SDDGSD_CL_A_RPP | Version 3 | Page 1 of 8
Published July 2019
This document is intended as a guide only and does not have the force of law.
OFFICIAL
Stamp Duty Document Guide
self determined
Document Type:
Conveyance of Land
Document Name:
Assignment Land Contract
Introduction
This Document Guide Note explains how stamp duty is calculated on an
assignment of an equitable interest in a contract for the sale and purchase of an
interest in residential land or primary production land either for consideration or
no consideration.
The value of the assignment for stamp duty purposes is, usually at the least, the
amount of the deposit paid as at the date of the assignment.
More than one assignment can arise out of a contract, or the same interest can
be assigned more than once. Where this occurs, each assignment is to be self-
determined separately.
Note: The Transfer should recite the total purchase price as expressed in the
contract for sale and purchase of the land, and not a consideration less the
amount paid in the assignment of interest in a land contract – refer Section 68(5).
What documents can I self-determine under this document type?
The document can be in the form of:
an Agreement that evidences the conveyance of an equitable interest in a
contract for the sale and purchase of residential land or primary production
land;
a Deed that evidences the conveyance of an equitable interest in a contract
for the sale and purchase of residential land or primary production land; or
any other document that evidences the conveyance of an equitable interest
in a contract for the sale and purchase of residential land or primary
production land.
What types of transactions can I self-determine under this document
type?
An assignment of interest in a contract for the sale and purchase of residential
land or primary production land is deemed suitable for self-determination
under this document type where:
there is a consideration or no consideration passing from the assignee to the
assignor.
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Published July 2019
This document is intended as a guide only and does not have the force of law.
OFFICIAL
Stamp Duty Document Guide
self determined
The document can be self-determined under this document type regardless of
whether:
the parties are related or unrelated; and/or
the assignment is for a full interest or a fractional interest.
The following similar transactions cannot be self-determined under this
document type:
An assignment of interest in a land contract for qualifying land, refer to the
document type:
Conveyance of Land | Assignment Land Contract – Qualifying Land
What evidence do I need to retain for audit purposes?
For audit purposes, you will need to retain the following documentation either in
paper form or electronic form:
a copy of the documents that assigns the interest in the land contract;
evidence that a stamp duty determination has been made (i.e. Certificate of
Stamp Duty, Document ID or stamped document); and
copy of the relevant contract for the sale and purchase of the residential
land or primary production land
What Section(s) of the Stamp Duties Act 1923 applies?
Section 2
Section 60
Section 60A
Section 68(5)
What stamp duty is payable on this document?
The assignment is chargeable with ad valorem conveyance stamp duty. The
stamp duty is charged on either the consideration or value of the interest being
assigned, WHICHEVER IS THE GREATER. Usually, the value of the assignment is, at
least, the amount of the deposit paid as at the date of the assignment.
If the transfer is for no consideration, stamp duty is calculated on the market
value.
The assignment document should state (if applicable) if the assignment
consideration includes the amount of the deposit.
Where no deposit is paid and the contract is assigned for consideration, the
stamp duty is charged on the consideration using the ad valorem conveyance
rate of stamp duty.
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Published July 2019
This document is intended as a guide only and does not have the force of law.
OFFICIAL
Stamp Duty Document Guide
self determined
If the deposit in the contract for sale and purchase of the land is secured by a
bank guarantee and the contract is now being assigned for a consideration, the
stamp duty is charged on the consideration.
For no consideration
Where the deposit in the contract for sale and purchase of the land is secured by
a bank guarantee and the assignment document is drawn in Agreement or Deed,
form and the assignment is for no consideration - the assignment is chargeable
on a nominal value of $1. The document is self-determined under these
document types.
Examples
Assignment of an interest in a contract for a consideration same as the deposit
Pam contracts to sell residential land to Jim for $120 000 and a deposit of
$10 000 is paid.
Jim then assigns his interest in the contract to Bob for a consideration of $10
000.
Stamp duty is calculated on the greater of the value of the deposit or the
consideration. With this transaction, the value of the deposit is equal to the
consideration of $10 000 (i.e. $100 stamp duty), i.e. the contact is being
assigned for an amount equal to the deposit. The assignment of interest in the
contract is determined under this document type.
At settlement, Bob pays Pam $110 000 and the Transfer states $120 000 in the
consideration panel as per the contract. Stamp duty is charged on $120 000
and the document is self-determined under the document type:
Conveyance of Land | Residential Land/Primary Production Land
Assignment of an interest in a contract for a consideration greater than the
value of the deposit
Megan contracts to sell residential land to John for $260 000 and a deposit of
$10 000 is paid.
John then assigns his interest in the contract to Fred for a consideration of
$20 000, which includes the deposit of $10 000
As the consideration paid for the assignment is greater than the value of the
deposit, ad valorem conveyance stamp duty is charged on $20 000 (i.e. $280
stamp duty).
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Published July 2019
This document is intended as a guide only and does not have the force of law.
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Stamp Duty Document Guide
self determined
At settlement, Fred pays Megan $250 000 and the Transfer states $260 000 in
the consideration panel as per the contract. Stamp duty is charged on
$260 000 and the document is self-determined under the document type:
Conveyance of Land | Residential Land/Primary Production Land
Assignment of an interest in a contract for less than the deposit
Lisa contracts to sell Primary Production Land to Pam for $85 000 and a
deposit of $8000 is paid.
Pam then assigns her interest in the contract to Tom for $2000.
Stamp duty is calculated on the value of the deposit, ($8000). As this is greater
than the consideration, ad valorem conveyance stamp duty is charged on
$8000 (i.e. $80 stamp duty).
At settlement, Tom pays Lisa $77 000 and the Transfer states $85 000 in the
consideration panel as per the contract. Stamp duty is charged on $85 000 and
the document is self-determined under the document type:
Conveyance of Land | Residential Land/Primary Production Land
Assignment of an interest in a contract for no consideration.
Frank contracts to sell residential land to purchaser Michael for $385 000 and a
deposit of $10 000 is paid.
Michael then assigns his interest in the contract to Tom for no consideration.
Stamp duty is calculated on the value of the deposit, ($10 000). As this is
greater than the consideration, ad valorem conveyance stamp duty is charged
on $10 000 (i.e. $100 stamp duty).
At settlement, Tom pays Frank $375 000 and the Transfer states $385 000 in
the consideration panel as per the contract. Stamp duty is charged on
$385 000 and the document is self-determined under the document type:
Conveyance of Land | Residential Land/Primary Production Land
SDDGSD_CL_A_RPP | Version 3 | Page 5 of 8
Published July 2019
This document is intended as a guide only and does not have the force of law.
OFFICIAL
Stamp Duty Document Guide
self determined
Multiple assignments resulting from the same contract
Ann contracts to sell 10 separately titled residential allotments to Bob for
$1 200 000 and pays a deposit of $120 000 i.e.10%. Bob then assigns each
allotment to 10 separate unrelated purchasers.
Allotments 1 to 7, consideration is $120 000 each, assigned for $12 000
each
Allotment 8, consideration is $150 000 assigned for $20 000
Allotment 9, consideration is $80 000, assigned for $5 000
Allotment 10, consideration is $130 000, assigned for $45 000
Duty is calculated as follows:
Duty on the assignments for allotments 1-7 is calculated on the
consideration of $12 000 as this is equal to the value of the assigned
interest.
Duty on the assignment for allotment 8 is calculated on the consideration
of $20 000 as this is greater than the assigned value i.e.10% of $150 000 is
$15 000.
Duty on the assignment for allotment 9 is calculated on the value of $8000
i.e. 10% of $80 000 is $8000, as this is greater than the consideration.
Duty on the assignment for allotment 10 is calculated on the consideration
of $45 000 as this is greater than the assigned value i.e.10% of $130 000 is
$13 000.
Section 67 does not apply to either the assignments or the transfers of land,
providing the Commissioner is satisfied that there is no arrangement or
understanding between the assignees/transferees to use any of the allotments
together (i.e. this is not considered to be substantially one transaction or one
series of transactions).
Note: The value for each assignment is calculated as a proportion of the total
deposit paid compared to the consideration paid for the particular allotment.
The amounts recited in the consideration panel of each of the 10 transfers
must add up to the contract consideration.
Series of Assignments resulting from the same contract
Jo contracts to sell residential land to Fred and a deposit of $10 000 is paid.
Fred assigns his interest in the contract to Dave for a consideration of $20 000.
As the consideration is greater than the value, stamp duty is charged on
SDDGSD_CL_A_RPP | Version 3 | Page 6 of 8
Published July 2019
This document is intended as a guide only and does not have the force of law.
OFFICIAL
Stamp Duty Document Guide
self determined
$20 000 using the ad valorem conveyance rate of stamp duty (i.e. $280 stamp
duty).
Dave then assigns his interest to Helen for a consideration of $15 000, ad
valorem conveyance stamp duty is charged on the consideration of $15 000
(i.e. $180 stamp duty).
Assignment secured by a deposit guarantee
Greg contracts to sell residential land to Mark for $555 000 and agrees to a
deposit of $55 000. Mark secures this deposit by way of a deposit guarantee.
Mark assigns his interest in the contract to Tracy. This must be self-determined
under the document type:
Conveyance of Land | Assignment Land Contract
As no monetary deposit has been paid, the assignment is chargeable with $1
stamp duty. Enter a nominal consideration of $100 or less in RevenueSA
Online (but not $0). The contract is deemed to have a nominal value and
cannot have a nil value.
Note: Deposit guarantee is also known as a bank guarantee or similar.
Assignment of an interest in a contract for no consideration
Pam contracts to sell residential land to Jim for $120 000 and a deposit of
$10 000 is paid.
Jim then assigns his interest in the contract to Bob for no consideration.
Stamp duty is calculated on the value of the deposit ($10 000) using the ad
valorem voluntary conveyance rate of stamp duty (i.e. $100 stamp duty). The
assignment of interest in the contract is determined under this document
type.
At settlement Bob pays Pam $110 000 and the Transfer states $120 000 in the
consideration panel as per the contract. Stamp duty is charged on $120 000
and the document is self-determined under the document type:
Conveyance of Land | Residential Land/Primary Production Land
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Published July 2019
This document is intended as a guide only and does not have the force of law.
OFFICIAL
Stamp Duty Document Guide
self determined
Assignment of a half interest for no consideration
Lisa contracts to sell residential land to Pam for $85 000 and a deposit of
$8000 is paid.
Pam then assigns a half interest in the contract to Tom for no consideration.
Stamp duty is calculated on the value of half of the deposit ($4000) using the
ad valorem voluntary conveyance rate of stamp duty (i.e. $40 stamp duty).
At settlement Tom pays Lisa $77 000 and the Transfer states $85 000 in the
consideration panel as per the contract. Stamp duty is charged on $85 000 and
the document is self-determined under the document type:
Conveyance of Land | Residential Land/Primary Production Land
Multiple assignments resulting from the same contract
Ann contracts to sell 10 separately titled residential allotments to Bob for
$1 200 000 and pays a deposit of $120 000, i.e. 10%. Bob then assigns each
allotment to 10 separate unrelated purchasers for no consideration.
Allotments 1 to 7, consideration is $120 000 each, assigned for no
consideration
Allotment 8, consideration is $150 000 assigned for no consideration
Allotment 9, consideration is $80 000, assigned for no consideration
Allotment 10, consideration is $130 000, assigned for no consideration
Duty is calculated as follows:
Duty on the assignments for allotments 1-7 is calculated on $12 000 as this
is the value of the assigned interest, i.e. 10% of $120 000
Duty on the assignment for allotment 8 is calculated on $15 000 as this is
the value of the assigned interest, i.e. 10% of $150 000
Duty on the assignment for allotment 9 is calculated on $8000 as this is
the value of the assigned interest, i.e. 10% of $80 000
Duty on the assignment for allotment 10 is calculated on $13 000 as this is
the value of the assigned interest, i.e. 10% of $130 000 is $13 000.
Note: the value of the assigned interests totals $120 000 which is equivalent to
the deposit.
SDDGSD_CL_A_RPP | Version 3 | Page 8 of 8
Published July 2019
This document is intended as a guide only and does not have the force of law.
OFFICIAL
Stamp Duty Document Guide
self determined
The value for each assignment is calculated as a proportion of the total deposit
paid compared to the consideration paid for the particular allotment.
Section 67 does not apply to either the assignments or the transfers of land,
providing the Commissioner is satisfied that there is no arrangement or
understanding between the assignees/transferees to use any of the allotments
together (i.e. this is not considered to be substantially one transaction or one
series of transactions).
Note: The amounts recited in the consideration panel of each of the 10
transfers must add up to the contract consideration.
Series of Assignments resulting from the same contract
Jo contracts to sell Primary Production Land to Fred and a deposit of $10 000 is
paid.
Fred assigns his interest in the contract to Dave for no consideration. Stamp
duty is payable on the value ($10 000) using the ad valorem voluntary
conveyance rate of stamp duty (i.e. $100 stamp duty).
Dave then assigns his interest to Helen for no consideration, ad valorem
voluntary conveyance stamp duty is charged on the value ($10 000) (i.e. $100
stamp duty).
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