Buying off the plan

You must pay transfer duty within 3 months of signing a contract for sale or transfer. If you buy a home off the plan, you may have up to an additional 12 months to pay your transfer duty.

A contract for the sale of vacant land is not eligible for the off the plan benefit.

When to pay transfer duty

If you are buying off the plan and can meet the eligibility requirements, you will not have to pay transfer duty until:

• 15 months after you enter into the agreement to buy or transfer a property or,
• If the contract is completed within the 15 months, at the time of completion or the handover of the property.

Who's eligible

From July 2016, all purchasers and transferees must not be a foreign person, meaning you're:

• an Australian citizen
• a permanent resident, who has lived in Australia for more than 200 days within a 12-month period immediately before exchanging contracts.

Requirements for living in the property

If you apply for the off the plan deferral of transfer duty, you must satisfy the following residence requirements.

Contracts exchanged on or after 1 July 2023

At least one purchaser or transferee must:

• move into the home within 12 months after settlement, and
• live in the property as your principal place of residence for at least 12 continuous months.

Contracts exchanged before 1 July 2023

At least one purchaser or transferee must:

• move into the home within 12 months after settlement, and
• live in the property as your principal place of residence for at least 6 continuous months.

Members of the Australian defence force

From 19 May 2022, if you’re a permanent member of the Australian Defence Force when buying the property and you and everyone you’re buying with is on the NSW electoral roll, you won’t have to meet these living requirements.

By completing the purchaser/transferee declaration, you're confirming you'll meet the requirements as outlined in the explanatory notes to the declaration.

Changes in living arrangements

If you don't meet the above residence requirement, you must pay duty within three months of the date of the contract. If duty is paid after three months of the date of the contract, you must also pay interest and potentially penalty tax.

How to apply

Each purchaser can make a request by completing the mandatory Purchaser/Transferee Declaration - Individual (ODA 76I). Your solicitor or conveyancer will then arrange for the deferral of payment if you are eligible.

Contact us

For more information about buying off the plan and how to apply, contact us.