New South Wales Consolidated Acts

DUTIES ACT 1997 - SECT 278

278 Department of Housing and Aboriginal Housing Office tenants

(1) Duty under this Act is not chargeable on an agreement for the sale or transfer, or a transfer, of land, or a mortgage executed to finance or assist the purchase of that land (but only to the extent to which the amount secured by the mortgage is to finance or assist that purchase), or a mortgage in support of that mortgage, if the purchaser or borrower, or at least one of the purchasers or borrowers--

(a) is, at the date of the transaction or the date of the first execution of the instrument, an eligible tenant, and

(b) will obtain not less than 25% of the beneficial ownership of the land, and

(c) intends to occupy the land as his or her principal place of residence.

(2) For the purposes of this section, a person is an
"eligible tenant" if the person--

(a) is a tenant of the Department of Housing, or

(b) is a tenant under the Community Tenancy Scheme administered within the Department of Family and Community Services, or

(c) is a tenant of the Aboriginal Housing Office.

(3) This section applies in respect of an agreement for sale or transfer, or a transfer, of land in respect of which an eligible tenant obtains less than 100% of the beneficial ownership of the land only if--

(a) the other purchasers are natural persons, and

(b) the Chief Commissioner is satisfied that each of those other purchasers is a member of the eligible tenant's family or a person who is genuinely assisting the eligible tenant to acquire the land as his or her principal place of residence.

(4) For the purpose of subsection (3), the New South Wales Land and Housing Corporation is not considered to be a purchaser.

(5) The exemption conferred by this section is conditional on the eligible tenant occupying the land concerned as his or her principal place of residence for a continuous period of at least 12 months, with that occupation starting within 12 months (or such longer period as the Chief Commissioner may approve) after completion of the agreement for sale or transfer, or transfer, of the land. This requirement is referred to as
"the residence requirement" .

(6) The Chief Commissioner may, if satisfied that there are good reasons to do so in a particular case--

(a) modify the residence requirement by approving a shorter period of occupation by an eligible tenant, or

(b) exempt an eligible tenant from compliance with the residence requirement.

(7) If an eligible tenant fails to comply with the residence requirement, the eligible tenant must, within 14 days after the end of the period for compliance--

(a) give written notice of that fact to the Chief Commissioner, and

(b) pay to the Chief Commissioner the duty that would have been payable on the transactions or instruments concerned if they had not been exempt from duty under this section.

(8) A person who fails to comply with subsection (7) is guilty of an offence.

: Maximum penalty--50 penalty units.

(9) For the purposes of this section, a person is a member of an eligible tenant's
"family" if--

(a) one is the spouse or de facto partner of the other, or

(b) the relationship between them is that of parent and child, brothers, sisters, or brother and sister.

(10) This section does not prevent section 221B from applying in respect of a mortgage.

Note : Section 221B extends a general mortgage duty exemption to all mortgages associated with owner occupied housing, and takes effect on and from 1 September 2007.