Exemptions and concessions
Abolition of lease duty
Duty was abolished on lease instruments first executed on or after 1 January 2008. The abolition of duty on leases does not affect any obligation to pay duty in respect of a lease instrument and a variation of a lease instrument executed before 1 January 2008
Stamping is not required unless the document falls under one of the following categories:
a) A lease or agreement for lease in respect of which a premium is paid or agreed to be paid (not including any premium paid or payable for a lease of premises in a retirement village within the meaning of section 5 of the Retirement Villages Act 1999)
b) A lease entered into pursuant to an option if an amount is paid or payable for the grant of the option
c) A transfer or assignment of lease
d) A surrender of lease
Such transactions remain subject to transfer duty.
When is a lease exempt from duty?
a lease for a term of less than one year whose total cost is not more than $20 000
a lease for a term of one year or more whose total cost is not more than $20 000 per year.
Complete the OSR form ODA025 required to apply for one of the above exemptions.
Note: sections 179(3) and (4) of the Duties Act provide for the aggregation of leases that have been split to bring them under the threshold exemption of a total cost of not more than $20,000 per annum.
a lease of premises to the Home Care Service of NSW
a lease executed in accordance with Part V of the Commonwealth National Health Act 1953
a residential lease where the term of the lease, including any option does not exceed five years
a lease of a moveable dwelling site used, or intended to be used, as the principal place of residence of the lessee for a term of not more than 5 years
A lease granted by or on behalf of a corporation, society or institution if:
the purpose of the lease is to grant a retired person or a disabled person the right to occupy residential accommodation, and
the lessor has not granted the lease for the purpose of profit.
