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Options and NSW duty: Practical considerations

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Published on 01 Jul 20 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE

The use of options in real estate transactions is common. However, the NSW duty implications of these arrangements are not always well understood by advisers. Failure to understand the duty position can result in multiple imposts of duty — a cost that often arises when a taxpayer is least able to afford it. This article outlines the NSW duties regime applying to options, including the nature of options, and discusses issues around option transfers, the nomination of another person to exercise the option, novations, the assignment of option rights, and issues arising from simultaneous put and call options. The article also outlines a number of practical issues that should be considered by taxpayers and their advisers before entering into these arrangements.

Author profile

Cullen Smythe CTA
Cullen is the New South Wales Commissioner of State Revenue, a position he has held since 2016. Prior to joining Revenue NSW Cullen worked for almost 20 years as an advisor specialising in state taxation matters across all Australian jurisdictions. - Current at 22 February 2021
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