What is stamp duty?
Stamp duty (also known as transfer duty or land transfer duty) is a state-imposed tax charged on all property transactions in Australia. Stamp duty is applied when you buy any residential or commercial real estate – including a new home, piece of land, or office building. However, it is not only charged for real estate purchases. Stamp duty also applies for any transaction where the legal ownership of an asset is transferred from one person or entity to another – e.g. vehicle registration and transfers, insurance policies, hire purchase agreements, and certain share transactions. The amount of stamp duty that you pay will depend on several factors – including the property value, location, purpose (residential, investment, or commercial), and more.
How do I calculate stamp duty?
Calculating stamp duty in Australia involves multiple contributing factors, including:
- The property purchasing price
- Property type (primary resident or investment)
- Buyer’s status (first home buyer, investor, or homeowner)
By simply inputting all this information, our user-friendly stamp duty calculator lets you generate a quote in just a few minutes. It is important to remember though that this calculator should be used as estimate in the planning process, to give you a sense of how much stamp duty you will need to pay. If you would like tailored advice, and a detailed quote specific to your purchase, contact our team and we can provide everything you need.
How Much is Stamp Duty in Australia?
Stamp duty varies significantly across Australia, with each state and territory imposing its own rates and charges. Generally, stamp duty will amount to roughly 3-4% of the property value. However, as we mentioned above, the specific costs will fluctuate depending on several factors, including the type of property and the buyer’s residency status.
Our stamp duty calculator allows you to determine how much you will be charged in your state and how it differs for a similar valued property in other states. For example, if you’re an Australian resident (and you’re not a not a first-time buyer) buying a new home worth $500,000 – you will pay $21,970 in VIC, $17,235 in NSW, and $8,750 in QLD for stamp duty.
Stamp Duty for Investment Properties
Stamp duty on investment properties is different from owner-occupied homes. Once again, the discrepancies between costs will vary state-by-state and will typically be higher on an investment property than for a primary residence. Determining what you will pay in stamp duty is essential when choosing your next investment. While tax deductions apply to duties over time, people often prioritise minimising upfront stamp duty costs.
Our stamp duty calculator will help you estimate the cost and show the difference between investment and residential properties and how it varies from state to state. For example, if you’re looking to buy a home as an investment property worth $500,000, you will pay $25,070 in VIC, $17,235 in NSW and $15,925 in QLD. When you compare this with our previous example above (for someone purchasing a home as their primary residency), you can see that the stamp duty is approximately $3,000 more for an investment property in VIC, almost double in QLD, and the exact same in NSW.
Frequently Asked Questions
What purchases are stamp duty imposed on?
Stamp duty applies to various transactions in Australia, including:
- Real estate purchases and mortgages
- Motor vehicle registrations and transfers
- Insurance policies
- Sale and transfer of certain shares
Simply put, stamp duty is applied for any transaction that involves the transfer of legal ownership from one person or party to another. The amount of stamp duty charged is proportional to the value of the asset – meaning the more expensive it is, the more stamp duty you will be charged.
Who is exempt from stamp duty?
Several buyers – particularly first-time buyers – are exempt from stamp duty or eligible for concessions in Australia. These exemptions are implemented to make homeownership more affordable and help first-time buyers enter the property market. In some instances, transactions between family members or spouses passing over home ownership will also be exempt. Once again, the specific conditions will vary state by state, so we advise checking your state government website to confirm what is available to you.
The Federal Government’s First Home Owner Scheme (FHOS) is also available countrywide, but this too varies state by state. So, if you are a first-time buyer, check this while studying your local government website and consult with your solicitor or conveyancer to understand all the potential benefits you’re entitled to.