What is Transfer (or Stamp) Duty?

Transfer Duty in New South Wales Explained

Transfer duty, also known as stamp duty, is a tax that must be paid when buying or transferring property in New South Wales. It applies to all types of properties, including residential and commercial, and is calculated using a set of predetermined rates. But what exactly is transfer duty and how can it affect you? Let’s take a closer look.

What Is Transfer Duty?

Transfer duty is a tax that must be paid by anyone who is transferring an interest in real estate in the state of New South Wales. This includes transfers of ownership due to the sale or purchase of a property, as well as transfers that occur due to inheritance, gifts and some court orders. The amount of transfer duty payable depends on the value of the property being transferred and whether any exemptions apply.

When Is Transfer Duty Payable?

Transfer duty is payable at the time the transaction is completed (for example, when a contract for sale has been settled). The payment must be made before the transfer can be registered with NSW Land Registry Services (NSWLRS). If you are buying or selling real estate in New South Wales, you should ensure that you factor transfer duty into your budget from the outset to avoid any surprises later down the track.

How Is Transfer Duty Calculated?

The amount payable for transfer duty depends on several factors, including the value of the property being transferred and whether any exemptions apply. There are different rate schedules for different types of transactions; for example, residential properties have one rate schedule while commercial properties have another. Generally speaking, however, it follows a sliding scale whereby lower values attract lower rates while higher values attract higher rates. You can find out more about calculating transfer duty on Revenue NSW’s website.

Transfer duty—or ‘stamp duty’—is an unavoidable part of buying or selling property in New South Wales. It applies to all types of properties—both residential and commercial—and must be paid before any transactions can be registered with NSWLRS. While understanding transfer duty can seem overwhelming at first glance, there are resources available which explain how it works and how much needs to be paid in each situation – so make sure to check these out if you ever find yourself needing assistance!