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. the document which shows there has been a reduction in consideration, such as a variation to the contract
3. a completed Foreign Transfer Duty Declaration Form
4. details of why the consideration has been reduced
5. if the consideration has been reduced by more than $5,000, complete either Form FDA27 ‘Duties Valuation – City, Town and Suburban Property’ or Form FDA28 ‘Duties Valuation – Country Land’. These forms are not required if lodging electronically.
   You don’t need to provide a valuation form if you provide a valuation by a qualified valuer as described in Commissioner’s Practice TAA 30 ‘Valuation of Land for Duties Purposes’. 
6. If the consideration has been reduced by more than $5,000 due to damage or defects to the property detailed in an independent report from a licensed building inspector – provide a copy of that report.

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