Stamp Duty (Australia) FAQ

Stamp duty (transfer duty) is a state or territory government tax charged on the purchase of real property. The amount depends on the property value, its location, the purchaser's circumstances, and whether it is residential, commercial, or vacant land.

Each state and territory revenue office collects stamp duty under its own legislation. There is no federal stamp duty on property. The relevant offices are Revenue NSW, State Revenue Office Victoria, Queensland Revenue Office, RevenueSA, and equivalents in WA, TAS, ACT, and NT.

Stamp duty is calculated on a sliding scale based on the dutiable value of the property (generally the purchase price or market value, whichever is greater). Rates increase in tiers — lower percentages apply to the first portion and higher percentages to amounts above each threshold.

NSW transfer duty ranges from 1.25% on the first $17,000 up to 5.5% on amounts above $1,121,000 for standard residential property. A premium rate of 7% applies above $3,310,000. Foreign purchasers pay an additional 8% surcharge.

Victoria charges transfer duty from 1.4% on the first $25,000 up to 6.5% on amounts above $2 million for general property. A premium of 5.5% applies above $960,000 for standard residential. Foreign purchasers pay an additional 8% surcharge.

Queensland transfer duty ranges from 1.5% to 5.75% on residential property. Foreign purchasers pay an additional 8% AFAD (Additional Foreign Acquirer Duty) surcharge on residential land.

Every state and territory offers some concession for eligible first home buyers. Exemptions, concessions, or reduced rates apply below certain price thresholds — for example, NSW exempts purchases up to $800,000 and provides concessions up to $1 million.

The FHOG is a one-off payment (typically $10,000–$30,000 depending on state) for eligible first home buyers purchasing or building a new home below a price cap. It is separate from stamp duty concessions and can be claimed in addition to them.

Yes, but most states offer concessions. NSW, Victoria, and Queensland allow duty to be calculated on the land value at contract date rather than the completed value, reducing the dutiable amount for apartments bought before construction finishes.

Timing varies by state: NSW requires payment within 3 months of the contract date, Victoria within 30 days of settlement, and Queensland within 30 days of settlement or transfer. Late payment attracts interest and penalties.

Some lenders allow stamp duty to be capitalised into the mortgage (stamp duty capitalisation), but this increases the loan-to-value ratio and may require lenders mortgage insurance. Not all lenders offer this option.

Most states impose an additional surcharge on foreign purchasers of residential property — 8% in NSW, 8% in Victoria, and 8% in Queensland. Foreign purchasers also typically need Foreign Investment Review Board (FIRB) approval.

Most states provide an exemption or concession for transfers of a principal place of residence between spouses or de facto partners — for example, under the NSW Duties Act section 68, and the Victorian Duties Act section 43. Conditions apply.

Transfers of property under a will or intestacy to a beneficiary are generally exempt from stamp duty in all states. However, if the beneficiary later sells or transfers the property, duty may apply on that subsequent transaction.

Commercial property attracts transfer duty at the same or higher general rates. First home buyer concessions do not apply. Some states also impose landholder duty when shares in entities that hold land above a threshold are transferred.

Landholder duty applies when a person acquires a significant interest (usually 50% or more) in an entity that holds land above a value threshold. It operates as an anti-avoidance measure to ensure duty is paid even when property changes hands via share or unit transfers.

The ACT is phasing out stamp duty over 20 years, replacing it with higher annual general rates (land tax equivalent). During the transition, both stamp duty and increased rates apply, though concessions reduce duty on eligible purchases.

Refunds are available in limited circumstances — for example, if a contract is rescinded before settlement, if duty was overpaid due to error, or if a foreign surcharge exemption is later granted. Each state revenue office has its own refund application process.

Late payment attracts penalty tax (typically 8%–25% of the unpaid duty depending on duration and culpability) plus market-rate interest on the outstanding amount. Voluntary disclosure before audit generally reduces the penalty.

Quillio lets lawyers and conveyancers research stamp duty obligations across all Australian jurisdictions in minutes — surfacing the relevant Duties Act provisions, concession eligibility criteria, and current rate schedules with direct legislative references.