Stamp duty is a government tax levied on legal documents and financial transactions. In the past, this meant all kinds of legal documentation, but these days stamp duty is associated with specific financial and property transactions. One of the major forms of stamp duty that is familiar to most Australians, particularly anyone who has purchased a house or borrowed a home loan, is the duty levied on property transfers.
Stamp duty is one of the important factors to consider when buying a house or other type of property. Researching how much you must pay and what concessions you are entitled to is essential during the purchase process. It should be noted that the Australian Federal Government does not levy stamp duty. Instead, individual Australian states and territories are responsible for levying and collecting stamp duty, and apply their own rates, rules and concessions.
This guide brings together the crucial issues around stamp duty, along with the current rates in each Australian state and territory including:
- Stamp duty basics.
- Types of document and transaction that are subject to stamp duty.
- Stamp duty on buying property.
- Australian stamp duty rates on property and land.
Stamp Duty Basics
Stamp duty is a form of taxation that governments and authorities levy on documents. The term ‘stamp duty’ comes form the origins of this type of tax. In the past, the majority of legal documents were taxed and physically stamped with a mark or impression to prove that the tax had been paid and the document was valid. Historically, stamp duty was applied to many types of document including receipts, cheques, land transactions, marriage licences and military commissions.
Most modern forms of stamp duty no longer need a physical stamp, and for many transactions and documents the tax is now called “transaction duty.†In Australia, the main types of transaction that attract stamp duty include the sale of land, businesses, shares and other dutiable property; vehicle duty; lease duty and hire duty. Two major forms of stamp duty that Australians experience when buying a home are transfer duty and property purchases and the duty levied on home loans.
The Australian Federal Government does not charge stamp duty. Instead, state governments are individually responsible for levying and collecting duty within their territories. The collected duty is then added to the state’s public budget, and the revenue is used to pay for public services.
In recent years, various Australian state governments have started to reform stamp duty, including phasing out duty on certain types of document and transaction. This is an ongoing process, so it is important to check with the Office of State Revenue or State Government Treasury in your state to see which documents attract stamp duty and the applicable duty rates.
Which Documents and Transactions are Subject to Stamp Duty?
The exact types of documents stamp duty varies from state to state, but may include:
- Transfer and conveyance of real property (land and buildings). Stamp duty is levied on the purchase of land and buildings; we explain this in more detail below.
- Transfer of shares.
- Lease or agreement for lease of real property.
- Assignment or transfer of lease of real property.
- Mortgages, bonds, debentures or covenants.
- Deeds of settlement.
- Registration or transfer of a motor vehicle or commercial trailer.
- Assurance or insurance business.
- Life insurance policies.
- Rental business.
- Sale of livestock.
Which Documents and Transactions are Exempt from Stamp Duty?
There are various exemptions from stamp duty and concessions in certain circumstances. For example, in residential property purchases there may be concessions in stamp duty for first time buyers and those who are intending to live in the property, as opposed to those who buy property as a rental investment.
The calculations for concessions and exemptions can be complex and vary from state to state, so again it is important to contact the Office of State Revenue to see if you are entitled to any concessions.
Exemptions may apply in certain circumstances and subject to conditions, including:
- First time buyers.
- Transfers to spouses and de facto spouses.
- Transfers to charities.
- Transfer to a beneficiary entitled under a deceased estate.
Stamp Duty on Buying Property
One of the major types of stamp duty that many Australians pay out in their life is the duty applied to the purchase of a house, or on the home loan borrowed to pay for it. Stamp duty can significantly increase the cost of buying property, even if it is just a few percentage points. When applied to property costing hundreds of thousands of dollars it can be a very substantial sum.
The amount of payable stamp duty varies and is calculated according several factors including:
- The value of the property or the size of the loan.
- The state or territory in which you are buying the property or borrowing the loan. Each Australian state levies different rates of stamp duty on property transfers.
- The type of property. Stamp duty varies if you are buying land including buildings, or buying an empty plot to build on; and whether the property is residential or for business.
- You may qualify for concessions according to your circumstances such as being a first time buyer, the proposed occupancy of the property (if you plan to live in the building or it is a rental investment) and various other situations.
When is Stamp Duty Paid on Property Purchases?
Stamp duty is included in the price of the property, so it is paid when the sale is completed. The duty must be paid when sale is legally finalised. The buyer’s solicitor or conveyancer usually takes responsibility for paying the duty to the relevant authority.
When is Stamp Duty Paid on a Home Loan?
Stamp duty is paid when the home loan agreement is completed. The stamp duty validates the mortgage contract. The lender pays the stamp duty as part of the loan, and the borrower must repay the duty during the term of the loan.
What about Stamp Duty on Refinancing?
If you are refinancing your loan, you are normally required to pay stamp duty on the new agreement.
How do I Calculate the Cost of Stamp Duty?
The cost of stamp duty is calculated using a number of variables including the price of the property and the type of property you are buying. Each Australian state government has its own pricing for stamp duty and their own rules regarding concessions and exemptions for stamp duty. These may include allowances for first time buyers, those on low incomes or people buying land to build their own home.
When researching the cost of stamp duty you should consult the Office of State Revenue in the state where you intend to buy property or borrow a home loan. When you are in the process of buying property or borrowing a home loan your lender, solicitor or conveyancer should provide advice on how much stamp duty you must pay.
Australian Stamp Duty Rates on Property and Land
The amount of stamp duty levied on the sale of property and land, and on home loans, varies between each of the Australian states and territories. Each has its own rules regarding concessions and deductions. Below we list the standard stamp duty in each state, calculated on the greater of the purchase price or the market value of the property. If you are considering purchasing a property or borrowing a home loan, you should consult the relevant authority to discover what concessions may be available.
Stamp Duty in ACT
| Value of Property | Duty Payable |
| Up to $100,000 | $20 or $2 per $100 or part thereof, whichever is greater. |
| $100,001 to $200,000 | $2,000 plus $3.50 per $100 or part thereof by which the value exceeds $100,000. |
| $200,001 to $300,000 | $5,500 plus $4 per $100 or part thereof by which the value exceeds $200,000. |
| $300,001 to $500,000 | $9,500 plus $5.50 per $100 or part thereof by which the value exceeds $300,000. |
| $500,001 to $1,000,000 | $20,500 plus $5.75 per $100 or part thereof by which the value exceeds $500,000. |
| $1,000,001 and over | $49,250 plus $6.75 per $100 or part thereof by which the value exceeds $1,000,000. |
Stamp Duty in New South Wales
| Value of Property | Duty Payable |
| Less than $14,000 | 1.25% of value |
| $14,001 to $30,000 | $175 + 1.5% of value |
| $30,001 to $80,000 | $415 + 1.75% of value |
| $80,001 to $300,000 | $1290 + 3.5% of value |
| $300,001 to $1 million | $8990 + 4.5% of value |
| More than $1 million | $40,490 + 5.5% of value |
Stamp Duty in Northern Territory
The Northern Territory treasury calculates stamp duty on the purchase price or the value of the dutiable property, whichever is greater, as follows:
Where the value is not more than $525 000, stamp duty is calculated as:
D = (0.06571441 x V2) + 15V
D is the duty payable in dollars.
V is the dutiable value divided by 1000.
This formula is applicable properties except when the property is valued at $3 million or more, in which case the stamp duty is 5.45% of that amount.
Stamp Duty in Queensland
| Property value | Stamp duty payable |
| Up to $5000 | 0% |
| $5000 to $75,000 | 1.5% of the value |
| $75,000 to $540,000 | $1050 + 3.5% of the value |
| $540,000 to $980,000 | $17,325 + 4.5% of the value |
| More than $980,000 | $37,125 + 5.25% of the value |
| More than $500,000 | $15,975 + 3.75% of dutiable value |
Stamp Duty in South Australia
| Property value | Stamp duty payable |
| Less than $12,000 | 1% of the value |
| $12,000 to $30,000 | $120 + 2% of the value |
| $30,000 to $50,000 | $480 + 3% of the value |
| $50,000 to $100,000 | $1080 + 3.5% of the value |
| $100,000 to $200,000 | $2830 + 4% of the value |
| $200,000 to $250,000 | $6830 + 4.25% of the value |
Stamp Duty in Tasmania
| Property value | Stamp duty payable |
| Less than $1300 | $20 |
| $1301 to $10,000 | 1.5% of value |
| $10,001 to $30,000 | $150 + 2% of value |
| $30,001 to $75,000 | $550 + 2.5% of value |
| $75,001 to $150,000 | $1675 + 3% of value |
Stamp Duty in Victoria
| Property value | Stamp duty payable |
| Less than $25,000 | 1.4% of the value |
| $25,001 to $130,000 | $350 + 2.4% of the value |
| $130,001 to $440,000 | $2870 + 5% of the value |
| $440,001 to $550,000 | $18,370 + 6% of the value |
| $550,001 to $960,000 | $28,070 + 6% of the value |
| More than $960,000 | 5.5% of the value |
Stamp Duty in Western Australia
| Property value | Stamp duty payable |
| Less than $120,000 | 1.9% of value |
| $120,001 to $150,000 | $2280 + 2.85% of value |
| $150,001 to $360,000 | $3135 + 3.8% of the value |
| $360,001 to $725,000 | $11,115 + 4.75% of value |
| More than $725,001 | $28,453 + 5.15% of value |
Final Thoughts
Stamp duty is a fact of life for anyone looking to buy property or borrow a home loan in Australia. It is essential to look into exactly how much you are required to pay, budget accordingly and research which concessions you may be entitled too – you may discover that you can reduce the overall cost of buying your home.
