Transferring or gifting property to a family member can be as simple as submitting a property transfer form, but there are costs involved – even when the property is given as a gift.
Generally, you can not avoid all of the costs involved so it's unlikely you'll be able to gift a house to a family member or relative for free.
The 2 big fees you may be liable to pay are stamp duty on the market value of your property, and potentially capital gains tax (CGT) if it was an investment property.
What is a property title and why does it cost money to transfer it?
A property title is a legal document that holds all the information about a property. It includes details on who owns the land or has a mortgage on it.
When the owner changes, either through gifting or through selling it, the title needs to be legally updated.
Do you have to pay stamp duty on a gifted property?
You have to pay stamp duty on the market value of your property. Even if no money changes hands, the transfer will be considered to have been done based on the property's market value. The government uses this "true" valuation to determine the stamp duty and CGT costs regardless of the discounted selling price.
When transferring a property to a family member, the Australian Tax Office (ATO) says you need to make an effort to get an actual value to estimate from.
"You should obtain a valuation from a professional valuer, or work out the market value yourself using reasonably objective and supportable data," they say. "This can include the price paid for very similar property that was sold at the same time in the same location."
For some examples:
On a property worth $500,000 transferred in QLD, the stamp duty is around $20,000.
On a property worth $600,000 transferred in WA, the stamp duty is around $32,500.
On a property worth $700,000 transferred in VIC, the stamp duty is around $39,000.
On a property worth $800,000 transferred in NSW, the stamp duty is around $31,000.
If the person receiving the gift of the property has not owned a property before, they may be entitled to a discount or waiver on stamp duty.
What if you're gifting part of a property to someone?
Stamp duty is only payable based on how much of the property is being transferred to another person.
One of our readers reached out and asked, "When selling a1/2 of your property to your child, do they pay stamp duty on the full value of the property, or only on the version they are buying?"
The answer is, you only need to pay stamp duty on the part of the property that is changing ownership. In this scenario, if the parents are gifting half of the property to their child, then that recipient would pay stamp duty based on half of the property's value.
Does anything change depending on the state or territory you live in?
Yes. The law around transferring property titles is Australia-wide, but the rules on stamp duty are different in each state and territory.
There are 2 ways you can transfer a property to a family member: gifting and selling.
Gift
You can give ownership of your property to a family member as a gift. No money changes hands in this scenario, but this requires filling out the necessary paperwork with your state revenue office and title office. Your conveyancer may advise you to organise a deed of gift as well. If the property was an investment and not the seller's primary residence, there will likely be CGT costs as well (more on that below).
Sale
You can sell your property to a family member. You will be liable for stamp duty and it will be calculated based on the property's market value, and not the sale price. For instance, Also, if the property is not the seller's main residence (say, if it was an investment property) then capital gains tax will probably apply as well.
What costs will you pay when transferring property to family?
Below are a few examples of fees and charges that may apply when you are transferring or gifting property within your family:
Costs paid by the original owner
Valuation costs. You might need to have the property value determined by a certified valuer before transferring or gifting your property. This is so you know how much to report that you have gained or lost when filing your income taxes. Independent valuations cost between $300 and $900 depending on where the property is.
Legal fees. You should have a conveyancer or solicitor oversee the property transfer and have them draw up contracts or transfer documents with title details, the value and determined price of the property, as well as personal details for both parties. These legal documents can be used in case the validity of the property transfer is ever questioned.
Capital gains tax (CGT). The CGT cost will depend on the amount of capital gain or capital loss resulting from the CGT event. In the event of a capital gain, your total gain amount will be the difference between your capital proceeds and the cost base of your asset. The actual CGT amount you pay depends on your income, as it's added to your income tax for the applicable year. Read more about CGT when selling in our in-depth guide.
Costs paid by the new owner
Stamp duty. Also referred to as stamp duty land tax, this tax is calculated on the value of the property or land that is being transferred or gifted and is represented as a percentage. Some purchases may be exempt from stamp duty, so check with your state or territory office of revenue. Stamp duty is calculated based on the state or territory you're in.
Legal fees. You should have a conveyancer check over everything before signing, and the fees for this can range from a few hundred dollars up to $1,000.
Vanessa and Adnan own a home in NSW. They sell it to their son Al for $500,000, knowing that its true value is actually $900,000. Al pays them $500,000 and Vanessa and Adnan get a professional property valuer to look at the property. The valuer puts the property's market value at $900,000.
Al's costs therefore are:
Sale price: $500,000
Stamp duty (calculated on $900,000 for first home buyers): $20,200
Vanessa and Adnan have used the house as their primary residence for more than 10 years. Therefore they won't have to pay CGT.
* This is a fictional, but realistic, example.
Can you avoid fees and charges when transferring property?
Not entirely. When you gift your property you are still charged stamp duty, even if you sell the property for a small amount to a family member or friend. As the ATO states, the property is calculated at market value if you:
Receive no money for your property
Receive less than the market value for your property; or,
Do not deal at arm's length with the buyer during the sale event
Dealing at arm's length refers to both parties in the sale acting independently and having no "influence or control over each in connection with the transaction".
You might be able to avoid hefty fees when transferring or gifting properties in some select situations and scenarios where CGT and other charges will not apply. Below are some examples of these situations:
If you acquired the asset before 20 September 1985: This date is when CGT came into effect, so any property or assets that were acquired before this date may be exempt from CGT.
If the property being transferred is your home (main residence): If you have been living at the property and have indicated it as your main place of residence (i.e. the address is on your current driver’s licence and you receive mail there) then you may be exempt from CGT when gifting or selling a property to another.
Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio
Richard's expertise
Richard has written 553 Finder guides across topics including:
From supply and demand through to location, facilities and planned infrastructure projects, there are plenty of factors that can influence property value.
My Mum wants to gift me her home and I have never owned a home before. Do I have to still pay stamp duty and would I be able to claim my first home buyer grant to exempt me from paying the stamp duty when the property is transferred into my name?
I am getting mixed answers and would like to know your thoughts.
Finder
SarahJuly 23, 2021Finder
Hi Britany,
Stamp duty is charged by the state or territory’s office of state revenue when they go through the process of “”stamping”” and officially transferring the property title into your name. There are usually only a handful of exemptions from paying stamp duty – transferring the property to a spouse, for instance. When you are gifted a property, stamp duty is usually still payable. However as a first home buyer, you should be eligible for a discount or exemption, depending on the state or territory you’re in. Check out our guide to see the stamp duty exemptions per state or territory: https://www.finder.com.au/home-loans/stamp-duty-calculator
The first home owner’s grant is delivered as a completely separate program or incentive, so it doesn’t impact your stamp duty at all. In most states and territories, the FHOG is only available on brand new or off the plan properties, so taking ownership of your mother’s existing home wouldn’t enable you qualify. It’s worth contacting the authority in your local state for clarification on this.
Hope this helps!
Cheers,
Sarah
LeighDecember 10, 2019
If spouse is living in a house as joint tenants (ownership) decide to transfer their property fully to one, must the other pay capital gains tax on the transfer? Assuming that the couple continues to live in the house?
Finder
JoshuaDecember 12, 2019Finder
Hi Leigh,
Thanks for getting in touch with Finder. I hope all is well with you. 😃
Regarding your question, Leigh, I can’t tell you exactly whether there will be Capital Gains Tax (CGT) or not on the transfer. However, if both of you continue living in the house as your main residence, there could be a CGT exemption (so no CGT) but it depends on the state. Nevertheless, it is more likely that you will probably have to pay stamp duty.
I would strongly suggest you confirm with your state or territory government.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
MariaAugust 31, 2017
Hi.
I have a question about the landtax tax claim and hope that you can help.
last FY, I has 1 IP and thus my land tax cost is 3K.
for this FI year my landtax cost is 12K as I had have another IP.
Question. For the tax perspective, how do I claim back the Land tax on each property. Should I claim 3K land tax of the 1st IP and 9K on the second IP or should calculate the landtax cost of each IP based on their land value.
Thanks
Maria
Finder
HaroldSeptember 4, 2017Finder
Hi Maria,
Thank you for your inquiry.
I’m afraid we are not able to provide you with specific answers to your questions as we are not tax experts. However, visiting your local tax office or speaking to a qualified financial adviser should help you get more details about your query.
Moreover, please feel free to read our tax tips to help you get as many savings as possible in your tax filing.
I hope this information has helped.
Cheers,
Harold
PatriciaApril 10, 2017
My mother died and left me the house and an adjoining residential block of land. Probate will not be final until the end of year. Can I gift the block of land to my husband and if so will stamp duty be applicable?
Finder
HaroldApril 11, 2017Finder
Hi Patricia,
Thank you for your inquiry. I’m sorry to hear about your mother.
Regarding your question, I’m afraid even if the property is given as a gift, there’s a cost involved. You still have to pay stamp duty on the market value of your property and potentially capital gains tax (CGT) as well.
With your current concern, you would need to seek a piece of advice as well from a solicitor for a legal and expert opinion.
I hope this information has helped.
Cheers,
Harold
NatalieJanuary 19, 2017
After our daughter’s marriage breakup, we took out a small mortgage loan and together with some of our savings bought a house for her and her two children in our names. Once her marital home was sold off, she paid off the mortgage loan and now owes us the remainder – paying us on a regular basis. We are keen to transfer the house into her name. Is this a relatively straightforward process?
Finder
DeeJanuary 20, 2017Finder
Hi Natalie,
Thanks for reaching out!
Regarding your question, I’m afraid I can’t provide specific answers as we are not we are not experts when it comes to changing property ownership.
Each state has different processes and fees relating to changing the property deed. It would be best to reach out to the local government agency that handles property titles and deeds to discuss the process involved in changing ownership.
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
Finder makes money from featured partners, but editorial opinions are our own.
Finder is one of Australia's leading comparison websites. We are committed to our readers and stand by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Valuation costs. You might need to have the property value determined by a certified valuer before transferring or gifting your property. This is so you know how much to report that you have gained or lost when filing your income taxes. Independent valuations cost between $300 and $900 depending on where the property is.
My Mum wants to gift me her home and I have never owned a home before. Do I have to still pay stamp duty and would I be able to claim my first home buyer grant to exempt me from paying the stamp duty when the property is transferred into my name?
I am getting mixed answers and would like to know your thoughts.
Hi Britany,
Stamp duty is charged by the state or territory’s office of state revenue when they go through the process of “”stamping”” and officially transferring the property title into your name. There are usually only a handful of exemptions from paying stamp duty – transferring the property to a spouse, for instance. When you are gifted a property, stamp duty is usually still payable. However as a first home buyer, you should be eligible for a discount or exemption, depending on the state or territory you’re in. Check out our guide to see the stamp duty exemptions per state or territory: https://www.finder.com.au/home-loans/stamp-duty-calculator
The first home owner’s grant is delivered as a completely separate program or incentive, so it doesn’t impact your stamp duty at all. In most states and territories, the FHOG is only available on brand new or off the plan properties, so taking ownership of your mother’s existing home wouldn’t enable you qualify. It’s worth contacting the authority in your local state for clarification on this.
Hope this helps!
Cheers,
Sarah
If spouse is living in a house as joint tenants (ownership) decide to transfer their property fully to one, must the other pay capital gains tax on the transfer? Assuming that the couple continues to live in the house?
Hi Leigh,
Thanks for getting in touch with Finder. I hope all is well with you. 😃
Regarding your question, Leigh, I can’t tell you exactly whether there will be Capital Gains Tax (CGT) or not on the transfer. However, if both of you continue living in the house as your main residence, there could be a CGT exemption (so no CGT) but it depends on the state. Nevertheless, it is more likely that you will probably have to pay stamp duty.
I would strongly suggest you confirm with your state or territory government.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
Hi.
I have a question about the landtax tax claim and hope that you can help.
last FY, I has 1 IP and thus my land tax cost is 3K.
for this FI year my landtax cost is 12K as I had have another IP.
Question. For the tax perspective, how do I claim back the Land tax on each property. Should I claim 3K land tax of the 1st IP and 9K on the second IP or should calculate the landtax cost of each IP based on their land value.
Thanks
Maria
Hi Maria,
Thank you for your inquiry.
I’m afraid we are not able to provide you with specific answers to your questions as we are not tax experts. However, visiting your local tax office or speaking to a qualified financial adviser should help you get more details about your query.
Moreover, please feel free to read our tax tips to help you get as many savings as possible in your tax filing.
I hope this information has helped.
Cheers,
Harold
My mother died and left me the house and an adjoining residential block of land. Probate will not be final until the end of year. Can I gift the block of land to my husband and if so will stamp duty be applicable?
Hi Patricia,
Thank you for your inquiry. I’m sorry to hear about your mother.
Regarding your question, I’m afraid even if the property is given as a gift, there’s a cost involved. You still have to pay stamp duty on the market value of your property and potentially capital gains tax (CGT) as well.
If you wish to learn more, please read our guide on transferring properties to family members.
With your current concern, you would need to seek a piece of advice as well from a solicitor for a legal and expert opinion.
I hope this information has helped.
Cheers,
Harold
After our daughter’s marriage breakup, we took out a small mortgage loan and together with some of our savings bought a house for her and her two children in our names. Once her marital home was sold off, she paid off the mortgage loan and now owes us the remainder – paying us on a regular basis. We are keen to transfer the house into her name. Is this a relatively straightforward process?
Hi Natalie,
Thanks for reaching out!
Regarding your question, I’m afraid I can’t provide specific answers as we are not we are not experts when it comes to changing property ownership.
Each state has different processes and fees relating to changing the property deed. It would be best to reach out to the local government agency that handles property titles and deeds to discuss the process involved in changing ownership.
Additionally, our guide to changing property ownership may also help you.
Cheers,
Anndy