Family Property Transfers in NSW

The property was transferred for $1, but the duty bill was $34,727

A parent wanted to help their daughter by transferring a $900,000 investment property to her for just $1.

The family thought that because the property was being gifted and almost no money was changing hands, the transfer duty would also be minimal.

That was before allowing for the valuation, professional fees, possible capital gains tax and any refinancing costs.

The transfer had to be delayed while the daughter tried to find the additional money.

Calling a property transfer a “gift” does not make the duty and tax consequences disappear.

“It’s a gift. Why would there be any tax?”

A parent gifted an investment property to their child, believing no transfer duty or tax would apply because no money changed hands.

There may also be implications for pensions or aged-care arrangements, depending on the circumstances.

The transfer could also expose the property to the child's future relationship breakdown, bankruptcy or financial difficulties.

Once documents are signed or the transfer is completed, it may be too late to restructure the arrangement.

The $5 million family farm and the $256,327 duty mistake

A family assumed that transferring their farm to the next generation would be duty-free simply because the parties were family members.

Capital gains tax and other financial consequences may also need to be considered.

Do not transfer a $5 million farm based on an assumption. Once documents are signed, it may be too late to restructure the transaction.

This example applies the general NSW transfer duty rates for 2026 to 2027 and assumes no exemption or concession applies. The final duty may differ depending on the farm's size, use, improvements and classification.

The success of a family business transfer starts with the right plan

A family planned to transfer both its business and commercial property to their daughter at the same time.

However, purchasing everything together would have created significant financial pressure and placed the future of the business at risk.

This reduced the daughter's immediate financial pressure and gave her time to operate the business, generate profits and build her borrowing capacity.

The parents continued receiving rental income and retained the property as security until the daughter was financially ready to purchase it.

The daughter builds a sustainable business. The parents receive rental income followed by their sale proceeds. It is a win for everyone.

They handed over their life's work and never received the money

After spending decades building a successful family business, the parents transferred it to their son using vendor finance.

They trusted him to repay the purchase price from future profits. But the business struggled, debts mounted and it eventually failed.

The money meant to fund their retirement was gone.

Their plans to travel, reduce their working hours and retire comfortably disappeared with the business they had spent a lifetime building.

Helping your child should not mean risking your financial future. Trust is not security, and a family promise is not a properly protected repayment arrangement.