House and Land Package Stamp Duty

Stamp duty is a high upfront cost when you're buying property in NSW, and it can be downright confusing. 

A lot of would-be buyers aren't sure who pays stamp duty, how the amount is calculated or why the duty changes between land-only purchases, a house and land package or a completed home. 

By understanding when stamp duty is payable in NSW and how it’s calculated, you can plan your budget and avoid unexpected costs during your building journey. This article gives an in-depth review of stamp duty so you know exactly what to expect. 
 

What Is Stamp Duty and Who Pays Stamp Duty? 

Stamp duty is the tax that comes into effect when you purchase land or a home. The NSW Government uses this tax to help fund public services, including infrastructure, health and education. 
 
In NSW, when you purchase land separately, a house and land package or a completed home, you’re responsible for paying the stamp duty owed on that transaction. Sellers do not pay any stamp duty as part of the sale. 
 
If you’re a first home buyer, you may also find our guide on the recent duty reforms helpful: Stamp Duty Reimagined for First Home Buyers. 
 

When is Stamp Duty Payable in NSW? 

Stamp duty is generally payable within three months of the date of signing a contract for sale in NSW. The exact timing depends on the type of property you’ve purchased and when the settlement takes place. 

Knowing when stamp duty is due is also important because it helps you align your budget with your settlement dates, your home loan arrangements and applying for any government grants or concessions that you may be eligible for. 
 

How Is Stamp Duty Calculated? 

Stamp duty in NSW is based on the dutiable value of the property, which is generally the agreed purchase price. The NSW Government sets stamp duty thresholds and rates that increase as property value increases. In most cases, the higher the price, the higher the stamp duty. 

However, it’s important to note that the contract type makes a big difference to what is considered the ‘dutiable value’. This is where many buyers become confused, especially when comparing land purchases, house and land packages and completed homes. 
 
While it forms a normal part of property purchasing, many buyers are surprised by how much it adds to their upfront costs. Understanding how stamp duty is calculated for your specific contract type is an important step in planning your new home build, as it increases with property value.  
 
Let’s take a closer look at how stamp duty works across house and land packages, completed homes and vacant land. 
 

House and Land Package Stamp Duty 

House and land packages come in two common formats: 

1. Two separate contracts – one for the land and one for the home build.
2. A single combined contract – where the land and the completed home are sold as one package. 

Most house and land packages in NSW use the two-contract approach. This is good news for buyers because stamp duty applies only to the land contract. The build part of the contract is not subject to stamp duty since it covers construction services rather than the purchase of completed property. 

If you choose a package with a single combined contract, the situation changes. Stamp duty will apply to the full contract value, which includes both the land and the completed home. This arrangement usually results in higher upfront stamp duty, similar to purchasing a completed home. 

Key points for house and land packages: 

• With two contracts, stamp duty applies to the land only.
• With a single contract, stamp duty applies to the full package value.
• Many buyers prefer two-contract packages to keep early costs lower. 

When you're eyeing a house and land package, the cost and timing of the stamp duty varies depending on whether or not the land and build components come from separate contracts. 
 
If you're building with Eden Brae Homes, check whether the package uses split contracts. This setup often means a lower upfront stamp duty than buying a completed home, because land usually carries a lower value than the finished house. 

If you’re still exploring whether a house and land package is right for you, read about The 5 Main Benefits of House and Land Packages. 
 

Stamp Duty on Completed Homes 

If you buy a finished home, whether brand new or established, stamp duty applies to the entire purchase price. Because the value of a completed property is higher than the land alone, stamp duty is also higher. 

This option is the simplest arrangement since you’re buying everything at once, but it can also be the most expensive from a stamp duty perspective. 
 
Key points for completed homes: 

• Stamp duty applies to the total property value.
• Stamp duty is usually the highest of the three purchasing pathways.
• Budgeting early for this amount is essential. 

 
For buyers who purchase a completed home, the cost and timing is based on the full property contract.
 

Stamp Duty on Vacant Land 

Many people ask, do you pay stamp duty on land and then pay additional stamp duty when you go to build your home?  
 
The answer is no. When you buy vacant land and plan to build on it later, stamp duty is only charged on the land itself. You do not pay stamp duty on the cost of building your home. Generally, purchasing land outright is cheaper in terms of stamp duty outlay compared to buying a completed house, because land bears a lesser value than a completed home. 

New home buyers often choose this route because it offers more control over design selections and inclusions while keeping early costs, such as stamp duty, manageable. With Eden Brae Homes, you can secure the land you love and then choose the home design that best suits your block, lifestyle and budget.

Key points for vacant land purchases: 

• Stamp duty is calculated on the land value only.
• Stamp duty is due within three months of signing the land contract.
• You do not pay stamp duty on construction costs. 

For buyers who purchase vacant land, stamp duty is often due earlier in the process because the land contract is typically signed and settled before the home is built. Budgeting can also become easier because stamp duty (a major cost) is applied long before your build begins. 
 

Government Concessions and Eligibility 

The NSW Government offers certain concessions and exemptions, particularly for first-home buyers. Eligibility depends on property value, whether you plan to live in the home and the type of property you purchase. 

Concessions change over time, but most buyers can get a large discount on stamp duty if they meet the requirements. If you want to save money, look up the most recent rules or ask your lender or conveyancer for advice. 
 

Understanding Your True Upfront Costs 

When trying to understand your stamp duty, think of it this way: 

• Buying ‘land only’ results in the lowest stamp duty because you pay tax on land value alone.
• House and land packages can offer similar savings if they use two contracts.
• The stamp duty is highest on completed homes because you're taxed on the full property value. 

An online Stamp Duty Calculator is a handy way to figure out what you owe. 
 

Plan Your Build With Clarity and Confidence 

Understanding stamp duty is an essential part of preparing for a new home. Here are a few more key points to keep in mind: 

• Stamp duty must be paid by the buyer, not the seller.
• Payment is usually due within three months of signing the contract
• If you're borrowing, your lender will often require stamp duty to be paid before the settlement funds are released. 
• First-home buyers may also be exempt or enjoy concessions. 
• Whether the property is new, established or vacant land, you will need to pay stamp duty on your land unless you’re eligible for a government concession. 
  Being informed about stamp duty helps you budget more accurately and avoid surprises along the way. 

If you’re ready to take the next step towards building your dream home with confidence, visit one of our Eden Brae display homes, browse our range of home designs online or get in touch with our team today.