Transfers between family need a real number, not a nominal one.
Where residential property is transferred between family members or related entities, duty is generally assessed on the dutiable value — broadly the higher of the consideration actually paid and the property’s market value at the date of the transaction. Transferring at $1, or at an agreed family figure, does not reduce the duty payable; it simply means the revenue office will substitute market value, and will want evidence of it. An independent valuation supplies that evidence in the form the office expects, dated to the transaction.
The office assesses value, not the contract.
A transfer between related parties is not an arm’s length transaction, so the price on the contract is not evidence of value. Every Australian revenue office therefore assesses duty on the higher of consideration and market value. The practical effect: a transfer documented at a nominal or discounted figure will still attract duty on the full market value, and the assessment will be delayed until the office is satisfied about that value.
This catches people in predictable situations — a parent transferring a house to a child, a transfer into or out of a family trust or company, adding or removing a spouse from a title, restructuring an investment holding. In each case the transaction is real, the intention is legitimate, and the duty consequence turns entirely on a number nobody has yet evidenced.
The other trap is timing. A valuation prepared for the wrong date, or too long before the transaction, may not be accepted. Where the transaction has already happened, the valuation has to be dated back to it — which is routine, but it has to be done deliberately rather than by using a current figure and hoping.
The evidence rules are not national.
Duty is a state tax, and each office publishes its own evidence requirements. Queensland accepts a market appraisal or a valuation, subject to conditions including how recently it was prepared, and documents generally must be lodged for assessment within 30 days of the dutiable transaction. Other jurisdictions differ on what they will accept, from whom, and how current it must be.
Where the amount at stake is significant, or where the property is unusual, a full valuation by a Certified Practising Valuer is the safer document — it states the basis of value, the valuation date, the comparable evidence and the assumptions, which is what an office asks for when it queries an assessment. Where a concession genuinely applies and an appraisal will be accepted, we will tell you that rather than sell you a valuation.
We prepare to the office your transaction answers to. Tell us the state and the transaction date and you will get the right document, not a generic one.
The revenue authority and deadlines in each stateFour things, and we can quote.
The property address and number of titles. The date of the dutiable transaction, or the intended date. Who is transferring to whom — individuals, a trust, a company, a self-managed super fund. And the state the property sits in, because that determines the evidence standard.
If a solicitor or conveyancer is acting, they usually have all four already. Send it in one email and the fixed fee comes back against a stated scope, with the valuation date on it.
If the transfer is part of a larger restructure, say so. A transfer that also triggers capital gains tax will often need the same property valued at more than one date, and quoting both together is cheaper than discovering the second one later.
Where a transfer also triggers CGTFour questions, answered plainly.
Can I transfer a property to my child for $1?
You can document the transfer at any figure, but it will not reduce the duty. Duty is assessed on the dutiable value, broadly the higher of the consideration paid and the market value of the property at the date of the transaction. A nominal price simply means the revenue office substitutes market value and asks for evidence of it. The transfer itself is legitimate; the duty is calculated on value regardless.
Will the revenue office accept a real estate agent appraisal?
It depends on the state, the amount and the circumstances. Queensland accepts a market appraisal or valuation subject to published conditions, including how recently it was prepared. Other offices are stricter. Where the amount is significant, the property is unusual, or the transfer is between closely related parties, a full valuation by a Certified Practising Valuer is materially harder to challenge — it states the basis of value, the date, the comparable evidence and the assumptions.
The transfer already happened. Is it too late to get a valuation?
No. A retrospective valuation assesses market value as at the transaction date using the sales evidence that existed then, and is routine. What matters is the lodgement clock: in Queensland, for example, documents generally must be lodged for assessment within 30 days of the dutiable transaction. Tell us the transaction date when you enquire and we will tell you honestly whether the timeframe is achievable.
Do I need a valuation if the transfer is between spouses?
Sometimes not — several jurisdictions provide concessions or exemptions for certain transfers between spouses, particularly of a principal place of residence, and the conditions vary. Check the position with your solicitor or the revenue office first. If a concession applies in full, you may need no valuation at all, and we would rather tell you that than value a property unnecessarily.
Where this connects to the rest of the file.
A transfer can trigger CGT as well as duty
Disposing of an asset at less than market value does not avoid the capital gains consequence. The same property often needs valuing for both.
Instructing on a related party transfer
What the letter of instruction should cover, and how we work to a lodgement deadline.
Duty evidence rules, with sources
What each revenue office wants and the lodgement clocks that run alongside it.
What sets the fee
A retrospective transaction date and multiple titles both change the scope of work.