Stamp duty is one of the largest upfront costs in buying property in Australia. It is a state government tax, it varies dramatically by state, and failing to budget for it correctly is one of the most common and painful mistakes first-time buyers make. Here is exactly how it works.
What Is Stamp Duty?
Stamp duty (formally called transfer duty in most states) is a tax levied by state and territory governments on the purchase of property. It is calculated as a percentage of the purchase price and must be paid at or before settlement. It is NOT included in your mortgage by default — it is an upfront cash cost unless you have sufficient equity to refinance it.
How Much Is Stamp Duty in Each State?
| State | $500,000 Purchase | $750,000 Purchase | $1,000,000 Purchase |
|---|---|---|---|
| VIC | ~$21,970 | ~$40,070 | ~$55,000 |
| NSW | ~$17,990 | ~$29,240 | ~$40,490 |
| QLD | ~$15,925 | ~$27,388 | ~$38,025 |
| WA | ~$17,765 | ~$28,453 | ~$39,515 |
| SA | ~$21,330 | ~$32,330 | ~$48,830 |
Estimates only. Based on standard residential rates June 2026. Actual amounts vary. Use your state’s SRO calculator for a precise figure.
First Home Buyer Concessions and Exemptions
| State | First Home Buyer Exemption/Concession |
|---|---|
| VIC | Full exemption on new homes up to $600,000; concession $600,001-$750,000. Established homes: full exemption up to $600,000 (since 1 July 2023 under new scheme). |
| NSW | Full exemption on new and established homes up to $800,000; concession up to $1,000,000. |
| QLD | Full exemption on homes up to $550,000; concession up to $700,000. |
| WA | Full exemption on homes up to $430,000; concession up to $530,000. |
Thresholds and rules change regularly. Confirm current eligibility with the relevant State Revenue Office before purchasing.
When Do I Pay Stamp Duty?
In most states, stamp duty is due at or before settlement (typically 30-60 days after signing contracts). In VIC, the State Revenue Office issues an assessment and payment is due within 30 days of liability (which arises at contract signing). Your conveyancer manages this process — but the cash must be available.
GeeVee Verdict
Stamp duty is non-negotiable. Budget for it from day one. For a $750,000 home in Victoria, you are looking at roughly $40,000 on top of your deposit. First home buyers should check their exemption eligibility carefully — the savings can be significant. For investors, stamp duty is added to your cost base and reduces your eventual capital gains tax liability.
Frequently Asked Questions
Can I add stamp duty to my mortgage?
In some cases yes — if you have sufficient equity or your lender allows it, stamp duty can be incorporated into the loan. However, this increases your LVR and may trigger LMI. Most buyers pay stamp duty from savings.
Is stamp duty tax deductible?
For investment properties, stamp duty is not immediately deductible. It forms part of your cost base and reduces capital gains tax when you eventually sell.
Is there stamp duty on transfers between spouses?
Most states offer concessions or exemptions on property transfers between spouses or domestic partners, particularly where the transfer is not a sale. Conditions apply — check with your state’s revenue office.
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