Valuation for Stamp Duty: When You Need One and Why It Matters
- Propti
- Jan 19
- 3 min read
A valuation for stamp duty is an independent property valuation used to determine the market value of a property for stamp duty purposes. It is often required when the transaction is not at arm’s length, such as family transfers, SMSF transactions, or off-market dealings.
State Revenue Offices rely on independent valuations to ensure stamp duty is calculated on the true market value, not just the contract price.
What Is a Valuation for Stamp Duty?
A valuation for stamp duty is a formal property valuation report prepared by a qualified, independent property valuer. It assesses what a property would reasonably sell for on the open market at a specific date.
Revenue authorities may require a valuation when:
There is no sale contract
The sale price does not reflect market value
The transaction occurs between related parties
A Propti stamp duty valuation is prepared to meet State Revenue Office requirements and can be relied upon by solicitors and accountants.
When Is a Valuation for Stamp Duty Required?
A valuation for stamp duty is commonly required in the following scenarios:
Related Party Transfers
Transfers between family members
Transfers between related companies or trusts
Transfers into or out of an SMSF
SMSF Property Transactions
Acquiring property from a related party
In-specie transfers
Compliance with ATO and state revenue rules
Family Law & Estate Matters
Property transfers following divorce or separation
Deceased estate transfers
Inheritances and estate distributions
Off-Market or Non-Standard Transactions
Gifts of property
Transfers with nominal consideration
Transactions without a formal sale process
In these cases, stamp duty is usually assessed on market value, not the amount paid.
Why Contract Price Is Not Always Accepted
Revenue authorities are not required to accept the contract price if:
The parties are related
The transaction is not at arm’s length
The price appears inconsistent with market evidence
A valuation for stamp duty provides an independent market assessment, reducing the risk of reassessment, penalties, or delays.
Who Can Prepare a Valuation for Stamp Duty?
A valuation for stamp duty must be completed by:
A certified practising valuer
An independent and appropriately qualified professional
A valuer experienced in statutory and revenue valuations
Real estate agent appraisals are not accepted for stamp duty purposes.
What Does a Stamp Duty Valuation Report Include?
A typical valuation for stamp duty will include:
Property description and location details
Market value assessment
Comparable sales analysis
Valuation methodology
Valuation date (critical for stamp duty)
Valuer’s certification and compliance statements
A Propti valuation report for stamp duty is structured to meet State Revenue Office and legal requirements.
How Much Does a Valuation for Stamp Duty Cost?
The cost of a valuation for stamp duty varies depending on:
Property type (residential, commercial, industrial)
Location
Complexity of the transaction
Urgency of the report
In most cases, the cost is minor compared to the potential stamp duty exposure or penalties if market value is incorrectly assessed.
Is a Valuation for Stamp Duty Worth It?
Yes — particularly where:
The transaction involves related parties
Significant stamp duty is payable
Legal or SMSF compliance is required
A properly prepared valuation can help:
Avoid disputes with Revenue NSW or other SROs
Support solicitor and accountant advice
Provide certainty and defensibility
How to Order a Valuation for Stamp Duty
The process is straightforward:
Provide property and transaction details
Engage an independent certified valuer
Valuer inspects and analyses the property
Receive a compliant stamp duty valuation report
You can order a valuation for stamp duty through Propti, with reports prepared for legal, tax, and revenue authority use.
Final Thoughts
A valuation for stamp duty is not just a formality — it’s a critical compliance document in many property transactions. Without an independent valuation, stamp duty may be reassessed at a higher value, leading to unexpected costs.
If you’re transferring property outside a standard open-market sale, a professionally prepared valuation should be obtained before stamp duty is assessed.
