People also ask about stamp duty
What is stamp duty?
Stamp duty is a government tax charged on certain transactions, including the purchase of real estate, vehicles and some insurance policies. It’s usually paid when you buy a home or investment property.
Stamp duty rates and rules vary by state and territory. For example, New South Wales and Victoria have different thresholds and concessions than Queensland or Western Australia.
Stamp duty is typically due within 30 days of settlement. Late payment can result in penalties or interest charges.
How is stamp duty calculated?
Stamp duty is calculated based on the purchase price or the property’s market value—whichever is higher. The rate varies by state or territory and may increase with the value of the property.
Here’s a general breakdown of the key factors that affect the calculation:
- Property value – The higher of the purchase price or market value.
- Location – Each state/territory has different rates and thresholds.
- Property type – Residential, investment or commercial properties may attract different rates.
- First home buyer concessions – Discounts or exemptions may apply if you’re eligible.
- Additional costs – Fees like mortgage registration and transfer fees may also apply.
Is stamp duty included in my home loan?
Typically, stamp duty is not included in your home loan and must be paid upfront. Make sure to factor it into your total upfront costs when budgeting.
Who is exempted from stamp duty?
Stamp duty exemptions vary by state and territory in Australia, but generally, the following groups may be eligible for exemptions or concessions:
- First home buyers – May receive full or partial exemptions, especially if the property is below a certain value threshold.
- Pensioners and seniors – May be eligible for exemptions or concessions when purchasing a new home.
- Beneficiaries of deceased estates – Individuals who inherit property may qualify for a concessional rate or exemption.
- Family members in property transfers – Exemptions may apply for transfers between family members, such as in divorce or separation settlements.
- Off-the-plan buyers – May be able to defer payment or receive a concession on stamp duty.
- Buyers of low-value properties – Some states offer concessions for purchases under a certain value.