Buyers Guide to Stamp Duty

This is not financial advice. Please check with your legal and financial advisors to see what applies to you, prior to making any decisions.

 
Buying a property is the largest transaction that most people make and stamp duty can be a big upfront cost. It is revenue levied by states on various types of transactions, and it includes transfers and agreements for the sale of real estate. You are liable to NSW stamp duty if you are involved in a sale or transfer of land (including improvements) or a business in NSW. Please note that stamp duty is also called transfer duty - they are the same thing.
The amount of duty payable will depend on the value of the property being purchased, and any concessions that can be applied such as the First Home Buyers Grant. Stamp duty is calculated by applying a sliding scale of taxation, depending on the property value. In general, the higher the property value, the more stamp duty you will pay. Click here to see the current rates and thresholds for stamp duty in NSW.
Stamp Duty in New South Wales is payable within 3 months of the date liability arises. The purchaser or transferee is liable to pay the duty.
Go to the Office of State Revenue website for a full list of payment options.
  1. Stamp Duty - First Home Concession
    For eligible first homebuyers, the transfer duty exemption cap is $550,000 on new homes and $350,000 on vacant land purchased to build a first home. They receive a duty concession on new homes valued between $550,000 and $650,000 and on vacant land valued between $350,000 and $450,000.
  2. First Home Owner Grant (New Homes)
    Eligible first home owners can apply for a $15,000 grant to purchase a new home or build their home. The Scheme applies to new homes only and will reduce to $10,000 on 1 January 2016. The value of the property must not exceed the First Home Owner Grant Cap of $750,000 for contracts dated on or after 1 July 2014.
  3. New Home Grant Scheme
    This scheme provides a grant of $5,000 towards the purchase of new homes, homes off the plan and vacant land on which a new home will be built. The value of the new home must not exceed $650,000 and the value of vacant land must not exceed $450,000.
Mortgage duty is another cost that must be factored into your budget when buying a property. However there is some good news for the future, as duty on mortgages will be abolished from 1 July 2016. In NSW, the mortgage duty is $5 up to $16,000, then $4 for every $1,000 or part of $1000 above $16,000.
Click here to see a guide on mortgage and stamp duty.
For more information go to the Office of State Revenue website.
 
 
Value of the property subject to the transaction Rate of duty
$0 - $14,000 $1.25 for every $100 or part of the value
$14,001 - $30,000 $175 plus $1.50 for every $100, that the value exceeds $14,000
$30,001 - $80,000 $415 plus $1.75 for every $100, that the value exceeds $30,000
$80,001 - $300,000 $1,290 plus $3.50 for every $100, that the value exceeds $80,000
$300,001 - $1m $8,990 plus $4.50 for every $100, that the value exceeds $300,000
over $1m $40,490 plus $5.50 for every $100, that the value exceeds $1,000,000
Premium Property Duty: over $3m $150,490 plus $7.00 for every $100, that the value exceeds $3,000,000
Table 1: Current rates and thresholds for stamp duty in NSW
Return to question 2
 
 
NSW stamp duty on property price NSW mortgage duty on loan amount
Purchase Price $ NSW $ Loan Amount $ NSW $
50,000 765 50,000 141
75,000 1,203 75,000 241
100,000 1,990 100,000 341
125,000 2,865 125,000 441
150,000 3,740 150,000 541
175,000 4,615 175,000 641
200,000 5,490 200,000 741
225,000 6,365 225,000 841
250,000 7,240 250,000 941
275,000 8,115 275,000 1,041
300,000 8,990 300,000 1,141
350,000 11,240 350,000 1,341
400,000 13,490 400,000 1,541
450,000 15,740 450,000 1,741
500,000 17,990 500,000 1,941
600,000 22,490 600,000 2,341
700,000 26,990 700,000 2,741
800,000 31,490 800,000 3,141
900,000 35,990 900,000 3,541
1,000,000 40,490 1,000,000 3,941
Table 2: Estimate of stamp duty and mortgage duty payable depending on the property value and loan amount.
Return to question 6

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