What is stamp duty?
Stamp duty is a tax levied by state and territory governments on certain transactions, including property purchases. The rate and how it is calculated vary across each jurisdiction.
Rates and calculation by state
Every Australian state and territory applies its own stamp duty rates and thresholds. In most cases, the duty is calculated on the property’s purchase price or market value, whichever is higher, but the specific brackets and percentages differ. For example, some states use a sliding scale, while others use a fixed percentage for higher value properties.
Concessions for first-home buyers
Many states and territories offer full or partial stamp duty exemptions, reductions, or deferrals for first-home buyers. These concessions typically apply to properties below a certain value threshold, and some programs also require the buyer to live in the property for a minimum period. First-home buyers should check their local rules, as eligibility criteria and thresholds vary.
Additional duty for foreign purchasers
Several states impose an additional stamp duty surcharge on foreign buyers acquiring residential property. The surcharge is usually a percentage of the property value, on top of the standard duty, and is intended to discourage foreign investment in residential real estate. Exemptions may be available in limited cases, such as for certain visa holders or if the property is used for approved purposes, but these vary by jurisdiction.
How to determine your liability
Because stamp duty rules are complex and subject to change, it’s important to confirm the current rates and thresholds with the relevant state or territory revenue office. You can also seek professional advice to calculate your expected liability and identify any concessions you may be eligible for.
Frequently asked questions
Can I get a stamp duty discount as a first-home buyer?
Yes, depending on your state or territory, you may be eligible for a full or partial exemption, reduction, or deferral of stamp duty, provided you meet the specific criteria, such as property value limits and residency requirements.
Do foreign buyers pay extra stamp duty?
In most Australian states, foreign purchasers of residential property pay an additional surcharge on top of standard stamp duty. The surcharge percentage and applicable exemptions differ by state.
Are stamp duty rates the same everywhere in Australia?
No, each state and territory has its own stamp duty rates, thresholds, and calculation methods, so the amount you pay depends on where the property is located.