New South Wales Consolidated Acts

DUTIES ACT 1997 - SECT 65

65 Exemptions from duty

(1) General A dutiable transaction is exempt from duty under this Chapter if it is, or occurs as a consequence of any of the following--

(a) the appointment of a receiver or trustee in bankruptcy,

(b) the appointment of a liquidator,

(c) the transfer of dutiable property to, or vesting of dutiable property in, a former bankrupt for no consideration as a consequence of the discharge or annulment of bankruptcy,

(d) a dutiable transaction over dutiable property arising from the discharge or transfer of a mortgage or declaration of trust over a mortgage (and a reference in this paragraph to a mortgage includes a reference to a charge and an interest in a mortgage),

(e) a dutiable transaction comprising--

(i) a transfer by way of discharge of mortgage, or

(ii) a transfer by way of mortgage (not being a transfer by way of mortgage of land, or an estate or interest in land, under the Real Property Act 1900 ), if duty as on a mortgage has been paid in respect of an instrument evidencing the mortgage or the instrument is exempt from, or is not liable to, duty,

(g) the vesting of dutiable property in a statutory trust as a consequence of the making of an order under section 66G of the Conveyancing Act 1919 .

(2) Employee and employer organisations No duty is chargeable under this Chapter on a transfer of dutiable property made pursuant to, or in accordance with, an order or certificate under Chapter 3 of the Fair Work (Registered Organisations) Act 2009 of the Commonwealth or the rules of--

(a) an association of employees or employers registered as an organisation under the Fair Work (Registered Organisations) Act 2009 of the Commonwealth, or

(b) an industrial union of employers or employees registered under the Industrial Relations Act 1996 , or

(c) any body of a kind referred to in paragraph (a) or (b) that is approved for the time being by the Minister,

if the transfer is made to another such association, union or body or its trustee, as a consequence of the amalgamation of two or more such associations, unions or bodies, or the subsequent withdrawal of an association, union or body from such an amalgamation.

(3) Registered clubs No duty is chargeable under this Chapter on any of the following--

(a) a transfer, or an agreement for the sale or transfer, of dutiable property to give effect to an amalgamation or de-amalgamation, or both, of registered clubs as referred to in Divisions 1A and 1B of Part 2 of the Registered Clubs Act 1976 ,

(b) a transfer, or an agreement for the sale or transfer, of all or part of any premises or an associated car park occupied by a club to another club for the purposes of any such amalgamation or de-amalgamation, or both,

if any information and documents that may be required by the Chief Commissioner are given to the Chief Commissioner.

(4) Workers compensation insurers and custodians No duty is chargeable under this Chapter on a transfer of, or an agreement to transfer, dutiable property--

(a) made in compliance with a requirement of the State Insurance Regulatory Authority between--

(i) a licensed insurer, or a person who was a licensed insurer, under the Workers' Compensation Act 1926 and an insurer licensed under the Workers Compensation Act 1987 , or

(ii) licensed insurers under the Workers Compensation Act 1987 , or

(iii) the Authority and a licensed insurer under the Workers Compensation Act 1987 , or

(b) made at the direction of the State Insurance Regulatory Authority--

(i) from an insurer licensed under the Workers Compensation Act 1987 to a custodian nominated by the Authority, or

(ii) from such a custodian to another such custodian.

(5) Incorporated legal practices No duty is chargeable under this Chapter on the transfer of, or an agreement to transfer, dutiable property in the following cases--

(a) dutiable property of a solicitor corporation formed under the Legal Profession Act 1987 that is transferred or agreed to be transferred to--

(i) an incorporated legal practice under the Legal Profession Uniform Law (NSW) if the voting shareholders of the solicitor corporation immediately before the transfer or agreement is first executed are solicitor directors or employed solicitors of the incorporated legal practice, or

(ii) a partnership of solicitors if the voting shareholders of the solicitor corporation immediately before the transfer or agreement is first executed are the same as the members of the partnership, or

(iii) a solicitor practising as a sole practitioner if the only voting shareholder of the solicitor corporation immediately before the transfer or agreement is first executed is that solicitor,

(b) dutiable property of a partnership of solicitors formed or originally formed before the commencement of Division 2A of Part 3 of the Legal Profession Act 1987 that is transferred or agreed to be transferred to an incorporated legal practice under the Legal Profession Uniform Law (NSW) if the members of the partnership immediately before the transfer or agreement is first executed are solicitor directors or employed solicitors of the incorporated legal practice,

(c) dutiable property of a solicitor practising as a sole practitioner before the commencement of Division 2A of Part 3 of the Legal Profession Act 1987 that is transferred or agreed to be transferred to an incorporated legal practice under the Legal Profession Uniform Law (NSW) if the solicitor is the sole solicitor director of the incorporated legal practice.

(6) Transfer of liquor licence No duty is chargeable under this Chapter on the transfer of a liquor licence approved under section 60 of the Liquor Act 2007 if the Chief Commissioner is satisfied that--

(a) there is no change of, or contemplated change in, the beneficial ownership of the liquor licence as a consequence of the transfer, or

(b) the transfer is a consequence of an agreement for the sale or transfer of dutiable property on which the duty chargeable in respect of the agreement has been paid.

Note--: Duty on the transfer of statutory licences is abolished on 1 July 2016. This exemption is relevant only to a transfer that occurs before that date. See Part 4 of this Chapter.

(7) Poker machine permits and entitlements No duty is chargeable under this Chapter--

(a) on the transfer of--

(i) a permit under Division 3 of Part 3 of the Gaming Machines Act 2001 , or

(ii) a gaming machine entitlement (within the meaning of that Act),

that occurs as a consequence of the transfer of a hotel licence approved under section 60 of the Liquor Act 2007 that is not chargeable with duty under this Chapter, or

(b) on the vesting or transfer of any such permit or entitlement, if the Chief Commissioner is satisfied that--

(i) there is no change, or contemplated change, in the beneficial ownership of the permit or entitlement as a consequence of the vesting or transfer, or

(ii) the vesting or transfer occurs as a consequence of an agreement for the sale or transfer of dutiable property on which the duty chargeable in respect of the agreement has been paid.

Note--: Duty on the transfer of statutory licences, permissions and gaming machine entitlements is abolished on 1 July 2016. This exemption is relevant only to a transfer or vesting that occurs before that date. See Part 4 of this Chapter.

(8) Manufactured homes No duty is chargeable under this Chapter on the transfer of, or an agreement to transfer, a manufactured home in a caravan park or manufactured home estate if the manufactured home, but not the land on which the manufactured home is located, is owned by the transferor.
In this subsection--

"manufactured home" means a manufactured home as defined in the Local Government Act 1993 where the home is designed to allow its transportation.

"manufactured home estate" has the same meaning as in the Local Government Act 1993 .

(9) Administration agreements under first home owner grant scheme No duty is chargeable under this Chapter on an administration agreement under the First Home Owner Grant (New Homes) Act 2000 .

(10) Instruments relating to superannuation No duty is chargeable under this Chapter on--

(a) an instrument referred to in section 60 (1) (a), (b) or (c) that is first executed on or after 1 July 2001, or

(b) a dutiable transaction effected by such an instrument, if the Chief Commissioner is satisfied that the primary purpose for which the transaction was effected was to comply with legal requirements relating to complying superannuation funds, complying approved deposit funds, pooled superannuation trusts or eligible rollover funds.

(11) Financial agreements No duty is chargeable under this Chapter on a financial agreement made under section 90B, 90C or 90D of the Family Law Act 1975 of the Commonwealth.

(12) Vesting by statute law--deceased estates No duty is chargeable under this Chapter on the vesting of dutiable property in a legal personal representative of a deceased person.

(12A) Consents to gifts by will to interested witnesses No duty is chargeable under this Chapter on a consent referred to in section 10 (3) (b) of the Succession Act 2006 .

(13) Vesting by statute law--common property under strata plans No duty is chargeable under this Chapter on the vesting of common property in a body corporate on the registration of a strata plan or strata plan of subdivision under the Strata Schemes Development Act 2015 .

(13A) Vesting by statute law--association property No duty is chargeable under this Chapter on the vesting of association property in an association on the registration of a plan or dealing by which association property is created under the Community Land Development Act 2021 .

(13B) Vesting by statute law--merger of credit unions or mutual ADIs No duty is chargeable under this Chapter on the vesting of land in New South Wales in one or more credit unions or mutual ADIs by, or expressly authorised by, statute law of this or another jurisdiction in Australia if the vesting is a consequence of a merger of any of the following--

(a) 2 or more credit unions that on merger is a credit union,

(b) 2 or more authorised deposit-taking institutions that are mutual ADIs and on merger is a mutual ADI,

(c) 1 or more credit unions with 1 or more mutual ADIs that on merger is a credit union or mutual ADI.

(13C) A reference in subsection (13B) to a
"mutual ADI" is a reference to an authorised deposit-taking institution that the Chief Commissioner is satisfied has a mutual structure.

(13D) In determining whether an authorised deposit-taking institution has a mutual structure, the Chief Commissioner may take into account any of the following--

(a) the structure, circumstances and history of the institution,

(b) whether each customer of the company (for example an account holder, mortgagor or policy holder) is required to be a member of the company or each member (or joint membership) has only 1 vote,

(c) any other matter in relation to the institution or its members.

(14) Correction of error No duty is chargeable under this Chapter on a transfer of dutiable property made to correct an error in a previous transfer of the same dutiable property if--

(a) no additional consideration is paid or payable, and

(b) the beneficial interests in the property change only to the extent necessary to correct the error.

(15) Home equity release schemes No duty is chargeable under this Chapter on the transfer of, or an agreement to transfer, land, a land use entitlement, or an interest in land or a land use entitlement if--

(a) the land concerned is used as the principal place of residence of the transferor, and

(b) the transferor, or, if there is more than one transferor, at least one of them, is aged 60 years or older, and

(c) the transfer or agreement is entered into in connection with an approved home equity release scheme.

In this subsection--

"approved home equity release scheme" means a home equity release scheme approved, or of a class approved, by the Chief Commissioner, in accordance with any guidelines approved by the Treasurer that are published in the Gazette.

"home equity release scheme" means a scheme that enables an owner of residential property to obtain money from a person (
"the lender" ) in exchange for an agreement that a proportion of the value of the residential property will be paid to the lender on the occurrence of a specified event (such as the sale of the residential property or the death of the owner).

(16) Leases--general No duty is chargeable under this Chapter on the following leases--

(a) a lease granted by or on behalf of a corporation, society or institution if--

(i) the purpose of the lease is to grant a retired person or a disabled person the right to occupy residential accommodation, and

(ii) the lease has not been granted for the purpose of profit by the lessor,

(c) a lease executed in accordance with the Aged Care Act 1997 of the Commonwealth, Chapter 3A,

(d) a lease of premises in a retirement village within the meaning of section 5 of the Retirement Villages Act 1999 .

(17) Pharmacists' body corporate No duty is chargeable under this Chapter on the transfer of, or an agreement to transfer, dutiable property in the following cases--

(a) dutiable property of a partnership carrying on the business of a pharmacist before 25 February 2008 that is transferred or agreed to be transferred to a pharmacists' body corporate (within the meaning of Schedule 5F to the Health Practitioner Regulation National Law (NSW) ), if the members of the partnership immediately before the transfer or agreement is first executed are all directors and shareholders of the pharmacists' body corporate and there are no other directors or shareholders of that pharmacists' body corporate,

(b) dutiable property of a pharmacist carrying on the business of a pharmacist before 25 February 2008 that is transferred or agreed to be transferred to a pharmacists' body corporate (within the meaning of Schedule 5F to the Health Practitioner Regulation National Law (NSW) ), if the pharmacist is the sole director and shareholder of that pharmacists' body corporate.

(18) Termination of strata scheme No duty is chargeable under this Chapter on the vesting of an estate or interest in land by or as a consequence of the termination of a strata scheme to the extent that the persons who were proprietors of the lots the subject of the strata scheme concerned acquire, on the termination, an interest in the land that was the subject of the strata scheme in proportion to their unit entitlements immediately before the termination.

(19) In subsection (18), a reference to the termination of a strata scheme is a reference to an order under Part 9 of the Strata Schemes Development Act 2015 terminating a strata scheme under that Act.

(20) Termination of scheme under Community Land Development Act 2021 No duty is chargeable under this Chapter on the vesting of an estate or interest in land by or as a consequence of the termination of a scheme to the extent that the persons who were the proprietors in the scheme concerned acquire, on the termination, an interest in the land that was the subject of the scheme in proportion to their unit entitlements immediately before the termination.

(21) In subsection (20), a reference to the termination of a scheme is a reference to the termination of a scheme under Part 9 of the Community Land Development Act 2021 .

(22) Special disability trusts No duty is chargeable under this Chapter on--

(a) a declaration of trust over dutiable property that is to be held by the trustee in the trustee's capacity as trustee for a special disability trust, or

(b) a declaration of trust over property or an instrument that declares property, when vested in the person executing the instrument, is to be held in trust for a person or persons, if the instrument is executed for the purpose of establishing a special disability trust, or

(c) a transfer of, or an agreement to transfer, dutiable property to the trustee of a special disability trust for the purpose of the trust, if there is no consideration for the transfer.

(23) Registered maintenance liabilities No duty is chargeable under this Chapter on the following--

(a) a transfer of dutiable property to, or a vesting of dutiable property in, a trustee as a consequence of enforcement action taken by the Commonwealth in respect of a registered maintenance liability (within the meaning of the Child Support (Registration and Collection) Act 1988 of the Commonwealth),

(b) a transfer of dutiable property from a trustee to a person in respect of whom such enforcement action has been taken, as a consequence of the discharge of the person's liability under the registered maintenance liability.

(24) Fraudulent or void transactions No duty is chargeable under this Chapter on the following--

(a) a transfer of dutiable property to a person if the Chief Commissioner is satisfied that the transfer is made to rectify the consequences of fraudulent conduct by another person or to reverse a transfer of dutiable property that has been registered under a law of the State or the Commonwealth and that has been declared by a court to be void or voidable,

(b) a vesting of dutiable property in a person by court order if the Chief Commissioner is satisfied that the order was made to rectify the consequences of fraudulent conduct by another person or to reverse a transfer of dutiable property that has been registered under a law of the State or the Commonwealth and that has been declared by a court to be void or voidable.

(25) Shared equity schemes No duty is chargeable under this Chapter on the transfer of land, a land use entitlement or an interest in land or in a land use entitlement if--

(a) the transferor or, if there is more than one, each of them, is an approved equity partner under an approved shared equity scheme, and

(b) the transferee or, if there is more than one, each of them, is a home buyer under an approved shared equity scheme, and

(c) the transfer occurs as part of the approved shared equity scheme.