When you buy property in New South Wales, one of the biggest upfront costs after the purchase price, is transfer duty, still commonly called stamp duty. It applies whether you are buying your home, an investment, vacant land, commercial property or even acquiring an interest in land through a trust or gift. From a legal perspective, this sits squarely within the conveyancing process under the Duties Act 1997 (NSW), alongside the framework created by the Conveyancing Act 1919 and Real Property Act 1900. For purchasers, it is a mandatory government charge. For vendors, it is not payable by them, but it directly affects buyer affordability and negotiations. The transfer duty itself is handled through your solicitor or conveyancer.
Transfer duty is calculated on the higher of the purchase price or market value, and must generally be paid within three months of signing the contract—or earlier if settlement occurs sooner. From 1 July 2025, standard rates apply up to $3,721,000, with premium duty applying above that threshold for residential property. If you are considered a foreign person, surcharge purchaser duty is added on top. Buyers purchasing off-the-plan to live in the property may be eligible to defer payment for up to 12 months (and in practice up to 15 months in certain completed-style contracts subject to Occupation Certificate and registration). Importantly, NSW has abolished duty on business assets like goodwill, but duty still applies to any land component. Your conveyancer lodges the duty assessment and arranges payment as part of settlement, and also checks eligibility for exemptions—such as deceased estate transfers or transfers between spouses and de facto partners.
The risks of getting this wrong are serious. If duty is not paid on time, Revenue NSW can impose penalties and interest, and settlement cannot proceed without it. If parties are related, or only part of the property is being transferred, an independent valuation may be required—failure to do this correctly can trigger reassessment and audits.
The AML reforms requiring tighter ID and source-of-funds checks, compliance across the transaction is tighter than ever.
At Flash Conveyancing, we’re Julian and Renee, and we proudly support clients through property transactions right across NSW. We understand that buying or selling property is more than paperwork — it’s personal. Our focus is simple: smooth settlements, clear communication, and making sure you feel confident from contract to completion.
More information:
https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/transfer-duty
