The tax on the transaction

Duty and exemptions

Transfer duty is usually the largest single cost in a purchase after the price itself. It is assessed by Revenue NSW, and whether a concession or an exemption applies to you turns on facts about you, not about the property alone.

General information, not legal advice. This page sets out how the law generally applies. It does not take account of your circumstances, and you should get advice about your own situation before acting on it. The official sources this page is written from are listed on it; where they differ from anything here, they are the authority.

Who this page is for

You need to know what the purchase really costs

Duty is the cost that catches people out, because it is large, it arrives on its own timetable and it is not usually covered by the loan. Working it out early changes what you can afford to bid, and it is far better done before an auction than afterwards.

The calculation itself is not the hard part. Revenue NSW publishes a calculator and it will give you a figure from the value of the property. The harder questions are about you: whether you are a first home buyer within the meaning of the scheme, whether everyone on the title qualifies, whether you will meet the residence requirement, whether you have owned property before anywhere, and whether any other exemption is available on your facts.

This page deliberately publishes no rate, no threshold and no deadline in days. Those are set by legislation and by the Commissioner and they change. A website that prints one and forgets to update it does real harm, because someone bids on the strength of it. Every figure you need is on the Revenue NSW site, and the links at the foot of this page go to the pages that carry them.

What we do is make sure the transaction is assessed correctly, that any exemption or concession you are entitled to is claimed with the evidence it requires, and that duty is dealt with in time so registration is not held up.

How we help

What the work actually is

Working out the duty position before you commit

What duty is likely to be on the purchase you are contemplating, whether any concession appears to be open to you, and what that means for the number you can afford to offer. Done before the auction, not after it.

Checking eligibility against the actual criteria

First home buyer assistance has conditions: who must be a first home buyer, what share they must take, citizenship or residency, and moving in and living in the property for a period. We check your circumstances against the criteria Revenue NSW publishes rather than against a general impression.

Identifying other exemptions and concessions

Transfers between spouses, transfers from a deceased estate, transfers arising from the breakdown of a relationship and other situations Revenue NSW recognises. Each has its own evidence requirements and they are easier to assemble at the time than later.

Getting the transaction assessed and duty paid

Arranging assessment, lodging what the Commissioner requires and paying duty so that the transfer can be registered without delay. Late payment can attract interest, which is avoidable.

Getting the names on the title right the first time

Who is on the title, and in what shares, affects duty as well as ownership. Changing it afterwards can be a second dutiable transaction. It is a decision worth making before exchange.

Flagging the other liabilities that attach to property

Land tax, surcharges that can apply to foreign purchasers, and duty consequences where a trust or company is the buyer. These are separate from transfer duty and are worth raising early, because they can change the structure of the purchase.

Questions

Questions people ask first

How much is transfer duty on my purchase?

It depends on the value of the property and on your circumstances, and the rates are set by legislation and change. Use the calculator on the Revenue NSW website for an indication, and we will confirm the position for your contract. We do not publish rates or thresholds here, because a stale figure on a website is worse than no figure at all.

When do I have to pay it?

Duty is payable in connection with the transaction and must be dealt with before the transfer can be registered. The date that applies to your purchase is worked out from your contract. Revenue NSW publishes the current requirement and interest can be charged on late payment, so this is one to confirm rather than estimate.

Am I a first home buyer?

The schemes have their own definition and it is stricter than the everyday meaning. It generally looks at whether you or anyone buying with you has previously owned residential property, and it carries residence conditions after settlement. Revenue NSW publishes the eligibility criteria, and it is worth reading them before you plan around the concession.

My partner owned a home before. Can we still get the concession?

It depends on the scheme’s criteria, which look at everyone acquiring an interest, not only at you. This is one of the most common reasons an expected concession is refused, so it is worth checking against the published criteria before you make an offer.

Does the loan cover the duty?

Usually not. Lenders generally advance against the purchase price, and duty and the other costs of the transaction are paid by you separately. Plan for it as cash you need at or before settlement.

What if I am not an Australian citizen?

Additional liabilities can apply to purchasers who are foreign persons, and there may also be approval requirements outside the duty system. Tell us your residency and citizenship position early, because it can affect both the cost and the steps involved.

Can I add or remove someone from the title later?

You can, but a transfer of an interest is generally a dutiable transaction in its own right, and it may be assessed again. Some situations are exempt. Because of that, it is much better to decide how the property will be held before you exchange.

Is land tax the same thing?

No. Transfer duty is a one-off liability on the transaction. Land tax is an annual liability that can apply to land you hold, depending on its use and value, and it is also administered by Revenue NSW. If you are buying an investment property or a second property, ask about it before you commit.

What to send us

Duty turns on your circumstances as much as on the property. These are the facts that decide it.

The contract for sale, or the property address and the price you expect to pay.
The full legal names of everyone who will be on the title, and the shares they will hold.
Whether each of you has ever owned residential property, in Australia or overseas.
Whether the property will be your home, and from when, or whether it is an investment.
The citizenship or residency status of each purchaser.
Whether the purchase is off the plan, and the expected completion.
Whether the buyer is a person, a company, a trust or a self-managed superannuation fund.
Any Revenue NSW correspondence or assessment you have already received.