introduction to duties online - state revenue office to duties... · 16/07/2015 2 introduction to...

16/07/2015

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Introduction to Duties Online and the Electronic Lodgement Model

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Housekeeping

Agenda

• Introduction to Duties Online

• Declarations of Trust

• What is the Electronic Lodgement Model? (ELM)

• DOL Duty Determination vs SRO Duty Determination

• LIVE Demonstration

• Property Exchange Australia (PEXA)

• Additional duty for foreign purchasers

• Future Enhancements and ‘Back to Work’

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Introduction to Duties Online

Duties Online (DOL) was introduced in 2011 with the ability to process 16 transaction types. Since it’s inception, it now has the functionality to:

Process 26 transaction types

Assess late lodgements

Integrate into the national online property transfer system Property Exchange Australia

(PEXA) and facilitate a fully electronic settlement

Over 90% of all transactions are now processed online in Victoria by over 2500 organisations. In keeping with the industry shift to electronic settlements the

Electronic Lodgement Model (ELM) will cater for the final 10% of transactions which are currently excluded from DOL.

DOL - Features and benefits

Features Benefits

• Integration with PEXA


• Most exemptions & Concessions

• Sub-sales transactions*

• Fractional interest & related

parties*

• Pensions concession ( DHS/DVA

confirmation)

• Capture, validate and store data

• Facilitate payment

• Produce a duty statement

• Electronic Evidencing

• No requirement to lodge

documents to SRO

• Enhanced data capture

• Efficiencies for customer and SRO

• Improved customer service

DOL - Process

Assemble supporting documents

Data entry

In-built system validation of data

Estimate, acknowledge and

finalise.

Allocate a payment method.

Transaction is deemed assessed by

the Commissioner

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Electronic Evidencing

A new way to authenticate the assessment

Data elements

transmitted and

validated

Lodge as soon as you

have

“committed to pay”

Stamp no longer

required by Land

Victoria

SRO Land Victoria

“Duty Statement” available for you or your

client

Accepted form of evidence

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Declarations of Trust

From 27 th July 2015 a Certificate of Duty will ONLY be

available after the payment has been received and a llocated

by the SRO.

A Certificate of Duty will only be available once the transaction status is ‘Completed’.

Ensure that the payment is made after the transaction has been finalised.

“Certificate of Duty” available for

Declarations of Trustonce payment has been

received by the SRO.

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What is the Electronic Lodgement Model? (ELM)

• An extension of Duties Online (DOL) which will allow any

restricted ‘complex’ duties transaction to be

electronically submitted to the SRO for a duty

determination.

• DOL customers can scan and submit supporting

documentation through DOL.

• DOL will provide an electronic record of the documents

lodged and the ability to track the progress of a

transaction.

Select the SRO duty

determination tab within

DOL

Select a transaction

type and enter core transaction

data

Scan supporting documents and lodge

online

SRO assessor sends

calculation back into DOL

DOL user finalises

transaction

Make payment to the SRO and

lodge the title at the Titles

Office

ELM - Features and benefits

Features Benefits

• Documentation for these transactions can be submitted electronically

• You can track progress of lodgements online

• The duty determination is done by SRO staff and viewable online instantaneously

• Accommodates online payment via BPay & EFT

• Inclusion of a Duty Statement & Electronic Evidence in line with DOL allowing you to lodge your title at the Titles Office prior to making the duty payment.

• Eliminates the need to physically attend the counter. You can lodge from the convenience of your own office

• No need to mail documents to the SRO - reduces cost of postage and risk of lost documents

DOL Determination vs SRO Duty Determination

Allows you to process

any of the 26

transaction types

which can currently be

processed via DOL.

Allows you to access ELM to

lodge your documents

electronically to the SRO for

a duty calculation.

This functionality should be

used to lodge any

transactions that can not be

done under DOL Duty

Determination.

DOL has been spilt into two categories;

DOL

Duty

Determination

SRO

Duty

Determination

and

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DOL has been spilt into two categories;

Here’s a screen shot of

how the two categories

are presented within

DOL

DOL

Duty

Determination

SRO

Duty

Determination

and

DOL Determination vs SRO Duty Determination

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Demonstration

LET’S TAKE A LOOK AT THE

SYSTEM!

LET’S TAKE A LOOK AT THE

SYSTEM!

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Property Exchange Australia (PEXA)

In 2010 National E-Conveyancing Development Limited (NECDL) was established to develop a national

conveyance system, following on from a COAG agenda item. The company, now renamed Property

Exchange Australia Limited (PEXA Ltd), was tasked with development of the system, Property Exchange

Australia (PEXA).

The SRO spent several years working closely with PEXA to develop a mechanism for DOL to perform

the critical function of duty assessing in the electronic settlement space. On 27 January 2015, the SRO

successfully integrated DOL with PEXA. The PEXA system:

o Includes the payment of settlement monies, land transfer duty and lodgment of a Notice of

Acquisition and Title.

o Is available for a per transaction fee to conveyancers, solicitors and financial institutions.

o PEXA users will still use DOL to complete a duty assessment, but it will work a little differently.

o The transaction will begin in PEXA prior to settlement and the duty calculation will be

transmitted from DOL into PEXA provided that the transaction has reaches a status of ‘Certified’

in DOL.


Vendor and Purchaser enter

required data into PEXA

PEXA send required data to

DOL through web service

DOL user retrieves

transaction, completes duty questions and ‘certifies’ data

Vendor and Purchaser

representatives sign NOA and

Transfer of Land electronically (authorised)

The RBA reserves funds on the day of settlement

An Assessment of duty is

generated in DOL

The Transfer of Land – with electronic

evidence of duty assessment – is lodged at Land

Victoria

Funds are disbursed into

relevant accounts,

including SRO duty payment.

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PEXA workspace

Purchasers Conveyancer

Vendors Conveyancer

Duties Online Land Victoria

Incoming and outgoing

Mortgagee

RBA

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Foreign Purchasers

As part of the 2015/16 budget, the Victorian

government announced an additional duty of

3% for foreign purchasers of residential

properties.

The additional duty will apply to dutiable transactions where;

• The contract or agreement was entered into on or after 1 July 2015 and

• The transferee is foreign at the time the transaction occurs (usually

settlement)

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Foreign PurchasersVisit www.sro.vic.gov.au to access more information on Foreign Purchaser Surcharge Duty.

Foreign Purchasers

To assist in identifying a foreign purchaser the SRO has introduced a

purchaser statement (duties form 62).

• One form must be completed per transferee for all transactions where

the contract or agreement is entered into on or after 1 July 2015,

irrespective of whether the transferee is foreign or not.

• If the transferee selects ‘yes’ in part C, D or E and ‘yes’ to part F of the

statement, the additional duty may apply. In these circumstances please

lodge your documents to the SRO via ELM until 28 September.

• From 28 September DOL will be enhanced and you can assess these

transactions in DOL.

Future Enhancements

• 28 September – Foreign purchaser additional duty

DOL will have the functionality to assess duty for transactions which

include the foreign purchaser additional duty.

• 30 November – New lodgement system for non regular l odgers

Non-regular lodgers can electronically lodge transactions to the SRO

for the assessment of duty.

• 18 January 2016 – online refund applications

You or your client will be able to apply for a refund of duty online.

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BACK TO WORK SCHEME

State Revenue Office

Back to Work SchemeEmployers with new staff hired on or after 1 April 2015 will be able to

claim payments from the Victorian Government under the Back to

Work Scheme from 1 July 2015.

The Back to work scheme:

• Encourages and supports ongoing

employment growth in Victoria

• Provides targeted financial assistance

• Assists with costs associated with hiring

and training

And applies to:

• Eligible employers

• Eligible employees

– Unemployed youth

– Long term unemployed

– Retrenched workers

• Eligible jobs

Detailed information, including eligibility requirements is available on our website.

Any questions?

Q&A

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Agenda









introduction to duties online - state revenue office to duties... · 16/07/2015 2 introduction to...

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