Digital payment of transfer duty in NSW for off the plan

[rebecca4464]

Hi 

Our firm are doing hundreds of off the plan transactions. for some management issue, we don't use trust account. In the past we calculated the figures and asked clients to bring a bank cheque payable to state revenue. From 1 July, clients have to pay their stamp duty electronically. We wonder how to make sure our client pay the duty on time otherwise if we would be responsible? Quite a few clients failed to pay on time, we are figuring out how to make sure they would pay after we issue the duties notice of assessment?

Anybody has the same issue?

[Jgal3]

I thought a trust account had to be linked to the PEXA workspace in order to be eligible to use the service? 

I would suggest asking them to send you a cheque before you process their assessment, and then including it in your weekly return. 

[rebecca4464]

Hi Jgal3

Yeah, but now Revenue does not accept bank cheques now, everyone has to do the electronic payment

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@Jgal3 wrote:

I thought a trust account had to be linked to the PEXA workspace in order to be eligible to use the service? 

I would suggest asking them to send you a cheque before you process their assessment, and then including it in your weekly return. 

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[Jgal3]

Yes but I meant for the cheque to be paid to you, to be paid by EFT. 

Again, I believe a trust account is necessary.

[rebecca4464]

Thank you. 

anther related question, if I do EDR before the settlement, I need to fill the ELNO workplace number to complete. But the settlement date is still uncertain, I couldn't provide workplace number by that time.

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@rebecca4464 wrote:

Hi 

Our firm are doing hundreds of off the plan transactions. for some management issue, we don't use trust account. In the past we calculated the figures and asked clients to bring a bank cheque payable to state revenue. From 1 July, clients have to pay their stamp duty electronically. We wonder how to make sure our client pay the duty on time otherwise if we would be responsible? Quite a few clients failed to pay on time, we are figuring out how to make sure they would pay after we issue the duties notice of assessment?

Anybody has the same issue?

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[Jgal3]

No problem. 

Is there a reason you couldn't create a workspace? It would not have the settlement date and time entered, but presumably you could still invite the vendor to the workspace and enter in the property details? Usually OTP contracts have the parent lot and dp which you could enter (until such time as the SP is registered). 

If you were uncomfortable doing that (because you would need to later change the title reference in the PEXA workspace ) then you should ask for a manual assessment of the contract.

[rebecca4464]

Thank you so much.

for off the plan, usually vendor refuse the invite and only use the workspace they create when it's close to settlement

I wonder if PEXA has a solution for the workplace number thing for those off the plan when do the stamping

[tania1]

I would strongly suggest that you open a trust account and then you can get your clients to deposit the funds directly into there so there is no delay in settlement. If you don't want to do this, maybe inform your clients that if the stamp duty is not paid by the date (and I would suggest that you make it the day before to cover the ones who are a bit slack) then they will be up for penalties. I find the threat of extra costs is a very good incentive.