What Is Stamp Duty?
Stamp duty, also known as transfer duty, is a one-off government fee paid by the purchaser of a property in New South Wales (NSW).
You must pay stamp duty in NSW when you buy:
- a home or holiday home
- an investment property
- vacant land or a farming property
- commercial or industrial properties
- a business, that includes land.
How Much Is Stamp Duty In NSW?
Stamp duty is generally calculated on the market value of the property. So the higher the property value, the more expensive the stamp duty.
The stamp duty (transfer) rates for NSW as of January 2023 are as follows:
|Property value||Stamp duty (transfer duty) rate|
|$0 to $15,000||$1.25 for every $100 (minimum $10)|
|$15,000 to $32,000||$187 plus $1.50 for every $100 over $15,000|
|$32,000 to $87,000||$442 plus $1.75 for every $100 over $32,000|
|$87,000 to $327,000||$1,405 plus $3.50 for every $100 over $87,000|
|$327,000 to $1,089,000||$9,805 plus $4.50 for every $100 over $327,000|
|Over $1,089,000||$44,095 plus $5.50 for every $100 over $1,089,000|
|(Premium) Over $3,268,000||$163,940 plus $7.00 for every $100 over $3,268,000|
Source: NSW State Revenue Office
Give us a call on 1300 889 743 or complete our free online assessment form to speak with one of our mortgage brokers.
Stamp Duty NSW Exemptions
When Is The Stamp Duty Exempted In NSW?
In some circumstances, you can avoid paying stamp duty. You may be exempted or discounted:
- When you are a beneficiary of a deceased estate
- When the transfer is between members of a married or de facto couple.
Are There Any Stamp Duty Exemptions For First Home Buyers In NSW?
Yes, there is. Under the NSW’s First Home Buyers Assistance scheme, there is stamp duty exemption for first-home buyers.
Starting July 1, 2023, the following duty exemptions and concessional rates will be in effect:
For New or Existing Homes:
- Full exemption from transfer duty for homes valued up to $800,000.
- Concessional rates available for homes valued over $800,000 but less than $1,000,000.
For Vacant Land with Intent to Build:
- Full exemption for land valued up to $350,000.
- Concessional rates apply for land valued over $350,000 but less than $450,000.
Unlike the First Home Owners Grant (FHOG) in NSW, the stamp duty exemption/concession applies to all property types, and is not limited to only new or off-the-plan properties.
Please read our guide for a full list of government grants and schemes available for first home buyers.
NSW Stamp Duty For First Home Buyers
How To Calculate NSW Stamp Duty On Vacant Land
To calculate the stamp duty on land in NSW, simply enter the land value in our calculator, and choose vacant land to get the stamp duty payable.
The duty payable is calculated the same way as a standard house or unit.
However, please note that for land bigger than 2 hectares, a premium transfer rate and a different method of calculation applies.
Also, first-home buyers purchasing vacant land to build their home will pay no duty at all if the land’s value is $350,000 or less.
Vacant land valued above $400,000 but below $450,000 will be charged at a discounted/concessional rate.
What Is The Stamp Duty Surcharge For Foreign Investors?
In addition to the standard transfer (stamp) duty, foreigners must also pay an 8% surcharge on the value of the residential land they buy in NSW.
For property purchased in New South Wales, a 2% land tax surcharge also applies.
The exception to this surcharge is if you’re on a subclass 444 visa or a permanent resident who has lived in Australia for more than 200 days in the 12 months before the purchase date. For the specific countries refer to the highlight below.
NSW Surcharge Purchaser Duty Exemptions and Refunds for Foreign Buyers In 2023
Buyers from the following countries are now exempt from paying surcharge purchaser duty in NSW:
- New Zealand
- South Africa
The change is immediate, due to international tax agreements. Revenue NSW will reach out to customers eligible for refunds due to paying the surcharge purchaser duty on or after 1 July 2021.
Visit the official NSW Government website for more information.
FAQs: Stamp Duty NSW
The purchaser of the property pays the stamp duty in NSW. The purchase becomes liable for the stamp duty once the sale or transfer takes place.
Your conveyancer or solicitor lodges an application on your behalf. They’ll also arrange for the duty to be paid. This is typically done as part of the settlement process. They’ll also know if you are entitled to any exemptions or concessions.
In NSW, the stamp duty is payable to the Office of State Revenue.
If you’re not using a solicitor or conveyancer, you must lodge an application and pay the duty yourself using BPAY or an electronic fund transfer (EFT).
Typically, transfer or stamp duty is paid with other funds transferred at the time of the property settlement.
Otherwise, stamp duty must be paid within three months of the date of exchange as shown on the contract to avoid interest charges.
Home buyers purchasing an off-the-plan property to live in, i.e. not an investment property in NSW, have the option to defer paying their stamp duty up to 12 months after they’ve signed the agreement, or until the property is completed or handed over, whichever comes first.
This is aimed at helping owner-occupiers manage the cost of buying a newly built property.
In most cases, you will need to obtain a stamp duty valuation and pay stamp duty on the value as opposed to the purchase price.
This is common when someone buys a property from their family and is given a discount.
Are You Ready To Apply For A Home Loan?
Our mortgage brokers can assess your situation and work out if you have a large enough deposit to buy a home.
They can also clarify any questions you may have about the cost of stamp duty, transfer fees or the First Home Owner Grants
Speak to one of our specialist mortgage brokers by calling us on 1300 889 743 or fill in our free online assessment form to find out if you’re ready to buy.