Stamp duty -- formally known as transfer duty -- is typically the single largest transaction cost when purchasing property in Australia. It varies significantly between states and territories, and understanding the rates, exemptions, and concessions available to you can materially affect the total cost of acquisition.
This guide covers the five largest state markets: New South Wales, Victoria, Queensland, Western Australia, and South Australia. We focus on the provisions most relevant to investors and first home buyers, with current rate brackets as published by each state's revenue office.
Stamp duty is a state tax, not a federal one. Every state sets its own rates, thresholds, and exemptions. What applies in Sydney does not necessarily apply in Melbourne, Brisbane, or Perth.
What Is Stamp Duty?
Stamp duty is a one-off tax payable to the state or territory government when you purchase property (or acquire an interest in property). It is calculated on the greater of the purchase price or the market value of the property, and it must generally be paid within a set period after settlement -- typically 30 to 90 days depending on the state.
The duty applies to all property transfers: residential, commercial, industrial, and vacant land. Rates are structured on a sliding scale, meaning the effective rate increases as the property value rises. Most states also impose surcharges on foreign purchasers and, in some cases, trusts.
1 New South Wales
NSW stamp duty is administered by Revenue NSW. The state uses a tiered bracket system with rates that increase progressively.
Rate Brackets (General Residential)
| Property Value | Duty Rate |
|---|---|
| $0 -- $16,000 | $1.25 per $100 (or part thereof) |
| $16,001 -- $35,000 | $200 + $1.50 per $100 over $16,000 |
| $35,001 -- $93,000 | $485 + $1.75 per $100 over $35,000 |
| $93,001 -- $351,000 | $1,500 + $3.50 per $100 over $93,000 |
| $351,001 -- $1,168,000 | $10,530 + $4.50 per $100 over $351,000 |
| Over $1,168,000 | $47,295 + $5.50 per $100 over $1,168,000 |
| Premium (over $3,505,000) | 7% flat on total value |
First Home Buyer Exemption
First home buyers in NSW pay no stamp duty on new or existing homes valued up to $800,000. A sliding concession applies for properties valued between $800,000 and $1,000,000. Vacant land attracts an exemption threshold of $350,000 with concessions up to $450,000. These thresholds were increased from the previous $650,000 / $800,000 levels as part of the First Home Buyer Assistance Scheme.
Off-the-Plan Concession
NSW offers a duty concession for off-the-plan purchases where the contract is entered into before construction is complete. The concession allows the purchaser to reduce the dutiable value by the construction costs incurred after the contract date, effectively paying duty only on the land and completed construction at the time of exchange.
Foreign Surcharge
Foreign purchasers (non-Australian citizens and non-permanent residents) pay an additional 8% surcharge on residential property in NSW. This applies on top of the standard duty rates.
2 Victoria
Victorian stamp duty is administered by the State Revenue Office (SRO). Victoria has historically had some of the highest effective stamp duty rates in Australia.
Rate Brackets (General Residential)
| Property Value | Duty Rate |
|---|---|
| $0 -- $25,000 | 1.4% of dutiable value |
| $25,001 -- $130,000 | $350 + 2.4% of amount over $25,000 |
| $130,001 -- $960,000 | $2,870 + 6% of amount over $130,000 |
| $960,001 -- $2,000,000 | 5.5% of dutiable value |
| Over $2,000,000 | $110,000 + 6.5% of amount over $2,000,000 |
First Home Buyer Duty Reduction
First home buyers in Victoria are exempt from stamp duty on properties valued up to $600,000. A sliding concession applies for properties between $600,000 and $750,000. This applies to both new and established homes, provided the purchaser intends to live in the property as their principal place of residence for at least 12 continuous months within the first year of settlement.
Off-the-Plan Concession
Victoria offers a dutiable value reduction for off-the-plan purchases. For principal places of residence, the concession reduces the dutiable value by the amount of construction yet to be completed at the contract date (subject to a cap). For investment properties, Victoria introduced a reduced off-the-plan concession that applies only to the value of construction not yet commenced, and this concession has been narrowed over recent years.
Foreign Surcharge
Foreign purchasers pay an additional 8% surcharge on residential property in Victoria, on top of standard rates.
Windfall Gains Tax
Victoria introduced a Windfall Gains Tax (WGT) that applies when a planning decision (such as a rezoning) results in a land value uplift exceeding $100,000. The tax rate is 50% on the uplift above $500,000, with a graduated rate between $100,000 and $500,000. While not technically stamp duty, this is a significant additional transfer-related cost that investors and developers in Victoria need to factor into acquisition analysis.
3 Queensland
Queensland stamp duty is administered by Queensland Revenue Office (QRO). Queensland rates are generally lower than NSW and Victoria, which contributes to the state's attractiveness for interstate investors.
Rate Brackets (General Residential)
| Property Value | Duty Rate |
|---|---|
| $0 -- $5,000 | Nil |
| $5,001 -- $75,000 | $1.50 per $100 (over $5,000) |
| $75,001 -- $540,000 | $1,050 + $3.50 per $100 (over $75,000) |
| $540,001 -- $1,000,000 | $17,325 + $4.50 per $100 (over $540,000) |
| Over $1,000,000 | $38,025 + $5.75 per $100 (over $1,000,000) |
First Home Concession
Queensland provides a first home concession (separate from the First Home Owner Grant) that offers a full stamp duty exemption on homes valued up to $700,000, with a sliding concession for homes between $700,000 and $800,000. The property must be the buyer's principal place of residence. Queensland also offers a first home vacant land concession for blocks up to $350,000.
Foreign Surcharge
Foreign purchasers in Queensland pay an additional 8% surcharge (known as the Additional Foreign Acquirer Duty, or AFAD) on residential property.
4 Western Australia
WA stamp duty is administered by the Office of State Revenue within the Department of Finance.
Rate Brackets (General Residential)
| Property Value | Duty Rate |
|---|---|
| $0 -- $120,000 | $1.90 per $100 |
| $120,001 -- $150,000 | $2,280 + $2.85 per $100 (over $120,000) |
| $150,001 -- $360,000 | $3,135 + $3.80 per $100 (over $150,000) |
| $360,001 -- $725,000 | $11,115 + $4.75 per $100 (over $360,000) |
| Over $725,000 | $28,453 + $5.15 per $100 (over $725,000) |
First Home Buyer Exemption
WA provides a full stamp duty exemption for first home buyers purchasing a home valued up to $430,000, with a sliding concession for properties between $430,000 and $530,000. For vacant land, the exemption threshold is $300,000 with concessions up to $400,000. These apply in addition to the First Home Owner Grant (up to $10,000 for new homes).
Foreign Surcharge
WA applies a 7% foreign buyer surcharge on residential property. This is slightly lower than the 8% surcharge levied in NSW, VIC, and QLD.
5 South Australia
SA stamp duty is administered by RevenueSA. South Australia is notable for having no foreign purchaser surcharge, making it one of the more accessible markets for overseas buyers.
Rate Brackets (General Residential)
| Property Value | Duty Rate |
|---|---|
| $0 -- $12,000 | $1.00 per $100 |
| $12,001 -- $30,000 | $120 + $2.00 per $100 (over $12,000) |
| $30,001 -- $50,000 | $480 + $3.00 per $100 (over $30,000) |
| $50,001 -- $100,000 | $1,080 + $3.50 per $100 (over $50,000) |
| $100,001 -- $200,000 | $2,830 + $4.00 per $100 (over $100,000) |
| $200,001 -- $250,000 | $6,830 + $4.25 per $100 (over $200,000) |
| $250,001 -- $300,000 | $8,955 + $4.75 per $100 (over $250,000) |
| $300,001 -- $500,000 | $11,330 + $5.00 per $100 (over $300,000) |
| Over $500,000 | $21,330 + $5.50 per $100 (over $500,000) |
No Foreign Surcharge
South Australia does not impose a foreign purchaser surcharge on residential property. This is a significant differentiator for international investors and is worth noting in any cross-state comparison.
Stamp Duty on Commercial vs Residential Property
In most states, the same general duty rates apply to both residential and commercial property transfers. However, there are important differences in how concessions and surcharges are applied.
- Foreign surcharges apply to residential property only. In NSW, VIC, QLD, and WA, the foreign buyer surcharge is levied only on residential land. Commercial and industrial property purchases by foreign entities do not attract the surcharge (though FIRB approval and fees still apply).
- First home buyer concessions do not apply to commercial property. These exemptions are designed for owner-occupier residential purchases only.
- Off-the-plan concessions vary. Most states restrict off-the-plan duty concessions to residential property, though the specifics depend on the state.
- Land-rich duty provisions. In every state, acquiring a significant interest in a company or trust that holds land above certain value thresholds can trigger landholder duty -- effectively stamp duty by another mechanism. This is particularly relevant for commercial acquisitions structured as entity purchases rather than direct property transfers.
Strategies to Reduce Stamp Duty
While stamp duty is generally unavoidable, there are legitimate strategies that can reduce the amount payable or defer the cost.
Off-the-Plan Purchases
As noted above, several states allow a reduction in the dutiable value for off-the-plan purchases. This can produce significant savings, particularly on high-rise apartment developments where a large proportion of the purchase price relates to construction not yet completed at the contract date.
Trust Structures
Holding property in a discretionary trust does not itself reduce stamp duty on the initial purchase. However, it can reduce duty on subsequent transfers by allowing changes to beneficiary interests without triggering a new dutiable transaction in some circumstances. Be aware that some states (notably Victoria) impose a trust surcharge on residential property held in trusts, so professional advice is essential.
Negotiate Purchase Price
This is straightforward but frequently overlooked in the context of stamp duty planning. Stamp duty is calculated on the purchase price (or market value, whichever is higher). A $50,000 reduction in purchase price on a $1 million property in NSW reduces stamp duty by approximately $2,250 -- a meaningful saving on top of the price reduction itself.
Timing of Purchase
State governments periodically adjust concession thresholds and introduce temporary incentives. Staying informed about upcoming changes can create opportunities. For example, NSW has progressively increased first home buyer thresholds over recent years.
Stamp duty planning should never drive the acquisition decision. But once you have decided to buy, understanding the duty implications across different structures and states can produce real savings.
State Revenue Office Calculators
Each state revenue office provides an online stamp duty calculator. We recommend using these official tools for accurate estimates, as they are updated whenever rate brackets or thresholds change.
- NSW: Revenue NSW -- revenue.nsw.gov.au
- VIC: State Revenue Office -- sro.vic.gov.au
- QLD: Queensland Revenue Office -- qro.qld.gov.au
- WA: Department of Finance -- wa.gov.au/organisation/department-of-finance
- SA: RevenueSA -- revenuesa.sa.gov.au
Rate brackets and concession thresholds change periodically. Always verify current rates with the relevant state revenue office before making acquisition decisions based on the figures in this guide.
If you are comparing properties across multiple states or evaluating the total cost of acquisition including stamp duty, financing costs, and ongoing taxes, we are happy to run the numbers with you as part of our acquisition advisory process.