Help! What is Transfer Duty and How Much Do I Pay?
When you purchase property in New South Wales, you are required to pay Transfer Duty (formerly known as Stamp Duty) to the NSW Government. Understanding this legal obligation is crucial for all property buyers.
Here’s what you need to know about Transfer Duty and how much you might have to pay.
What is Transfer Duty?
Transfer Duty is a tax levied by the NSW Government on property transactions. It applies to both residential and commercial property purchases. The duty is calculated based on the property’s purchase price or market value, whichever is higher.
Who Pays Transfer Duty?
As the purchaser, you are responsible for paying Transfer Duty. This must be done within a specific timeframe, typically within three months of signing the Contract for Sale. Timely payment is crucial to avoid penalties and interest charges.
How is Transfer Duty Calculated?
Transfer Duty is assessed based on a sliding scale. The amount payable increases with the value of the property. You can use the Revenue NSW Transfer Duty Calculator to estimate the amount you need to pay.
Exemptions and Concessions
Certain exemptions and concessions can reduce or eliminate your Transfer Duty liability. These may apply to first-time home buyers, pensioners, or those purchasing new homes or vacant land. It’s essential to check your eligibility for any such benefits.
How Far North Coast Conveyancing Can Help
At FNCC, our conveyancing services include:
- Duty Assessment: We help you understand your Transfer Duty liabilities and calculate the amount payable.
- Exemption Applications: We assist you in applying for any exemptions or concessions you may be eligible for.
- Timely Payments: We ensure your duty payments are made within the required timeframe to avoid any penalties.
Transfer Duty is a significant consideration in any property transaction in NSW.
Properly understanding and managing this obligation can save you time and money.
For expert assistance with Transfer Duty and all your conveyancing needs, contact FNCC today.
We’re here to help you navigate every step of your property purchase.
