property

It is preferable to identify the appropriate purchasing entity before a Contract of Sale is entered. However, in many instances, a property is purchased by a Purchaser “and/or nominee”. In such cases, the original Purchaser has the right to nominate an alternative or additional Purchaser to complete the Contract and receive a transfer of the property after settlement.

A simple nomination of another Purchaser will not trigger additional stamp duty, even if the nominee is not in any way related to the original Purchaser.

However, if there is any land development occurring to the property being purchased prior to nomination, or if additional consideration is paid in order for the nominated party to obtain a right to receive a transfer of the land, the State Revenue Office may assess the nomination as a separate transaction which will attract additional stamp duty.

Land development is defined by the SRO to include the following:

• Preparing a Plan of Subdivision or taking steps to have a Plan registered;
• Applying for or obtaining a Planning Permit;
• Applying for or obtaining a Building Permit or doing anything for which a Building
• Permit is required; and
• Developing or changing the land in any other way that would lead to the enhancement of the property’s value.

For and “Off the Plan” transaction, “land development” is likely to occur between the time that the Contract is entered into and the nomination occurs however the land development will be undertaken by the Vendor and the purchase price should reflect and include the land development, (so the consideration stated in the Contract includes consideration for land development). In such a scenario, additional stamp duty is unlikely to be assessed.

Please Note: There are additional stamp duty considerations if a foreign purchaser is nominated, and extra stamp duty may be applicable in such circumstances.