Queensland OSR moves to fix covered bond problem
The Queensland Office of State Revenue has recommended that the State's Treasurer use the same administrative arrangements that apply to residential mortgage-backed securities for the treatment of stamp duty on covered bonds.The move follows lobbying by the Australian Securitisation Forum, after it emerged in November that Queensland law would require the payment of stamp duty on the transfer of mortgages to a covered bond pool.Commonwealth Bank and Westpac were reported to have left home loans for borrowers in Queensland out of the pools they set up for their initial covered bond issues.If the Treasurer adopts the recommendation the transfers would not attract any tax.