Stamp duty is a one-off government fee you will be required to pay when you buy land or property, as well as certain other assets.
It is a tax levied by Australian state and territory governments on all the legal documents, contracts and trusts involved when purchasing an asset, or have legal ownership of said asset transferred to you.
In NSW, stamp duty on property is often referred to by the Office of State Revenue as ‘transfer of land or business duty’.
Looking to calculate stamp duty? Try our stamp duty calculator.
The duty is calculated on the property’s market value. Therefore, the more expensive the property, the higher the stamp duty rate you’ll have to pay.
For example, if your residential property is valued at $800,000, it would fall within the $310,000 - $1,033,000 threshold. You would incur an outright stamp duty charge of $9,285 and an additional charge of $22,050. This brings you to a total of $31,335 payable in stamp duty. Try our stamp duty calculator to determine how much you could pay.
Learn more about duty payable in New South Wales here.
In NSW, stamp duty is payable to the Office of State Revenue. There are several ways you can pay, including by mail and BPay.
Stamp duty is a tax, and therefore the money will go towards the NSW state government budget. The money is put back into the economy, and used to fund public sectors such as health, emergency services, roads and transport, and education and training.
You become liable for stamp duty when the transaction or sale is finalised, and contracts are either exchanged or completed. When purchasing property, with or without a loan, stamp duty must be paid within 3 months after the completion of the transaction. After 3 months, interest will begin to accrue, for which you will also be liable.
If you are purchasing a residential unit off the plan, stamp duty should be paid within 15 months of the contracts being exchanged or completed.