Selling Property on the Central Coast? Don’t Overlook These Key Taxes

Posted on 11 Apr 2025

When it comes to selling your property, most of the focus goes straight to getting the best possible sale price and rightfully so! But there’s another side to the process that’s just as important: understanding the tax implications. Knowing what to expect can help you avoid costly surprises and plan for a smoother, stress-free sale.

Here are the three key taxes every seller in NSW should be aware of:

1. Capital Gains Tax (CGT)

If you’re selling an investment property or a second home, Capital Gains Tax (CGT) may apply. This tax is calculated on the profit made from the sale and is influenced by factors such as:

How long you’ve owned the property
Your personal tax bracket
Whether any exemptions or discounts apply

Tip: If you’ve owned the property for more than 12 months, you may be eligible for a CGT discount. But it’s always smart to get tailored advice from a qualified accountant.

2. Goods and Services Tax (GST)

Generally, the sale of a residential property is GST-free, but there are exceptions. You may need to factor in GST if:

You’re selling a commercial property
The property has undergone major renovations
You’re selling as part of a business or development activity

GST can impact your pricing, so it’s essential to clarify this early on in your selling journey.

3. Stamp Duty

While stamp duty is paid by the buyer, it’s still good for sellers to understand how it works. Why? Because a buyer’s ability to cover stamp duty can directly affect their offer and their overall purchasing power. Being aware of this can help you navigate negotiations more effectively.

Stay Informed, Sell with Confidence

Taxes might not be the most exciting part of the sale process, but being informed gives you the edge. Understanding what you may owe and what buyers are facing can lead to a smoother transaction and a stronger outcome.

Need help navigating the selling process? Whether you're preparing to list your property or just starting to explore your options, we're here to help. Let’s chat about how to maximise your sale and avoid any tax-time surprises.