The NSW Government has abolished the Torrens Assurance Levy on and from 1 July 2010 by way of the Real Property Amendment (Torrens Assurance Levy Repeal) Act 2011 (NSW) (Act).
You may recall that the NSW Government introduced a Torrens Assurance Levy payable on and from 1 July 2010. The levy was imposed on purchasers where the property to be transferred was valued at A$500,000 or more and was based on a sliding scale according to the purchase price. The fee was charged as a registration fee by the NSW Department of Lands on the transfer form. For example, a purchaser would pay a registration fee of A$23,500 based on a land purchase price of A$10,000,000 (in addition to stamp duty and other costs).
The Act abolishes this levy so that all transfers of land now attract a flat registration fee of A$194.
The levy is still payable in respect of contracts entered into between 1 July 2010 and 30 June 2011.
This means that purchasers of land in NSW will have significantly reduced costs for contracts entered into on or after 1 July 2011.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
