Is assigning a contract the same as nominating someone?

Not necessarily. Nomination, assignment and novation are different legal routes to the same practical result, which is a new buyer taking the title at settlement. The legal differences between them, and which one your contract permits, are questions for your conveyancer. For Victorian duty, the State Revenue Office has a page on sub-sales and duty.

Will I pay stamp duty twice?

It depends on the state and the deal. In Victoria the State Revenue Office says you may have to pay duty on certain sub-sales, and in NSW assigning ends the duty deferral and makes the duty payable. The pages checked for Queensland, Western Australia and South Australia do not describe assignment duty. Check with the relevant revenue office before agreeing a price.

Do I get the capital gains discount if I have not settled?

The ATO counts the 12 months from your contract date to the date you sign the sale, so settlement is not the test. The ATO says the discount is 50 per cent for Australian resident individuals and trusts and 33.33 per cent for complying super funds, and companies cannot use it.

Does the developer have to agree?

It depends on the contract. The NSW Government lists on-selling as something to ask about. Consent, any fee and any notice period are contract terms, and the duty and tax effects of an assignment, such as the end of NSW's duty deferral, are part of the same question.

What if I want out and cannot sell?

The contract still binds you. Cooling-off ends within days of signing, so the remaining exits are the contract's own terms and any statutory rights, such as those that apply if a sunset clause is triggered or a material change is notified. See what is a sunset clause.

Can you sell an off the plan property before settlement?

Whether you can sell depends on your contract, and what you sell is usually your rights under the contract, not a finished home. That is commonly done by nomination, assignment or novation, and duty and tax can follow. As at October 2026, the NSW Government lists on-selling during construction as a question to put to your conveyancer, Victoria's State Revenue Office has a page saying duty may be payable on certain sub-sales, Revenue NSW ends its duty deferral if the contract is assigned, and the ATO says the capital gains tax event happens when you sign a contract, not when you settle.

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

How the transfer works

Selling before settlement usually means the original buyer passes their rights under the contract to a new buyer, commonly described as nomination, assignment or novation. Revenue NSW refers to assignment of any part of the contract to another person. Which route your contract allows, and how the routes differ legally, are questions for your conveyancer.

Whether this is allowed, whether the developer must consent, and whether a fee or time limit applies are contract terms. None of the official pages checked publishes a standard rule, which is why the NSW Government lists on-selling during the construction period as a question to put to your conveyancer. The clause sits alongside the others covered in what to check in an off the plan contract.

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Stamp duty on a sub-sale

Victoria. The State Revenue Office publishes a page on sub-sales and duty, and its summary says you may have to pay duty on certain sub-sales of property. Which sub-sales that covers depends on the facts of the deal, so read the State Revenue Office page and ask your conveyancer to confirm the duty position before agreeing a nomination fee or price.

New South Wales. Revenue NSW allows eligible owner-occupiers to defer transfer duty for off-the-plan purchases. The deferral ends, and duty becomes payable, at the earliest of 15 months after signing, settlement, or when any part of the contract is assigned to someone else.

Other states. The pages checked for this guide do not describe assignment duty in Queensland, Western Australia or South Australia, so ask the state revenue office or a conveyancer.

Capital gains tax

The ATO's rules run on contract dates, not settlement dates:

Your acquisition date for a property bought under contract is the contract date, not settlement.
Where there is a contract of sale, the CGT event happens when you enter the contract.
To count the 12 months for the 50 per cent discount, the acquisition day and the CGT event day are excluded. The discount is for Australian resident individuals, and the ATO says foreign and temporary residents cannot claim the full discount on gains after 8 May 2012.

A simplified example, ignoring costs: you sign to buy in March 2026 at $700,000 and sign an agreement in June 2027 that transfers your position for the equivalent of $760,000.

Gain: $760,000 minus $700,000 is $60,000.
Held for more than 12 months from the March 2026 contract date, even though neither settlement has happened, so the discount can apply: $60,000 times 50 per cent is $30,000 included in your tax return for the 2026-27 income year.
Had the sale agreement been signed in January 2027, within 12 months, there would be no discount and the full $60,000 would count.

Whether a gain is a capital gain at all, and how the discount works for trusts, companies and super funds, depend on your circumstances and are questions for a tax agent. Tax depreciation on a townhouse covers a related area for investors.

In NSW, assigning any part of the contract ends the duty deferral and makes the duty payable. In Victoria, check the State Revenue Office's page on sub-sales and duty before agreeing a nomination fee.

Why it is harder than it sounds

The contract must permit it, and some terms may require the developer's consent.
Duty may be payable on a sub-sale in Victoria (check the State Revenue Office page), and a deferral in NSW ends on assignment.
The new buyer needs their own finance, and a duty concession or deferral you relied on may not carry over, so ask the revenue office.
Tax is worked out from the contract date, not settlement, so the gain can fall in an earlier income year than you expect.
If you cannot find a buyer, you remain bound by the original contract and its settlement date.

After settlement the position is different: see selling a townhouse, what to expect.

Common questions

Is assigning a contract the same as nominating someone?: Not necessarily. Nomination, assignment and novation are different legal routes to the same practical result, which is a new buyer taking the title at settlement. The legal differences between them, and which one your contract permits, are questions for your conveyancer. For Victorian duty, the State Revenue Office has a page on sub-sales and duty.
Will I pay stamp duty twice?: It depends on the state and the deal. In Victoria the State Revenue Office says you may have to pay duty on certain sub-sales, and in NSW assigning ends the duty deferral and makes the duty payable. The pages checked for Queensland, Western Australia and South Australia do not describe assignment duty. Check with the relevant revenue office before agreeing a price.
Do I get the capital gains discount if I have not settled?: The ATO counts the 12 months from your contract date to the date you sign the sale, so settlement is not the test. The ATO says the discount is 50 per cent for Australian resident individuals and trusts and 33.33 per cent for complying super funds, and companies cannot use it.
Does the developer have to agree?: It depends on the contract. The NSW Government lists on-selling as something to ask about. Consent, any fee and any notice period are contract terms, and the duty and tax effects of an assignment, such as the end of NSW's duty deferral, are part of the same question.
What if I want out and cannot sell?: The contract still binds you. Cooling-off ends within days of signing, so the remaining exits are the contract's own terms and any statutory rights, such as those that apply if a sunset clause is triggered or a material change is notified. See what is a sunset clause.

Keep reading

Sources

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