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Buying a property

When you buy a property in NSW, you may have to pay taxes and duties. We’ve set out some of the more common ones below, as well as our process for assessing them.

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.

Purchaser/transferee declaration

When you buy a property in NSW, you must complete a purchaser/transferee declaration. Note: New interactive form with declaration tick boxes in place of statutory declaration.

  • If you’re buying with other people, everyone 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.

Under the Taxation Administration Act 1996, it's an offence to give false or misleading information.

Transfer duty

Transfer duty is payable in NSW when you buy a home, including:

  • your first home
  • an investment property
  • a holiday home
  • a farming property.

A transfer of business assets may also attract transfer duty.

You'll 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, under the First Home Buyers Assistance Scheme (FHBAS).

Unlike the first home owner grant, the FHBAS applies to:

  • buying an existing home
  • buying a new home
  • vacant land on which you intend to build a home.

Grants

When you buy a property in NSW, you may also be eligible for home buyer grants or concessions.

Transfer duty calculator

Buying off-the-plan

Buying off-the-plan is when you enter into a contract or transfer to buy residential property, where the home is 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 to12 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 citizen, you may be classed a foreign person and have to pay a surcharge purchaser duty of eight per cent.

Land tax

Land tax is calculated on the value of all the land you own, other than your principal place of residence.

You’ll have to pay land tax if the unimproved value of all your land holdings is over a certain threshold.

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

Contact us

For more information on transfer duties when buying a property, contact us.