Collateral securities
Collateral securities
A collateral mortgage is chargeable with a minimum duty of $50.
In some circumstances a collateral mortgage will form part of a multi state mortgage package.
Collateral mortgages - anti avoidance measure (section 218BA)
Applies to collateral mortgages executed prior to 1 July 2009 only.
The provision allows a mortgage that is collateral to a mortgage, instrument of security or mortgage package that has been stamped in a jurisdiction where mortgage duty is reduced on or after 1 July 2006 to be assessed as if it were part of a mortgage package, with a cap on duty applying to prevent double duty.
For example
Advance of $20 million secured by property in WA dated 1 July 2006 (duty at half rate applies say $40,000) and mortgage over NSW property executed on 1 August 2006. Property is 40 per cent in WA and 60 per cent in NSW.
NSW duty payable as a package is on $12 million. Duty payable is $47,941.
As $40,000 duty has been paid in WA, NSW duty is reduced to $39,941.
