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Update: Changes to Transfer Duty 01 July 2023


What is Transfer Duty


For all property purchases in Australia, buyers are required to pay tax on their purchase. This tax is called Transfer Duty (previously known as Stamp Duty).


Transfer Duty is payable in NSW when you buy property (including your home), vacant land, farming property, an investment property, commercial property, industrial property or a business that includes land.


Transfer Duty is also payable if you acquire land, or an interest in land without buying it. For example, a transaction that will change the beneficial ownership of a property, declaration of trust or gifting.


Each year the Transfer Duty thresholds and base amounts used to determine the Transfer Duty liabilities are adjusted in line with Sydney’s Consumer Price Index.

Changes to Transfer Duty 2023


As of 01 July 2023 the Transfer Duty rates have increased as per the table below:

Property value

Transfer duty rate

$0 to $16,000

$1.25 for every $100 (minimum $10)

$16,000 to $35,000

$200 plus $1.50 for every $100 over $16,000

$35,000 to $93,000

$485 plus $1.75 for every $100 over $35,000

$93,000 to $351,000

$1,500 plus $3.50 for every $100 over $93,000

$351,000 to $1,168,000

$10,530 plus $4.50 for every $100 over $351,000

Over $1,168,000

$47,295 plus $5.50 for every $100 over $1,168,000


Payment


Transfer Duty is payable on the earlier of:

  • the date of completion of the sale and purchase; or

  • within three months of parties signing the sale and purchase agreement.

Deferral of Transfer Duty for off-the plan purchases


From 01 July 2023, off the plan buyers can defer their Transfer Duty liabilities for up to 12 months. To satisfy the deferral, one purchaser/owner on the title of the property must:

  • move into the home within 12 months after settlement; and

  • live in the property as your primary place of residence for at least 12 continuous months.

Overseas foreign purchasers for residential-related property


As of 21 June 2016, New South Wales had joined Victoria and Queensland to impose surcharges on purchaser duty for foreign persons.


Foreign purchasers are required to pay the existing Transfer Duty and an additional foreign purchaser surcharge duty. Currently the surcharge purchaser duty is calculated at 8% of the dutiable value (the greater of the purchase price or value of the property).


Transfer Duty is based on the property’s sale price or its current market value, whichever is higher. Before purchasing a property in NSW, a purchaser should ensure that they have calculated and taken into account the correct amount of Transfer Duty payable on the purchase.


Henry William Lawyers can assist with any related enquiries. Feel free to contact our people:


Ron Zucker 0410 590 111

Eollyn Cortes 0478 727 395

Julia Zou 0426 670 202

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