Stamp Duty in Australia: 2023 Definitive Guide
Paying stamp duty is a necessary cost for most home buyers in Australia, and is a significant expense in property ownership. It is arguably the the most surprising and costly expense you’ll have to pay when acquiring property.
So, what is Stamp Duty in Australia?
Stamp duty is a tax in Australia on certain documents and transactions, including property transactions, imposed by state governments.
The collected funds are used for the following:
- Infrastructure
- Public facilities
- Healthcare
- And so on
How much Stamp Duty do I need to pay in Australia?
Stamp duty cost is usually 4-5% of the property value. As an example, if your property purchase price is $1,000,000, you can expect to pay approximately $40,000 – $50,000 in stamp duty.
The cost of stamp duty usually depends on the following:
- Purchase price
- Location or state
- Intended purpose
The calculation method for stamp duty varies by the state government.
Note: Stamp duty cost as a percentage of property value increases with higher property values.
Try our Australian Stamp Duty Calculator!
- First Home Buyer means that it’s the first time you bought a home that you will be living in for at least 6 months of the first 12 months of ownership. For an Australian expat, this is usually always ‘No’.
- Foreign Purchaser means that you are not an Australian citizen or Australian Permanent Resident. If you are an Australian expat, you are not a Foreigner Purchaser.
- Transfer fee is a state government fee for updating the land’s ownership title records to your name.
- Mortgage fee is another government fee. For registering your mortgage and the lender as mortgagee on your property.
When is the Stamp Duty payment due?
Stamp duty deadlines vary by state. Your conveyancer, solicitor, or settlement agent will advise and assist you with the payment to the state’s revenue office.
Stamp duty is usually paid on the settlement day if you’re obtaining a mortgage.
Stamp Duty deadlines based on Australian state governments
| State | Deadline |
|---|---|
| NSW | Stamp Duty to be paid to the SRO within 90 days of settlement. If purchasing off-the-plan, Stamp Duty is payable within 90 days of signed contract date. |
| VIC | Stamp Duty to be paid to the SRO within 30 days of settlement. |
| QLD | Stamp Duty to be paid to the SRO within 30 days of settlement. |
| WA | Stamp Duty to be paid to the SRO within 30 days of receiving the Duties Assessment Notice. To receive the Assessment Notice you’ll first have to lodge your Transfer documents to the SRO within 60 days of the settlement. |
| NT | Stamp Duty to be paid to the SRO within 60 days of entering into a transaction or settlement, whichever is earlier. |
| SA | Stamp Duty to be paid to the SRO on the day of settlement. |
| TAS | Stamp Duty to be paid to the SRO within 90 days of settlement. |
| ACT | Stamp Duty to be paid to the SRO within 14 days of receiving the Notice of Assessment. To receive the Assessment Notice you’ll first have to lodge your Transfer documents to the SRO within 14 days of the settlement. |
Stamp duty concessions and exemptions in Australian states
New South Wales
COVID-19 recovery plan – (1st August 2020 – 31st July 2021)
First time homeowners purchasing primary residence (new homes only):
Purchase price <=$800,000 = Stamp duty exempt
Purchase price $800,001 – 999,999 = Stamp duty concession
Purchase price $1 million+ = No concession
Purchase price <=$650,000 = Stamp duty exempt
Purchase price $650,001 – 799,999 = Stamp duty concession
First time home owners purchasing vacant land (to later build on):
Purchase price <=$400,000 = Stamp duty exempt
Purchase price $400,001 – 499,999 = Stamp duty concession
Purchase price $500k+ = No concession
Victoria
First time homeowners purchasing primary residence:
Purchase price $600,001 – 749,999 = Stamp duty concession
Purchase price $750k+ = No concession
Pensioners, farmers, and those purchasing from a plan are also eligible for Stamp duty concessions or exemption to varying degrees.
Queensland
First time homeowners purchasing primary residence:
Purchase price $500,001 – 549,999 = Stamp duty concession
First time home owners purchasing vacant land (to later build on):
Purchase price <=$250,000 = Stamp duty exempt
Purchase price $250,001 – 399,000 = Stamp duty concession
Purchase price $400k+ = No concession
Western Australia
First time homeowners purchasing primary residence:
Purchase price $430,000 – 530,000 = Stamp duty concession
First time home owners purchasing vacant land (to later build on):
Purchase price <=$300,000 = Stamp duty exempt
Purchase price $300,001 – 399,000 = Stamp duty concession
Purchase price $400k+ = No concession
Northern Territory
First-time homeowners purchasing a primary residence can get $18,601 off their stamp duty.
South Australia
There are no Stamp Duty exemptions of concessions.
Tasmania
First-home buyers and Pensioners in Tasmania can receive a 50% concession on stamp duty when purchasing a property.
However, this is only applicable for properties valued up to $400,000 until 30th June 2020.
Australian Capital Territory
The ACT offers the Home Buyer Concession Scheme for buyers buying new properties, established properties or vacant blocks of land (from 1 July 2019).
There are several conditions, including that the applicant/s can not have held an interest in any land in the last two years. They’ll also need to live in the property for at least one year after buying it.
They also need to have an income that is lower than the threshold. For those with no dependent children, this threshold is $160,000 for the year before the property transfer, grant or agreement of property transfer – whichever is first. For those with one child, it’s $163,330.
Stamp Duty costs may come as an unwelcome surprise
Lack of foresight into the cost of stamp duty can derail your property-buying journey and in some cases give you a nasty surprise after signing an unconditional purchase contract especially if there’s a foreign citizen involved.
That said, the hefty tax bill is mostly unavoidable. To ease the pain, look at it as your tax-deductible donation to the State government in its efforts to make Australia a more desirable place to live!
Speak with one of our tax specialists to find out how you can prepare for and save on stamp duty.
Contact the state revenue office to learn more
| State | Revenue Office Contact |
|---|---|
| NSW | www.osr.nsw.gov.au |
| VIC | www.sro.vic.gov.au |
| QLD | www.osr.qld.gov.au |
| WA | www.osr.wa.gov.au |
| NT | www.treasury.nt.gov.au |
| SA | www.revenuesa.sa.gov.au |
| TAS | www.sro.tas.gov.au |
| ACT | www.revenue.act.gov.au |
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Frequently Asks Questions about Stamp Duty
Is it necessary to pay the Foreign Buyer Stamp Duty Surcharge?
Foreign buyers in some states face an additional stamp duty surcharge, up to 8% on top of regular stamp duty. No surcharge in NT and ACT, 8% in NSW and VIC, 7% in other states.
Stamp duty surcharge is common among developed countries to curb foreign investment demand, improve housing affordability, and increase tax revenue.
Countries like Hong Kong, Singapore and Canada have implemented higher stamp duty fees, up to 20%, on top of the standard fee.
Note: You are not a Foreign Buyer if you are an Australian Citizen or an Australian Permanent Resident, even if you reside overseas.
How to reduce or avoid paying Stamp Duty altogether
You may be eligible for stamp duty concessions, but not if you are a foreign national residing overseas. You’ll need to live in the property for at least six months of the first year of ownership.
You can still purchase multiple investment properties and receive the First Home Owner benefits when you return to Australia.
What other stamp duty exemptions are available?
Here are two scenarios where you can waive the stamp duty.
In cases of divorce mandated by Court Order, stamp duty will be waived when transferring properties to the other party.
If a family member passed away and in their Will, it’s stated the properties are to be passed down to you, then Stamp Duty will also be waived.
Are there any concessions for gifted properties?
There is no concession for gifting property from one person to another. Even if a family member sold you one of their properties for $1, the State government would send a third party valuer to obtain the market value of that property, and you will be charged Stamp duty accordingly.
