Hi ! I was just wondering when stamp duty should be paid for Off the Plan purchases ? I thought that one could pay for Stamp Duty after Settlement & inspection of property.
I am currently buying a property via a trust structure which hasn’t been completed yet and the OSR wants the stamp duty now.
The only thing I can think of is the Duties Act 1997 Sec 49A: Where duty has to be paid within 3 months of the agreement. I will be talking to a solicitor to clarify this information but I was wondering if anyone out there knows why I have to pay in advance ?
Because the agreement was made in advance.
Robert Bou-Hamdan
Mortgage Adviserwith OTP it is likely you can get an extension for payment. it certainly won’t be after settlement though and the stamps office won’t care if you have inspected it or not.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
It depends on which state you are in. In Victoria I beleive it is payable at settlement. In NSW it is within 3 months of signing a contract (expect maybe for land?? I purchased land off the plan and did not pay it until settlement).
If you chose not to pay it, interest will accrue at around 13%pa. So it won’t cost you too much to delay it.
Terryw
Discover Home Loans
North Sydney
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Terry,
In VIC there is also the provision to pay stamp duty 3 months after settlement.
The Wizard, in which state is the property? Each state has fairly different legislation regarding OTP purchases and payment of stamp duty.
Jay.
If you are in NSW, you fill in a Off the Plan Declaration Form and only pay stamp duty within a year of exchange. Otherwise, you have to pay within 3 months of exchange.
For other states, I do not know how the Off the Plan works.[withstupid]
Hi Wizard
I have bought two IPs off the plan in NSW during the last two years. Both times I got stamp duty extension for 15 months from exchange of contract. After this interest kicks in without warning.
JuilesJG
Originally posted by Terryw:It depends on which state you are in. In Victoria I beleive it is payable at settlement.
In Queensland for OTP, Stamp Duty is payable at settlement.
— MJ.
It is my understanding that Victoria is the only state where the stamp duty is only charged on the land cost, anywhere else in Australia you pay the full stamp duty on the contract price. In New Zealand of course they dont pay stamp duty at all
Nigel Kibel
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