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Lease duty to be abolished |
As a result of recent amendments to the Duties Act 1997 (NSW), duty on leases will be abolished from 1 January 2008. |
Duty will, however, continue to be payable on all leases (including agreements to lease) executed prior to this date and new anti-avoidance measures will prevent tenants terminating leases prior to the abolition date in order to obtain a refund on the lease's remaining term. Duty will also continue to be payable on premiums paid or payable in respect of a lease, including leases entered into pursuant to an option where an amount is paid or payable for the grant of the option. |
Although 1 January 2008 may seem a long time away, these amendments represent significant savings for tenants today if current new leases are appropriately structured. |
For advice on how to minimise your liability for lease duty, please contact us today. |
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