Alan Hartstein
Georgia Rose
Athena Cocoves
Stamp duty is a one-off fee levied when the legal ownership of a property is transferred to another party. Generally, the buyer must pay the stamp duty, and costs vary across states.
How does stamp duty work?
Stamp duty, also known as transfer duty or conveyance duty in Australia, is a tax levied on the transfer of property ownership. Buyers are responsible for paying stamp duty when purchasing a house, holiday home, investment property or vacant land.
State and territory governments decide how much stamp duty is in each jurisdiction, and terms and conditions vary. Typically, stamp duty is payable within a few months of signing the contract or from settlement.
» MORE: Costs to know when buying a house
How is stamp duty calculated?
As a state or territory tax, there is no uniformity in the way stamp duty is calculated, meaning fees can vary widely across the country.
For example, the stamp duty on a $500,000 owner-occupied property for an Australian resident without any concessions across states is:
- ACT – $11,400
- NSW – $17,235
- Northern Territory – $23,928.60
- Queensland – $8,750
- South Australia – $21,330
- Tasmania – $18,247.50.
- South Australia – $21,330
- Victoria – $21,970
- Western Australia – $17,765.
In general, stamp duty is calculated using the property’s sale price or market value during the conveyancing process. Use your state’s calculator below to estimate the amount due.
Stamp duty exemptions and concessions for first home buyers
Most Australian states and territories offer some type of relief for first home buyers and pensioners, but these schemes also vary widely and are always subject to change.
Here is a breakdown of stamp duty exemptions and concessions for first home buyers, current as of this writing.
Australian Capital Territory
First home buyers in the ACT who meet certain income thresholds can receive the following stamp duty concessions.
- Full stamp duty exemption: Properties valued below $1 million.
- Concessional rates are also available for eligible transactions on properties valued above $1 million.
New South Wales
The First Home Buyer Assistance Scheme (FHBAS) in New South Wales offers the following stamp duty exemptions.
- Full exemptions: New or existing homes valued up to $800,000, and vacant land valued below $350,000.
- Concessional rates: New or existing homes valued between $800,000 and $1 million, and vacant land valued between $350,000 and $450,000
Northern Territory
The Northern Territory currently offers limited stamp duty exemptions for buyers of new house and land packages, and does not offer any concessions on established properties.
Queensland
First-time buyers in Queensland can find relief on homes and vacant land lots through the first home concession (when buying a property) or the first home vacant land concession (when buying land to build a home).
- Full exemptions: Properties valued up to $500,000, and vacant land valued up to $250,000.
- Concessional rates: Properties valued up to $550,000, and vacant land valued below $400,000.
South Australia
The Stamp Duty Relief for Eligible First Home Buyers in South Australia offers the following relief:
- Full exemptions: Properties valued at below $650,000, and vacant land valued below $400,000.
- Concessional rates: Properties valued at below $700,000, and vacant land valued below $450,000.
Even if you are not eligible for the first home owner grant, you may still qualify for stamp duty relief.
Tasmania
The first home buyers scheme in Tasmania currently offers the following stamp duty concession:
- Concessional rate: A 50% concession on existing homes valued below $600,000 that are purchased before 30 June 2024.
Victoria
The first home buyers scheme in Victoria offers the following stamp duty relief measures.
- Full exemption: Properties valued at $600,000 or less.
- Concessional rate: Properties valued between $600,000 and $750,000.
Western Australia
First home buyers in Western Australia may be eligible for the following stamp duty exemptions:
- Full exemptions: Properties valued at below $430,000, and vacant land valued below $300,000.
- Concessional rates: Properties valued between $430,000 and $530,000, and vacant land valued below $400,000.
Frequently asked questions about stamp duty
Stamp duty is not tax deductible. However, as a cost associated with buying a property, it can be taken off any future capital gains tax if you sell your property for a profit.
As a stand-alone fee payable to the government up front, you can’t typically add stamp duty to your mortgage. Some lenders may be willing to tack it on to your loan.
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