What Government Fees Do You Pay When Buying Property in NSW?

KEY TAKE-OUTS:

• Government fees are a significant part of the cost of buying property in NSW, so it’s important to budget for more than just your deposit and legal fees.

• Transfer duty(formerly stamp duty) is usually the largest upfront government charge and is calculated based on the property’s purchase price or market value, whichever is higher

• Additional government costs may include land Registry Services registration fees, council rate adjustments, surcharge purchaser duty, and land tax, depending on your circumstances and the property you’re buying.

• Some buyers may be eligible for transfer duty exemptions or concessions, including certain first home buyers and those involved in specific transfer situations, so it’s worth checking your eligibility before purchasing

• Understanding both the upfront and ongoing government fees can help you avoid unexpected costs and better prepare for settlement and long-term property ownership.

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In NSW, government fees make up a big share of upfront costs when purchasing property. These typically include transfer duty (previously called stamp duty), Land Registry Services registration fees, and council rates. Depending on your circumstances, you may also be required to pay surcharge duty and/or land tax.

 

Upfront fees to be paid at Settlement

Transfer Duty (formerly known as Stamp Duty)

Transfer duty is a state tax applied to a wide range of property transactions. In NSW, it must be paid to Revenue NSW when purchasing a property. It applies whether the property will be your primary residence, a holiday home, an investment property, or vacant land.

It is calculated based on the higher of the purchase price or the market value of the property. You can estimate your transfer duty using the Revenue NSW Transfer Duty Calculator

Transfer Duty exemptions or concessions

Certain property transactions may qualify for exemptions or conessions, including if you are a first home buyer, transfers to beneficiaries of a deceased estate, transfers between spouses or de facto partners, and transfers that occur as part of a relationship breakdown, such as a marriage or de facto separation. More information about these exemptions can be found on the Revenue NSW website.

Surcharge Duty

Surcharge purchaser duty in NSW is an additional 9% tax that applies to foreign individuals, corporations, and trusts when acquiring residential property in NSW. It is payable to Revenue NSW in addition to standard transfer duty.

This surcharge generally applies to foreign persons, which typically includes individuals who are not Australian citizens. However, New Zealand citizens and certain visa holders may be eligible for exemptions if they meet specific residency requirements.

You can read more about surcharge duty here

 

Land Registry Services registration fees

Land Registry Services (LRS) registration fees are the government charges to officially register property dealings (like transfers, mortgages, leases, or changes to a title) with NSW Land Registry Services.

The current registration fee for the 2026/2027 financial year is $182.73 per dealing.

When buying a property, there are two dealings which your Conveyancer and/or the bank will register on the title at settlement:

1. Registration for your name on the title.
2. Registration of the mortgage on the title (if applicable).

 

Council rates – adjusted at settlement 

Council rates are adjusted at settlement. When purchasing a property, council rates are apportioned across the financial year, meaning you will pay the portion that relates to the period you own the property.

Land Tax adjustment (if applicable)

In many standard residential contracts for sale, land tax is not adjusted unless it is specifically marked “Yes” in the contract. Where it does apply, land tax is apportioned on a calendar year basis using the vendor’s Land Tax Assessment from Revenue NSW. In this case, you will only be responsible for the portion of land tax that corresponds to the period you own the property.

 

Ongoing Government Fees

Council rates 

Councils play a vital role in delivering essential community services such as sport and recreation facilities, environmental and public health protection, and waste collection. The rates paid by property owners directly help fund these services in your local area.

Each council is responsible for setting its own mix of rates to ensure it can adequately fund the services it provides to the community. Rates notices are charged on the financial year and can be paid in 4 quarterly installments.

 

Land Tax

In general, land tax is charged on a calendar year and does not apply to:

• Your principal place of residence (your home)

• Land used for primary production (such as farming or agricultural use)

• Landholding with a combined land value below the general threshold of $1,075,000

These exemptions and thresholds mean you may not be required to pay land tax

More information can be found on the Revenue NSW website 

 

 

The experienced Property & Conveyancing team at Coutts Lawyers & Conveyancers can help ensure you understand your land tax obligations.

Contact us on 1300 COUTTS to speak with a property law expert today.