on 07-08-2018 03:16 PM
I act for the purchaser and we exchanged contracts in January this year with settlement dependent on the registration of the Plan of Subdivision. (This is a NSW settlement) I did EDR stamp duty and entered the details on the PEXA workspace. Settlement is due to take place next week via PEXA. Today I have noticed that PEXA has automatically increased the stamp duty payable by an extra $564.00. (I am presuming this is interest for not paying within 3 months of exchange).
I was under the impression that once we stamped and entered the details on the PEXA workspace that the amount payable would remain the same until it settles, whether it is an extended settlement or not, the stamp duty being paid on the day of settlement. Am I right or should I be doing paper based stamp duty for delayed settlements to avoid PEXA adding interest to the stamp duty??
on 09-08-2018 04:23 PM
I don't believe that selecting 'PEXA' would cause the duty amount to remain unchanged. Rates of duty and due dates do not change based on where you are settling.
When you know that the settlement will fall within the allowable timeframe for payment of duty, you may want to select that duty will be paid at settlement.
However, my understanding is when the settlement period is longer (or uncertain), members will typically choose to pay stamp duty directly to the OSR, within the allowable timeframe, rather than at settlement.
The stamp duty verification runs regularly between PEXA and EDR to verify data remains consistent between the two systems and if the amount of duty payable increases, that increased amount would then be reflected in the Workspace.
on 22-08-2018 03:16 PM
Did you every end up getting to the bottom of this? I have a very similar matter and was wondering whether i should just pay duty as per normal, enter the information and hope it all marries up in time for settlement.
on 27-08-2018 08:33 AM
As i understand it, if settlement is longer than 3 months you must pay stamp duty by cheque to OSR (as normal). I'm sure this is not the technical term but EDR and PEXA speak to each other so it will update as "paid". If you don't pay by cheque, interest will accrue.
I hope i have explained that well!
on 29-08-2018 11:41 AM
I would think that's correct. Your client's obligation to pay the duty within the liability due period remains the same. PEXA merely verifies with Revenue NSW whether - at the time of settlement - payment has been received or not and, if not, require an additional payment to Revenue NSW.