Property Valuation for Stamp Duty Explained

When buying or transferring property, stamp duty (also known as transfer duty) is one of the largest upfront costs. What many people don’t realise is that stamp duty is not always calculated on the sale price — in many cases, it’s assessed on the market value of the property.

This is where a property valuation for stamp duty becomes essential.

This guide explains:

• what a stamp duty valuation is

• when it’s required

• how market value is determined

• whether a desktop valuation can be used

• and how to avoid common mistakes

What Is a Property Valuation for Stamp Duty?

A stamp duty valuation is an independent assessment of a property’s market value at a specific date, prepared by a Certified Practising Valuer (CPV).

Revenue authorities use this valuation to ensure stamp duty is paid on the true market value, particularly when there is no arm’s-length sale or the transaction price does not reflect open market conditions.

When Is a Stamp Duty Valuation Required?

A valuation is commonly required for stamp duty when:

• property is transferred between family members

• assets are transferred between related entities or trusts

• property is gifted

• ownership changes as part of estate planning

• transfers occur at below-market value

• property is moved into or out of a company or trust

In these scenarios, the contract price (if there is one) may not reflect market value, so a formal valuation is used instead.

Stamp Duty Is Based on Market Value — Not Just Price

A common misconception is that stamp duty is always calculated on the purchase price.

In reality, revenue authorities generally assess duty on the higher of:

• the contract price, or

• the property’s market value

For related-party transactions, stamp duty is typically calculated solely on market value, regardless of the transfer price.

A professionally prepared valuation helps:

• substantiate the declared value

• reduce the risk of reassessment

• avoid penalties, interest, or delays

How Is Market Value Determined for Stamp Duty?

For stamp duty purposes, market value is assessed based on:

• recent comparable sales

• property location and land size

• zoning and planning controls

• improvements and condition (based on available data)

• market conditions at the valuation date

The valuation reflects the price the property would reasonably achieve in an open and competitive market.

Can a Desktop Valuation Be Used for Stamp Duty?

In many cases, yes.

A desktop valuation (completed without a physical inspection) is often suitable for stamp duty purposes, particularly when:

• the property is a standard residential dwelling

• there is strong, recent comparable sales evidence

• no complex development or zoning issues exist

Desktop valuations are commonly used because they are:

• cost-effective

• faster to complete

• prepared by qualified valuers

• suitable for many revenue authority requirements

At Propti, desktop valuations for stamp duty start from $595, subject to suitability.

When Is a Full Inspection Valuation Required?

A full inspection valuation may be required if the property:

• is prestige or highly unique

• has recent renovations not reflected in public records

• has development potential affecting value

• includes complex zoning or planning considerations

• is specifically requested by the revenue authority

If an inspection is required, this will usually be identified upfront.

Desktop vs Full Valuation for Stamp Duty

Desktop Valuation	Full Inspection Valuation
No site inspection	Physical inspection
Faster turnaround	More detailed assessment
Lower cost (from $595)	Higher cost
Suitable for many stamp duty cases	Required for complex properties

Both valuation types are completed by Certified Practising Valuers — the key difference is complexity, not credibility.

Common Stamp Duty Valuation Mistakes to Avoid

❌ Using an agent appraisal instead of a formal valuation❌ Assuming duty is always based on transfer price❌ Using outdated or informal value estimates❌ Not matching the valuation date to the transfer date

Any of these can trigger reassessments or delays.

Why Use Propti for Stamp Duty Valuations?

✔ Certified Practising Valuers✔ Desktop valuations from $595✔ Fast turnaround times✔ Clear advice on suitability✔ Australia-wide service

Propti focuses on providing the right valuation for the right purpose, helping clients meet stamp duty requirements without unnecessary cost.

Do You Need a Property Valuation for Stamp Duty?

If you’re transferring property and:

• there’s no open market sale, or

• the price doesn’t reflect market value

a stamp duty valuation is likely required.

👉 Speak to Propti today to confirm whether a desktop valuation is suitable or if a full inspection is needed.

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