Stamp Duty Exemption for Divorce Property Transfers in NSW

Transferring a property worth $800,000 in NSW would normally trigger roughly $31,000 in transfer duty (stamp duty). But if that transfer is the result of a marriage breakdown, you can claim a full exemption — paying zero duty — under Section 68 of the Duties Act 1997 (NSW). The catch is that you need the right legal instrument backing the transfer, and you need to apply to Revenue NSW before lodging.

Section 68 Requirements

To qualify for the full stamp duty exemption, your property transfer must meet all of these conditions:

The relationship has broken down. The marriage must have resulted in a dissolution (divorce), annulment, or permanent separation with no reasonable likelihood of cohabitation resuming.

The property is "matrimonial property." It must have been owned by one or both parties at the time of separation. This includes the family home, investment properties, vacant land, and properties held through family companies — regardless of whose name appears on the title.

The transfer goes to the right person. The property must be transferred to one of the parties to the broken-down marriage, a child of either party, or a trustee for a child. Transfers to discretionary trusts do not qualify.

It's backed by a formal legal instrument. This is where most people get stuck. An informal separation agreement is not enough. The transfer must be executed under one of:

• An order of the FCFCOA (including Consent Orders)
• A Binding Financial Agreement under sections 90B, 90C, or 90D of the Family Law Act 1975
• A registered arbitral award

Without one of these backing instruments, Revenue NSW will deny the exemption — and you'll owe full stamp duty on the transfer.

The Revenue NSW Application Process

Before your conveyancer or solicitor lodges the transfer with NSW Land Registry Services, you need to secure the exemption assessment from Revenue NSW.

Documents required:

• Completed "Application for Exemption or Refund: Break-up of a Marriage or De Facto Relationship" form
• Completed "Purchaser/Transferee Declaration — Individual" form
• The original executed transfer document
• Certified copies of the transferee's identity documents
• A copy of the FCFCOA Consent Orders, BFA, or registered arbitral award
• Proof of relationship breakdown (Divorce Order, separation certificate, or statutory declaration confirming separation)

Revenue NSW processes the application and issues an assessment confirming zero duty is payable. Only then can the transfer be lodged.

Electronic Conveyancing (PEXA)

Property transfers in NSW are lodged electronically through the PEXA eConveyancing platform. This requires a licensed conveyancer or solicitor — you cannot lodge the transfer yourself.

Your legal representative creates a PEXA workspace, uploads the Revenue NSW exemption assessment and the FCFCOA order, and submits the transfer to NSW Land Registry Services. The title is then updated to reflect the new sole ownership.

If there's a mortgage on the property, the incoming sole owner typically needs to refinance the loan in their name alone. The outgoing party's discharge of mortgage is processed simultaneously in the same PEXA workspace.

Removing an Ex-Spouse From the Mortgage

Getting your ex's name off the title is a separate process from getting their name off the mortgage. The stamp duty exemption covers the title transfer, but the lender decides whether to release one party from the mortgage.

This usually means the remaining party must:

• Demonstrate they can service the loan on a single income
• Formally refinance the mortgage as a sole borrower
• Have the outgoing party sign a discharge

If the lender won't approve the refinancing, you may need to sell the property and divide the proceeds instead — even if the Consent Orders contemplated a transfer.

What If You Already Paid Stamp Duty?

If transfer duty was paid on a property transfer during the separation process (before you had the formal orders in place), you can apply to Revenue NSW for a full refund within five years of the initial assessment. You'll need to provide the court order or BFA that was subsequently made.

Capital Gains Tax: The Federal Layer

The stamp duty exemption is a NSW state tax concession. At the federal level, the ATO provides separate relief through the CGT relationship breakdown rollover under Subdivision 126-A of the Income Tax Assessment Act 1997. The capital gain is deferred — not eliminated — until the receiving spouse eventually sells the property.

One critical boundary: the CGT rollover only applies to transfers made directly to a spouse or former spouse. If the court orders the property transferred to a company or trust controlled by your ex, the rollover does not apply, and immediate CGT is triggered.

The NSW After-Divorce Checklist includes a property transfer tracker and stamp duty exemption checklist that maps out every form and document needed for the Revenue NSW application — designed for people handling the process with minimal legal support.

See more New South Wales guides →