Reduction in consideration: duty requirements

If the consideration is reduced after the agreement for transfer is executed but before the property is transferred, provide:

1. the transaction record (such as a transfer or agreement to transfer), or a duty endorsed copy of the transaction record if applying for a reassessment
2. a completed Foreign Transfer Duty Declaration Form
3. details of the reasons for the reduction in consideration
4. completed duties valuation forms for all land. Duties valuation forms are not required if a valuation is obtained from a qualified valuer which meets the criteria specified in Commissioner’s Practice TAA 23 ‘Circumstances when a Taxpayer will be Required to Provide a Written Valuation’
5. a copy of any valuation or appraisal conducted on the property within three months of the date of the reduction in consideration
6. if the consideration is reduced by more than $5,000 because of damage or defects to the dutiable property – a copy of an independent report from a licensed building inspector outlining the details of the damage or defects.

An assessment of duty will not be issued until all required information is provided.