New South Wales Consolidated Acts

DUTIES ACT 1997 - SECT 216

216 Mortgages over property not wholly within New South Wales

(1) Mortgage duty is to be assessed for a mortgage over property that is partly within and partly outside New South Wales as if the amount secured by the mortgage were only the dutiable proportion.

(2) The
"dutiable proportion" is to be calculated in accordance with the following formula--

"DP" is the dutiable proportion.

"AS" is the amount secured by the mortgage on which duty would, but for this section, be charged at the liability date.

"V" is the value of the property in New South Wales affected by the mortgage.

"T" is the value of all property affected by the mortgage.

(3) The dutiable proportion is to be calculated by reference to any relevant document that provides, or relevant documents that together provide, the value of all property affected by the mortgage, subject to this section.

(4) A
"relevant document" is any of the following prepared within 12 months before the liability date for the mortgage--

(a) an independent valuation of the secured property,

(b) a statement of the mortgagee based on information obtained by the mortgagee in deciding to make the advance to the mortgagor,

(c) property valuations used by the mortgagor in preparing an annual return to be lodged under the Corporations Act 2001 of the Commonwealth,

(d) a financial report of the mortgagor or a group of which the mortgagor is a member, certified by an independent auditor as presenting a true and fair view of a corporation's or group's financial position,

(e) agreed property valuations that form the basis of the mortgagor's insurance policies,

(f) another document the Chief Commissioner considers to be appropriate for calculating the dutiable proportion.

(5) If more than one relevant document is available for determining the value of the same property, the Chief Commissioner is to give preference to the most recently prepared document, subject to this section.

(6) If a mortgagor is a member of a group, and a financial report comprising the consolidated accounts of the group is available, and is a relevant document, the dutiable proportion is to be calculated primarily by reference to that relevant document, unless the Chief Commissioner does not consider it appropriate to do so. In such a case, the only debt or equity to be taken into account in calculating the dutiable proportion is the debt and equity as disclosed in that financial report.