Transitional provision - mortgage for definite and limited sum first executed before 1 July 2009
If the amount of advances recoverable under a mortgage first executed before 1 July 2009 is a definite and limited sum, the amount secured by the mortgage is taken, for the purpose of determining whether the mortgage becomes liable to additional duty on the making of an advance or further advance on or after 1 July 2009, and determining the amount of additional duty chargeable, to be the total of the following:
a) the definite and limited sum,
b) the amount of any advance or further advance in excess of that definite and limited sum.
For example
NSW mortgage dated 1 October 08. Advance $2m. Limited to $1.5m. Duty of $5, 941 paid to secure $1.5m.
Further advance of $1m made on or after 1 July 09.
Duty payable on the limited sum plus the advance made on or after 1 July 09.
Duty payable on $2.5m = $9,941
Less duty paid of $5,941
Duty payable = $4,000
