Common reasons for reassessment
Sometimes we need to reassess the transfer (stamp) duty paid on a transaction.
Below are some examples of when you might need to apply for a reassessment and the documents you will need to supply.
Home concession requirements
To keep this concession you will need to meet certain obligations.
If you don’t meet one of these obligations you need to tell us. You may have to pay back all or part of the concession. You might also need to pay unpaid tax interest, and penalty tax.
Home or first home concession
If you claimed the home or first home concession, the duty you’ve paid needs to be reassessed if:
- you granted a new lease or extension after settlement
- you didn’t move in within 1 year
- you leased out the property, or part of it (e.g. a room) within 1 year of moving in
- you didn’t hold onto the property for 1 year after moving in
- you demolished the existing residence before moving in
- the occupants at the time of settlement didn’t move out within 6 months.
First home vacant land concession
If you claimed the first home vacant land concession, the duty you’ve paid needs to be reassessed if you:
- don’t build a house and move into it within 2 years
- are not the first person to move in
- leased out the property, or part of it (e.g. a room) within 1 year of moving in
- didn’t hold onto the property for 1 year after moving in.
What to lodge
If you have claimed a concession and not met an obligation, you must lodge a notice for reassessment (Form D2.4)—within 28 days of not meeting the obligation.
Consideration increase or decrease
Sometimes the consideration for your dutiable transaction can change after it’s assessed for transfer duty. For example, the price you paid 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 dutiable transactions subject to GST (DA011.1) for more information.
What to lodge
Lodge the original stamped documents and written evidence of the new amount for reassessment.
Cancelled agreements and transfers
We may reassess a cancelled agreement (contract) or transfer to refund duty you paid us 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 because of the cancelled agreement (or transfer), other than to release the transferee from their obligation under the original agreement.
What to lodge
For cancelled transaction reassessments, you will need to provide:
- the original stamped documents
- statutory declaration from each party to the transaction
- a completed dutiable transaction statement (Form D2.2) indicating that you are claiming a s.115 exemption
For cancelled transfers:
- The original stamped documents
- Application for reassessment—cancelled transfer of dutiable property (Form D2.8)
See sections 115 and 156A of the Duties Act 2001 for more information.
Other reassessment reasons
We may also reassess duty you've paid us 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.
- The transferor is not and doesn’t have a right to become the owner of the property in the document.
- The gift is not accepted by the person receiving it (e.g. a son refuses the gift of a home from his parents).
What to lodge
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 499 of the Duties Act for more information, including the meaning of unintended and legal effects.
The Commissioner of State Revenue has the discretion to reassess to reduce a taxpayer’s liability. The Commissioner will generally not exercise this discretion if the taxpayer has chosen not to exercise their objection rights.
- Find out about calculating transfer duty.
- Learn transfer duty definitions.
- Read part 14 of the Duties Act to learn more about reassessments.