What Duties transactions will be affected by the Commonwealth Reporting Requirements?
All agreements for sale of land all transfers for real property
What new information does a purchaser need to provide from 1 July 2016?
For a comprehensive list of all information that a purchaser needs to provide from 1 July 2016 please visit the Commonwealth reporting requirements page.
For foreign purchasers (Companies and Individuals) what new information will be required?
To view a comprehensive list of all information required, please visit the Commonwealth reporting requirements page.
Why are you collecting this information?
The Office of State Revenue is required to collect and report transfers of freehold or leasehold interests in real property situated in New South Wales to the Commissioner of Taxation from 1 July 2016.
How will you protect the purchasers information?
Tax officers are prohibited from disclosing tax information except where authorised under the Taxation Administration Act 1996.
What will happen if I do not supply the requested information?
OSR will not be able to assess your document/s without the required information.
A list of the required information can be found on the Commonwealth reporting requirements page.
Will there be penalties if the information is not provided?
Penalties may be imposed under the Taxation Administration Act 1996.
Will I be able to have my documents processed in an OSR approved settlement room without all the documents?
Your document will not be stamped until the required information is provided. A list of the required information can be found on the Commonwealth reporting requirements page.
What is the Client Enquiry ID and where do I find it?
This is the Enquiry ID shown on the top right hand corner of the Land Tax Clearance Certificate provided to you by the vendor.
Do I need to include the client enquiry ID as part of my duties assessment?
What is the Foreign Investment Review Board (FIRB) application number and where do I find it?
An overseas entity needs to apply for FIRB approval. The FIRB application number can be obtained from FIRB upon your application.
I am living overseas are scanned copies ok?
Yes, scanned copies are ok, as long as they are certified prior to scanning.
Do you require a translated copy of my international ID documents?
Yes, we will require translated copies in English.
What if I have dual citizenship?
If you have dual citizenship you will not be required to report your foreign citizenship.
Is the foreign land register a public register?
The national land register will be administered by ATO and will not be a public register
What gives you authority to collect this information?
Legislative changes to agreements for sale of land and transfers of real property lodged on or after 1 July 2016 will require the additional purchasers/transferee information.
Is this a breach of privacy?
No, the amended Taxation Administration Act allows the collection and disclosure of information.
The information is proposed to be used by the ATO for the purpose of information-matching and ensuring compliance with the taxation laws of the Commonwealth. In addition, the information (which will include information about the nationality and residency of vendors and purchasers) is to be used for the purposes of a National Register of Foreign Ownership of Land Titles to be administered by the ATO.
When do you start collecting information?
1 July 2016
Who can certify documents?
A Justice of the Peace or notary public
What is the new process for a Land Tax Certificates?
If the sale of land is not occurring under contract there is no change to the process.
Where a transfer of land is to occur under contract a vendor will now be required to apply for a Land Tax Clearance Certificate with OSR as per the requirements of the Conveyancing (Sale of Land) Regulation 2010.
The vendor should apply for a certificate through one of our client service providers. The certificate will be processed and returned to the client via their CSP. Where the certificate shows a charge two certificates will now be provided – a vendor and purchaser copy.
A copy must be provided to the purchaser within the timeframes specified in the Conveyancing (Sale of Land) Regulation 2010, which is generally 14 days prior to completion or at exchange, whichever is the latter.
The vendor certificate will require additional information. It is not necessary to provide a clear certificate to the purchaser at this point, however the vendor should allow at least 10 days for a clearance to be arranged with OSR.
In order to gain a clearance the vendor should follow the instructions shown on the front of the certificate or if no instructions are shown, contact our call centre on 1300 139 816.
A vendor/purchaser can confirm the validity of the certificate or update the certificate using our online services.
When do the changes to Land Tax Clearance Certificates apply?
A vendor must apply for a Land Tax Clearance Certificate and provide it to a purchaser for any contract entered into on or after 1 July 2016.
Why does the vendor now have to apply for a Land Tax Clearance Certificate?
Changes to the Conveyancing (Sale of Land) Regulation 2010 requires the vendor under a contract of sale of land to provide a current land tax certificate to the purchaser.
I have an unclear Land Tax Clearance Certificate what do I do?
If you are the purchaser you will need to refer the certificate to the vendor to arrange clearance.
If you are a vendor you will need to follow the instructions on the front of the certificate. If there are no instructions on the front of the certificate you will need to contact our call centre on 1300 139 816
I do not have a contract for sale, who applies for the certificate? The vendor or purchaser?
The changes to the Conveyancing (Sale of Land) Regulation 2010 do not require the transferor to provide the certificate to a transferee where there is no contract. The certificate may be applied for by either party to the transaction but will continue to only protect the purchaser.
My certificate says to pay the assessment but the assessment is incorrect, what do I do?
The vendor will need to go online using the Client ID and Correspondence ID shown on the assessment notice and lodge a variation return. If the matter is an urgent settlement please contact our call centre on 1300 139 816 to advise.
Please allow 10 working days for any urgent processing.
When do I have to serve the certificate?
For contracts completing in 14 days or less, the vendor must provide a certificate to the purchaser on the day of exchange.
For contracts completing in more than 14 days, the vendor must provide a certificate to the purchaser at least 14 days prior to completion.
For contracts with no date of completion agreed, the vendor must provide the purchaser with a certificate at least 14 days prior to completion
I entered into a contact in June but am not completing/settling until July, how do the changes impact me?
The changes to certificates only impact vendors who have entered into a contract on or after 1 July 2016.
I’m a purchaser do I still need to apply for a certificate?
A vendor is required to provide a certificate where a sale occurs under contract. Where the sale does not occur under contract a purchaser may still wish to apply.
A vendor is required to provide a current certificate. A purchaser may still want to apply for a certificate where completion occurs after the taxing date.
Does a Land Tax Clearance Certificate provided by a vendor still protect the purchaser?
Land Tax Clearance Certificates continue to protect the purchaser. The provisions of S47 LTMA still applies.
I’m a purchaser, how do I know the certificate is valid?
You can use our online services to check the certificate using the Enquiry ID and Correspondence ID on the purchasers copy that the vendor has provided. You can also update the certificate using this service if payment is made after the certificate has been provided.
Who will the changes to certificates affect?
Vendors entering into a contract on or after 1 July 2016 will need to apply for the land tax certificates. Mortgagees or transferors of land without a contract will not be affected.
What is a current Land Tax Clearance Certificate?
The certificate must be requested for the year in which the contract is to be completed OR be no more than three months old.
We are completing in the new year, how can I ensure that I provide the purchaser with a current Land Tax Clearance Certificate?
A vendor must provide the purchaser with a current certificate. This is a certificate showing any charge on the land up to and including the tax year in which settlement will occur OR a certificate that is not more than 3 months old.
When applying for a certificate near a taxing date a vendor can request that it includes any charge up to and including the subsequent year.
If settlement is delayed or the charge is not shown for the subsequent year a purchaser may still apply for their own certificate
How will I know if the vendor has paid?
You can use our online services to validate the certificate using the Enquiry ID and Correspondence ID on the purchasers copy that the vendor has given you. You can also update the certificate using this service if payment is made after the certificate has been provided.
When should I apply for my certificate?
You should apply for a certificate as early as possible in the conveyancing process. If you are required to apply for a certificate as a vendor you must ensure that this is done early enough to ensure the certificate can be provided to the purchaser within the required timeframes.
The purchaser has applied for a certificate, will I still need to?
If the sale is part of an Agreement for Sale of Land the vendor must apply for a certificate regardless of whether the purchaser has applied.
What does ‘allowing sufficient time for the payment to be made’ mean?
Payments made to us through a financial institution, Australia Post or by credit card are generally processed overnight.
I’m a mortgagee in possession – what information do I need to provide?
A mortgagee in possession should request a vendor certificate when selling land. The details of the owner of the land (the mortgagor) should be entered unless the mortgagee is on title.
Where a future address is not known the current address should be entered. If no address is available the property address should be entered.
I’m an executor of an estate – what information do I need to provide?
An executor when selling land should request a vendor certificate. The details of the executor should be entered.
I do not know my clients future address, what should I enter?
Where a future address is not known the current address of the owner should be entered.
I do not know my clients future contact number, what should I enter?
Wherever possible a future contact no should be entered or a mobile number. If one is not known enter the existing phone number for the contact.