Buying a property off the plan often means signing a contract months or even years before the home is finished. In NSW, eligible buyers may also be able to delay paying transfer duty, commonly known as stamp duty, while they wait for their new home to be completed.

But qualifying for the deferral isn’t simply a matter of buying off the plan. Your circumstances when you sign the contract matter, and you also need to meet certain requirements after the property is completed.

Revenue NSW updated its guidance on off-the-plan agreements on 2 September 2026. 

How does the off-the-plan duty deferral work?

Transfer duty is normally payable within three months of signing a contract for the sale of land.

Under section 49A of the Duties Act 1997, eligible purchasers of off-the-plan homes can receive up to an additional 12 months to pay.

In practical terms, that means payment can be deferred for up to 15 months after the contract is signed. However, you may need to pay earlier if the property settles or you assign all or part of your interest in the agreement before then.

The concession applies where a residence is to be erected or developed on the land before the agreement is completed. It generally does not apply to a purchase of vacant land alone or to commercial property.

So, assuming the property itself qualifies, the next question is whether you do.

Who is eligible?

All purchasers or transferees must be Australian citizens or people who are ordinarily resident in Australia. No purchaser or transferee under the agreement can be a foreign person.

This is assessed when the contract is entered into – not when the property is eventually completed. That distinction can be particularly important when buying off the plan because settlement may still be years away.

Revenue NSW gives the example of a permanent visa holder who had not lived in Australia for four years. Despite intending to return and occupy the completed property, the purchaser did not satisfy the ‘ordinarily resident’ test because they had not been in Australia for at least 200 days during the 12 months immediately before the liability date.

Similarly, buyers who are foreign persons when contracts are exchanged cannot qualify simply because they expect to have permanent residency by the time the property is completed.

The deferral is also unavailable to companies, partnerships and individuals purchasing as trustees, and to investors who do not satisfy the residence requirement.

That last point is important because the deferral is designed for eligible owner-occupiers, not investors.

The rules continue after settlement 

Meeting the requirements when you sign the contract is only the first part of the test. You must also satisfy the residence requirement once the property is completed.

For contracts exchanged on or after 1 July 2023, at least one purchaser or transferee must move into the residence within 12 months after completion of the sale or transfer. They must then occupy it as their principal place of residence continuously for at least 12 months.

There is an exemption from the residence requirement for certain members of the Permanent Forces of the Australian Defence Force. It applies to transactions entered into on or after 19 May 2022 where at least one purchaser is a member of the Permanent Forces and each purchaser is enrolled to vote in NSW State elections.

What if your plans change?

Of course, a lot can change between signing an off-the-plan contract and finally getting the keys. That can become a problem if the change means you no longer satisfy the conditions of the deferral.

For example, a buyer who received the deferral after declaring that they would live in the property, but later decided not to move in, must notify Revenue NSW so the liability can be reassessed. If duty was not paid within the usual three-month period, interest applies from the date of the tax default and penalty tax may also apply.

So while the deferral can give eligible buyers valuable extra time before paying transfer duty, it is important to understand both sets of rules – the ones that apply when you sign and the ones you must satisfy after settlement.

Getting advice before you exchange contracts can help you understand whether the deferral is available to you and avoid discovering later that your circumstances don’t meet the requirements.

Buying off the plan and unsure how the contract or transfer duty rules affect you? OutWest Legal can guide you through the legal aspects of your property purchase. Contact us today to book a consultation and understand your obligations before you sign.