All Topics / Creative Investing / Stamp Duty & CGT on Wrap contracts

Viewing 3 posts - 1 through 3 (of 3 total)
  • Profile photo of andkozandkoz
    Join Date: 2006
    Post Count: 10


    I am wondering whether anybody knows when a purchaser in a wrap contract (wrapee) pays a stamp duty? Is the stamp duty payable when the contract is signed or is it payable when the property title is transfered to the wrapee?

    After reading Steve’s books I was under impression that awrapee needs money only for a deposit and his/her legal costs. This is not so according to a lawyer I have engaged for a wrap contract. I am confused. I would appriciate an answer from somebody with a working knowledge of the wrap contracts.

    The second issue is – when a wrapper is suppose to pay capital gain tax – at the beginneing or at the and of the contract? I had a professional advise that this depends whether the wrap sale is part of a business or is one off. However, there is no clear criteria for the classification.

    Profile photo of TerrywTerryw
    Join Date: 2001
    Post Count: 16,213

    stamp duty depends on which state the property is in. In NSW, I beleive it is payable within 3 months of exchange. in Vic I beleive it is on settlement.

    Discover Home Loans
    [email protected]
    Send an email to get my newsletter.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide)

    Profile photo of Richard TaylorRichard Taylor
    Join Date: 2003
    Post Count: 12,024

    In Qld it is 30 days after you go unconditional so in a wrap that is pretty early in the piece.

    And I think i answered the other question off line for you Andrew.


    Richard Taylor
    Residential & Commercial Finance Broker.
    Licensed Financial Planner. Ph: 07 3720 1888
    [email protected]
    New Shared Equity scheme has arrived – Email us for details.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.