Question on Stamp Duty on new home build?

Discussion in 'Development' started by AG11, 7th Mar, 2021.

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  1. AG11

    AG11 New Member

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    Hi All,

    I am Sub Dividing a 1400 sq m land in NSW into 2 lots.

    I plan to build a 2 story home once the land sub division is complete.

    Do I have to pay stamp duty again? I paid one already when bought the 1400 sq m parcel 1 year ago.

    Thanks in advance.

    AG11
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Duty is generally only on a dutiable transaction such as a transfer.
     
  3. PremierePro

    PremierePro Active Member

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    @Terry_w - actually continuation of question in my situation is that a friend, his wife, my wife & I are planning to do something similar.
    Buy a suitable house, knock it down, subdivide and construct our separate house/townhouse.

    Do we need to pay stamp duty second time around as land gets transferred to each of the couple from a 4 people holding?

    Thank you
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes as the ownership would be changing from joint to single.
    But it could potentially be avoided by partitioning the land upfront so seek legal advice.
     
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  5. PremierePro

    PremierePro Active Member

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    Thanks @Terry_w.
    As in from conveyancer?
     
  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    No, a solicitor.
     
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  7. PremierePro

    PremierePro Active Member

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    Thank you @Terry_w.
    Very much much appreciated.
     
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