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NSW Government has Deferred Abolishment of Some Duties - Does This Effect You?

An article by Rebecca Flynn, Principal, Warren McKeon Dickson Lawyers  

 

It feels like a very bad case of déjà vu, but unfortunately it’s correct that the NSW Government has again deferred the abolition of some duties which were due to be abolished in New South Wales on 1 July 2013.

In previous years, the NSW government had announced that duty on the transfer of shares, on the sale of business assets and on mortgages were to be abolished and after several postponements of the relevant date, everyone was set for the abolitions to take effect from 1 July 2013. 

However, the government has again announced that in order to fund its commitment under the Gonski review, the abolition of these duties will need to be "temporarily" deferred.  The abolition must still take place at some stage because it was a condition of the Inter-Governmental Agreement signed in 1999 which established the framework for the GST, but at this stage, the date is not yet known. 

In particular, the abolition of the duties affects: 

 

  • borrowers, as NSW remains the last jurisdiction in Australia to impose duty on borrowers granting mortgages
  • those involved in the sale of shares in NSW
  • purchasers of business in NSW

 

If you would like further information contact us and we’ll arrange a meeting with Rebecca to discuss this further

 

 

SMSF Consultants – Self Managed Superfunds and Superannuation Experts