Common reasons for reassessment
Below are some common causes for a transaction to be reassessed, and the documents you should provide when applying for a reassessment.
Exemption or concession requirements not met
If you don’t comply with your exemption or concession requirements, you may have to repay all or part of the exemption or concession, as well as unpaid tax interest and penalty amounts.
If you claimed a home concession, first home concession or first home vacant land concession and any of the following apply, your transfer duty needs to be reassessed:
- you didn’t occupy the residence as your home
- within 1 year of the transfer date (for home or first home concessions)
- within 2 years of the transfer date (for the first home vacant land concessions)
- you disposed of the land (e.g. rented all or part of the property), either
- before you occupied the residence as your home
- within 1 year after you started to occupy the residence as your home.
You must lodge a notice for reassessment (Form D2.4) with the original stamped documents within 28 days of becoming ineligible.
Consideration increase or decrease
Sometimes the consideration for your dutiable transaction can change after it’s assessed for transfer duty. For example, the consideration for the purchase of a house is increased by agreement when furniture is included in the contract.
This can also occur when GST is applied to the consideration. Generally, duty is imposed on GST-inclusive amounts. A reassessment may be required where GST forms part of the consideration but duty has been calculated on the GST-exclusive amount only.
Read the public ruling on transfer duty on dutiable transactions subject to GST (DA011.1) for more information.
If the consideration of your transaction has changed, you should lodge the original stamped documents and written evidence of the new consideration for reassessment.
Cancelled agreements and transfers
We may reassess a cancelled agreement (contract) or transfer to refund the transfer duty paid if the following conditions are met.
A cancelled agreement exemption applies when particular circumstances end an agreement between parties and there is no resale agreement.
Alternatively, a transfer may be cancelled where:
- transfer duty has been assessed on the transfer
- the parties have cancelled the document before it had legal effect—for example, before
- the document was lodged for registration
- a right was exercised under the document
- an obligation was fulfilled under the document
- the document was relied on in any other way
- the property was not and will not be transferred to you or a person related to you
- there is no resale agreement.
An agreement is a ‘resale agreement’ if any of the property is or will be transferred, and the transferee or a related person will receive a financial benefit as a result of the cancelled agreement (or transfer), other than to release the transferee from their obligation under the original agreement.
For cancelled transaction reassessments, you need to lodge the original stamped documents and:
- for cancelled contracts/agreements—a completed statutory declaration from each party to the transaction and dutiable transaction statement (Form D2.2) indicating that you are claiming a s.115 exemption
- for cancelled transfers—a completed application for reassessment—cancelled transfer of dutiable property (Form D2.8)
See sections 115 and 156A of the Duties Act 2001 for more information.
We may reassess duty if one of the following events occur.
- The document
- is inadvertently damaged or destroyed before having legal effect
- is rendered unfit for its intended purpose because of an error in it before having legal effect
- is void on its making
- has no legal effect but, on having legal effect, would have an unintended effect (because of a mistake in it) that would result in duty being imposed.
- For a transfer, the transferor is not and doesn’t have a right to become the owner of the property in the document.
- For a gift, the gift is not accepted by the person receiving it (the donee).
To apply for a reassessment or refund in these circumstances, send us the following documents within 1 year after the event happens:
- the original document
- a completed application for reassessment—particular circumstances (Form D16.1).
See section section 499 of the Duties Act for more information, including the meaning of unintended and legal effects.