How stamp duty works in Australia

Stamp duty — officially called land transfer duty or transfer duty — is a state government tax you pay when buying a property in Australia. It's one of the biggest upfront costs in a property purchase, often adding tens of thousands of dollars to the final price. Each state and territory sets its own rates and brackets, and the rules can change significantly depending on whether you're a first home buyer, investor, or foreign purchaser.

How it's calculated

Stamp duty is a progressive tax applied to the purchase price or market value (whichever is higher). Each state has its own set of brackets — you pay a base amount plus a percentage of the amount above each threshold. For example, on an $800,000 established home in NSW, you'd pay $9,246 base plus 4.5% of the amount above $326,180 — roughly $31,321. The same property in Victoria would cost around $43,070, while in Queensland it would be about $21,850.

State-by-state differences

The rates vary enormously. NSW and Victoria have the highest top brackets (5.5% and 6.5% respectively for premium properties). Queensland and Western Australia are noticeably cheaper. The ACT is phasing out stamp duty entirely in favour of higher annual land rates — a reform other states have discussed but not yet adopted. The Northern Territory has only two simple brackets and tends to be the cheapest jurisdiction.

First home buyer concessions

Every state offers concessions or exemptions for first home buyers, but the thresholds differ:

• NSW: Full exemption up to $800,000, concessional rate from $800,000 to $1,000,000
• VIC: Full exemption up to $600,000, concessional rate from $600,000 to $750,000
• QLD: Full exemption up to $500,000, concessional rate up to $550,000
• WA, SA, TAS, ACT, NT: Each have their own schemes — generally with lower price caps

When is stamp duty payable?

In most states, stamp duty is due within 30 days of settlement (NSW: 3 months; VIC: 30 days). It's paid to your state revenue office, usually handled by your solicitor or conveyancer as part of the settlement process. Late payment attracts interest and penalties, so it's not something you can defer.

Common mistakes

• Forgetting to budget for stamp duty — on an $800k property it can be $20k–$43k depending on the state
• Assuming the FHB concession applies automatically — you must apply and meet all eligibility criteria
• Missing that foreign buyers pay additional surcharges (typically 7–8% on top of standard duty)
• Not realising that the premium rate kicks in above certain thresholds (e.g. $3.15M in NSW)