The implications of NSW’s stamp duty base expansion
New rules for stamp duty in the state will apply to call options, and many common arrangements including commercial leases, agreements for lease, easements and wills.
Stamp duty has applied in NSW for more than 140 years. Originally a tax on documents, it later became a tax on any transfer of land or dutiable property. The tax base has now been expanded again, purportedly as an integrity measure. From May 19 this year, duty applies to any “change in beneficial ownership” of dutiable property (unless exempted).
The most immediate consequence is for call options. Revenue NSW has published a guide that confirms duty “will be payable on the grant of a put and/or call option” entered on or after 19 May 2022. The reference to “a put” appears erroneous, as a put option is not of itself dutiable.
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