If you've received property from a deceased estate, 'in accordance with the terms of the will', you'll pay transfer duty at a concessional rate of $50.
For transmission applications or transfers entered into on or after 1 February 2024, this will increase to $100.
'In accordance with the terms of the will' means you’re entitled to the property as the beneficiary (inheriting money or other property):
If a will is contested, the duty will be determined by a court order, because the order acts as an addition (codicil) to the will. Any transfer made under the order is considered to be a transfer in accordance with the terms of the will.
The beneficiaries of a will often decide to vary their entitlements.
For example, one beneficiary may decide to gift or sell part of a property they inherit to another beneficiary. When this happens, the normal rate of transfer duty applies to any part of the property that varies from the terms of the will.
If you vary the entitlements under a will this way, you must provide a valuation report as evidence of the value of the property, so that we can assess the duty.
Here are some common examples of how transfer duty applies when you vary the terms of the will.
Under the terms of the will, equal shares in the family home are left to Jo and Lee by their parent.
The family home is valued at $500,000.
Lee agrees to pay $250,000 to Jo in exchange for Jo's half share of the home.
The 50 per cent of the home Lee was entitled to under the will attracts no duty.
However, the 50 per cent bought from Jo attracts duty at the standard rate or $7,240.
Under the terms of the will, a parent leaves equal shares of a family home and a holiday home to Sandy and Alex.
The family home is valued at $400,000, the holiday home $500,000.
Sandy and Alex agree that Sandy will become the sole owner of the family home, while Alex will become the sole owner of the holiday home.
As a result, Sandy must pay duty on the 50 per cent of the family home that was left to Alex. The duty on the $200,000 half-share is $5,490.
Alex must pay duty on the 50 per cent of the holiday home left to Sandy. The duty on the $250,000 half-share is $7,240.
You don't have to pay surcharge purchaser duty when:
However, you must pay the duty if you receive:
Your solicitor or conveyancer can lodge your application for duty assessment. You'll need to give them:
Depending on how you acquire the property, you may also need to include: