Mortgage duty reduction schedule update

Currently Victoria, Tasmania, ACT and NT have no mortgage duty.

• Queensland and Western Australia will abolish mortgage duty on 1 July 2008.

• In New South Wales, mortgage Duty in respect of investment housing will be abolished from 1 July 2008, followed by the complete abolition of mortgage duty from 1 July 2009 (brought forward from 1 January 2011). NSW Mortgage Duty for the purposes of owner occupied housing was previously abolished.
  

• South Australia will reduce the rate of mortgage duty from 1 July 2008 to 15 cents per $100 and will abolish the duty on 1 July 2009.
  

In states where mortgage duty is payable, concessions may apply. Talk to your local Network Law firm for an estimate of duty payable.

Currently each state has special provisions for calculating the duty payable on mortgages or mortgage packages that secure property in more than one jurisdiction. In each state, mortgage duty is only payable on a proportion of the secured advances.

Labels: mortgage duty Australia

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Green Paper on Financial Services and Credit Reform

Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law, has released a Green Paper on Financial Services and Credit Reform.

The Green Paper outlines options for the Commonwealth and states to transfer the remaining financial services regulation from the State level. Under the plan, financial services, including mortgages, mortgage brokers, margin lending, non-bank lending and trustee companies, will move to the Federal level. The Green Paper also seeks input on the regulation of other credit products, such as credit cards and personal loans, as well as debentures and property spruikers.

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Financial Claims Scheme to protect depositors

The Treasurer has announced the Government's intention to introduce legislation to establish a Financial Claims Scheme (FCS)to assist depositors and policyholders in the event that an authorised deposit‑taking institution (ADI) or general insurer fails. Wayne Swan's Ministerial Statement

In light of the potential for delays to cause real hardship, and to further assist the management of a failing institution, the FCS will allow customers to quickly recover money in deposit accounts. Customers will be able to recover monies up to a specified cap (up to a limit per person of $20,000), with the remainder likely to be recovered when the ADI is liquidated.

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Queensland mortgage duty abolished
Under the Queensland State Budget announced on 3 June 2008, full abolition of mortgage duty has been brought forward to 1 July 2008 (previously 1 January 2009).

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