From 1 July 2016 it is a requirement of the Office of State Revenue to collect and report on transfers of freehold or leasehold interests in real property in New South Wales to the Commissioner of Taxation. The purpose of the reporting is twofold. Firstly, to establish a National Register of Foreign Ownership of Land Titles. Secondly, to provide information to the Australian Taxation Office regarding all transfers of property.
The mandatory reporting is a result of an amendment to the Taxation Administration Act 1953 which allows the Commissioner of Taxation to require certain entities to provide information about transactions that could reasonably be expected to have tax consequences for other entities.
Property details, transactional information, identity information and foreign identity details of the transferee and the transferor are required under the amendment to the legislation. This information will be collected in two ways:
- For Vendors or Transferors, the information will be collected through the provision of a Land Tax Clearance Certificate (LTCC)to the purchaser. In order to obtain the LTCC, the Vendor will need to complete the required Vendor information.
- For Purchasers or Transferees, the information will be collected during the stamping process. Each Purchaser will be required to complete a Purchaser Declaration form (PDF)and provide supporting identification documents. The information provided in the PDF is required to process your stamp duty payment.
What does it mean for me?
If you are buying property in New South Wales, the short answer is additional paperwork. You will be required to complete a purchaser declaration form and will also need to provide a certified copy of your birth certificate, passport or citizenship certificate.
If you are selling property in New South Wales, you will have the additional cost of a Land Tax Clearance Certificate which you will be required to provide to the purchaser prior to settlement.
If you require assistance purchasing or selling a New South Wales property, please contact a member of our team.