27 Oct Could You Have Overpaid Stamp Duty in NSW?
Thousands of NSW property buyers may have paid more stamp duty than required, and the issue potentially extends to people purchasing property today.
The Real Estate Institute of NSW (REINSW) has raised concerns about the way NSW transfer duty, commonly known as stamp duty, has been calculated since February 2022. The matter remains legally disputed, with no confirmed finding that purchasers have overpaid or that refunds are payable.
What’s the issue?
NSW stamp duty thresholds are adjusted annually in line with inflation. REINSW argues that the legislation governing this adjustment has been incorrectly applied since February 2022, resulting in lower thresholds and potentially higher stamp duty bills for purchasers.
Revenue NSW maintains its current method of calculation and continues to apply its published rates and thresholds.
How much could be involved?
REINSW estimates that around $1 billion could potentially be owed to NSW taxpayers if its interpretation is ultimately upheld. For individual purchasers, the potential difference depends on the property’s value and when it was purchased.
What this could mean for a buyer
REINSW has published calculations suggesting that some property purchasers could potentially have paid thousands of dollars more in stamp duty.
These are REINSW estimates only. There is currently no confirmed right to a refund.
Who could be affected?
REINSW says the issue potentially affects NSW property purchasers from February 2022 onwards, including those purchasing property today, if the disputed calculation method continues to be applied.
This is not necessarily just a historical issue. If REINSW’s interpretation is ultimately upheld, both past and current purchasers could potentially be affected.
Where does it stand now?
The issue remains legally disputed and unresolved. In September 2026, the NSW Legislative Council backed calls for the legal question to be referred to the NSW Supreme Court. However, there has not yet been a court determination confirming that purchasers were overcharged.
In the meantime, Revenue NSW continues to calculate and collect transfer duty under its existing interpretation.
What should purchasers do?
If you purchased property in NSW from February 2022 onwards, it would be sensible to keep your contract, settlement statement and original stamp duty assessment, together with your purchase price and contract date.
Purchasers concerned about their individual circumstances should speak with their solicitor, conveyancer or tax adviser and monitor further announcements from Revenue NSW and REINSW.
An issue worth watching
If REINSW’s interpretation is ultimately upheld, the implications could be significant for NSW property purchasers.
For now, the important distinction is that this is a potential overpayment, not a confirmed refund. For anyone who has purchased, or is currently purchasing, property in NSW, it is an issue worth keeping an eye on.