Stamp Duty Payable on Multiple Transactions
In accordance to the Duties Act, the stamp duty payable when a purchaser acquires multiple properties from the same seller is aggregated and treated as a single dutiable transaction, even though the transactions may span several contracts. Ultimately, by aggregating the stamp duty payable you may be subject to higher stamp duty.
However, should you fail to comply with this requirement imposed by the Office of State Revenue, you will be subject to a penalty.
An example of this situation is as follows:
Under 4 agreements between a builder and a developer, the builder agrees to purchase 4 lots of land from the developer for $200,000 each.
The agreements are a dutiable transaction. Under the Duties Act, the transactions must be aggregated for imposing transfer duty and the duty is apportioned between them. The total of the values of the dutiable transactions is the value of each of the lots.
Please be wary when considering the stamp duty payable on your transactions. If in doubt, it is recommended that stamp duty is aggregated because you can always apply for individual assessment at a later stage if the transaction was not supposed to be aggregated.
If you are unsure of how much stamp duty you should be paying or want advice on your contract in general, call Hatzis Lawyers today on 1300 HATZIS (428 947) for more information or make an appointment.