15 May Are Strata Plans Eligible for Stamp Duty Exemptions?

Are Strata Plans Eligible for Stamp Duty Exemptions?

One of the most common questions we have received after the announcement of the NSW Small Business Stamp Duty Exemptions, has been whether or not strata plans are eligible.

For the purposes of the Exemptions, Revenue NSW has stated that a small business is; an Individual, Partnership, Company or Trust that:

• is carrying on a business, and
• the business has an aggregated turnover of less than $2 million

The critical part of the definition is the requirement to “carry on a business”. Merely earning income from the provision of collecting levies to manage the common property is not sufficient to constitute turnover. Generating revenue from alternative sources such as the leasing out of common property for a phone tower, or the leasing of a common hall for functions, etc. would be required.

Should you still be uncertain, we strongly recommend that you contact your accountant or financial advisor. Note: the declaration covers policies effected or renewed during the year ended 30 June 2018

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