Stamp duty is a tax that is levied on the transfer of certain assets. In Australia, stamp duty is levied by state and territory governments.
The application of stamp duty in securitisation transactions varies depending on the jurisdiction. In some jurisdictions, stamp duty is not payable on securitisation transactions. In other jurisdictions, stamp duty may be payable on the transfer of the assets into the special purpose vehicle (SPV), the issue of securities by the SPV, or the transfer of the securities to investors.
The amount of stamp duty payable on a securitisation transaction will depend on the value of the assets that are being securitised and the jurisdiction in which the transaction is taking place.
Here are some of the applications of stamp duty in securitisation:
- To raise revenue for the government: Stamp duty is a major source of revenue for state and territory governments in Australia. Securitisation transactions can generate significant stamp duty revenue for the government.
- To protect investors: Stamp duty can help to protect investors in securitisation transactions by ensuring that the assets that are being securitised are properly valued.
- To reduce the risk of fraud: Stamp duty can help to reduce the risk of fraud in securitisation transactions by ensuring that the transfer of assets is properly documented.
Here are some examples of stamp duty in securitisation:
- In New South Wales, stamp duty is payable on the transfer of assets into the SPV, the issue of securities by the SPV, and the transfer of the securities to investors.
- In Victoria, stamp duty is payable on the transfer of assets into the SPV and the issue of securities by the SPV.
- In Queensland, stamp duty is not payable on securitisation transactions.