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Yes, has to be done before settlement. But, as you know, there may be stamp duty exemptions for transfers from one spouse to both spouses - but usually only for the main residence (except in Vic where it seems this can be done with investment properties too).

Found it S18 Duties Act (NSW) transfer in conformity with the contract. http://www.austlii.edu.au/au/legis/nsw/consol_act/da199793/s18.html

In NSW there is provision for the names on the transfer to be different to that of the contract with only nominal stamp duty ($20 from memory). Probably similar in other states too. I am out of town, don't have my notebooks and forget the details now. "transfer by direction" maybe.