When Ownership of Property is Transferred

Valuations for Stamp Duty & Property Transfer

Stamp Duty (now known as Land Transfer Duty) is a State Government Tax payable to the State Revenue Office (SRO) when the ownership of a property is transferred from one party to another. Stamp duty is calculated as a percentage of the purchase price or the market value of the property, whichever is greater. Stamp duty is calculated on a sliding scale, starting at 1.4 per cent for properties valued at $25,000 and rising to 5.5 per cent for those valued at or above $960,000.

Examples where Stamp Duty is Payable

  • Seller transfers ownership to a buyer.
  • A joint owner may want to remove an owner from the title where a property was purchased together.
  • A property owner transfers a property to his / her SMSF.

Stamp Duty for Property Transfer between Family Members

All transfers to relatives attract stamp duty, even where the property is gifted and no money, or “consideration” is paid. If the property is gifted to a family member, for example to children, brothers or sisters, stamp duty is calculated on the market value of the property. Where there is consideration paid, the stamp duty is calculated on either the consideration, or market value of the property, whichever is greater.

Examples

  • Parents selling a property to their child.
  • Husband transfers property in his name to his wife to be jointly owned.
  • Sibling transferring his share of a property to another sibling.

Solicitors and Conveyancers often require stamp duty valuations for their clients.

Stamp Duty Exemptions and Concessions for First Home Buyers, for Principal Place of Residence, or Transfer to a Spouse / Partner

First Home Buyer Stamp Duty Exemption

If you are a first home buyer who entered into a contract of sale on or after 1 July 2017, you are exempt from stamp duty for property valued up to $600,000, and are eligible for a concession for property valued between $600,001 and $750,000.

Principal Place of Residence (PPOR) Stamp Duty Concession

You may be entitled to a concession from stamp duty when you buy a property that you intend to live in as your home for a continuous period of 12 months, within 12 months of settlement. This concession is available to all homebuyers (not just first home owners) whose property is valued up to $550,000.

Transfer to Spouse / Partner Stamp Duty Exemption

The only transfer along these lines that does not attract stamp duty is where someone transfers a property to their spouse or de facto partner. Transfers to someone who you are legally married to, or to someone with whom you are in a genuine domestic relationship  irrespective of gender are free from stamp duty.


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