Exemptions from stamp duty

Property transfers in NSW are subject to stamp duty, now known as transfer duty.

Transfer duty will apply when there is the transfer of property including family homes, investment properties, farming properties, vacant land, and commercial properties. There is also stamp duty payable when you transfer a motor vehicle.

Transfer duty applies when you purchase the property, transfer a property between owners and in some cases where it is gifted to a person or there is a transaction that changes the beneficial owner of the property. It is calculated based on the value of the property.

When parties to a marriage or de facto relationship separate, they need to separate their property. This often includes transferring the property out of joint names or transferring it from one party’s name to the others. When parties have not completed a formal property settlement, they will need to pay transfer duty on these transactions. Depending on the property price, this can be tens of thousands of dollars.

The Duties Act allows for exemptions from transfer duties if the parties have entered into a Court Order or a Binding Financial Agreement. The party seeking the exemption must complete the ‘Application for Exemption or Refund – Break-up of a Marriage or De Facto Relationship’ form.

The exemption from transfer duty is one an important reason why you should have your property settlement formalised.