Multistate
Property in different jurisdictions
- The items listed below are not links. They indicate where you are in this process.
Property in different jurisdictions
Property location
Dutiable proportion
Further advances
No apportionment
Mortgage duty is being abolished in three stages:
1 September 2007 Duty is not chargeable on advances made to a natural person/s on or after this date in connection with owner occupied housing.
1 July 2008 Duty is not chargeable on advances made to a natural person/s on or after this date for investment housing.
1 July 2012 Mortgage duty is abolished. NSW Mortgage duty will not be chargeable on advances made on or after 1 July 2012.
Where:
amounts are secured by a single mortgage, for example a company Deed of Charge, and
the property secured is located in and out of NSW,
the mortgage is only liable in NSW on a proportion of the amount secured at the liability date. This is known as the dutiable proportion.
Similarly, where amounts are secured by two or more instruments of security:
where at least one of the instruments is a mortgage securing property in NSW and the other instrument/s secure property outside NSW, and
the mortgage and other instruments secure or partly secure the same money
duty will be payable on the NSW mortgage on a dutiable proportion of the amount secured at the liability date.
The amount secured by a mortgage is the amount of any advances made under an agreement, understanding or arrangement for which the mortgage is security (even if the amount of advances made exceeds the amount of advances recoverable under the mortgage).
From 1 July 2009 the Chief Commissioner will at the liability date for a mortgage, assess the mortgage, together with any other instruments of security, as a mortgage package if the mortgage and other instruments secure or partly secure the same money. This will apply regardless of when the other instruments of security were first executed.
Duty on a mortgage package is to be assessed as if the instruments comprising the mortgage package, to the extent that they secure the same moneys, were a single mortgage.
The amount of duty chargeable on the mortgage at a liability date is to be reduced by the amount of ad valorem duty (if any) for which the mortgage has already been stamped.
No refund of duty is payable because the amount of ad valorem duty for which the mortgage has already been duly stamped exceeds the duty chargeable on the amount secured by the mortgage at the liability date.
One of the mortgages in the mortgage package is to be stamped, or upstamped, with any ad valorem duty paid under the Duties Act for the mortgage package and each other mortgage in the mortgage package is to be stamped as a collateral mortgage.
If any of the mortgages in the mortgage package partly secures other moneys, that mortgage is to continue to be treated as a separate mortgage in respect of the other moneys that it secures and may be stamped for the duty chargeable in respect of those other moneys.
Liability dates
1. A mortgage becomes liable to duty on the date of its first execution
2. A mortgage becomes liable to additional duty on the making of an advance or further advance if, as a result of that advance or further advance, the amount secured by the mortgage exceeds the amount secured by the mortgage at the time a liability to duty last arose under the Duties Act.
3. An instrument of security that does not affect property in New South Wales at the date of first execution but that affects land in New South Wales at any time within 12 months after that date becomes liable to duty as a mortgage on the date on which it first affects the land, unless it is duly stamped under a corresponding Act or is exempt from duty.
3a. An instrument of security that does not affect property in New South Wales at the date of first execution but that, at any time after execution, affects relevant property in New South Wales identified in the instrument or identified under an arrangement in place when the instrument was first executed, becomes liable to duty on the date it first affects that property, unless it is duly stamped under a corresponding Act or is exempt from duty.
4. An instrument that, on the deposit of documents of title to property in New South Wales or instruments creating a charge on property in New South Wales, becomes a mortgage or evidences the terms of a mortgage becomes liable to duty as a mortgage on the deposit of the documents or instruments.
A reference in paragraph (3) to land does not include a reference to an interest in land that is held by way of security.
For the purposes of these provisions, relevant property means any property, excluding land and the following kinds of property:
a) a marketable security that is quoted on the Australian Stock Exchange,
b) an interest in a marketable security referred to in paragraph (a), or an interest in a marketable security if the interest is quoted on the Australian Stock Exchange,
c) an interest in a unit trust scheme, being a unit trust scheme in respect of which units in the scheme have been issued to the public and 50 or more persons are beneficially entitled to units in the scheme,
d) property the Chief Commissioner is satisfied is of a similar nature to property referred to in paragraph (a), (b) or (c).
To find out whether your mortgage is liable to duty on the total amounts secured or on a dutiable proportion only, click on the START button below and answer the following questions.
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