What is Stamp Duty?
Definition
Stamp Duty
Stamp duty (also called transfer duty) is a state government tax paid when you purchase property or land in Australia. It is calculated as a percentage of the property's purchase price or market value, whichever is higher, and must be paid within 30 to 90 days of settlement.
Stamp duty is typically the single largest upfront cost after your deposit when buying a home in Australia. Depending on the state, property value, and your buyer status, you could pay anywhere from $0 (with exemptions) to well over $50,000. Every state and territory sets its own rates and thresholds, so your stamp duty bill depends heavily on where you buy.
Stamp Duty Rates by State
Each state uses a tiered bracket system where higher-value properties attract higher marginal rates. The table below summarises the key rate ranges. For a precise calculation, use our stamp duty calculator.
Stamp Duty Rate Summary by State
| State | General Rate Range | Example: $800K Home |
|---|---|---|
| NSW | 1.25% - 5.50% | ~$31,490 |
| VIC | 1.40% - 5.50% | ~$43,070 |
| QLD | 1.50% - 5.75% | ~$21,850 |
| WA | 1.90% - 5.15% | ~$31,120 |
| SA | 1.00% - 5.50% | ~$35,080 |
| TAS | 1.75% - 4.50% | ~$28,600 |
| ACT | 0.60% - 5.17% | ~$23,480 |
| NT | Sliding scale | ~$23,930 |
First Home Buyer Exemptions
Every state offers stamp duty concessions or full exemptions for eligible first home buyers. These thresholds change regularly, so always check with your state revenue office before relying on them. For a detailed overview of eligibility and how to claim, read our guide on stamp duty exemptions for first home buyers.
First Home Buyer Stamp Duty Concessions
| State | Full Exemption Up To | Concession Up To |
|---|---|---|
| NSW | $800,000 | $1,000,000 |
| VIC | $600,000 | $750,000 |
| QLD | $700,000 (new homes) | $800,000 |
| WA | $500,000 | $700,000 ($750K regional) |
| SA | No full exemption | Up to $15,000 off |
| TAS | $750,000 | N/A |
| ACT | Fully exempt (income-tested) | N/A |
| NT | THOD ended; check NT Revenue Office | N/A |
Foreign Buyer Surcharges
Most states impose an additional stamp duty surcharge on foreign purchasers (non-residents and temporary visa holders). These surcharges are charged on top of the standard stamp duty rate.
- NSW: 9% surcharge
- VIC: 8% surcharge
- QLD: 8% surcharge (AFAD)
- WA: 7% surcharge
- SA: 7% surcharge
- TAS: 8% surcharge
- ACT: No surcharge
- NT: No surcharge
When Is Stamp Duty Paid?
Stamp duty is generally payable within 30 to 90 days of settlement, depending on the state. In NSW, it is due within three months of the contract date. In Victoria, it must be paid before the transfer of land can be registered. Your conveyancer or solicitor typically handles the payment as part of settlement.
Some states, including NSW and Queensland, allow first home buyers to defer or pay stamp duty in instalments. The ACT is progressively replacing stamp duty with an annual land tax for all buyers.
Use the Realestate Lens stamp duty calculator to get a precise estimate for your property purchase in any state or territory.
Frequently Asked Questions
Most lenders do not allow you to add stamp duty to your mortgage. It is considered a separate upfront cost that must be paid from your own savings. However, some lenders offer capitalisation of stamp duty for specific products, ask your broker. Keep in mind this increases your loan amount and total interest paid.
Stamp duty on your primary residence is not tax-deductible. However, if you purchase an investment property, the stamp duty forms part of the property’s cost base for capital gains tax purposes, which reduces your taxable gain when you eventually sell.
Yes, stamp duty applies to off-the-plan purchases. However, several states offer concessions that allow you to calculate duty on the land value at the contract date rather than the finished value. NSW, VIC, and QLD all provide off-the-plan concessions for eligible buyers.
Late payment of stamp duty attracts interest and penalties from the state revenue office. In NSW, penalty tax can be up to 25% of the unpaid amount plus market-rate interest. Contact your state revenue office as soon as possible if you anticipate difficulty meeting the deadline.
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