Lodging transactions through OSRconnect

Lodgement

Section 16 of the Duties Act 2001 (the Act) describes when liability for transfer duty arises. Self assessors must lodge the dutiable transaction within the required period; that is, within 30 days after the date that liability for transfer duty arises, to avoid the imposition of UTI.

Section 151 of the Taxation Administration Act 2001 (TAA) allows us to extend the date for complying with an information or lodgement requirement. An example is where the contract is conditional.

See Public Ruling DA019.1—Extension of time to lodge an agreement transferring dutiable property for more information on when we will allow an extension. You then have 30 days from when the final condition of the agreement is satisfied to lodge the document. 

Transaction numbers

Transaction numbers are automatically generated by OSRconnect for each transaction.

Data entry standards

Refer to Data entry standards for OSRconnect to avoid common errors such as:

• using all CAPITALS to enter the names of parties

• not including relevant hyphens or apostrophes e.g. O’Neill not O Neill

• failing to complete all required data fields.

Note: Failing to provide the required information may trigger a requisition and possible reassessment.

Transaction dates and duty calculations

When using OSRconnect, the in-built calculators automatically calculate the duty and any UTI.

When using the online calculators available on our website, you must enter the document date (not the unconditional date) in the ‘document date’ field. The document date is the first date at the beginning of a standard REIQ contract of sale. The document date determines which rate of duty and/or concession threshold applies.

For conditional contracts, you must ensure that the unconditional date is entered in the ‘unconditional date’ field, as this is the date that will determine when UTI would start to accrue.

The full unencumbered value of the entire property must be entered for calculation purposes. Acquisitions of a part interest are calculated by entering the share being acquired as a percentage.

Nil duty transactions

You must lodge all transactions in OSRconnect. If the total liability is nil (e.g. nil duty or exempt transactions), you do not need to send us any paperwork (e.g. lodgement confirmation page, concession form, etc).

Endorsing documents

You must not endorse a document unless you have received the full amount of duty, UTI and penalty tax (if imposed).

If your client makes a direct electronic payment to us, please make sure the payment appears in your payment history screen before endorsing the document.

When endorsing documents, you must include your client number, transaction number, duty paid, UTI and penalty (if imposed). Endorsement is completed when the stamp is dated and signed. The endorsement and all entries must be in black ink.

An example endorsement of an ordinary contract/transfer transaction showing the fields that must be completed is shown below.

Endorsing example

Pursuant transfers (section 22)

If the transfer is to be assessed by the same self assessor who endorsed the primary instrument (contract of sale/agreement), you do not need to enter the pursuant transfer into OSRconnect or complete a worksheet. The endorsement on the transfer must be identical to that on the contract/agreement to which the transfer relates (e.g. the same client number, transaction number, duty and UTI amounts).

If you are assessing a transfer that is pursuant to a primary document that has been endorsed by us or in-house by another self assessor, the document must be entered into OSRconnect. The endorsement on the transfer must be completed with the new details (e.g. client number and transaction number). The duty amount must be the same as the contract.

Offences

The following activities are offences under the Act:

• endorsing an instrument unless the person is a self assessor or officer or employee of the self assessor
• endorsing an instrument without receiving the full amount of duty, UTI and penalty tax (where imposed)
• endorsing an instrument incorrectly or illegibly
• endorsing the instrument with false or misleading information
• registering an instrument relating to an interest in property without properly endorsing the instrument.

Record keeping requirements

You are required to keep all information used in determining a tax law liability for a minimum of five years following the related transaction.

Refer to section 118 of the TAA for specific information.

Failing to comply with these provisions is an offence. It is also an offence for records to be wilfully damaged or destroyed.

Cancellation of registration

If you cease carrying on a business, you must notify us within 14 days by cancelling your registration. To cancel your registration, send us a completed Form 12.4—Notice for cancellation of self assessor registration (PDF 330 K). 

In most cases, changes in ownership to your business will require your registration to be cancelled. If so, a fresh application for registration of the new business entity will need to be lodged.