Just like the invention of colour TV, Land Tax can now be paid on settlement utilizing the PEXA Platform!
Land Tax can be paid at settlement in a PEXA transaction without the availability of the physically stamped clearance certificate. The solution was agreed between Revenue NSW, PEXA and the Law Society of NSW.
The solution required the following changes to satisfy parties, which were implemented earlier this year:
- BPAY payment details available on Revenue NSW documents
- A document provided by Revenue NSW explaining the Land Tax payable
- Inclusion of agreed wording by the Law Society explaining the practitioner can be comfortable to settle
- Hard-coded BPAY biller details in PEXA against a new NSW Land Tax payment destination category
- Ability to upload Revenue NSW documents in document hub (existing functionality)
The process is as follows:
- Purchaser or Vendor representative uploads a copy of the Land Tax Clearance Certificate (Section 47) to document hub in the workspace (under Revenue Office Documents)
- Vendor representative uploads the Land Tax Payable letter provided by Revenue NSW to document hub in the PEXA workspace (under Revenue Office Documents), and any additional documentation provided by Revenue NSW detailing outstanding debts (if applicable)
- Vendor representative creates the line item for payment to Revenue NSW, choosing the category of NSW Land Tax, with the amount as per the documents
- After settlement, the clearance certificate will be provided back to the Vendor representative within approximately 48 hours, who would then provide to the Purchasers Representative.
Office of the Registrar General (ORG) have a waiver in place in the short term to assist practitioners to transition to the new process. The waiver will expire 30 November 2019. The waiver can be located here https://www.registrargeneral.nsw.gov.au/__data/assets/pdf_file/0008/526733/Conveyancing-Rules-Waiver...
Happy transacting!
Belinda
