A common question that is asked is when is my transfer duty (also referred to as stamp duty) payable?
In New South Wales transfer duty is payable the earlier of settlement or within three (3) months from the date of exchange.
If you are purchasing off the plan (where a home is to be erected or developed prior to settlement) and you propose to use the property as your principal place of residence you can defer the duty for a further period of twelve (12) months making transfer duty payable at fifteen (15) months from the date of the Contract unless settlement occurs first.
Transfer duty is payable on:-
- Real Properties.
- Strata Properties.
- Holiday Homes.
- Investment Properties.
- Vacant Land.
- Farming Property.
- Commercial Properties.
- Industrial Properties.
You also need to pay transfer duty when you acquire land without actually purchasing it.
Examples where transfer duty is payable where you have acquired the land without buying it:-
- A gift.
- A change on beneficial ownership.
- A declaration of trust.
If you acquire a property the transfer duty is payable within three (3) months of that agreement.
If the transfer duty is not paid on time Revenue NSW will impose penalty interest. The penalty interest is calculated at a daily rate. Meaning you are charged penalty interest on the transfer duty per day you are late.
The Revenue NSW transfer duty calculation can be found by clicking here or contact our friendly property department team on 02 4721 6200 if you would like any further information transfer duty.
Written by Megan Johnson.