Stamp duty is paid on the purchase of most property in Australia. Compare rates, find out where the bargains are, and extend your buying power with confidence.
What is stamp duty?
Stamp Duty is a tax imposed by some state and territory governments in Australia. It is paid by anyone purchasing a property (including houses, land, units, townhouses and apartments), and goes directly to the government. It originated in Italy in the 17th century when land sales were processed manually, recorded by hand, and certified with an actual stamp.
Four stamp duty questions
Times have changed since the Italian Renaissance, but one thing is the same: governments need money to run things. Stamp duty has historically been a massive and reliable source of income.
To understand Stamp Duty rates, buyers need to ask 4 questions:
Where is the property located?
Stamp Duty is not charged consistently across Australia. States and territories have different approaches. In fact, some have abolished the charge altogether. This makes a huge difference when trying to work out whether a property is affordable: Is the advertised price the amount needed to purchase, or does Stamp Duty need to be factored in?
How much will the property sell for?
When it’s levied, Stamp Duty changes depending on the value of the property. These price brackets determine how much duty is payable.
Do I qualify for discounts or exemptions?
Reduced Stamp Duty rates, and even complete exemptions, are available in some locations for certain people. There might be deals if you’re a first homebuyer or pensioner. At the height of COVID-19, the Victorian government cut duty in half for some homes. Always check when doing your sums.
What are the buyer and property variations?
Stamp duty can vary depending on whether you’re an owner-occupier, or purchasing an investment property. It can also make a difference if you’re purchasing a new property, an existing property or vacant land.
Mortgage Broker Group can help answer these questions – no obligation and no cost to you.
Reasons to buy in another state
A comparison of Stamp Duty is more than just a theoretical exercise. While most people will be buying and selling in the state they live in, there are various reasons why a purchaser would need to compare, such as:
- wanting to invest in higher-growth locations;
- purchasing for retirement;
- looking for a more affordable lifestyle;
- diversifying a property portfolio.
State by state Stamp Duty comparison
Putting all of your variables into an online stamp duty calculator gives good results, but it’s time consuming to compare stamp duty Australia wide.
Rather than detail the often-complicated formulas used in each Australian jurisdiction, we’ll show the stamp duty payable for a $600,000 property and a $1 million property, noting some of the variations and reductions available.
These amounts are subject to change, and are based on:
- an owner-occupier,
- not a first homebuyer,
- an existing property.
[Values correct at Oct 2022]
ACT stamp duty
| $600k | $1 million | When payable |
| $13,560 | $34,790 | after settlement, within 14 days after receiving a Notice of Assessment |
First homebuyers exempt for properties under $1m.
NSW stamp duty
| $600k | $1 million | When payable |
| $22,090 | $40,090 | within 3 months of contract signing |
First homebuyers exempt for properties under $650,000
NT stamp duty
| $600k | $1 million | When payable |
| $29,700 | $49,500 | within 60 days of settlement |
Qld stamp duty
| $600k | $1 million | When payable |
| $12,850 | $30,850 | within 30 days of settlement |
First homebuyers exempt for properties under $500,000
SA stamp duty
| $600k | $1 million | When payable |
| $26,830 | $48,830 | at settlement |
Tas stamp duty
| $600k | $1 million | When payable |
| $22,497 | $40,185 | within 3 months of property transfer |
Vic stamp duty
| $600k | $1 million | When payable |
| $31,070 | $55,000 | within 30 days of settlement |
First homebuyers exempt for properties under $600,000
WA stamp duty
| $600k | $1 million | When payable |
| $22,515 | $42,615 | one month after issue of duties assessment notice |
First homebuyers exempt for properties under $430,000
Highlights
- Vic charges the highest Stamp Duty rate
- Qld has the lowest rate
- ACT has the most generous exemption for first homebuyers ($1m)
- A $580,000 property attracts an additional $17,920 in stamp duty in Vic compared to Qld
- Tas, SA and NT have no discounts for first homebuyers.
Talk to us
Varying Stamp Duty charges make a big difference when assessing your buying power in different locations. When added to a deposit, it can be the difference between whether a property is affordable or not.
With discounts and waivers in different states for different people, it’s always best to talk to a home loan expert first. Mortgage Broker Group has experienced brokers ready to help you calculate Stamp Duty implications on your Australian property purchase.
We can do the sums and work out your purchasing power across the country. We can also narrow down the best loans for your circumstances in different markets, and even help with the paperwork and loan application.
Our service is available to you with no obligation and for no charge, ever. Our long-term relationships with lenders mean you get our expertise, the best deal, and ongoing loan support at no cost.