Adjustments: Essential Legal Guidance on Property Income and Outgoings

The guidance note on Adjustments provides expert legal insight into the critical process of apportioning income and outgoings between vendors and purchasers during property transactions across Australian jurisdictions. Practitioners must ensure that they understand the strategic implications of adjustments. This essential resource covers the legal framework, common contractual provisions, and jurisdiction-specific nuances that affect how adjustments are calculated and applied.

Topics Covered

• Adjustments in New South Wales
• Adjustments in Victoria
• Adjustments in Queensland
• Adjustments in Western Australia
• Adjustments in South Australia
• Adjustments in Tasmania
• Adjustments in Northern Territory
• Adjustments in Australian Capital Territory

Critical Elements

• Understand jurisdiction-specific rules governing who prepares the adjustment figures and how disputes are managed.
• Recognize that adjustments cover income such as rent and outgoings including rates, water charges, and strata levies, but exclude capital profits.
• Consider legal nuances in land tax adjustments, noting new prohibitions and exemptions that vary by state.
• Evaluate practical implications of adjusting “as paid” versus “as assessed” methodologies and their contractual effects.
• Be aware that delays or errors in settlement require recalculations, with important case law guiding post-settlement adjustments.