Do I pay stamp duty when building a new home?

Let me help clarify stamp duty (transfer duty) for new home construction in Sydney.

When building a new home in Sydney, you generally pay stamp duty on:

1. The land purchase only (not the building cost)

2. Any existing structures on the land that you're buying

You do not pay stamp duty on:

• The cost of constructing the new home

• Building materials

• Labour costs

For example, if you buy vacant land for $800,000 to build on, you'll pay stamp duty on the $800,000 land value only, not on the subsequent construction costs.

The exact amount will depend on:

• The land value

• Whether you're a first home buyer

• Whether you'll live in the property

• Your residency status