If you are looking to buy a property, you have probably heard of the word Stamp Duty, also known as Transfer Duty. But what is it and how does it apply to you?

Stamp Duty is a one-off government fee that you will be required to pay when you buy land or property, as well as certain other assets. The exact amount depends on the state or territory you live in and the price of the property you are buying.  

On average, Australians pay tens of thousands of dollars in stamp duty. That’s on top of the mortgage, deposit and other expenses that come when buying a property.

You must pay transfer duty within three months of signing a contract for sale or transfer, except in the case of off-the-plan purchases.  Where you may be able to defer your transfer duty liability for up to 12 months.

 Your solicitor or conveyancer will apply for the duties assessment and organise the payment on your behalf. This is usually done during the settlement process.

In some circumstances, you may be eligible for a concession or exemption from transfer duty, such as when you are a beneficiary of a deceased estate or the transfer is between a married or de facto couple.

As part of the 2022-23 Budget, the NSW Government announced that first home buyers purchasing properties up to $1.5 million will be provided the option to pay an annual property tax instead of transfer duty.

The best course of information on Stamp Duty in New South Wales is the NSW State Revenue Website where you will also be able to fund useful calculators and other tools to estimate your Stamp Duty liabilities. The website is listed below.

https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/transfer-duty