Tax and Income

What Is Stamp Duty (Transfer Duty)?

A state government tax payable on the transfer of real property in Australia. Rates vary significantly by state and territory.

Definition

Stamp duty (formally called transfer duty or conveyance duty in some states) is a tax imposed by each state and territory government on the transfer of property. Rates and thresholds differ between NSW, VIC, QLD, WA, SA, and TAS. Duty is calculated on the dutiable value (generally the higher of purchase price or market value) using tiered bracket tables. Most states offer concessions or exemptions for first home buyers, particularly for properties below certain price thresholds. Foreign persons purchasing residential property may pay a surcharge of 7-8% on top of standard duty. Duty is typically payable within 30 days of entering into the contract.

Formula

Duty = base amount for bracket + percentage rate x (dutiable value - lower bracket threshold)

Example

In NSW, stamp duty on an $800,000 owner-occupier purchase is approximately A$31,335. A first home buyer purchasing a property under $800,000 in NSW may be eligible for full exemption.

Use It

Try the Stamp Duty Calculator

Related Terms

Home Loan (Mortgage)A loan secured against residential property used to finance the purchase of a home in Australia, commonly referred to as a home loan or mortgage.LVR (Loan-to-Value Ratio)Australian shorthand for Loan-to-Value Ratio: the proportion of a property's value you are borrowing. LMI is typically required above 80% LVR.First Home Super Saver (FHSS)A government scheme allowing first home buyers to save a deposit inside their super fund, taking advantage of the concessional 15% super tax rate. Up to $50,000 can be released.

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