From 1 July 2016 mortgage duty will be abolished.
NSW is abolishing many duties and charges to make the State a better and less complex jurisdiction to do business in. Most other States have already abolished similar duties and charges. Duties like this have long been seen as inefficient taxes on business and investors.
Example: Mortgage duty would be charged to a Self Managed Super Fund if it borrowed to purchase shares of $500,000, incurring mortgage duty of $1,941.
How is mortgage duty charged?
Mortgage duty is charged on the amount of advances secured by the mortgage.
What is the rate of mortgage duty?
Duty of $5 is payable on the first $16 000 of advances secured and then $4 for every $1000 thereafter.
Mortgage duty does not apply to owner occupied or investment housing loans as long as the borrowers are natural persons.