Authority Updates - New South Wales - June 2016

State Revenue Office Reporting Requirements

As a result, of the decision made to introduce National Register of Foreign Ownership of Land Titles, the Office of State Revenue (OSR) New South Wales (NSW) will be required to collect and report transfers of freehold or leasehold interests in real property situated in NSW to the Commissioner of Taxation from 1 July 2016.

For each transaction, the information collected and reported will include:

  • Property details including land title information, property address and other descriptor
  • Transactional information including transfer price, contract date and settlement dat
  • Identity information of the purchaser/transferee and vendor/transferor including name, address, date of birth for individuals, name, address and ACN/ABN for non-individuals
  • Foreign identity details.

The information is proposed to be used by the ATO for the purpose of information-matching and ensuring compliance with the taxation laws of the Commonwealth.

Vendor/Transferor

Vendor Information will be collected via the Land Tax Certificate Process
An amendment to the Conveyancing (Sale of Land) Regulation 2010 will require the vendor under a contract for the sale of land to provide a current Land Tax Clearance Certificate (section 47 certificate) to the purchaser prior to settlement.

All contracts entered into on or after the 1 July 2016 will require the vendor to provide the purchaser with a current certificate. Vendor information required (where applicable) when completing the application for a Land Tax Clearance Certificate is listed in the Commonwealth Reporting Reference Table.

Purchaser/Transferee

On or after the 1 July 2016, additional purchaser/transferee information (where applicable) will be required when completing a Duties assessment. This information will be required for all agreements for sale of land and transfers of real property. The Commonwealth Reporting Reference Table outlines the additional purchaser/transferee information required.

Electronic Duties Returns (EDR) requirements

All affected conveyancing transactions available through EDR will require the new information to be entered as part of the assessment. EDR clients must retain certified copies of any documents provided for audit purposes. Information that is collected will be subject to the same privacy protections as other data collected by OSR for tax administration purposes.

Pending final approval of changes to NSW legislation, as of 1 July 2016, additional information will be required on real property transfers.

To adhere to new conditions there is a recommendation of the following;

  • Where contract might be exchange on or after 1st July 2016 where the sale price exceeds $2million or more discontinue use of the 2005 and 2014 Contract for Sale of Land.
  • Where contract might be exchange on or after 1st July 2016 where the sale price may exceed $2million or more use the 2016 Contract for Sale of Land

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Disclaimer: The information herein has been prepared by SAI Global Property Division Pty Ltd  ACN 089 586 872 from information released by the Authority cited on this page. It is provided as general background information only; it is not complete; and it does not comprehensively address this subject matter. Readers should not consider the information so provided as advice nor as a recommendation to take any particular course of action. Persons needing advice should consult their own solicitor, accountant or other professional adviser.