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When you buy a property off the plan in NSW that you intend to live in, you may be able to defer paying transfer duty (stamp duty) for up to 12 months.
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When you buy a home in New South Wales (NSW) you must generally pay transfer duty within 3 months of signing the contract for sale.
If the settlement date is earlier, you must pay on or before the settlement date.
If you buy off the plan (OTP), you may be able to defer paying transfer duty for up to 12 months.
With the deferral, you must pay transfer duty at the earliest of:
15 months after signing the contract for sale (this includes the normal 3-month time to pay and the 12-month deferral)
when the property is completed and settlement occurs, or
when any part of the contract is assigned to another person.
Eligibility requirements
You must meet all the following requirements to qualify for the payment deferral.
Citizenship and residency status
Each purchaser must be:
an Australian citizen, or
a person who:
holds a permanent visa (permanent residents)
holds a partner (provisional) visa (subclass 309 or 820), or
is a New Zealand citizen who holds a special category visa (subclass 444), and
has been in Australia for at least 200 days within a 12-month period immediately before exchanging contracts.
If you do not meet the above criteria, you will be considered a foreign person.
If any purchaser is a foreign person at the time of signing the contract, the deferral is not available, even if they expect to become a permanent resident later.
The deferral is not available for property purchased on behalf of trusts or corporations.
Eligible off the plan purchase agreement
An OTP purchase agreement is a contract to buy land where a residential property will be built or developed before the sale is completed.
Examples include:
apartments or units in a development that have not been completed
townhouses or houses where construction has not started or is ongoing, and
land with a home to be built where the contract covers both the land and the residence to be constructed (often marketed as ‘house and land packages’).
Buying vacant or unregistered land
To be eligible for the payment deferral, the land contract must state that a home will be built on the land before settlement.
This requirement applies even if you have a separate building contract.
Intention to live in the property
The property must be purchased with the genuine intention of using it as your principal place of residence (PPR).
This is your home where you will live most of the time.
Key points about PPR:
It must be a place where you live, not just a property you own.
It can be a house on land or an apartment (e.g. strata title).
Please note, the payment deferral is not available for properties that are not your PPR, such as holiday homes, investment properties or commercial properties.
Residence requirements
For contracts exchanged on or after 1 July 2023, at least one purchaser must:
move into the residence within 12 months after completion of the agreement (the settlement date), and
use and occupy the property as their PPR for a continuous period of at least 12 months.
For contracts exchanged before 1 July 2023, the residence requirement is only 6 months of continuous occupation.
Defence force personnel exemption
Defence force personnel are exempt from the residence requirement where:
at least one purchaser is a member of the Permanent Forces of the Australian Defence Force (ADF), and
each purchaser is enrolled to vote in NSW State elections.
This exemption only applies for transactions entered on or after 19 May 2022.
Change of mind
You must notify Revenue NSW immediately if:
you change your mind and decide not to live in the property, or
if you fail to meet the residence requirements.
Without the deferral, duty was payable within 3 months of signing the contract.
If duty was not paid within this timeframe, a tax default has occurred, and interest will apply from the date of the tax default until the duty is paid. Revenue NSW may also apply penalty tax.
proof that all purchasers are enrolled on the NSW electoral roll.
How to receive the payment deferral
Payment deferrals for off the plan property purchases are not automatic.
A solicitor or conveyancer (legal representative) should manage the assessment on your behalf as part of the property transfer process.
Your legal representative will:
advise you if you are entitled to the payment deferral or if there are any issues
prepare all necessary transfer documents
complete and process the duty assessment on your behalf
ensure all requirements are met and forms are correctly completed, and
handle the settlement process.
What happens next
If you qualify for the payment deferral, your legal representative can process your duty assessment straight away.
When your assessment has been processed, your legal representative will receive a Duties Notice of Assessment (Notice of Assessment).
A Notice of Assessment is a document from Revenue NSW that shows the amount of duty that a purchaser or transferee must pay and the due date for payment.
Read more about paying duties, including what happens if you do not pay by the due date.
Objections and reviews
If you disagree with the assessment, you can lodge an objection within 60 days of the decision.
If your objection is unsuccessful, or Revenue NSW does not respond within 90 days, you have the right to seek a review by the NSW Civil and Administrative Tribunal (NCAT).
You should keep evidence that you met the residence requirement, such as:
utility bills
driver's license address updates
electoral roll registration, or
mail received at the property.
These records should be kept for at least 5 years. Revenue NSW may request this evidence to check for compliance.
Examples
Example 1: Changed circumstances
Sophie is an Australian citizen who buys an OTP unit in Parramatta for $950,000 in January 2024, with settlement expected in April 2025.
She declares she will live there as her PPR. However, in March 2025, Sophie receives an incredible job offer in Singapore that she cannot refuse.
Sophie was eligible for the deferral when she signed the contract.
The unit settles in April 2025, and Sophie pays the transfer duty.
Sophie notifies Revenue NSW that she can no longer meet the residence requirement due to her job relocation.
Since Sophie declared she would live in the property but now cannot, and the standard 3-month payment deadline has passed, she will face interest charges for the period from the original due date (April 2024) until when duty was paid (April 2025).
Example 2: Not eligible – vacant land
Mark signs a contract in September 2024 to buy a block of vacant land in the Central Coast for $450,000.
He plans to build a house on it later and intends to use it as his PPR once built.
Mark is not eligible for the deferral because he is only buying vacant land.
The deferral only applies when the contract includes a residence to be built or developed before completion.
Mark must pay his transfer duty within 3 months of signing the contract.
He would need to pay standard transfer duty rates without the benefit of deferral.
Example 3: Not eligible – foreign person
Mei and David are buying an OTP apartment in Sydney for $800,000.
Mei is an Australian citizen, but David is on a temporary work visa (subclass 482) and is not a permanent resident.
They are not eligible for the payment deferral because David is considered a foreign person.
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).
