The purchase declaration is submitted to Revenue NSW when the contract of sale is lodged for stamping. If there is more than one purchaser, each purchaser must individually complete a purchaser declaration.
What is a purchase declaration?
The purchase of declaration enables the Revenue NSW to determine if the purchaser is a foreign person.
If you are considered a foreign person and acquire residential-related property in NSW, you must pay surcharge purchaser duty. Surcharge purchaser duty is currently calculated at 8% of the dutiable value (the greater of the purchase price or value of the property) and is paid in addition to transfer duty.
Individuals, corporations and trustees of a trust can be considered foreign persons for the purposes of surcharge purchaser duty.
Generally, you are not a foreign person if you are a:
- Citizen of Australia or
- Person who is ordinarily resident in Australia
International tax treaties may affect a foreign person’s liability for surcharge purchaser duty. Visit Revenue NSW for more information.
What is the purchaser declaration form?
You must complete a purchaser declaration form if you are purchasing or transferring land in NSW. If the purchaser/transferee is a corporation, the declaration must be completed by an authorised officer. You must also complete the declaration if a property is transferred to you.
By completing the purchaser/transferee declaration, you’re confirming you’ll meet the requirements as outlined in the explanatory notes to the declaration.
Surcharge purchaser duty calculator
To calculate the amount of duty and surcharge purchaser duty payable on NSW residential land acquired by a foreign person, on or after 21st June 2016, visit the Revenue NSW surcharge purchaser duty calculator.
When is surcharge purchaser duty paid?
Surcharge purchaser duty must be paid on the earlier of:
- 3 months from the date of the contract or agreement to acquire the residential-related property in NSW or
- On or before settlement
Payment of surcharge purchaser duty later than 3 months after the contract date could result in interest and penalties being charged.