Stamp duty is just one of the many costs associated with property ownership. Learn everything you need to know about transfer duty in NSW and see if any exemptions apply to you.
When you purchase real estate, you’re required to pay a variety of fees and charges upfront-- one of which includes stamp duty (or transfer duty). Stamp duty is a tax set by each Australian state or territory that is imposed on the purchase of assets including property. Essentially it covers the cost of changing the title of the property and ownership details.
If you own or are looking to buy property in NSW, find out how stamp duty works so you know what you’re up for.
Use our stamp duty calculator to estimate how much you may need to pay for a given transaction in NSW.
Transfer duty in NSW
The NSW State Office of Revenue states that transfer of land is a duty in NSW on the following transactions:
- A sale or transfer of land
- A sale or transfer of business assets
- A declaration of trust over dutiable property
How is stamp duty calculated?
Stamp duty is calculated on the total dutiable value of the property subject to the transaction.
The current rates and thresholds for NSW are outlined below:
|Value of the property subject to the transaction||Rate of duty|
|$0 - $14,000||$1.25 for every $100 or part of the value|
|$14,001 - $30,000||$175 plus $1.50 for every $100 that the value exceeds $14,000|
|$30,001 - $80,000||$415 plus $1.75 for every $10 that the value exceeds $30,000|
|$80,001 - $300,000||$1,290 plus $3.50 for every $100 that the value exceeds $80,000|
|$300,001 - $1m||$8,990 plus $4.50 for every $100 that the value exceeds $300,000|
|over $1m||$40,490 plus $5.50 for every $100 that the value exceeds $1,000,000|
|Premium Property Duty: over $3m||$150,490 plus $7.00 for every $100 that the value exceeds $3,000,000.|
(Source: The NSW State Office of Revenue)
Who pays the stamp duty?
In NSW, the purchaser of the property or the transferee is liable to pay stamp duty. The purchaser or transferee becomes liable when the sale or transfer takes place. However, if the sale or transfer is influenced by a written document, then the liability arises when the written document is executed.
When is the stamp duty paid?
Stamp duty becomes payable within three months from the date in which the liability arose. If the property is purchased off-the-plan, the stamp duty must be paid within three months from the date of the completion of the agreement or the assignment of the purchaser’s interest in the agreement.
Am I exempt from paying stamp duty?
If you qualify for the First Home - New Home Scheme under the FHOG, you may be eligible for a stamp duty exemption or concession.
The scheme includes an exemption from stamp duty for new homes valued up to $500,000 and concessions on duty for new homes valued between $500,000 and $600,000.
The First Home-New Home Scheme also provides a duty exemption on vacant land valued up to $300,000 and concessions for vacant land valued between $350,000 and $450,000.
How do I pay stamp duty?
The NSW Office of State Revenue accepts the following payment methods:
- Electronic Funds Transfer (EFT)
- In person
- Advance payment
Can I apply for a refund if the sale transfer is cancelled?
If your sale transfer is rescinded, the transfer is no longer liable for duty. You can apply for a refund by completing the Application for Reassessment and Refund: Cancelled Agreements for the Sale or Transfer of Dutiable Property form which can be accessed on the NSW Office of State Revenue (OSR) website.
What other fees are associated with stamp duty?
There are others fees that come with stamp duty including a transfer fee and a mortgage registration fee. For instance, if you purchased a property worth $450,000 in NSW (and you were not a first home buyer), you would be liable for approximately $15,740 in stamp duty. You would also need to pay a transfer fee of $219 and a mortgage registration fee of $109.50.