Your shopping cart is empty
Options and NSW duty: Practical considerations
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 Smythe, CTA, is a partner at KPMG in the Deals Tax team. He has more than 30 years experience as a professional advisor specialising in State taxes, including almost a decade as the Commissioner of State Revenue for NSW. His experience covers all Australian jurisdictions and spans M&A, property, financial services, infrastructure, mining and energy and government revenue administration as well as the Australian implications of international restructures and cross border transactions. He is a solicitor of the Supreme Court of NSW, a member of the New York State Bar, the Texas State Bar and Texas Bar College. - Current at 16 March 2026
The Tax Institute is Australia's leading professional association and educator in tax providing the best resources, professional development and networks.