James Papas Solicitors acknowledges the Darug people as the Traditional Custodians of the land on which we work, and pays respect to Elders past, present, and emerging.

Conveyancing17 July 2026· 5 min read

Stamp Duty on Off-the-Plan Purchases in NSW: What Buyers Need to Know

Off-the-plan purchases have specific stamp duty rules in NSW that can result in significant savings — or unexpected costs. Here is what every off-the-plan buyer should understand.

Buying off the plan offers a unique stamp duty advantage in NSW — but the rules are complex and have changed in recent years. Understanding how stamp duty works on off-the-plan purchases can make a significant difference to your upfront costs.

The Basic Rule: Duty on Settlement Value

For off-the-plan purchases, transfer duty (stamp duty) is generally calculated on the contract price at the time of exchange. However, an important concession applies: for eligible purchasers, duty may be calculated only on the land value component of the purchase price, rather than the full price including the building component yet to be constructed.

The Off-the-Plan Concession

NSW provides a specific transfer duty concession for off-the-plan purchases where the buyer intends to use the property as their principal place of residence. The concession reduces the dutiable value by the construction costs yet to be incurred at the time of exchange.

For example: if you pay $900,000 for an off-the-plan apartment, and $400,000 of that represents construction costs yet to occur, duty may be calculated on $500,000 rather than $900,000 — a significant saving.

The concession is only available if:

  • You are purchasing as an individual (not a company or trust)
  • The property will be your principal place of residence
  • You take occupancy within 12 months of completion

First Home Buyers: Additional Savings

First home buyers purchasing off the plan may be eligible for both the off-the-plan concession and the first home buyer duty exemption/concession — subject to the relevant price thresholds. This can result in a very significant reduction in upfront duty costs.

When Is Duty Payable?

For off-the-plan purchases, transfer duty does not have to be paid at exchange (unlike most other property purchases, where duty must be paid within 3 months of exchange). Instead, duty is payable on the earlier of:

  • The date the property is completed and the contract becomes unconditional
  • The date the buyer takes possession
  • Settlement date

This deferral can be a significant cash flow benefit for buyers who do not need to fund the duty payment until construction is complete.

Foreign Purchaser Surcharge

Foreign purchasers are subject to an additional 8% surcharge on transfer duty, which applies to off-the-plan purchases in the same way as other residential property.

Get Advice Early

Off-the-plan contracts are complex, and the stamp duty rules have specific eligibility requirements and can change. At James Papas Solicitors, we review off-the-plan contracts, advise on stamp duty liability, and handle all aspects of the conveyancing through to settlement. Call us on (02) 9633 3122 for a free first consultation.

Need legal advice? James Papas Solicitors offers free first consultations for all Conveyancing & Property Law matters. Our offices are in Parramatta and we serve all of Western Sydney. Learn more about our Conveyancing & Property Law services → or contact us today.

Disclaimer: This article is provided for general information purposes only and does not constitute legal advice. Legal situations vary — please contact us for advice specific to your circumstances. James Papas Solicitors, Ground Floor 31–37 Hassall Street, Parramatta NSW 2150. (02) 9633 3122.

← Back to all articles