Complete Guide to Transfer Duty / Stamp Duty

Overview

Understanding transfer duty (also known as stamp duty) is crucial for homebuyers, investorsand property owners in Australia. This mandatory government tax impacts everyproperty purchase and property transfer and influences the overall cost of realestate property transactions. Working with a conveyancer can help navigate the complexities of transfer duty, ensuring compliance and potential savings.

The amount of transfer duty required varies based on factors such as property location, purchase price or property value, buyer’s circumstances, available exemptions and concessions and property type. This guide provides an in-depth explanation of transfer duty, including tax deductibility, calculation methods, exemptions and concessions. Whether you’re a first-home buyer or an investor, knowing how transfer duty works can help you plan your finances effectively and avoid unexpected costs.

What is Transfer Duty / Stamp Duty?

Transfer duty, commonly referred to as stamp duty, is a tax imposed by state and territory governments on property transactions. This duty generally applies to purchases and transfers of property for various purposes, such as owner occupation or investment, and of various types, such as residential, commercial, industrial, farming property (including vacant land), business assets, etc.

Purpose of Transfer Duty

The primary purpose of transfer duty is to generate government revenue and regulate real estate transactions. It is payable when a property changes ownership, whether by sale, inheritance, or gifting.

When Does Transfer Duty Apply?

• Buying a home (new or existing residential property)
• Purchasing a holiday home or investment property
• Acquiring vacant land for development
• Transferring property ownershipthrough inheritance, family or related party arrangements
• Other transactions that may trigger transfer duty, such as declaration of trust over a property, purchase or transfer of business asset and certain shares or foreclosure of mortgage over certain property

Example Scenarios

• A first-home buyer purchasing a $500,000 house must pay transfer duty calculated using the relevant duty rate in the state where the house is unless the buyer is eligible for any first home transfer duty concession.
• An investor buying an apartment at market value will incur stamp duty based on the purchase price.
• A family member receiving ownership of a property as a gift from another family member may still be liable for transfer duty assessed on the property market value.

Is Transfer Duty / Stamp Duty Tax Deductible?

Generally transfer duty is not tax deductible but may be taken into consideration when calculating capital gains tax depending on the property use.

Owner-Occupied Homes

For owner-occupied residential properties, transfer duty is not tax deductible. It is considered a capital expense and cannot be claimed as a deduction on personal tax returns. If the property qualifies as your principal place of residence, you may be exempt from paying capital gains tax when selling the home.

Investment Properties

For investment properties, transfer duty is not immediately deductible but may reduce capital gains tax when the property is sold. Transfer duty can be added to the cost base of the property, lowering taxable capital gains payable.

Relevant ATO Guidelines

For rules and information on deducting transfer duty from the property cost base tocalculate capital gain tax, refer to the ATO’s guide on How to calculate CGT.

For rules and information on investment income deductions, refer to guidance on the ATO’s guide on Interest, dividend and other investment income deductions.

For taxation and accountancy advice please consult your personal financial advisor for more details.

How is Transfer Duty / Stamp Duty Calculated?

Transfer duty is calculated on the higher of the property purchase price and market value using the applicable transfer duty rate of the state or territory that the property is located in.

Additionally, there are other factors that can significantly affect the amount of transfer duty payable:

• Property Location: each state and territory has it's separate transfer duty rates.
• Purchase price or Property value: different transfer duty rates apply to different price or value ranges. Generally, the rate increases as the price or value of the property increases. In NSW, premium rates are applicable to property valued over $3 million. The specific rates and affected values vary depending on the contract date and whether the property is residential or large property.
• Buyer’s circumstances: first-home buyers and owner occupiers may be eligible for transfer duty concessions or exemptions while foreign buyers may need to pay additional surcharge duty.
• Property type: the transfer duty exemptions and concessions available differ depending on the property type (new and existing home or vacant land) and the buyer’s intended use for the property (principle home or investment property).
• Exemptions and concessions (e.g., home concession transfer duty, first home buyer duty exemption or concession)

Transfer Duty vs. Stamp Duty

Originally stamp duty was imposed on documents evidencing property transactions and physical stamps were affixed on the physical documents. Duty could be legally avoided if there was no document in existence.

Today the duty is imposed on transactions rather than documents and in most jurisdictions, stamp duty is officially referred to as “transfer duty”.

The terms "transfer duty" and" stamp duty" are often used interchangeably and both refer to the same tax.

Transfer Duty Rates by State

Below is an example of how transfer duty amounts vary across different states for the same property value with no surcharge, exemption or concession applicable:

How to Calculate Transfer Duty Using a Stamp Duty Calculator

1. Determine the market value or purchase price.
2. Apply the applicable state transfer duty rates.
3. Factor in stamp duty exemptions and stamp duty concessions if eligible.
4. Factor in surcharge duty if the buyer is a foreigner.

All state or territory revenue offices have transfer duty calculator tool available on their websites. You can utilise these calculators for easy and accurate calculation of transfer duty.

• NSW transfer duty calculator
• NSW transfer duty calculator for first home buyers
• QLD transfer duty calculator
• VIC transfer duty calculator

Common Exemptions and Concessions

Each state and territory has its separate transfer duty exemptions and concessions. Below are the common exemptions and concessions:

• First-home buyer exemptions and concessions
• Principal place of residence/home buyer concessions
• Exemption for pensioners
• Concessions for off-the-plan purchases
• Exemptions for transfers between married couples and de facto partners
• Exemptions for transfers related to marriage, de facto and domestic relationship break-ups
• Exemptions and concessions for deceased estate transfers

How Much Is Transfer Duty / Stamp Duty in NSW, QLD, and VIC?

NSW Stamp Duty Rates

In NewSouth Wales, transfer duty (also known as stamp duty) is calculated based on the higher of the purchase price and property's market value. The more expensive the property, the higher the duty payable. For contracts and transfers dated from 1 July 2024, the standard transfer duty rates in NSW areas follows:

• Up to $17,000  $1.25 for every $100 (minimum $20)
• $17,001 to $36,000  $212 + $1.50 per $100 over $17,000
• $36,001 to $97,000  $497 + $1.75 per $100 over $36,000
• $97,001 to $364,000  $1,564 + $3.50 per $100 over $97,000
• $364,001 to $1,212,000  $10,909 + $4.50 per $100 over $364,000
• Over $1,212,000  $49,069 + $5.50 per $100 over $1,212,000

Premium transfer duty applies to residential property valued over $3 million. Where the land is larger than 2 hectares, the premium transfer rate only applies to the first 2 hectares. The rest of the property is charged at the standard rate. For contracts and transfers dated from 1 July 2024, premium transfer duty applies to property valued over $3,636,000 at a rate of $182,389 + $7 per $100 over $3,636,000.

The threshold amounts for standard transfer duty and premium duty rates are adjusted annually in line with the Consumer Price Index (All Groups Index) for Sydney. For duty rates applicable to contract and transfer dates before 1 July 2024, refer to Calculating transfer duty on the Revenue NSW’s website.

For exact calculations for specific property prices or values, use the NSW stamp duty calculator and NSW transfer duty calculator for first home buyers on the Revenue NSW’s website.

QLD Stamp Duty Rates

In Queensland, stamp duty depends on whether the buyer is an investor or owner-occupier. The transfer duty rates in QLD are:

• Up to $5,000  No duty
• $5,001 to $75,000  $1.50 per $100 over $5,000
• $75,001 to $540,000  $1,050 + $3.50 per $100 over $75,000
• $540,001 to $1,000,000  $17,325 + $4.50 per $100 over $540,000
• Over $1,000,000  $38,025 + $5.75 per $100 over $1,000,000

You can use the QLD stamp duty calculator to determine your payable duty.

VIC Stamp Duty Rates

In Victoria, stamp duty is calculated on a sliding scale based on property value. The stamp duty rates for contracts dated after 1 July 2021 in VIC are:

• Up to $25,000  1.4%
• $25,001 to $130,000  $350 + 2.4% of property value over $25,000
• $130,001 to $960,000  $2,870 + 6% of property value over $130,000
• $960,001 to $2,000,000  5.5% of property value
• Over $2,000,000  6.5% of property value

For an accurate estimate, use the VIC stamp duty calculator.

Need an Exact Calculation?

The cost of stamp duty in NSW, QLD, and VIC varies based on property value, eligibility for concessions or exemptions and—if the buyer is a foreigner—surcharge duty. Use the official state stamp duty calculators linked above for an accurate estimate before purchasing a property.

Additionally, consider exploring various home loan options and using tools to understand your borrowing capacity and repayment options when calculating stamp duty.

Transfer Duty / Stamp Duty Exemption and Concessions in NSW, QLD, and VIC

NSW Stamp Duty Exemptions and Concessions

In NewSouth Wales, eligible homebuyers can benefit from stamp duty exemption or a concessional rate under the First Home Buyers Assistance Scheme (FHBAS). The FHBAS thresholds differ depending on the contract date. For contracts dated from 1 July 2023:

For new and existing homes:

• A full exemption applies to homesvalued up to $800,000.
• Concessions apply for properties priced between above $800,000 and less than $1,000,000.

For vacant lands

• A full exemption applies to lands valued up to $350,000
• Concessions apply for lands priced above $350,000 and less than $450,000.

First-home buyers may also be eligible for the First Home Owner Grant (FHOG) for new builds.

If purchasing with an ineligible party, the NSW transfer duty concession is only applied to the eligible portion of the ownership.

For family law and estate transfers, stamp duty exemptions and concessions apply to eligible property transfers between married and de facto couples and due to divorce, break-ups, or inheritance.

For accurate calculations, refer to the NSW First Home Buyers Assistance calculator and NSW stamp duty calculator.

QLD Stamp Duty Exemptions and Concessions

In Queensland:

• Stamp duty exemption in QLD applies to first-home buyers purchasing a property valued up to $700,000.
• Higher concessions apply for first-home buyers purchasing homes priced between $700,001 to $800,000
• General concessions are available to all home buyers, regardless of property value, provided eligibility criteria are met.
• The First Home Buyer Stamp Duty Concession differs from the QLD First Home Owner Grant, which applies to new builds.
• If buying with an ineligible person, only the eligible buyer's share receives the concession.
• Transfers due to divorce or deceased estates may also qualify for duty exemptions.

For more details, use the QLD stamp duty calculator.

VIC Stamp Duty Exemptions and Concessions

Victoria offers several stamp duty concessions:

First Home Buyer Duty Exemption and Concession

• Full exemption for first-home buyers purchasing properties up to $600,000.
• Concessional rates for homes valued between above $600,000 and less than $750,000.
• Additional exemptions exist for family law property transfers and inherited properties.

If any co-purchaser is ineligible, only the eligible buyer's share benefits from the stamp duty first home buyer VIC concession.

Principal Place of Residence (PPR) Duty Concession

This concession is calculated on a sliding basis and is available to all home buyers (not just first home owners) whose property is valued up to $550,000 and who:

• start using the property as their PPR within 12 months of becoming entitled to possession of the property (which usually occurs at settlement), and
• live in the property for a continuous period of at least 12 months

If there are multiple buyers, at least one of the buyers must occupy the property as their PPR. However, the buyers can satisfy the requirements between themselves.

If these requirements are not met, duty will be assessed at the standard rate. The SRO may exercise discretion to vary the residence requirements where there is a good reason to do so.

This concession may also apply to vacant land intended to be used to build a home. Buyers must move into their home by whichever of these dates occurs first:

• 12 months of the date the buyer can lawfully live in it, which is usually the date the occupancy certificate is issued, or
• 36 months of the settlement date of the land.

If a buyer has received the PPR concession, they must notify the SRO in writing within 30 days of any changes in their circumstances that will result in the residence requirements not being met.

Pensioner Duty Exemption or Concession

An eligible pensioner can receive a one-off duty exemption or concession when they buy a new or established home, valued up to $750,000, to live in as their principal place of residence (PPR).

The pensioner duty exemption or concession is available when the buyers are buying their first home and when they are buying a property jointly with someone else, such as a partner or spouse.

To be eligible for the pensioner exemption or concession, the buyer must:

• hold a relevant concession card atthe property settlement date
• have never received a pensionerexemption/concession in Victoria
• buy the property for market value
• intend to live in the home as your principal place of residence.

Relevant concession cards include:

• Department of Veterans Affairs (DVA)Commonwealth Seniors Health Card
• DVA Pensioner Concession Card
• DVA Veteran Gold Card
• Services Australia Health Care Card, except the Foster Child HealthCare Card (FO or FST) and Carer Allowance Health Care Card (CD)
• Services Australia Pensioner Concession Card
• Services Australia CommonwealthSeniors Health Card.

To check eligibility, visit the VIC stamp duty calculator.

What Will My Solicitor Apply For?

Your solicitor will assess eligibility and apply for applicable stamp duty exemptions and or concessions on your behalf, ensuring you benefit from all available savings.

Solicitors and conveyancers do not apply for grants, such as the First Home Owner Grant which is available for eligible purchasers buying or building first new homes.The grant must be applied through an approved lender or directly with the state revenue office.

Transfer Duty in Family Law and Estate Transfers

Transfer duty is generally waived or discounted at a concessional rate for eligible property transfers between married or de factor couples or due to break-ups, divorce, or inheritance. However, specific conditions apply, so seeking legal advice before you make the move is recommended.

When Do I Need to Pay Transfer Duty in NSW, QLD, and VIC?

NSW Transfer Duty Payment Deadline

In New South Wales, transfer duty in NSW must be paid within 3 months of the property purchase contract being signed or at settlement, whichever is earlier.

However, for off-the-plan purchases where the buyer intends to live in the property, payment can be deferred for up to 12 months or until settlement, whichever comes first. The following requirements must be satisfied:

• All purchasers and transferees must be:
  Australian citizens; or
  AustralianPermanent residents who have lived in Australia for more than 200 days within a12-month period immediately before the contract date;
• At least one purchaser or transferee must move in the home within 12 months of settlement and live there as their principal place of residence for at least
  - 12 continuous months if the contract date is on or after 1 July 2023; or
  - 6continuous months if the contract date is before 1 July 2023.
  The living requirements can be waived if:
  - 1 purchaser or buyer is a permanent member of the Australian Defence Force; and
  - all purchasers and buyers are on the NSW electoral roll.

QLD Transfer Duty Payment Deadline

In Queensland, transfer duty is payable within:

1. If an electronic settlement – thelater of 30 days from the contract becoming unconditional or 60 days from the ContractDate, and no later than settlement date; or
2. If not an electronic settlement –the later of 30 days of the contract being signed or 30 days from when your contract becomes unconditional, and no later than the settlement date.  

Given most contracts settle within 30 days it is commonly paid at settlement. However, if settlement is later than this date, transfer duty must be paid when due or additional interest on unpaid duty will need to be paid.

VIC Stamp Duty Payment Deadline

In Victoria, transfer duty in VIC must be paid as part of the property settlement to enable settlement to take place

Can I Delay Paying the Transfer Duty or Pay in Instalments?

• NSW: Buyers of eligible off-the-plan purchases have an additional 12 months to pay transfer duty but this is not an option for established property transactions. Regardless, transfer duty must be paid on settlement. Buyers experiencing financial hardship can apply to the Hardship Review Board to waive, defer or write off transfer duty.
• QLD: Nodeferral options; payment must be made within the set timeframe.
• VIC: The Victorian State Revenue Office offers a payment plan in limited circumstances for financial hardship cases.

Impact of Interest Rates:

When transfer duty is not paid on time, interest will accrue daily until the duty is paid in full. The current interest rates across states are:

• NSW: 12.17%. between 1 April to 30 June 2025

For further information, refer to calculating NSW duties interest and NSW duties interest calculator.

• QLD: 12.36% for the 2024-2025 financial year.

For further information, refer to QLD unpaid tax interest for transfer duty self assessors.

• VIC: 12.36% between 1 July 2024 to 30 June 2025

For further information,refer to VIC interest rates

If you’re unsure about your payment obligations, use the NSW stamp duty calculator, QLD stamp duty calculator, or VIC stamp duty calculator to estimate your duty and plan accordingly.

Transfer Duty / Stamp Duty Refunds – What if I Pay Too Early and My Contract is Cancelled?

NSW Stamp Duty Refunds

In NSW, if you have already paid transfer duty but your contract is rescinded or terminated, you may apply for a refund. Refund applications must be made within:

• after transfer duty was assessed; or 5 years aftertransfer duty was assessed; or
• 12 months after the contract is rescinded or terminated.

Supporting documents, such as proof of contract termination, are required. Visit the NSW Revenue website for more details.

VIC Stamp Duty Refunds

In Victoria, if you have overpaid the transfer duty your contract is cancelled or does not settle, you may apply for a stamp duty refund in VIC. Applications must be submitted within 5 years of the original duty payment. Proof of termination and a written request to the State Revenue Office Victoria is required.

If you’ve overpaid or your contract is cancelled your transfer duty, ensure you apply for a refund promptly to recover your funds.

Transfer Duty / Stamp Duty and Foreign Buyers in NSW, QLD, and VIC

Foreign buyers purchasing property in Australia are subject to additional transfer duty in NSW, QLD, and VIC. These surcharges apply to standard stamp duty rates and vary by state.

NSW Surcharge Stamp Duty for Foreign Buyers

Foreign buyers of residential land in NSW must pay a Surcharge Purchaser Duty of 9% of the property’s value in addition to any standard transfer duty. This applies to individuals, corporations, and trusts classified as foreign entities.

QLD Stamp Duty for Foreign Buyers

In Queensland, foreign individuals and entities must pay a 8% Additional Foreign Acquirer Duty (AFAD) in addition to standard QLD transfer duty rates. This surcharge applies to residential property purchases.

Certain exemptions may apply, such as forAustralian-based corporations or permanent residents.

VIC Stamp Duty for Foreign Buyers

In Victoria, foreign purchasers are subject to a Foreign Purchaser Additional Duty (FPAD) of 8% on top of standard VIC stamp duty rates.

Foreign buyers are required to apply for approval from the Foreign Investment Review Board (FIRB) before purchasing property. Exemptions may be available for certain visa holders (such as New Zealand citizen’s special category visa) or permanent residents. Use the VIC stamp duty calculator to determine the total duty payable.

Summary

Foreign buyers in NSW, QLD, and VIC must pay additional surcharges on property purchases. The total cost of stamp duty for foreign buyers depends on location, property value, and potential exemptions. Seeking legal or tax advice can help buyers understand their obligations and explore potential concessions.

Transfer Duty / Stamp Duty for House & Land Packages and Off-the-Plan in NSW, QLD and VIC

Buying a house and land package or an off-the-plan property affects how transfer duty in NSW, QLD and VIC is calculated. In some cases, you may pay reduced stamp duty rates compared to purchasing an established home.

NSW Stamp Duty for House & Land Packages and Off-the-Plan Purchases

Stamp duty on a house and land package in NSW is calculated on the land value only if the home has not been built yet. This can significantly reduce stamp duty in NSW compared to buying a completed home.

First-home buyers may qualify for a transfer duty exemption if the vacant land is valued from $350,000, or a transfer duty concession if valued between $350,000 and $450,000. Additionally, eligible off-the-plan buyers can defer transfer duty payments for up to 12months or until settlement, whichever is earlier.

To calculate your duty, use the NSW stamp duty calculator and first home buyers assistance calculator.

QLD Transfer Duty for House & Land Packages and Off-the-Plan Purchases

In QLD, transfer duty for a house and land package, whereby the purchase price includes the build of the house, the transfer duty is based on the entire purchase price.If purchasing land first and building later, QLD stamp duty rates apply only to the land component.

For off-the-plan purchases, transfer duty discounts may apply depending on the type of off-the-plan purchase:-

• first home buyers may qualify for the first home buyers transfer duty QLD concession if the off-the-plan contract is a built property, which applies to properties up to $800,000;
• General concessions are also available to all home buyers purchasing on off-the-plan, regardless of property value, provided that at settlement there is a property built.
• If the off-the-plan purchase is vacant land, the only concession available is the first home buyers vacant land concession up to the value of $499,999.00

To estimate your duty, use the QLD stamp duty calculator.

VIC Stamp Duty for House & Land Packages and Off-the-Plan Purchases

In VIC, stamp duty on a house and land package is generally applied to the land value if construction has not commenced. This means VIC transfer duty can be significantly lower for buyers purchasing early in the development stage.

For off-the-plan properties apartments and units, you must be eligible for either the Principal Place of Residence (PPR) concession or the first home buyer duty exemption or concession to be able to enjoy the off-the-plan duty concession. This means first-home buyers may be eligible for stamp duty exemption VIC if the dutiable value of the property is valued up to $600,000, with concessions available for properties up to $750,000. The dutiable value of the property is usually construed as the value of the property when you sign the contract, i.e. the contract price minus the construction or refurbishment costs incurred on or after the contract date.

For contracts entered into on or after 21 October 2024 and before 21 October 2025,a temporary off-the-plan transfer duty concession scheme applies. The concession is available to all purchasers, including investors, companies and trusts and there is no requirement to be eligible for either the PPR duty concession or the first home buyer duty exemption or concession to be eligible for this concession. There is no threshold for this concession either.

The concession is available for apartments, units and townhouses of any value.

To determine how much you’ll pay, use the VIC stamp duty calculator.

Do I Pay Less Stamp Duty When Purchasing an Off-the-Plan Property?

Yes, off-the-plan duty concessions are available in Victoria.

In NewSouth Wales, Queensland and Victoria, off-the-plan purchases can result in lower stamp duty if the buyers and the property satisfy the requirements for stamp duty concessions or exemptions. Off-the-plan property are generally cheaper than established property and since the duty is often calculated based on the property value, buyers may pay significantly less than they would for an established home.

How to Avoid Transfer Duty / Stamp Duty in NSW, QLD, and VIC – Is It Possible?

While transfer duty in NSW, QLD, and VICis mandatory for most property purchases, some buyers may qualify be eligible for stamp duty exemptions or stamp duty concessions to reduce costs. Below are legal ways to lower or avoid stamp duty in NSW, QLD, and VIC.

How to Avoid Transfer Duty in NSW

In NSW, buyers can reduce or avoid duty through:

• First Home Buyer Assistance Scheme – Full stamp duty exemption in NSW for homes up to $800,000 and vacant land up to $350,000, and concessions for homes up to $1,000,000 and vacant land up to $450,000.
• Off-the-Plan Purchases – Deferring transfer duty payment for up to 12 months if buyers intend to move into the home and satisfies the living requirements.
• Family and Relationship Transfers – Some property transfers between spouses or due to inheritance may qualify for stamp duty exemptions or concessions.

For further details, visit the Revenue NSW's website.

How to Avoid Transfer Duty in QLD

In QLD, ways to reduce duty include:

• First Home Concession – Buyers of homes under $700,000pay no duty, while higher discounts apply for first homes up to $800,000.
• Home concession – Buyers can claim the home concession when acquiring a residence to live in, even when you have owned a home before.
• First Home Vacant Land Concession – No QLD transfer duty is payable on land up to $350,000, while a higher discount on transfer duty continues to apply for vacant land up to a value of $500,000.00.
• Exemptions for Family Transfers – Property transfers due to marriage breakdowns or inheritances may be exempt.

Check eligibility using the QLD stamp duty calculator.

How to Avoid Transfer Duty in VIC

In VIC, buyers can benefit from:

• First Home Buyer DutyExemptions – No stamp duty in VIC for homes up to $600,000, with concessions up to $750,000.
• Principal Place of Residence –Reduced stamp duty in VIC for properties as your primary residence valued up to$550,000
• Off-the-Plan Concessions – Reduces duty basedon construction progress at contract signing.
• Spouse and Family Transfers – Certain family transactions are exempt from VIC transfer duty.

Find more information at the State Revenue Office Victoria.

How to Avoid Double Transfer Duty?

“Double duty” is a term referencing a property transaction resulting in more than one transfer duty assessment. This in turn can result in the buyers and transferees being liable to pay transfer duty twice or more.

Transactions and circumstances that maygive rise to double duty include:

• Contract Changes: Adding or removing buyers after the contract is signed
• Nominations & Assignments: The buyer nominates another buyer after signing the contract
• Entity Transfers: Transferring property between entities, such as from an individual to a company
• Trust Transfers: Transferring property into or out of a trust or between trusts
• Entity Structure Changes: Changing property ownership between legal entities as a result of corporate reconstructions and consolidations

Prudent buyers should be aware of the potential liability for double duty to avoid unnecessary costs. To avoid double duty, it is paramount to ensure the contract accurately specifies the person or entity that will legally own the property.When in doubt, it is advisable to consult a legal professional before structuring your purchase and refer to state revenue office guidelines.

Aggregated Transfer Duty / Stamp Duty in NSW, QLD,and VIC

While transfer duty is calculated on each transaction, in some circumstances state and territory legislation requires multiple transactions to be grouped together and treated as a single dutiable transaction. Consequently, transfer duty is calculated on the aggregated value of property under all the transactions, known as aggregated transfer duty. This can potentially increase the transfer duty amount payable as the higher aggregated property value can incur a higher duty rate. Each state has separate rules on aggregation of dutiable transactions.

NSW Aggregated Transfer Duty

In NSW, aggregated transfer duty is applicable when:

• the transactions occur within 12 months; and
• the transfer or is the same or the transferors are associated; and
• the transferee is the same or the transferees are associated; and
• the transactions together form substantially one arrangement — examples of transactions that would form "one arrangement" include:
  ○     transactions where the contracts contain an interdependency clause;
  ○     purchase of all lots in a subdivision or all units in a home unit block;
  ○     transactions related to freehold property and a business conducted on that property.

Exemptions are available for home builders where:

• the dutiable property related to the transactions are comprised of separate lots of vacant land; and
• the transferee is a licensed home builder; and
• the transferee intends to build residential premises on the lots to sell to the public.

QLD Aggregated Transfer Duty

In QLD, stamp duty is aggregated if:

• the dutiable transaction together form substantially one arrangement;
• the transactions are documented in a single instrument;
• the transactions, though in separate instruments, are conditional upon one another (e.g. settlement or entry into another agreement);
• the parties to the transactions arethe same or are related;
• the properties were used together ordependently by the transferor(s) before the transfer; or
• the properties will be used together or dependently by the transferee(s) after the transfer.

If aggregation applies, QLD transfer duty is assessed on the total dutiable value, often increasing the amount payable. However, transfer duty concessions may apply.

Check your potential costs using the QLD stamp duty calculator.

VIC Aggregated Transfer Duty

In VIC, aggregation applies if:

• Multiple properties are purchased from the same vendor within 12 months.
• The purchases are considered substantially part of one arrangement.

If aggregation applies, VIC stamp duty is based on the total purchase price, potentially resulting in a higher tax liability. Some exemptions and concessions, such as those for first-homebuyers, may still reduce the duty payable.

For a precise estimate, refer to the VIC stamp duty calculator.

Key Takeaways

• Aggregation rules vary by state, but they generally apply when multiple properties are purchased together or in related transactions that form substantially one arrangement.
• Buyers should be aware of potential duty increases and check if any stamp duty exemptions or concessions apply.
• Using a state-specific stamp duty calculator and consulting a conveyancer can help avoid unexpected costs.

Transfer Duty / Stamp Duty for Put and Call Options in NSW, QLD, and VIC

A put-and-call option is a contractual agreement giving one party the right  to buy or sell a property at a future date.  An Option Deed may contain a Call Option, aPut Option or a Put and Call Option.

A Call Option gives the purchaser or a nominee the right to compel the seller to sell the property at a future point in time.

A Put Option gives the seller the right to compel the purchaser to buy the property at a future point in time.

If an Option Deed grants a Put and Call Option, the Call Option generally operates first in time. An Option Deed will specify the dates within which a party can exercise its option. A Contract of Sale with agreed terms is annexed to theOption Deed and is executed once an option is exercised.

In Australia, these agreements can trigger transfer duty, but the timing and liability rules differ across NSW, QLD and VIC.

NSW Stamp Duty on Put and Call Options

To prevent the avoidance of duty, from 19 May 2022, NSWRevenue Office requires duty be paid on the granting of an option over dutiable property. Ad valorem duty is payable on the greater of the call option fee or the value of the option (including any GST), within 3 months of the date of theOption Deed. The minimum amount of duty payable is $10.00, irrespective of the amount of the call option fee.

Once the option is exercised and the purchaser enters into theContract for Sale, the purchaser is required to pay duty on the transfer in accordance with the Contract for Sale. Duty paid on the grant of the option does not entitle the purchaser to a credit on the duty payable when the option is exercised.

In the event that the option is not exercised, the grantee is not entitled to a refund of the duty paid on the grant of the option.

If the option is assigned to another party, duty may be payable on the assignment value.

For an estimate, use the NSW stamp duty calculator.

QLD Stamp Duty on Put and Call Options

In QLD, the following rules apply:

• Transfer duty is payable on the consideration of the Option Agreement.
• Duty is also assessed and payable whenthe option is exercised based on the consideration under the Contract or the property’sdutiable value.
• If an option is transferred or assigned, stamp duty in QLD may be payable on the consideration for the transfer.

For calculations, check the QLD stamp duty calculator.

VIC Stamp Duty on Put and Call Options

Stamp duty is payable on option deeds in Victoria. The Duties Act 2000 (Vic) outlines the requirements for paying stamp duty on such transactions.

When an option to purchase property is granted, the grantee must lodge the transaction with the State Revenue Office and pay duty on the consideration paid for granting the option. If the option is exercised and a contract of sale is entered into, additional duty may be payable based on the property's purchase price.

Once the option is exercised and the purchaser enters into the Contract of Sale, the purchaser is required to pay duty on the transfer in accordance with theContract of Sale. Duty paid on the grant of the option does not entitle the purchaser to a credit on the duty payable when the option is exercised.

In the event that the option is not exercised, the grantee is not entitled to a refund of the duty paid on the grant of the option.

If the option is assigned to another party, duty may be payable on the assignment value.

In certain circumstances Option Deeds can attract double stamp duty under the Duties Act 2000 (Vic). For example, when transferring an option right or appointing a nominee to exercise an option. The occurrence of any ‘land development’ (as that term is defined by the Duties Act and the State Revenue Office of Victoria’s Rulings) after the date of theOption Deed also requires review and consideration.

It is prudent, that separate tax advice be obtained before an Option Deed is entered into.

Use the VIC stamp duty calculator for an accurate estimate.

Key Takeaways

• If an option is transferred to another buyer, additional duty may apply.
• Consulting a conveyancer can helpbuyers understand their transfer duty obligations when using put and calloptions.

Conclusion

Transfer duty / Stamp Duty is a major consideration when buying and transferring property in Australia, and the rules vary significantly across states and territories.Understanding how it's calculated, what surcharge, exemptions or concessions may apply, and when it's due can help you budget accurately and avoid any unwanted surprises. Always check the latest requirements in the relevant state or territory or speak with a qualified professional to ensure you're making informed decisions.