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Mortgage duty – counting down to switch off

Mortgage duty is set to be abolished on 1 July 2012. New South Wales is the only Australian state yet to abolish the tax on secured lending arrangements.

Mortgage duty was originally scheduled to be abolished in NSW on 1 January 2011 in return for the state government’s share of GST revenue, but in 2007 the NSW Treasurer, The Hon. Michael Costa MLC announced measures to bring forward the abolition to 1 July 2009. That date was embedded into the Duties Act by amending legislation. However, in November 2008, the NSW Treasurer The Hon. Eric Roozendaal MLC released a mini budget announcing that the abolition of mortgage duty would be deferred until 1 July 2012. The Duties Act was then amended to state unequivocally that mortgage duty is abolished on and from 1 July 2012. More…