Exemption From Stamp Duty NSW: The Complete 2026 Guide.

Stamp duty, officially called transfer duty in New South Wales, is one of the largest upfront costs in buying property. On an $800,000 home, it can add tens of thousands of dollars to settlement. What surprises a lot of buyers is how many legitimate ways there are to reduce or completely avoid it, not through loopholes, but through exemptions and concessions Revenue NSW has built into the system for specific situations.

This guide walks through every current exemption category, who qualifies, and how to apply. It's general information rather than personal advice, since eligibility often comes down to the specific details of your situation. If you're weighing this up against your borrowing capacity, our mortgage calculators are a good next step, or you can get in touch to talk it through.

What's the Difference Between an Exemption and a Concession?

An exemption means you pay no transfer duty at all. A concession means you pay a reduced rate rather than the full amount. Several of the categories below offer a full exemption up to a certain property value, then taper into a concession as the value rises, which is exactly how the First Home Buyers Assistance Scheme works.

First Home Buyers Assistance Scheme

This is the exemption most people are searching for, andit's the most valuable for the largest number of buyers. For contracts exchanged on or after 1 July 2023, it works like this:

Who qualifies

• You must be an individual, not a company or trust, and at least 18 years old (there are some exceptions for younger buyersin specific circumstances)
• Neither you nor your spouse or partner can have previously owned residential property anywhere in Australia
• At least one buyer on the contract must be an Australian citizen or permanent resident
• You must move into the property within 12 months of settlement and live there as your principal place of residence for at least12 continuous months
• The transfer must cover the whole property, not a partial share

Members of the Australian Defence Force's permanent forces who are on the NSW electoral roll are exempt from the residency requirement.

How to apply

Your solicitor or conveyancer lodges Form ODA 066B along with a Purchaser/Transferee Declaration and proof of identity, generally as part of the standard settlement process, so most first home buyers don't need to do anything extra beyond confirming their eligibility upfront.

For the full grant amount available alongside this exemption, see our guide to the [NSW First Home Buyer Grant](LINK:/post/nsw-first-home-buyer-grant — status: PENDING, companion piece not yet written), and for a closer look at how this exemption specifically applies tofirst home buyers, read [Stamp Duty NSW for First Home Buyers](LINK:/post/stamp-duty-nsw-first-home-buyers — status: PENDING, companion piece notyet written).

‍

Transfers Between Spouses and De Facto Partners

If your spouse or de facto partner transfers an interest in their home to you, this can be exempt from duty entirely, commonly used when a couple wants to move a property into joint names, or when one partner is added to the title.

To qualify, all of the following need to apply:

• The property is transferred by your spouse or defacto partner
• De facto partners must have lived together for at least two continuous years before the transfer
• The property is either your principal place of residence or vacant land intended for your future home
• After the transfer, both parties hold equal shares in the property
• The property is used solely for residential purposes, not business or commercial use (mixed-use properties may still qualify for a partial concession)

 A solicitor or conveyancer handles the exemption application, including the transfer deed, exemption forms, proof of identity, and evidence of the relationship such as a marriage certificate or documentation of cohabitation.

Marriage or Relationship Breakdown

Property transferred as part of separating a marriage or de facto relationship, for example, one partner buying out the other's share of the family home, can also be exempt from duty. This recognises that these transfers aren't a genuine property "sale" in the usual sense, they're a division of jointly held assets. Formal documentation of the relationship breakdown and the transfer arrangement is generally required.

Deceased Estates

If you inherit property, or a property is transferred to you as a beneficiary of a deceased estate, you may be entitled to a reduced rate of duty rather than paying full transfer duty on the property's value. This applies whether the transfer follows the terms of a will or an intestacy distribution, and it's worth raising with the executor or estate's solicitor early in the process, since it affects how the transfer should be structured.

Primary Production (Family Farm) Transfers

The sale or transfer of land used for a primary production business between family members can be exempt, intended to support farms staying within a family across generations rather than being broken up by duty costs at transfer. This exemption has specific rules around what counts as a family relationship and what counts as a primary production business, so it'sworth getting advice specific to the property and the parties involved.

Self-Managed Super Fund Transactions

Certain transfers into or involving a complying self-managedsuper fund can qualify for duty concessions. This is a more technical area, and typically involves coordination between your broker, your accountant, and your SMSF trustee to make sure the structure of the transaction actually meets the requirements.

Charitable Organisations

Charitable and benevolent organisations conducting eligible property transactions can access exemptions from transfer duty. This isn'trelevant to most individual buyers, but it's worth knowing if you're involved with a not-for-profit acquiring or transferring property.

Corporate Reconstructions and Consolidations

For qualifying corporate transactions occurring on or after1 February 2024, businesses restructuring or consolidating group entities can access duty concessions. This is squarely in the territory of company accountants and lawyers rather than individual home buyers, but it rounds out the full picture of where NSW offers duty relief.

How to Apply for a Stamp Duty Exemption in NSW

In almost every category above, the exemption isn'tsomething you claim after the fact, it's assessed and applied as part of your settlement process, generally by your solicitor or conveyancer at the time the transfer is lodged. The practical steps are the same regardless of category:

1. Identify which exemption or concession category applies to your situation
2. Gather the required supporting documents (proof of identity, proof of relationship, estate documentation, and so on, depending on category
3. Confirm the exemption or concession has been correctly applied before settlement, since correcting this after the fact is far more difficult than getting it right upfront

If you're financing the purchase, it's worth raising which exemption you expect to qualify for with your mortgage broker early on too, since it affects how much cash you need at settlement and can change your borrowing calculations. It's also worth understanding Lenders Mortgage Insurance if you're borrowing above 80% LVR, since it's another upfront cost that stacks alongside duty.

Frequently Asked Questions

Is stamp duty the same as transfer duty in NSW? Yes."Stamp duty" is the common name; "transfer duty" is the official term Revenue NSW uses.

Can I get a stamp duty exemption if I've owned property overseas but not in Australia? Generally yes, for the First Home Buyers Assistance Scheme, the test is whether you or your spouse have previously owned residential property in Australia, not overseas. Confirm your specific circumstances with your solicitor, since eligibility rules can be nuanced.

Do I need to apply for these exemptions separately from my property purchase? No. In almost all cases, the exemption is assessed and applied by your solicitor or conveyancer as part of the standard settlement and lodgement process, not as a separate application you submit yourself.

What happens if I don't meet the 12-month residency requirement after claiming the First Home Buyers exemption? You may be liable to repay the exempted duty if you don't move in within 12 months of settlement or don't live there for at least 12 continuous months, unless you fall under one of the limited exceptions (such as ADF service). It's important to be genuinely certain of your plans before claiming this exemption.

Are these thresholds and rules likely to change? Yes. Revenue NSW periodically reviews thresholds, most recently effective from 1 July 2023 contracts. Always confirm current figures before relying on them for a specific purchase.

Work Out What You Can Actually Afford, Before You Fall in Love With a Place

Stamp duty exemptions change your numbers, but so does your borrowing capacity, your deposit, and your loan structure. Book a free20-minute call with Chris Dodson, and we'll work out exactly what these and we'll work out exactly what theseexemptions mean for your purchase, and what you can realistically borrow.

This article is general information current as of August2026 and doesn't take into account your personal circumstances. Stamp duty andtransfer duty rules can change, and eligibility for any exemption depends onthe specific facts of your situation. Speak with your solicitor, conveyancer,or Revenue NSW directly to confirm your eligibility, and get in touch withMortgages Plus if you'd like to talk through how any of this affects yourborrowing and settlement plans.