Stamp Duty (AU) glossary
Stamp duty — now more commonly called transfer duty — is a state-based tax imposed on certain transactions, most notably property transfers. Each jurisdiction has its own rates, thresholds, exemptions, and anti-avoidance rules. This glossary explains the language practitioners need to navigate duty obligations across Australia.
This glossary covers 40 terms that property and tax lawyers encounter when advising on stamp duty across Australian states and territories. Each definition references the relevant legislation or revenue office guidance.
Definitions
Ad valorem duty
Duty calculated as a percentage of the dutiable value of the transaction, increasing with value through a tiered rate schedule.
Aggregation
The practice of combining related transactions to calculate duty at a higher marginal rate, preventing artificial splitting of purchases.
Apparent purchaser
A person who purchases property on behalf of another — duty may be payable on the subsequent transfer to the true purchaser unless an exemption applies.
Assessment notice
The formal notice from the revenue office setting out the duty payable, the transaction details, and the due date for payment.
Call option
An option granted to a party to purchase land — the grant of the option is itself a dutiable transaction in most jurisdictions.
Concession (first home buyer)
A reduced rate or exemption from transfer duty for eligible first home buyers, subject to property value thresholds and residency requirements.
Corporate reconstruction relief
An exemption or reduction of duty on transfers between associated corporate entities during genuine restructures, subject to pre- and post-association requirements.
Declaration of trust
A declaration that property is held on trust — itself a dutiable transaction because it changes the beneficial ownership of the dutiable property.
Dutiable property
Property on which transfer duty is chargeable — typically land, interests in land, and certain goods sold with land.
Dutiable transaction
Any transaction that attracts transfer duty — including transfers, agreements for sale, declarations of trust, surrenders, and foreclosures.
Dutiable value
The greater of the consideration paid and the unencumbered value of the dutiable property — the base on which duty is calculated.
Duty deferral
A statutory mechanism allowing payment of duty to be postponed — for example, off-the-plan concessions that defer duty until settlement.
Family law exemption
An exemption from duty on property transfers made under a court order or binding financial agreement in family law proceedings.
First Home Owner Grant (FHOG)
A one-off government grant for eligible first home buyers — separate from duty concessions but often applied for alongside them.
Foreign person
A person who is not an Australian citizen or permanent resident, or a corporation or trust controlled by foreign persons — relevant to surcharge duty and FIRB.
Foreign purchaser surcharge
An additional duty surcharge imposed on foreign persons or entities acquiring residential property, typically 7–8% of the dutiable value.
Goods component
The value of goods (chattels) transferred with land — goods are dutiable in some jurisdictions if sold together with the land.
Insurance duty
A duty imposed on premiums for general insurance policies — separate from transfer duty but administered under the same Duties Act.
Land-rich entity
An entity whose land holdings exceed a statutory threshold, bringing acquisitions in that entity within the landholder duty regime.
Landholder duty
Duty triggered by an acquisition of a significant interest in an entity that holds land — designed to capture indirect transfers of land.
Marginal rate
The rate of duty applying to the highest bracket of dutiable value in a tiered schedule, increasing as property values rise.
Nominee transfer
A transfer from a nominee back to the beneficial owner — may be exempt from further duty if the original transaction was stamped.
Objection
A formal challenge to a duty assessment lodged with the revenue office within the statutory time limit.
Off-the-plan concession
A concession reducing the dutiable value of off-the-plan apartment purchases to exclude construction not yet completed at contract.
Partitioning
The division of jointly owned property among co-owners — may attract duty unless an exemption applies for partitions in equal shares.
Penalty tax
Additional tax imposed by the revenue office for late payment, under-disclosure, or tax avoidance — typically a percentage of the unpaid duty.
Principal place of residence
The primary home lived in by the purchaser — relevant to first home buyer concessions, surcharge exemptions, and land tax thresholds.
Put and call option
A structure combining a call option to buy and a put option to sell, commonly used in property development — both options are dutiable.
Reassessment
A revised assessment issued by the revenue office when new information comes to light or an error is discovered in the original assessment.
Significant interest
An interest of 50% or more (or 90% in some jurisdictions) in a landholder entity, triggering landholder duty on acquisition.
Stamping
The process of having an instrument endorsed as duty-paid by the revenue office — required before the instrument can be registered.
Sub-sale
A transfer from a purchaser under an uncompleted contract to a third party — may attract duty on both the original and sub-sale transactions.
Surcharge purchaser duty
The additional duty payable by foreign purchasers on residential land, administered alongside standard transfer duty.
Transfer duty
The primary state tax on the transfer of dutiable property — the modern name for stamp duty in most jurisdictions.
Unencumbered value
The market value of property free of mortgages and encumbrances — used as the alternative measure of dutiable value when it exceeds consideration.
Vendor duty (abolished)
A former NSW duty on the vendor of residential property, introduced in 2004 and abolished in 2005 — now of historical relevance only.
Voluntary disclosure
A taxpayer-initiated disclosure of an unpaid duty liability, which may reduce penalty tax imposed by the revenue office.
Windback provision
The rule that acquisitions in a landholder entity within a specified period before the dutiable acquisition are aggregated to determine the significant interest threshold.
Research these terms in context
Quillio helps property and tax lawyers calculate duty exposure, check concession eligibility, and draft duty advice letters with references to the relevant Duties Act provisions. See /practice-areas/property-lawyers or start a free trial.
These definitions are general explanations for educational purposes — not legal or tax advice. Stamp duty rules vary between states and territories and change regularly. Always verify against the current legislation and revenue office rulings.
Research these terms with citations.
Quillio gives you the term, the current authority, and a clickable citation — all in one place. The free trial requires no credit card and no sales call.
Start your free trial