1. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Tax Procedures for your Business by Ian Birt, Slides prepared by Peter Miller 1 Stamp Duty Chapter 10

2. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Tax Procedures for your Business by Ian Birt, Slides prepared by Peter Miller 2 OVERVIEW OF STAMP DUTY Each State (and territory) has its own stamp duty legislation. Stamp duty rates vary between States for most transactions. Generally duty is payable in the State where the transaction occurs. For most transfers, the purchaser in the transaction pays the stamp duty.

3. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Tax Procedures for your Business by Ian Birt, Slides prepared by Peter Miller 3 DUTIABLE TRANSACTIONS Transfers include sales, assignments and exchanges of property. Dutiable property includes Land (and buildings) Business goodwill Plant and equipment. In NSW, Victoria and the ACT, transfer duty is payable on transfers of dutiable property. In the other States and territories, stamp duty is payable on conveyances of property.

4. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Tax Procedures for your Business by Ian Birt, Slides prepared by Peter Miller 4 Transfers of trading stock. Manufactured finished goods. Raw materials for manufacturing. Job materials. Merchandise of a business. Exemptions from Stamp Duty

5. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Tax Procedures for your Business by Ian Birt, Slides prepared by Peter Miller 5 Transfers of non-listed company shares are subject to separate stamp duty rates. The relevant duty is based on the sale price of the transfer (provided it is the market value). Otherwise it is based on the unencumbered market value of the property transferred. Non-Listed Company Shares

6. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Tax Procedures for your Business by Ian Birt, Slides prepared by Peter Miller 6 Available to eligible first-time purchasers of residential properties in some States. Stamp duty rates for transfers of property vary between each State and territory. Stamp Duty Concessions

7. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Tax Procedures for your Business by Ian Birt, Slides prepared by Peter Miller 7 Share transfers (for non-listed shares). Mortgages and loan securities. Hiring arrangements. Leases of land. Motor vehicle registrations. Insurance premiums. Other written agreements under seal. Other Specific Transactions Specific duty rates apply in each State.

8. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Tax Procedures for your Business by Ian Birt, Slides prepared by Peter Miller 8 Paid in the State where the property is located; or where the contract is made. Payable by the purchaser. Duty is due from when the purchaser signs the relevant transfer document. PAYMENT OF STAMP DUTY Who pays stamp duty?

9. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Tax Procedures for your Business by Ian Birt, Slides prepared by Peter Miller 9 The method depends on the type of transaction. PAYMENT OF STAMP DUTY Ways to pay stamp duty Major documents are generally sent with the duty payment to the stamps office. Minor documents might have duty stamps affixed to them. With other transactions, the required stamp duty might be collected and sent by a third party.

10. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Tax Procedures for your Business by Ian Birt, Slides prepared by Peter Miller 10 Generally stamp duty is based on the market value of property transactions BASIS OF STAMP DUTY Proof of market value may be required. Stamp duty will normally apply to the GST inclusive amount of the value.

11. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Tax Procedures for your Business by Ian Birt, Slides prepared by Peter Miller 11 LATE PAYMENT OF STAMP DUTY If the correct amount of stamp duty is not paid within the specified time from when it is due an late payment penalty applies. With some transactions penalties might also apply where duty paid is not based on the market value. Unstamped documents are legally ineffective

12. Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Tax Procedures for your Business by Ian Birt, Slides prepared by Peter Miller 12 Discusses Land Tax CHAPTER 11