How to Transfer Property to a Family Member in NSW (Without the Surprises)
- Jackie Atchison
- Jun 14
- 2 min read
Thinking of transferring property to a child or family member? There’s more to it than filling out a form.
Transferring property within the family—say, from parent to child—feels like it should be simple. But it can trigger stamp duty, capital gains tax, or long-term asset protection issues that aren't obvious upfront. Here’s what you need to know before making the move.
Why It Matters
Many families get caught assuming these transactions are exempt from duty or tax. Others rely on verbal agreements or informal handovers—leaving everyone exposed if the relationship or circumstances change. These transfers can also affect future eligibility for Centrelink or raise red flags in legal disputes or bankruptcy proceedings.
When Stamp Duty Still Applies
Transfers between family members aren’t automatically exempt. Spouse transfers may be, but parent-to-child usually are not. NSW Revenue assesses duty based on market value, even if no money changes hands.
Capital Gains Tax (CGT) Is Often Overlooked
If the property isn’t your main residence, CGT applies. Gifting it doesn’t remove the tax liability—the ATO treats it as if you sold the property at current market value. The recipient inherits a cost base that may impact future tax if they sell.
Risks for Centrelink and Asset Protection
Transferring assets at less than market value can affect pension eligibility. It can also raise questions if there’s a later family dispute, bankruptcy or aged care assessment. Transfers without fair value exchange may be challenged by creditors or other family members.
What the Process Involves
You’ll typically need:
A current market valuation
A formal Transfer form
A Deed of Gift or Family Agreement to record intentions
Stamp duty payment (unless exempt)
Registration with NSW Land Registry Services
Worth Knowing
You can’t avoid stamp duty by "giving" property to your child. The duty is still assessed as if they bought it at full market value, regardless of what is paid.
What to Do Next
Clarify your intentions. Are you gifting, loaning, or planning for estate outcomes? Get advice on whether this should be a direct transfer or part of a broader asset protection plan. I help families structure transfers clearly and correctly.
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