Reading time: 3 minutes

When buying or selling property in NSW, most people focus on the exchange of monies between the buyer and the seller. However, the actual cost of the property is not the expense involved with the sale of property in NSW. When buying or selling land, this transaction will attract a range of taxes that you will have to pay to the government. It is useful to know what taxes a property transaction will attract so that you can effectively budget and forecast your expenses in relation to the sale or purchase of the property.

The taxes that a property transaction will attract include:

  • Duties
  • Land Tax
  • Income Tax
  • Capital Gains Tax
  • Goods and Services Tax


Duties are payable on property that qualifies as a dutiable property under the Duties Act. An example of this type of tax is mortgage duty. Mortgage duties are payable on the amount of money that is secured by a mortgage. However, mortgage duties haven now been abolished and are now only payable by companies or people who are not “natural” persons.

Land Tax

Land tax is payable on the property that you own either individually or jointly in NSW. However, it is not payable on your residential property. This means that the following property will attract land tax:

  • Holiday houses
  • Rural land
  • Investment property
  • Commercial spaces including shops and warehouses

Income Tax

This type of tax is payable on personal income and unearned income such as dividends, interest and rent. Usually, if you are receiving money that supports you like an income would then this will be taxable. The incentive behind this tax is to distribute wealth equality across the Australian population. Both corporations and individuals are subject to this tax

Capital Gains Tax

Capital Gains Tax will have to be paid on profits that you receive when you sell a property.  This is because any profits that you make are seen to be an income, which is taxable. However, CGT is included within your income tax and will not be taxed separately. CGT is most commonly taxed on the sale of real estate but will not apply to personal property such as your residential home, car and other personal assets.

Goods and Services Tax

GST is a tax which applies to the sale of goods and services in Australia. It is taxed at a rate of 10% and must be paid every time a good or service is sold to a purchaser. Many business structures are exempt from paying GST and so this is something that you should look into before entering into a transaction.


While there are a large number of taxes that you may need to pay when buying or selling land in NSW, there are also a number of situations where you may be exempt from paying these taxes. To ensure that you are paying the right taxes and are not paying taxes you are exempt from, it is a good idea to speak with a property lawyer to get some legal advice.

LegalVision cannot provide legal assistance with this topic. We recommend you contact your local law society.


Day in Court: What Happens When Your Business Goes to Court

Thursday 2 June | 11:00 - 11:45am

If your business is going to court, then you need to understand the process. Our free webinar will explain.
Register Now

How to Manage a Construction Dispute

Thursday 9 June | 11:00 - 11:45am

Protect your construction firm from disputes. To understand how, join our free webinar.
Register Now

Startup Financing: Venture Debt 101

Thursday 23 June | 11:00 - 11:45am

Learn how venture debt can help take your startup to the next level. Register for our free webinar today.
Register Now

About LegalVision: LegalVision is a commercial law firm that provides businesses with affordable and ongoing legal assistance through our industry-first membership.

By becoming a member, you'll have an experienced legal team ready to answer your questions, draft and review your contracts, and resolve your disputes. All the legal assistance your business needs, for a low monthly fee.

Learn more about our membership

Our Awards

  • 2020 Innovation Award 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice Award 2020 Employer of Choice Winner – Australasian Lawyer
  • 2020 Financial Times Award 2021 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review
  • 2021 Law Firm of the Year Award 2021 Law Firm of the Year - Australasian Law Awards
  • 2022 Law Firm of the Year Winner 2022 Law Firm of the Year - Australasian Law Awards