Changes to NSW stamp duty laws

Limiting the amount recoverable under a security document may no longer be effective to cap the amount of stamp duty payable in New South Wales.

Changes to the stamp duty laws of New South Wales may impact on the amounts of stamp duty payable by parties to transactions with a New South Wales connection.

The changes

Historically, where advances were secured against property of the borrower located in New South Wales, the amount recoverable under the security could be limited by contract, which effectively capped the amount of the stamp duty payable.

The changes mean that now stamp duty may be calculated on the facility limit, regardless of the amount actually recoverable under the security.

Existing facilities

The changes could affect any funding that occurs after 1 July, including under facilities that were in place prior to that date.

Impact

We are unsure at this stage how far-reaching the impact will be, but if you have any concerns about existing facilities, or proposed facilities, we would be happy to assist.

Contact Murray King or David McPherson.

Enquiries and information

For more information on any of the cases, articles and features in Financial Services Quarterly, please email Rachel Gowing or call on 64 9 916 8825.