Stamp Duty in Australia Explained by State

Stamp duty — or transfer duty as some states now call it — is one of the biggest upfront costs when buying property in Australia. It is a state government tax calculated on the purchase price or market value of the property, and it varies significantly depending on where you buy.

How Stamp Duty Is Calculated

Each state and territory sets its own stamp duty rates using a tiered scale. The more expensive the property, the higher the percentage you pay. For example, a $500,000 property might attract $15,000 in one state but $20,000 in another.

Stamp duty is generally paid at settlement or within 30 days of exchanging contracts. Your conveyancer will handle the payment as part of the settlement process.

State-by-State Overview

New South Wales

NSW recently introduced a choice for first home buyers: pay traditional stamp duty upfront or opt for an annual property tax. For properties under the first home buyer threshold, full exemptions or concessions apply. Check the Revenue NSW website for current thresholds.

Victoria

Victoria offers stamp duty concessions for first home buyers purchasing properties under certain thresholds, with full exemptions for lower-priced properties. The state also charges a premium rate on properties above $2 million.

Queensland

Queensland provides stamp duty concessions for first home buyers on properties up to certain values. The concession amount reduces as the property price increases above the threshold. The Queensland government’s treasury website has the current calculator.

Western Australia

WA offers first home buyer stamp duty exemptions for properties under specified thresholds. The state also has different rates for established homes versus vacant land.

South Australia

SA provides stamp duty relief for first home buyers purchasing new homes. The state has been gradually reforming its stamp duty system — check the RevenueSA website for the latest rates.

Tasmania, ACT, and NT

Tasmania offers a 50% stamp duty discount for first home buyers on established properties up to certain values. The ACT is progressively abolishing stamp duty over a 20-year period, replacing it with higher land rates. The Northern Territory offers stamp duty concessions for various buyer categories including first home buyers, seniors, and pensioners.

First Home Buyer Concessions

Every state and territory offers some form of stamp duty concession for first home buyers, though the eligibility criteria and concession amounts differ. Common requirements include the property being your principal place of residence, you having never owned property in Australia before, and the property price being below a set threshold.

These concessions can save you $10,000 to $30,000 or more. For a full breakdown of first home buyer support, see our first home buyer guide.

Foreign Buyer Surcharges

Most Australian states charge an additional stamp duty surcharge for foreign buyers, typically 7-8% on top of standard rates. This applies to non-residents and temporary visa holders. Some states also charge an annual land tax surcharge.

Tips to Reduce Your Stamp Duty

Buying below threshold values for first home buyer concessions is the most direct way to reduce or eliminate stamp duty. Consider buying a new property if your state offers better concessions on new builds. In the ACT, the ongoing shift from stamp duty to land tax means buying sooner may mean lower annual costs later.

To see how stamp duty affects your total purchase costs, use our mortgage calculator. For a complete picture of all buying costs, read our costs breakdown guide.

Check our property buying guide for how stamp duty fits into the overall purchasing process, or visit our FAQs for quick answers.