Stamp Duty Valuation vs Market Value Report: What’s the Difference and When You Need Each
If you’re buying, transferring, or restructuring property in New South Wales, you’ll quickly run into two terms that sound similar but have very different consequences: stamp duty valuation and market value report.
Many buyers, sellers, and even advisers use these terms interchangeably. That can be an expensive mistake. Understanding the difference can be the line between a smooth transfer and a nasty surprise from Revenue NSW, or between paying exactly what you owe in duty and accidentally overpaying.
This guide breaks down, in plain English, what each report is for, when you actually need a formal stamp duty valuation in NSW, and how to avoid the most common (and costly) traps.
What Is a Stamp Duty Valuation in NSW?
A stamp duty valuation is a formal, independent assessment of your property’s market value specifically for transfer duty (stamp duty) purposes under NSW law.
In NSW, transfer duty is generally based on the greater of:
The price you pay (or nominal transfer price), and
The property’s market value at the date of the transaction.
When NSW Revenue (Revenue NSW) suspects that a contract price doesn’t reflect true market value – or there is no price at all – they may require a stamp duty valuation from a suitably qualified valuer. This is not just a “nice to have”; in many situations, it is effectively mandatory.
Key features of a stamp duty valuation:
Prepared by a qualified, independent valuer (typically API‑accredited).
Explicitly states that the purpose is for transfer duty (stamp duty) assessment in NSW.
Uses accepted valuation methodologies and includes detailed supporting evidence.
Designed to withstand scrutiny from Revenue NSW and, if necessary, in an objection or dispute.
In other words, this is a valuation that can be used to calculate and, if challenged, defend the amount of duty payable on a transfer in NSW.
What Is a Market Value Report?
A market value report (or general valuation) is a broader term. It’s a professional opinion of value but is usually prepared for commercial or lending purposes, not specifically for stamp duty or tax.
You’ll see these used for:
Refinancing or securing a loan
Pre‑purchase or pre‑sale advice
Insurance purposes
Investment or development feasibility
General portfolio reviews
These reports can still be very detailed, but they’re:
Focused on what a willing buyer would pay a willing seller in an arm’s‑length sale;
Written for banks, investors, or owners, not for Revenue NSW;
Not necessarily structured to meet the evidence and disclosure standards that apply in duty or tax disputes.
Sometimes, a high‑quality market valuation can be adapted or relied on in a duty context, but often Revenue NSW will either:
Rely on its own internal valuation, or
Expect a valuation that clearly addresses transfer duty and evidentiary requirements.
The big takeaway: not every market valuation is suitable as a stamp duty valuation, even if it’s technically a “market value” opinion.
Stamp Duty Valuation vs Market Value Report: The Critical Differences
A market value report tells you what the property is worth, usually for business or lending decisions.
A stamp duty valuation tells Revenue NSW what the property is worth for the purpose of calculating duty – and is prepared in a way that can be defended if they challenge it.
Here’s a side‑by‑side comparison:
| Dimension | Stamp Duty Valuation (NSW) | Market Value Report |
|---|---|---|
| Primary purpose |
Transfer duty (stamp duty) compliance and dispute defence
|
Lending, investment, insurance, internal decision‑making
|
| Audience |
Revenue NSW, your solicitor, your accountant
|
Banks, investors, owners, insurers
|
| Rigor & documentation |
Very detailed; must show evidence, methodology, assumptions, and be able to withstand review
|
Can be detailed, but not always written to tax/dispute standards |
| Legal weight |
Prepared with explicit duty/tax purpose; designed to be defensible in objections or audits
|
Generally not accepted as sufficient on its own in a Revenue NSW dispute |
| Typical cost (residential) | Higher: often $600–$1,200+ due to additional compliance and documentation | Lower: often $400–$900 for standard residential work |
| Typical timeframe | Longer: around 5–10 business days (can be faster by arrangement) | Faster: around 3–5 business days for straightforward jobs |
| When used | Related‑party transfers, gifts, below‑market sales, complex or disputed values, Revenue NSW enquiries | Refinancing, pre‑sale/pre‑purchase advice, portfolio reviews, insurance |
You don’t always need the more expensive, formal version. But when you do, nothing else will substitute.
When You MUST Get a Stamp Duty Valuation in NSW
There are several common scenarios in NSW where a stamp duty valuation is either required or strongly advisable.
1. Related‑Party Transactions
If you’re buying or transferring property between related parties – for example:
Buying from a parent or child
Transferring a property into or out of a family trust
Transferring between spouses (outside specific exemptions)
Buying from a company you control
Revenue NSW is immediately on alert. They know the price on the paperwork may not reflect true market value, because you may be helping each other out, not acting at arm’s length.
Example:
You buy your parent’s Sydney home for $500,000, but similar properties on the street are selling for around $700,000. Revenue NSW can look through the contract price and assess duty based on $700,000, not $500,000.
A stamp duty valuation from an independent valuer:
Confirms what a fair market value actually is (it might be $680,000, not $700,000, for sound reasons), and
Gives you a defensible position if Revenue NSW queries the transaction.
Without it, you’re relying on Revenue NSW’s view of value – which may not favour you.
2. Below‑Market or Distressed Sales
If the property is sold:
Under a court order
Due to financial distress
Between parties under pressure (e.g. quick sale in a family law settlement)
…the agreed price might be below what an open‑market buyer would pay.
Revenue NSW can:
Question whether the sale price reflects market value, and
Assess duty on their view of market value, not the distressed price.
In these situations, a stamp duty valuation can:
Explain why the final price is what it is (e.g. defects, urgent sale, restrictive conditions);
Demonstrate that, even accounting for those factors, the agreed price is a fair reflection of market value; or
Show that a lower figure than typical sales is still legitimate based on the property’s specific issues.
3. Property Transfers Without a Contract Price
In NSW, duty can apply even where there’s no sale price, including:
Gifts (e.g. transferring a property to a child for “love and affection”)
Transfers into or out of a trust or company structure
Some restructures or estate distributions
Here, there is no contract price to start from. Revenue NSW will assess duty entirely on market value.
A stamp duty valuation is essential because:
It establishes a clear market value at the date of transfer;
It provides the evidence your solicitor or accountant needs when lodging the transfer;
It significantly reduces the risk of Revenue NSW issuing a much higher assessment based on their own (possibly aggressive) estimate.
4. When Revenue NSW Challenges Your Figure
Sometimes you or your adviser will have put forward a value – perhaps based on agent appraisals or a general valuation – and Revenue NSW doesn’t accept it.
Signals of trouble include:
Revenue NSW requesting further information about how value was determined
Receiving a “Notice of Assessment” using a significantly higher value than you expected
Being told their internal valuer has formed a different opinion
At that point, you are effectively in a dispute. A formal stamp duty valuation from an independent professional is your main line of defence. It:
Shows Revenue NSW you’re taking the matter seriously
Provides concrete sales evidence and reasoning
Gives your lawyer or tax adviser something solid to argue from
This is particularly important for higher‑value residential, commercial and development sites, where small percentage differences can mean tens or hundreds of thousands of dollars in extra duty.
The Step‑by‑Step Stamp Duty Valuation Process in NSW
Here’s what the process usually looks like when you instruct a valuer for a NSW stamp duty valuation.
Step 1: Initial Information and Brief
You or your solicitor/accountant will brief the valuer on:
The purpose: “Stamp duty valuation for transfer of property at [address] in NSW”
The parties involved and their relationship (family, trust, company, unrelated buyers)
The relevant date of transfer or contract (this is the valuation date)
Any unusual circumstances (court order, distress sale, defects, redevelopment potential)
You’ll also provide:
A copy of the contract (if any)
Title details and a copy of any dealings (easements, covenants etc.)
Survey or strata plans
Relevant correspondence from Revenue NSW if a query or assessment has already been issued
The clearer the initial brief, the smoother the process.
Step 2: Inspection and Comparable Sales Research
The valuer will:
Inspect the property (or in some limited cases, if inspection is impossible, rely on detailed information and photographs)
Take note of land size, improvements, condition, layout, aspect, parking, and any special features
Research comparable recent sales around the valuation date – ideally 3–6 sales of similar properties in similar locations
For unique or complex properties (e.g. large development sites, mixed‑use assets), they may also consider:
Zoning and development potential
Existing leases and income
Highest and best use analysis
The key is to anchor the valuation in real, recent market evidence.
Step 3: Analysis and Valuation Conclusion
Using the data gathered, the valuer:
Compares each sale to your property, making adjustments for differences (size, condition, views, land, improvements, time, etc.)
May cross‑check the figure against income or cost approaches where relevant
Forms a considered opinion of market value as at the valuation date.
For stamp duty, this is almost always a single figure, not a broad range, so that duty can be calculated clearly.
Step 4: Report Preparation
The valuer then prepares a written report that typically includes:
Property description and legal details
Purpose of valuation (stamp duty in NSW) and valuation date
Summary of inspection findings
Details of comparable sales used
Analysis explaining how they moved from the sales data to the final figure
Any assumptions or limitations
The final assessed market value
Valuer’s qualifications and declaration of independence
For duty purposes, this report needs to be detailed enough that Revenue NSW can follow the reasoning and see the evidence.
Step 5: Submission and Follow‑Up
Your solicitor or accountant will usually:
Use the valuation figure when completing the Duties Notice of Assessment or relevant Revenue NSW forms
Attach or hold the valuation report in case Revenue NSW calls it in
Rely on the report as the basis for any objections or submissions, if Revenue NSW disagrees.
If Revenue NSW has already issued a higher assessment based on their own view of value, your adviser can lodge an objection, supported by the independent report.
Common Mistakes That Cost NSW Buyers and Owners Thousands
Here are the errors we see again and again.
1. Assuming “Mate’s Rates” Are Invisible
Selling to, or buying from, family or friends at a discount can make sense within the family. Unfortunately, Revenue NSW is not part of the family.
If you put a significantly lower price on the contract and hope no one notices, expect:
Revenue NSW to flag the transaction (especially if the price is well below recent local sales), and
An assessment based on their higher idea of market value.
Without a professional valuation, you have little to argue with.
2. Relying on Agent Appraisals or Online Estimates
Agent appraisals and online value estimates are fine for an initial sense of worth, but:
They do not meet the standard of independence required for duty assessment;
They rarely include detailed sales analysis; and
Revenue NSW is not bound to accept them.
They also cut both ways: an optimistic appraisal can lead you to expect a lower duty increase than Revenue NSW ultimately assesses.
3. Using a Bank Valuation for Stamp Duty
Lenders often obtain their own valuations when you borrow, but:
These are for the bank’s security – not for your tax or duty compliance.
They often aim to be conservative from the bank’s risk perspective.
They’re not written or formatted to be lodged as evidence in duty disputes.
In some instances, a bank valuation can be useful background, but you should not assume it will be enough if Revenue NSW asks questions.
4. Failing to Get a Valuation for Related‑Party Transfers
People often assume that if there’s no “sale” in the traditional sense – for example, moving a property into a trust, or gifting it to a child – they can simply pick a number that seems reasonable.
This is exactly when a stamp duty valuation is most important, because:
There is no arm’s‑length sale price for Revenue NSW to benchmark;
They will fall back entirely on market value;
A poorly supported or arbitrary figure can be quickly overridden.
The cost of a formal valuation is usually a fraction of the duty risk.
5. Leaving It Too Late
Sometimes people wait until:
Revenue NSW has already assessed a higher value, or
Deadlines for payment or objection are close.
You can still obtain a valuation at that point, but:
Timeframes are tighter (you may need rush fees);
There’s less room for careful planning;
Stress levels are much higher.
Getting advice and, where needed, a valuation before you lodge anything with Revenue NSW is almost always cheaper and less stressful.
Recent NSW Settings to Be Aware Of
While rates and thresholds change over time, some themes are consistent in NSW:
Progressive duty brackets: Duty scales up with value; every extra $100,000 can mean thousands more in duty.
First‑home buyer concessions and thresholds: If you’re near a threshold, accurately establishing value (not accidentally pushing yourself over by relying on a guess) matters.
Foreign purchaser surcharges: For foreign buyers, duty is even more sensitive to value.
The specifics change with each budget, but the underlying reality doesn’t: the higher the assessed value, the more duty you pay. A defensible, accurate valuation is key.
(For current thresholds and concessions, you and your solicitor should always check the latest Revenue NSW guidance.)
When a Market Value Report Is Enough
There are plenty of times when you do not need a stamp duty valuation, and a standard market valuation or even an agent appraisal is fine:
You’re buying at full market price in a competitive, arm’s‑length transaction.
There’s no related‑party element, distress sale, or unusual structure.
Revenue NSW has no particular reason to doubt the contract price.
In those cases, a detailed market value report can still be helpful for:
Negotiation strategy
Loan discussions
Insurance cover decisions
Long‑term planning
But you don’t need to pay for the extra layer of documentation and formality that a stamp duty valuation involves.
How ValueMax Can Help
Stamp duty and market value issues are easy to ignore when you’re focused on the bigger picture: family arrangements, restructures, or simply getting a deal done. But in NSW, they can be the difference between:
Paying exactly what you owe in duty, and
Receiving a much higher assessment from Revenue NSW with little recourse.
At ValueMax, we provide:
Stamp duty valuations for NSW transfers, including related‑party transactions, gifts, restructures, family settlements, and complex or higher‑value assets.
General market value reports for lending, pre‑sale/pre‑purchase advice, and investment decisions.
Clear, defensible reports that your solicitor and accountant can rely on when dealing with Revenue NSW.
If you’re planning a transfer or have already received an unexpected duty assessment, it’s worth getting independent advice before you lodge or accept anything. A short conversation can usually clarify whether you need a full stamp duty valuation, or whether a simpler market report will cover it.
