AFAD existing right procedure

Follow this procedure to help you lodge a transfer of an existing right that includes additional foreign acquirer duty (AFAD) residential land using OSRconnect.

Existing rights include transactions for:

  • certain interests in land
  • option agreements transferred between parties (including chattels).

Use the AFAD residential land toolkit for more information and links to legislation.

Note: The fields marked with an asterisk (*) are mandatory.

On the Lodgement Obligations tab:

  1. Select Transfer Duty from the Create return/transaction drop-down list.
  2. Select Create to start the transaction.
  1. You can enter your own reference (optional).
  2. Select Transfer - Other than land as the Transaction Class.
  3. In the Type of dutiable transaction drop-down list, select either:
    • Agreement to transfer dutiable property - for transactions evidenced by an agreement
    • Transfer of dutiable property - for transactions evidenced by a transfer only.
  4. Select Existing right as the Type of dutiable property from the drop-down list.
  5. Enter the Transaction/Document date using the calendar or text field (dd/mm/yyyy).
  6. For agreements, enter the Unconditional date - the date when the last allowable contract condition was satisfied (if applicable).
    Read the public ruling on extension of time to lodge certain agreements (DA019.1) for more information.
  7. Answer the question (if applicable): Does this transaction also include a transfer(s) assessed under section 22?
    (Form 1 pursuant transfer)
  8. Answer the question (if applicable): Has duty been previously paid on this agreement?
    If Yes, complete the remaining questions.
  9. Click Next.

The Property section will display first. Make sure you complete this stage following our data entry standards.

  1. In the Detailed description of property (other than land) field, enter the details depending on the transaction.
  2. Select Transferors from the Document details list.
  3. Select the Transferor type from the drop-down list.
  4. Enter the transferor details.
  5. If the transaction includes real property, answer the question: Is the transferor a non-Australian entity?
    If Yes, an identity details annexure is required.
  6. Click Add to register these details.
  7. Select Email next to the non-Australian transferor’s name. If you are unable to obtain the email address for the transferor, contact the Office of State Revenue immediately.

To add more transferors, repeat steps 14 to 18.

  1. Select Transferees from the Document details list.
  2. Answer the question: Are any of the transferor/s and transferee/s related?
    If Yes, you must hold evidence of value on file.
  3. Select the Transferee type from the drop-down list.
  4. Enter the transferee details.
  5. If the transaction includes real property, answer the question: Is the transferee a non-Australian entity?
    If Yes, the non-Australian transferee must complete an identity details annexure and these details must be recorded in OSRconnect.

You need to enter an ABN, ACN or ARBN for a company, and a date of birth for an individual.

  1. Answer the question: Are you a foreign person?
  2. Answer the question: Is the transferee an agent for a principal?
  3. Answer the question: Is the principal a foreign person?
  4. Enter the Interest acquired by the transferee as a fraction.
  5. Complete the transferee contact details.
  6. Click Add to register these details.

To add more transferees, repeat steps 21 to 29.

  1. Click Next.
  1. Answer the question: Is the consideration less than the unencumbered value?
    If Yes, you must assess on the evidence of value and keep a copy as part of your record keeping requirements.
  2. Enter the Consideration / Unencumbered value (whichever is greater) of the existing right, including chattels.
  3. Answer the question: Is or will the land be AFAD residential land?
    If Yes, enter the value of AFAD land.
  4. Answer the question: Is an exemption being claimed?
    If Yes, select the relevant exemption from the drop-down list.
  5. Answer the question: Does this transaction form part of an arrangement that includes other dutiable transactions (Section 30)?
    If Yes, complete the remaining questions.
  6. Click Next.

The amount of duty payable is displayed, with interest (if applicable).

  1. Click Save to validate your data.
    The status message advises of any errors in the form.

A transaction number is created, and the transaction is saved in draft. (The transaction number will be displayed in a pop-up box that you can then close by clicking the X button.)

  1. Click Summary.
  2. Click Print for a hard copy.
  3. Click the X to close the summary.
  4. Click Next.
  1. Enter your full Name and contact details.
  2. Check the box to complete your acknowledgement.
  3. Click either:
    • Submit to lodge this transaction - you can then view this in Payment Obligations.
    • Save to save this transaction as a draft (click the X to close) - you can then view this in Lodgement Obligations.

You must lodge (submit) the transaction within 30 days of the liability date to avoid unpaid tax interest (UTI). Transactions with a liability amount owing must be paid within 14 days of being lodged.

If UTI was owed at the time of lodgement, it will continue to accrue until the outstanding amount is paid.