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  • Profile photo of Sarahb7Sarahb7
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    @sarahb7
    Join Date: 2010
    Post Count: 4
    July 20, 2010 - 6:21 am

    Thanks Terry,

    However in layman's terms, is duty – Stamp Duty & if so what about GST?

    So if I understand the above SD is payable on the value of the Option, however I can't work out what amount it would be due on, is it the value of the land, the option fee or the option assignment price?

    So I would appreciate it if you could advise based on the scenario below:

    Option fee $1.00 – how much GST is payable by me & how much SD do I owe the SRO?
    Option is assigned to a Developer for $500k – how much GST do I owe the ATO & how much SD do I owe the SRO?
    Land is RZ1, will remain RZ1 & is to be purchased for $1M by the Developer from the Vendor, I don't ever own the land.

    Regards,
    Sarah

    Profile photo of Sarahb7Sarahb7
    Member
    @sarahb7
    Join Date: 2010
    Post Count: 4
    July 19, 2010 - 10:31 pm

    Thanks Terry,

    I've read that legalese summary, which doesn't clarify what was payable by the Option holder upon assignment of the Option Agreement to the actual purchaser, from the vendor + the laws have been amended since this case, so it would appear not that relevant to 2010 situations.

    I would apprecaite it if anyone could clarify what is payable by an Option holder in Victoria, upon assignment of the Option to another party who is ultimately the purchaser of the land (with or without a Planning Permit).

    Regards,
    Sarahb7

    Profile photo of Sarahb7Sarahb7
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    @sarahb7
    Join Date: 2010
    Post Count: 4
    July 19, 2010 - 7:09 am

    Sorry, I meant that neither the lawyers, account & developer can agree, they all give different answers.
     
    Regards,
    Sarah

    Profile photo of Sarahb7Sarahb7
    Member
    @sarahb7
    Join Date: 2010
    Post Count: 4
    July 19, 2010 - 7:04 am

    Hi Paul,

    So if I understand your response to Mookii above, if I have a call option (one where I can opt out of the deal) I pay Stamp Duty on the Option Fee, which in my case was $1.00, I'm in Victoria & so is the land.

    The question I have is when I assign the Option Agreement what do I pay & what on?

    Do I pay GST on anything?
    Do I pay Stamp Duty on anything?

    I've spoken with 2 lawyers, an accountant & an developer who uses Options in QLD & all give the same advise.

    The site is Residential Zone 1 & will remain Residential Zone 1, I can either Short Sell my Option Agreement now to a developer, or  Long Sell my Option Agreement to a developer once I have Planning Approval.

    I just want to know what I have to pay to the ATO or State Revenue Office, to work out how much I need to ask to cover the costs.

    Your advice would be appreciated.
    Sarah

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