Stamp duty explained:

To buy a property you will need to pay a variety of fees and charges. One of the biggest upfront costs of a home loan is stamp duty. Here are some things you should know.

What is stamp duty?
To buy a property you will need to pay a variety of fees and charges. One of the biggest upfront costs of a home loan is stamp duty.

Stamp duty is a tax imposed by state governments in Australia on the purchase of assets such as real estate. This includes title transfers in real estate, vehicles, insurance policies and home loans.

Stamp duty can have a significant impact on the overall cost of purchasing a property. That’s why it’s important to take into account how much you need to pay before you buy a new home. Here are some things you should know:

How much is stamp duty?
There are many factors involved in determining the cost of stamp duty for a property. These include:

• The state you’re buying in
• All states have different methods of calculating stamp duty so the amount will differ.
• The price of the property
• In general, the cheaper the property is the less stamp duty you will pay.
• The type of home you’re buying
• Vacant land will have less stamp duty compared to buying an established home.

The general rule is: the pricier the property, the higher the stamp duty. You can use our stamp duty calculator to get a rough idea of how much you need to pay.

When do you pay stamp duty?
Depending on which state or territory the cost of stamp duty must usually be paid within 30 days of signing a contract or 30 days from settlement.

Stamp Duty: State By State
As mentioned, stamp duty differs between states, along with the various concessions for first-time buyers and pensioners.

NSW : https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/transfer-duty
VIC : https://www.sro.vic.gov.au/calculators/land-transfer-calculator
QLD : https://qro.qld.gov.au/duties/transfer-duty/calculate/
WA : https://www.wa.gov.au/organisation/department-of-finance/transfer-duty-assessment
SA : https://www.revenuesa.sa.gov.au/stampduty/calculate-stamp-duty
TAS : https://www.sro.tas.gov.au/property-transfer-duties/rates-of-duty
NT : https://treasury.nt.gov.au/dtf/territory-revenue-office/stamp-duty/stamp-duty-calculators

Who is exempt from paying stamp duty?
A first-time buyer in some states can be exempt from paying stamp duty and can benefit from further concessions. The legislation makes it easier for people to buy their first home.

NSW is one of the most generous states. If the newly constructed home you are looking to buy costs less than $550,000 then you don’t need to pay stamp duty.
Pensioners and health card holders can often qualify for a concession or exemption.
You may ask your local Office of State Revenue to find out if you are eligible for any stamp duty exemption.

In Queensland, you may be able to claim an exemption from transfer duty on transactions involving a transfer of an interest in your home to your spouse, change of tenure between joint tenants and tenants in common.

How can you work out what your stamp duty might be?
Stamp duty can be determined by a number of different things, most commonly:

• The cost of the land and the house
• The location of the property (state)
• Whether you’re an investor or an owner-occupier
• Whether you’re also a first home buyer
• Whether the home is a house, apartment, townhouse etc.
• Whether the house is newly built or not
• Whether you’re a pensioner, have children etc.

All of this can mean no two people pay the same for stamp duty, and since it can be very expensive, you need to know what you’ll be out of pocket for.