It is often a misconception that the liability for transfer duty
only arises once an agreement for dutiable property, such as a
contract for the sale and purchase of land, becomes
unconditional.
Under the Duties Act 2001
("Act") transfer duty is imposed on an
agreement for dutiable property, whether conditional or not. In
fact, the liability for transfer duty arises as soon as an
agreement is made and the liability to pay transfer duty to the
Commissioner of State Revenue, subject to some limited extension
exceptions, is within 30 days after the liability arises (ie the
contract date).
Without the appropriate drafting in the agreement, the liability
timeframes under the Act can lead to unpaid interest tax accruing
on overdue transfer duty fairly quickly. Therefore, as the
liability for transfer duty and the payment of that liability under
the Act often occurs prior to settlement, the Act operates to
exempt certain agreements that are cancelled and also provides
