a dutiable property. In land contracts, this liability
arises once the parties enter into a contract for sale. In land
option transactions, a transfer of dutiable property is taken to
have occurred when the option is exercised by the party entitled to
the option and a binding contract for sale is created
simultaneously.
