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Property Law News, June 2011
Removal of the Torrens Assurance Levy
The transfer fee on properties above $500,000 will be abolished
The Torrens Assurance Levy was introduced in New South Wales in the 2010-11 state budget on all property transactions above $500,000. The Levy imposed a transfer fee on a sliding scale of up to 0.25% of the value of the property to be paid by purchasers on top of any other stamp duty payable. The Liberal Party, pursuant to a promise made during the election will be abolishing the Levy from 1 July 2011.
It is important to note, however, that where a contract was entered into within the period of 1 July 2010 until 1 July 2011 the levy will still fall due even if the transfer is lodged, that is the settlement occurs after, 1 July 2011. Transfers in relation to options that became available to a person between 1 July 2010 and 1 July 2011 but not exercised until after 1 July 2011 will not be liable for the levy.
