When you buy a property in NSW you may have to pay some taxes and duties. We’ve set out some of the more common ones below, as well as our process for assessing taxes and duties.
Anytime you buy a property in NSW you must complete a Purchaser/transferee declaration.
- If you’re buying with other people, every person must complete their own declaration.
- If the purchaser/transferee is a corporation the declaration must be completed by an authorised officer.
- You must also complete the declaration if a property is transferred to you.
- You must sign this document under oath and have your signature witnessed.
- When you do, you’re agreeing to give any evidence to Revenue NSW on request.
- It is an offence to give false or misleading information.
All duties forms that include a declaration under the Oaths Act 1900 require an authorised witness which includes:
- Justice of the Peace
- Notary public
- Commissioner of the court taking affidavits
- Legal practitioner, i.e. a solicitor or barrister with a current practising certificate issued under Part 3 of the Legal Professional Act 1987
Transfer duty, (formerly known as stamp duty) is payable in NSW when you buy a home, including:
- your first home
- an investment property
- holiday home or
- a farming property.
A transfer of business assets may also attract transfer duty.
You will also pay transfer duty when you receive or are gifted a property without buying it.
First Home Buyers Assistance scheme
If you’re a first home buyer you may be entitled to a concessional rate of transfer duty or even an exemption from paying it altogether under the First Home Buyers Assistance scheme (FHBAS).
Unlike the First Home Owner Grant, the FHBAS applies to:
- buying a existing home
- buying a new home and
- vacant land on which you intend to build a home.
When you buy a property in NSW you may also be eligible for one of the NSW Government’s home buyer grants or concessions.
Transfer duty calculator
Buying off the plan is when you enter into a contract or transfer to buy residential property where the home is to be erected or developed before the contract or transfer is completed.
If you buy a home off-the-plan which you intend to use as your main residence, you can defer your transfer duty liability for up to
- 12 months after you sign the agreement or
- until the property is completed or handed over, whichever comes first.
Surcharge Purchaser Duty
If you buy land in NSW and you’re not an Australian or New Zealand citizen, you may be classed a foreign person and have to pay a surcharge purchaser duty of 8 per cent.
Land tax is calculated on the value of all the land you own other than your main residence.
- You’ll have to pay land tax if the unimproved value of all your land holdings is over a certain threshold, currently $629,000.
- The unimproved value is essentially the value of the land without any dwellings or other improvements.
- Land tax is calculated annually based on your holdings on 31 December and is payable the following year.
Land tax calculator
If you haven't been able to find the information you need on transfer duties when buying a property, contact us.