The Government claims that the tax, which is called the Torrens assurance levy, was introduced to fund the Governments liabilities in relation to increasing numbers of document fraud in property transactions.

The new levy in relation to property transfers in New South Wales will apply as follows to properties valued over $500,000:

·  For transfers where the purchase price is more than $500,000 but not more than $1,000,000, the rate is 0.2% of the amount by which the purchase price exceeds $500,000

·  For transfers where the purchase price is more than $1,000,000, the cost is $1,000 plus 0.25% of the amount by which the purchase price exceeds $1,000,000

As an example the fee payable on the following transfers will be:

·  For a property valued at $600,000 – $200.00

·  For a property valued at $750,000 – $500.00

·  For a property valued at $1,000,000 – $1,000.00

·  For a property valued at $1,200,000 – $1,500.00

The new fee is payable by the purchaser or transferee involving a change of ownership in land following settlement of a contract of sale of land or other agreement to purchase land. The tax however will not apply to changes in ownership where registration occurs to give effect to matters such as the distribution of a deceased estate, orders of the court, statutory vestings such as bankruptcy or gifts of land.

State Comparison

Based on a property purchase of $750,000, only Western Australia charges a lower “registration charge” of $250, compared with $500 in NSW.  In Victoria it is $1,350, Queensland is $1,623.30 and in South Australia it is $4,759.  

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