When you’re buying a house, there are a few extra costs that can be worth keeping in mind. While building and pest inspections and conveyancing fees can set you back anywhere from a few hundred to a couple of thousand, the one that really takes the cake is stamp duty.
What is stamp duty?
Stamp duty, also known as transfer duty, is a government tax that’s charged when you buy a property in Australia.
After your deposit and mortgage itself, stamp duty is one of the biggest expenses you’ll have to foot the bill for when it comes to buying a home, so it’s important that you take this cost into account when deciding whether or not you can afford a property.
It’s essential that you pay stamp duty within the required period. If you don’t pay your stamp duty, the property transfer won’t be completed.
How much is stamp duty?
The exact amount you’re charged depends on several key factors, including:
- The state or territory where your property is built,
- The price of your property, and
- Whether or not you’re entitled to any exemptions or concessions.
Here’s a quick overview of how stamp duty works state by state.
Australian Capital Territory
In the ACT, stamp duty is also known as conveyancing duty. The government has been working to reduce the stamp duty rates on residential properties. As of the 1st of July 2023, the duty rate for eligible owner-occupier transactions is as follows:
| Value of Non-Commercial Property |
Duty Payable: Owner Occupier |
| Up to $260,000 |
$0.49 per $100 or part of thereof up to $260,000 |
| $260,001 to $300,000 |
$1,274 plus $2.20 per $100 or part thereof by which the value exceeds $260,000 |
| $300,001 to $500,000 |
$2,154 plus $3.40 per $100, or part thereof by which the value exceeds $300,000 |
| $500,001 to $750,000 |
$8,954 plus $4.32 per $100, or part thereof by which the value exceeds $500,000 |
| $750,001 to $1,000,000 |
$19,754 plus $5.90 per $100, or part thereof by which the value exceeds $750,000 |
| $1,000,001 to $1,455,000 |
$34,504 plus $6.40 per $100, or part thereof by which the value exceeds $1,000,000 |
| More than $1,455,000 |
A flat rate of $4.54 per $100 applied to the total transaction value |
New South Wales
In NSW, you have to pay transfer duty based on the property’s sale price or its current market value, whichever is higher. The NSW government charges a standard transfer duty rate, as well as a premium duty rate for residential properties worth more than $3 million. The threshold amounts of standard transfer duty and premium duty rates are adjusted each year in line with movements in the Sydney Consumer Price Index (CPI). Here are the transfer duty rates as of the 1st of July 2023:
| Property value |
Transfer duty rate |
| $0 to $16,000 |
$1.25 for every $100 (minimum $10) |
| $16,000 to $35,000 |
$200 plus $1.50 for every $100 over $16,000 |
| $35,000 to $93,000 |
$485 plus $1.75 for every $100 over $35,000 |
| $93,000 to $351,000 |
$1,500 plus $3.50 for every $100 over $93,000 |
| $351,000 to $1,168,000 |
$10,530 plus $4.50 for every $100 over $351,000 |
| Over $1,168,000 |
$47,295 plus $5.50 for every $100 over $1,168,000 |
Northern Territory
In the NT, stamp duty must be paid within 60 days of settlement. Here’s an overview of how stamp duty is calculated in the NT:
| Property value |
Stamp duty payable |
| Up to $525,000 |
(0.06571441 x V) + 15V, where V is 0.1% of the property’s value |
| $525,000 to $3,000,000 |
4.95% of the property value |
| $3,000,001 to $5,000,000 |
5.75% of the property value |
| More than $5,000,000 |
5.95% of the property value |
Queensland
In Queensland, transfer duty on land is usually calculated on either the unencumbered value of the property or the amount you agree to pay (the consideration), whichever is higher. This figure is called the ‘dutiable value’. Essentially, this means that you’ll still have to pay transfer duty, even when no money is paid or the property is a gift.
Here are the current transfer duty rates in Queensland:
| Dutiable value |
Duty rate |
| Not more than $5,000 |
Nil |
| More than $5,000 up to $75,000 |
$1.50 for each $100, or part of $100, over $5,000 |
| $75,000 to $540,000 |
$1,050 plus $3.50 for each $100, or part of $100, over $75,000 |
| $540,000 to $1,000,000 |
$17,325 plus $4.50 for each $100, or part of $100, over $540,000 |
| More than $1,000,000 |
$38,025 plus $5.75 for each $100, or part of $100, over $1,000,000 |
South Australia
Stamp duty in SA is calculated on the purchase price or the market value of the property, whichever is higher.
| Where value of the property conveyed |
Amount of stamp duty |
| Does not exceed $12,000 |
$1.00 for every $100 or part of $100 |
| Exceeds $12,000 but not $30,000 |
$120 plus $2.00 for every $100 or part of $100 over $12,000 |
| Exceeds $30,000 but not $50,000 |
$480 plus $3.00 for every $100 or part of $100 over $30,000 |
| Exceeds $50,000 but not $100,000 |
$1,080 plus $3.50 for every $100 or part of $100 over $50,000 |
| Exceeds $100,000 but not $200,000 |
$2,830 plus $4.00 for every $100 or part of $100 over $100,000 |
| Exceeds $200,000 but not $250,000 |
$6,830 plus $4.25 for every $100 or part of $100 over $200,000 |
| Exceeds $250,000 but not $300,000 |
$8,955 plus $4.75 for every $100 or part of $100 over $250,000 |
| Exceeds $300,000 but not $500,000 |
$11,330 plus $5.00 for every $100 or part of $100 over $300,000 |
| Exceeds $500,000 |
$21,330 plus $5.50 for every $100 or part of $100 over $500,000 |
Tasmania
In Tasmania, the duty is payable within 3 months of settlement by the purchaser.
| Value of the property (including chattels) |
Duty payable |
| Not more than $3,000 |
$50 |
| More than $3,000 but not more than $25,000 |
$50 plus $1.75 for every $100, or part, by which the dutiable value exceeds $3,000 |
| More than $25,000 but not more than $75,000 |
$435 plus $2.25 for every $100, or part, by which the dutiable value exceeds $25,000 |
| More than $75,000 but not more than $200,000 |
$1,560 plus $3.50 for every $100, or part, by which the dutiable value exceeds $75,000 |
| More than $200,000 but not more than $375,000 |
$5,935 plus $4.00 for every $100, or part, by which the dutiable value exceeds $200,000 |
| More than $375,000 but not more than $725,000 |
$12,935 plus $4.25 for every $100, or part, by which the dutiable value exceeds $375,000 |
| More than $725,000 |
$27,810 plus $4.50 for every $100, or part, by which the dutiable value exceeds $725,000 |
Victoria
In Victoria, land transfer duty is calculated based on either the price you paid for the property or the price for which it may be reasonably sold on the open market, whichever is higher.
| Dutiable value range |
Rate |
| $0 - $25,000 |
1.4% of the dutiable value of the property |
| > $25,000 - $130,000 |
$350 plus 2.4% of the dutiable value in excess of $25,000 |
| > $130,000 - $960,000 |
$2870 plus 6% of the dutiable value in excess of $130,000 |
| >$960,000 - $2,000,000 |
5.5% of the dutiable value |
| More than $2,000,000 |
$110,000 plus 6.5% of the dutiable value in excess of $2,000,000 |
Western Australia
In WA, stamp duty is calculated based on the market value of your property. When you buy a home in WA, you have to lodge your documents for assessment of stamp duty within 2 months of the purchase date. From there, a duties assessment is issued and you have 1 month to pay your stamp duty.
| Dutiable value |
Rate |
| $0 - $120,000 |
$1.90 per $100 or part thereof |
| $120,001 - $150,000 |
$2,280 + $2.85 per $100 or part thereof above $120,000 |
| $150,001 - $360,000 |
$3,135 + $3.80 per $100 or part thereof above $150,000 |
| $360,001 - $725,000 |
$11,115 + $4.75 per $100 or part thereof above $360,000 |
| $725,001 + |
$28,453 + $5.15 per $100 or part thereof above $725,000 |
Most states and territories offer concessions and stamp duty exemptions if you meet the eligibility criteria. If you’re after a little more information on how much stamp duty you could be looking at, your best bet is to check your state or territory government website.
This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.
