What is stamp duty? A guide to stamp duty in New South Wales
What is Stamp Duty?
Stamp duty, or transfer duty as it’s known in NSW, is a once-off government tax on buying property payed by the purchaser. It is based on the purchase price and calculated via a scale, in a similar manner to income tax.
However, these standard rates don’t apply to all property purchases, particularly first home owners and foreign buyers.
Pictured below is a full tabulation of how transfer duty is calculated in NSW.
When to pay Transfer Duty
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.
If you buy off-the-plan and you intend to live in the property, you may be able to defer your transfer duty liability for up to 12 months.
Recent Stamp Duty News
Recently the New South Wales Government announced it would provide duty and land tax incentives for qualifying "build-to-rent projects".
The incentives include, an exemption from "surcharge purchaser duty" (the foreign investor duty surcharge on residential property).
The concessions are offered for a maximum period of 20 years, expiring in 2040.
Stamp Duty exemptions
The NSW government’s current policy as of 2017 is the complete exemption of stamp duty for first home owners purchasing a property valued at up to $650,000. A saving of up to $24,470 for first home buyers.
For first home buyers purchasing a home valued between $650,001 and $850,000 a concessional rate of stamp duty applies.
Unlike the NSW First Home Owner Grants (FHOG), the stamp duty concession and exemption apply to all property types.
Check out the NSW Government Website more information on NSW Transfer Duty