The government has passed legislation to repeal the Torrens Assurance Levy ‘ad valorem’ provisions that were introduced in July last year. The legislation will commence on 1 July 2011, meaning that contracts of sale entered into on or after 1 July 2011 will not attract any ad valorem levy regardless of the purchase price.
The amendments are set out in the Real Property Amendment (Torrens Assurance Levy Repeal) Act 20111 No.7, which will come into force on 1 July 2011.
The Torrens Assurance Levy, introduced by the previous government on 1 July 20010, was payable by purchasers of land where the purchase price was more than $500,000.
The effect of the repeal of the Torrens Assurance Levy is that purchasers entering into
agreements to buy property on or after 1 July 2001 will not incur any Torrens Assurance Levy, regardless of the purchase price.
The levy will remain payable in some instances after the new legislation commences.
Transfers lodged for registration at Land and Property Information (LPPI) from 1 July 2011 will continue to attract the levy if:
- They relate to a contract of sale entered into between 11 July 2010 and 30 June 2011 and
- the purchase price is more than $500,000.
LPI encourages customers to continue checking contract date and purchase price when
calculating lodgment fees for transfers prior to lodging them for registration at LPI. These checks will be particularly important in coming months when many contracts of sale
signed in 2010-11 will be settled and associated documents lodged for registration in the
land titles system.
LPI’ss fact sheet ‘Torrens Asssurance Levy: ad valorem provissions’ and online calculator will remain available on LPI’s website to assist in calculating levies.
LPI’s fact sheet ‘Torrens Assurance Levy: ad valorem provisions’ can be accessed online