When is stamp duty payable? How much do I need to pay?

OSRTransfer of land

Stamp duty is generally payable on transfers of ownership of land or business within New South Wales (unless you are entitled to a stamp duty exemption or concession).  Stamp duty is paid to the New South Wales Office of State Revenue.

A stamp duty calculator is available on the Office of State Revenue’s website.

First Home Owners

First Home Owners who purchase or build a new home (with a total value less than $650,000) may be eligible for a $15,000 grant (aka “FHOG”) (the grant will reduce to $10,000 in January 2016).

There are also exemptions/concessions on stamp duty for first home owners under the First Home New Home Scheme:

  • for new homes valued up to $550,000 – exemption
  • for new homes valued between $550,000 and $650,000 – concession
  • for blocks of land valued up to $350,000 – exemption
  • for blocks of land valued between $350,000 and $450,000 – concession

Transfer to your Self-Managed Superannuation Fund (SMSF)

There is a reduced duty of $50 payable on transfers of title from your name to your SMSF (section 62A Duties Act 1997 (NSW)) (subject to certain rules set out in the section).

Transfer pursuant to a family law property settlement

If the ownership of a property is transferred as a result of a family law property settlement (e.g. from both spouse names to just one name), then the transfer is exempt from stamp duty.

Transfer of a deceased estate property

A transfer of a deceased’s property to the legal representative (executor) or a beneficiary, pursuant to the Will, is exempt from stamp duty.

Establishment of a trust

The establishment of a trust, such as a family discretionary trust, is subject to $500 stamp duty.

When is stamp duty payable?

Stamp duty is payable within 3 months after the duty to pay liability arises, otherwise interest will be charged.

However, if the property is being purchased “off the plan”, then stamp duty is payable:

(a) at settlement/completion; or

(b) after 12 months from the date of exchange,

whichever occurs first.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s