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Constructing a granny flat does not attract stamp duty in any Australian state. However, CGT implications on sale depend on whether a formal granny flat arrangement exists and whether the dwelling was rented or used personally.
No — building a granny flat on land you already own does not trigger stamp duty. Stamp duty applies to property transfers. The construction contract itself is not a dutiable transaction. If you acquire a property that includes a granny flat, stamp duty is assessed on the total purchase price.
It can. If you have a formal "granny flat arrangement" (written agreement granting right of occupancy) registered under state law, and a CGT exemption applies under the relevant legislation, CGT may be exempt. Without a formal arrangement, the granny flat area may be treated as income-producing and lose part of the main residence CGT exemption. Get tax advice before establishing a granny flat arrangement.
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