Stamp Duty in Australia: A State by State Guide

Stamp duty, sometimes called transfer duty, land transfer duty or conveyance duty depending on the state, is a tax charged by state and territory governments on most property purchases in Australia. It is calculated on the purchase price or the market value of the property, whichever is higher, and it is a cost that catches many buyers off guard if they have only budgeted for a deposit and legal fees. Every state and territory administers its own version of this duty, with its own rate structure, its own concessions and its own timing rules, so what applies in one part of the country will not necessarily apply in another. Buyers can check current rates directly through the relevant state authority, such as Revenue NSW or the State Revenue Office Victoria, before relying on a general estimate.

How Duty Is Calculated

Rather than a flat percentage applied to every purchase, stamp duty in every Australian jurisdiction is calculated on a sliding scale, with the rate increasing in bands as the purchase price rises. A lower priced property is taxed at a lower marginal rate than a higher priced one, similar in structure to how income tax brackets work. The exact bands and rates differ between states, and they are reviewed and adjusted periodically, which is why a conveyancer working on your residential purchase will always calculate your specific duty liability using the current rates for the state the property sits in, rather than relying on a rule of thumb.

First Home Buyer Concessions

Most states and territories offer some form of concession or exemption from stamp duty for eligible first home buyers, though the structure of these concessions varies considerably. Some jurisdictions offer a full exemption up to a certain property value, tapering to a partial concession above that threshold before duty applies in full. Others tie concessions to whether the property is new or established, or whether it will be used as the buyer's principal place of residence for a minimum period. If you are buying your first home, it is worth having a first home buyer conveyancer confirm your eligibility early, since the criteria typically cover residency status, prior property ownership, and the intended use of the property, and getting any of these wrong can mean losing the concession altogether. Our broader first home buyer guide covers the other steps involved in a first purchase alongside the duty question.

When Duty Is Actually Due

Stamp duty is not generally paid at the moment you exchange contracts. In most states it becomes payable within a set period after the contract becomes unconditional or after settlement itself, and in several jurisdictions it is now paid directly through the electronic settlement platform as part of the funds distributed on settlement day, rather than as a separate step taken afterwards. Missing the payment window can trigger penalty interest, so this is one of the administrative items your conveyancer tracks closely once a contract is signed, particularly if your settlement date changes or is delayed for any reason, since that can shift the duty deadline as well. If you want a broader sense of how this fits into the rest of the process, our guide to how long conveyancing takes covers the typical sequence of steps between exchange and settlement.

Off-the-Plan and Vacant Land

Purchasing off-the-plan or buying vacant land can attract different duty treatment in some states, sometimes calculated on the contract price at the time of signing rather than the completed value, and sometimes with additional concessions aimed at encouraging new housing supply. Vacant land purchased with the intention of building a home can also qualify for different concessions to established housing in some jurisdictions, though usually subject to a requirement to complete construction within a set timeframe. Because these rules shift reasonably often as governments adjust housing policy, and because off-the-plan purchases carry their own particular risks worth understanding before you sign, it is worth confirming the current duty treatment for your specific contract type rather than relying on a figure you saw somewhere else, including anything published some time ago.

Why the State You Buy In Matters

Because duty is a state based tax, the experience of paying it can differ meaningfully depending on where you are purchasing. Buying in Queensland involves a different rate structure and set of concessions to buying in the Australian Capital Territory, which has moved toward a different long-term duty model compared to some other jurisdictions. This is one of several reasons a conveyancer licensed and experienced in the relevant state matters, since duty calculation is only one part of a broader set of state-specific rules covering contracts, searches and settlement that all interact with each other.

Foreign Buyer and Investor Surcharges

Several states also apply an additional surcharge on top of standard duty for buyers who are not Australian citizens or permanent residents, and in some cases the rules extend to certain trusts and corporate structures depending on their beneficiaries or shareholders. These surcharges sit alongside the standard sliding scale rather than replacing it, so a foreign buyer typically pays both the base duty calculated on the purchase price and the additional surcharge amount on top. Investors buying through a company or trust should have their structure reviewed before signing anything, since duty consequences can differ from what an individual buyer would face for an identical property.

Getting an Accurate Figure

Because stamp duty is one of the larger costs in any property purchase, it is worth getting an accurate calculation early rather than relying on a general estimate, particularly if you are weighing up two properties in different price ranges or different states. A conveyancer can factor your specific circumstances, including any concession you may be entitled to and any surcharge that might apply, into a clear picture of your total settlement costs well before you need to have funds ready.