Stamp Duty (Transfer Duty)

Stamp duty (also called transfer duty) is a state or territory government tax charged when you purchase or transfer property. It is typically one of the largest upfront costs of buying a home, calculated as a percentage of the property's purchase price or market value (whichever is higher). Rates vary significantly between states and territories, and most jurisdictions use a progressive scale where higher-value properties attract higher rates.

For example, in New South Wales, stamp duty on a $800,000 property is approximately $30,187 for a general purchaser. First home buyers may be eligible for exemptions or concessions — NSW offers a full exemption for first homes up to $800,000 and a concessional rate for homes between $800,000 and $1,000,000. Victoria, Queensland, and other states have their own thresholds and concession schemes.

Stamp duty is a one-off payment made at settlement (or within a specified period after). Unlike council rates or land tax, it's not an ongoing cost. Some states (notably NSW and Victoria) have considered or implemented alternatives — NSW briefly offered first home buyers a choice between stamp duty and an annual land tax for properties up to $1.5 million, while the ACT has been gradually phasing out stamp duty in favour of higher annual rates. For investment properties, stamp duty is added to the cost base for CGT purposes.