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Buyer Will Soon be Able to Pay Stamp Duty at Settlement

03 July 2009
Homebuyers will soon be able to leave the payment of their stamp duty until settlement.

Currently, buyers need to pay the duty from their own funds or arrange for the bank to pre-release a portion of the loan to facilitate its early payment.

State Treasurer Troy Buswell announced late last week that the government would overhaul this system later in the year.

“The government is changing the system so the home buyer is not unfairly paying to protect the State’s revenue and the interests of vendors and banks,” Mr Buswell said.

The Treasurer said that the planned solution was multi-faceted, and would involve legislative change, computer upgrades and the use of the Office of State Revenue’s electronic assessment system by settlement agents.

“These changes are consistent with the government’s ongoing efforts to reduce red tape for business and the community,” Mr Buswell said.

Mr Buswell said he intended to introduce legislation into State Parliament after winter, and hoped the new computer system developments would be completed in time for the new arrangements to commence by the start of the 2010–11 financial year.

REIWA President Rob Druitt welcomed news of the reform, saying that a common complaint by home buyers has been the need for them to come up with the transfer duty before settlement.

“This reform will ease the cashflow pressure on buyers and simplify the system. It’s a great outcome for buyers and for the transaction process generally,” Mr Druitt said.

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