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Surcharge purchaser duty exemption for build-to-rent developments
See if your build-to-rent development in NSW is eligible for a surcharge purchaser duty exemption or refund, including when you need to apply and how to apply.
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The NSW Government has introduced an exemption from surcharge purchaser duty for build-to-rent developments.
The exemption is expected to support the supply of large-scale rental housing that:
is professionally owned and managed, and
provides tenants with greater security of tenancy and greater quality rental services.
By limiting the benefit to new developments, where the transfer was entered into on or after 1 July 2020, this is expected to help support new construction.
What is a build-to-rent property
Build-to-rent is a multi-unit development with a unified ownership structure where the property is held for rental purposes.
How the exemption is applied
If the requirements are satisfied:
a full or partial exemption will be applied upfront, or
a refund (full or proportional) of the surcharge purchaser duty will be granted in line with an order made by the Treasurer.
Eligibility for exemption or refund
The transfer was entered into on or after 1 July 2020.
For a refund, a building that is taken to be build-to-rent property under section 9E or 9F of the Land Tax Management Act 1956 has been constructed on the land concerned by the transferee or a related body corporate after completion of the transfer to the transferee.
The corporation has become entitled under the relevant section to a reduction in the value of land.
On or after 1 July 2020, after the transfer has been entered into:
An application for exemption may be made at the same time documents are lodged for assessment of ad valorem duty. The granting of approvals prior to the completion of the build-to-rent development may be considered where there is evidence of the developer’s commitment to the development and operation of a build-to-rent property.
Where surcharge purchaser duty has been paid on a transfer entered into on or after 1 July 2020, an application for reassessment and refund must be made:
within 12 months after the owner of the land concerned first became entitled under sections 9E or 9F of the Land Tax Management Act 1956 to a reduction in the value of the land, and
no later than 10 years after completion of the transfer of the residential-related property to the Australian corporation.
For pre-transaction approval on transfers entered into on or after 1 July 2020:
An ‘exempt transferee’ may, for future transactions, be exempted from surcharge purchaser duty. Approval as an exempt transferee may be subject to specific conditions which could be imposed.
The granting of pre-transaction approvals may be considered where there is evidence of the developer's commitment to the development and operation of a build-to-rent property.
Required documents
Your submission must set out the grounds for exemption or reassessment together with documents and a declaration that the purchaser/transferee is eligible for an exemption as it has met (or will meet) the requirements as set out in:
Revenue NSW will review your application and supporting documents.
Your legal representative can advise when you can expect a decision about your application.
We may request additional evidence to verify the information you provide.
Duties Notice of Assessment
A Duties Notice of Assessment (Notice of Assessment) is a document from Revenue NSW that informs a purchaser or transferee of the amount of duty they must pay.
When your application has been assessed your legal representative will receive a Notice of Assessment showing:
whether you must pay surcharge purchaser duty, and/or
the amount of any transfer duty you owe.
Read more about paying duties, including what happens if you do not pay by the due date.
Processing of refund payments
Refund payments will be processed by electronic funds transfer (EFT), and applicants must submit their details by completing the provide EFT details for refund form.
Objections and reviews
If we reject your application for an exemption, you can lodge an objection with us within 60 days of the decision.
If your objection is unsuccessful, or we do not respond within 90 days, you have the right to seek a review by the NSW Civil and Administrative Tribunal (NCAT).
Call the duties team on 1300 139 814 or +61 2 7808 6916 if you are overseas. Staff are available Monday to Friday, 8.30am to 5.00pm AEST (excluding public holidays).
