Stamp duty, also known as transfer duty, is a tax imposed by state and territory governments on transactions such as the sale and transfer of real estate, businesses, and certain shares. In New South Wales (NSW), stamp duty is payable when you buy a property or someone transfers ownership of a property to you. The amount payable can vary depending on the propertys sale price or its current market value, whichever is higher. The NSW government charges stamp duty on the following transactions: an agreement for the sale or transfer of dutiable property, a declaration of trust over dutiable property, a surrender of an interest in land in NSW, a foreclosure of a mortgage over dutiable property, and a vesting of dutiable property.
The purchaser is liable to pay the stamp duty, and it must be paid within three months of the liability arising. The stamp duty payable can be calculated using online calculators, which require the execution date (contract exchange date of the property or business) and the purchase price or valuation price of the property or business. The stamp duty rates in NSW are calculated on a sliding scale, similar to income tax, so the more expensive the property, the more stamp duty you’ll pay.
If you are buying a residential property in NSW, you can use the residential property buyer tool to find out the taxes and duties you may need to pay, as well as exemptions and grants that you are entitled to receive. In some circumstances, you may be eligible for a concession or exemption from transfer duty, such as if you are a first-time buyer or buying a house as a primary residence. Your solicitor or conveyancer can lodge an application for assessment on a contract for sale or transfer of land on your behalf and arrange for duty to be paid.
