Can an investor defer stamp duty on an off-the-plan townhouse in NSW?

Not unless they will live in it. Revenue NSW says the deferral is for a home you intend to use as your principal place of residence, and it is not available for investment properties or holiday homes. Purchases through a trust or company are also excluded.

Does the NSW deferral work for house-and-land packages?

It can. Revenue NSW counts a contract for land with a home to be built as an eligible off-the-plan purchase, even if there is a separate building contract, provided the land contract states a home will be built before settlement. Vacant land alone is not eligible.

When is duty due if I do not qualify for the deferral?

Duty is due within 3 months of signing the contract, or on or before settlement if that comes first. Late payment is a tax default, and interest and penalty tax can apply. Your solicitor or conveyancer normally lodges the assessment, so ask them for the exact due date on your contract and whether settlement could fall earlier.

What happens if a first home buyer pays more than $800,000?

Between $800,001 and $999,999 a concessional rate applies, so some duty is payable but less than the general rate. From $1 million the scheme does not apply. Revenue NSW's transfer duty pages explain how the concessional amount is worked out for a given price.

Are the rates the same every year?

No. Revenue NSW adjusts general duty thresholds and rates each year in line with the Consumer Price Index, and uses the contract date to pick the rate year. The first home buyer thresholds in this guide apply to contracts exchanged on or after 1 July 2023.

Is there an off-the-plan stamp duty concession in NSW?

New South Wales does not reduce the stamp duty (transfer duty) on an off-the-plan townhouse. Revenue NSW's list of transfer duty exemptions and concessions has no off-the-plan discount. What the state offers instead is time, because eligible owner-occupiers can delay paying duty for up to 12 months, and an exemption for first home buyers, who pay no duty on a new home valued up to $800,000. The figures below were checked against Revenue NSW pages on 7 October 2026.

Checked October 2026. Rules, rates and prices change, so confirm anything that matters with the source linked below.

How duty is worked out on an off-the-plan townhouse

Duty is charged on the dutiable value, which is the higher of the price you agreed to pay and the property's market value. Revenue NSW sets the rate year by the contract date, so a contract signed between 1 July 2026 and 30 June 2027 uses the 2026/27 rates even if settlement is a couple of years away.

Dutiable value	Transfer duty, 2026/27
$0 to $18,000	$1.25 per $100 (minimum $20)
$18,001 to $38,000	$225 plus $1.50 per $100 over $18,000
$38,001 to $103,000	$525 plus $1.75 per $100 over $38,000
$103,001 to $387,000	$1,662 plus $3.50 per $100 over $103,000
$387,001 to $1,290,000	$11,602 plus $4.50 per $100 over $387,000
Over $1,290,000	$52,237 plus $5.50 per $100 over $1,290,000

When the developer is building the townhouse under your contract, the contract is for the finished home, so duty is normally assessed on the whole price and not just the land. Our guide to stamp duty on land versus building explains where that line falls.

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The payment deferral for owner-occupiers

Duty is normally due within 3 months of signing the contract, or at settlement if that comes first. For an eligible off-the-plan purchase, Revenue NSW allows up to 12 extra months. Duty then falls due at the earliest of 15 months after signing, settlement, or any part of the contract being assigned to someone else.

The deferral changes when you pay, not how much. The duty amount is the same, and it still has to be found by the due date.

The conditions, taken from Revenue NSW and section 49A of the Duties Act 1997, are:

Who: every purchaser must be an Australian citizen or meet Revenue NSW's residency tests (a permanent visa, certain partner visas or a New Zealand special category visa, plus at least 200 days in Australia in the 12 months before exchange). If any purchaser is a foreign person when the contract is signed, there is no deferral, even if they expect to become a permanent resident later.
How you buy: as individuals. The deferral is not available to companies or to purchases made on behalf of a trust.
What you buy: a contract for land where a home will be built or developed before settlement. Revenue NSW lists townhouses, apartments and house-and-land packages as examples. Vacant land alone does not qualify.
Living there: for contracts exchanged on or after 1 July 2023, at least one purchaser must move in within 12 months of settlement and live there as their main home for at least 12 continuous months. Investors who do not meet that requirement are not eligible.

The deferral is not automatic. Your solicitor or conveyancer lodges the duty assessment, with a signed copy of the contract, a declaration from each purchaser and certified identity documents. If your plans change and you will not live there, you must tell Revenue NSW straight away. Interest runs from the original 3-month due date, and penalty tax can apply. Keep proof of living there, such as utility bills or electoral roll details, for at least 5 years.

First home buyers: an exemption instead of a discount

Under the First Home Buyers Assistance Scheme, for contracts exchanged on or after 1 July 2023:

Property	Full exemption from duty	Concessional rate
New or existing home	Up to $800,000	$800,001 to $999,999
Vacant land	Up to $350,000	$350,001 to $449,999

You must buy as an individual and be over 18 (Revenue NSW can waive either requirement in some cases), and neither you nor your spouse or partner can have owned or co-owned residential property in Australia. At least one buyer must be an Australian citizen or permanent resident, and one buyer must move in within 12 months of settlement and live there for at least 12 continuous months.

The $10,000 First Home Owner (New Homes) Grant is a separate benefit with a lower price cap. It is covered in our NSW grant guide.

Two worked examples

Owner-occupier, not a first home buyer. A buyer signs on 15 October 2026 for a $1,050,000 off-the-plan townhouse expected to settle in 2028.

Dutiable value above $387,000: $1,050,000 minus $387,000 is $663,000.
Variable part: $663,000 times 4.5% is $29,835.
Duty: $11,602 plus $29,835 is $41,437.

Without the deferral that amount is due by about 15 January 2027. With it, the due date is the earlier of settlement and about 15 January 2028.

First home buyer. A buyer signs for a $780,000 off-the-plan townhouse. At the general rates the duty would be $11,602 plus ($393,000 times 4.5%, which is $17,685), a total of $29,287. Because $780,000 is under $800,000 and the buyer meets the scheme rules, the exemption applies and no duty is payable. The $10,000 grant does not apply at that price, because the grant cap is $600,000.

Foreign buyers

Surcharge purchaser duty applies to foreign persons buying residential property in NSW. Revenue NSW's current rate is 9% of the dutiable value, paid on top of transfer duty. A foreign person cannot use the deferral.

Questions worth putting to a conveyancer

Is the contract for the completed townhouse, or for land only?
Does every buyer meet the citizenship and residency tests on the day contracts are exchanged?
Who will lodge the deferral claim, and when does duty fall due on your timeline?

If you are still comparing projects, you can browse new townhouses in Sydney and ask for price lists.

Common questions

Can an investor defer stamp duty on an off-the-plan townhouse in NSW?: Not unless they will live in it. Revenue NSW says the deferral is for a home you intend to use as your principal place of residence, and it is not available for investment properties or holiday homes. Purchases through a trust or company are also excluded.
Does the NSW deferral work for house-and-land packages?: It can. Revenue NSW counts a contract for land with a home to be built as an eligible off-the-plan purchase, even if there is a separate building contract, provided the land contract states a home will be built before settlement. Vacant land alone is not eligible.
When is duty due if I do not qualify for the deferral?: Duty is due within 3 months of signing the contract, or on or before settlement if that comes first. Late payment is a tax default, and interest and penalty tax can apply. Your solicitor or conveyancer normally lodges the assessment, so ask them for the exact due date on your contract and whether settlement could fall earlier.
What happens if a first home buyer pays more than $800,000?: Between $800,001 and $999,999 a concessional rate applies, so some duty is payable but less than the general rate. From $1 million the scheme does not apply. Revenue NSW's transfer duty pages explain how the concessional amount is worked out for a given price.
Are the rates the same every year?: No. Revenue NSW adjusts general duty thresholds and rates each year in line with the Consumer Price Index, and uses the contract date to pick the rate year. The first home buyer thresholds in this guide apply to contracts exchanged on or after 1 July 2023.

Keep reading

Sources

This is general information, not financial, tax or legal advice. Get advice that suits your situation before you buy.