Stamp duty – the basics explained
Stamp duty is a general tax imposed upon certain documents and some undocumented acquisitions. These include title transfers as a result of selling real estate, vehicles, business assets and other property; gifts; insurance policies and mortgages, and is paid by the purchaser or borrower. Revenue raised is then used to fund public services including:
- education;
- health;
- law and order; and
- public safety.
Stamp duty concessions
In the case of residential or business property transfers, stamp duty can be charged at a concessional rate. Certain prerequisites must be met before the concessional rate is approved such as property value, property type and occupancy requirements. To find out which concessions are available in your state contact the Office of State Revenue.
How much stamp duty do I have to pay?
Stamp duty varies from state to state. The following information is current as at July 2006 and does not take into account any concessions that may be available.
As can be seen, stamp duty can add significantly to the purchase price of a property so it's vital that you take this into account when you're looking to buy your new home.
New South Wales
|
< $14,000 |
1.25% of dutiable value |
| $14,001 - $30,000 | $175 + 1.5% of dutiable value |
| $30,001 - $80,000 | $415 + 1.75% of dutiable value |
| $80,001 - $300,000 | $1,290 + 3.5% of dutiable value |
| $300,001 - $1 million | $8,990 + 4.5% of dutiable value |
| > $1 million | $40,490 + 5.5% of dutiable value |
Victoria
| < $20,000 | 1.4% of dutiable value |
| $20,001 - $115,000 | $280 + 2.4% of dutiable value |
| $115,001 - $870,000 | $2,560 + 6% of dutiable value |
| > $870,000 | 5.5% of dutiable value |
Queensland
| < $20,000 | 1.5% of dutiable value |
| $20,001 - $50,000 | $300 + 2.25% of dutiable value |
| $50,001 - $100,000 | $975 + 2.75% of dutiable value |
| $100,001 - $250,000 | $2350 + 3.25% of dutiable value |
| $250,001 - $500,000 | $7225 + 3.5% of dutiable value |
| > $500,000 |
$15,975 + 3.75% of dutiable value |
South Australia
| < $12,000 |
1% of dutiable value |
| $12,001 - $30,000 | $120 + 2% of dutiable value |
| $30,001 - $50,000 | $480 + 3% of dutiable value |
| $50,001 - $100,000 | $1080 + 3.5% of dutiable value |
| $100,001 - $200,000 | $2830 + 4% of dutiable value |
| $200,001 - $250,000 | $6830 + 4.25% of dutiable value |
| $250,001 - $300,000 | $8955 + 4.75% of dutiable value |
| $300,001 - $500,000 | $11,330 + 5% of dutiable value |
| > $500,001 |
$21,330 + 5.5% of dutiable value |
Western Australia
| < $80,000 |
2% of dutiable value |
| $80,001 - $100,000 | $1600 + 3% of dutiable value |
| $100,001 - $250,000 | $2200 + 4% of dutiable value |
| $250,001 - $500,000 | $8200 + 5% of dutiable value |
| > $500,000 |
$20,700 + 5.4% of dutiable value |
Tasmania
| < $1,300 |
$20 |
| $1,301 - $10,000 | 1.5% of dutiable value |
| $10,001 - $30,000 | $150 + 2% of dutiable value |
| $30,001 - $75,000 | $550 + 2.5% of dutiable value |
| $75,001 - $150,000 | $1675 + 3% of dutiable value |
| $150,001 - $225,000 | $3925 + 3.5% of dutiable value |
| > $225,001 |
$6,550 + 4% of dutiable value |
Australian Capital Territory
| < $100,000 |
2% of dutiable value over |
| $100,001 - $200,000 | $2000 + 3.5% of dutiable value |
| $200,001 - $300,000 | $5500 + 4% of dutiable value |
| $300,001 - $500,000 | $9500 + 5.5% of dutiable value |
| $500,001 - $1,000,000 | $20,500 + 5.75% of dutiable value |
| > $1 million |
$49,250 + 6.75% of dutiable value |
Northern Territory
For property values up to $500,000 the following formula is used:
Duty payable = (0.065 x V2) + 21V where V = (dutiable value) / 1000.
Over $500,000, stamp duty is charged at a rate of 5.4% of the dutiable value.
Examples
On a property purchase with a dutiable value of $300,000, stamp duty will add to the overall costs:
$8,975 (Queensland)
$8,990 (NSW)
$9500 (ACT)
$9,550 (Tasmania)
$12,150 or $9650 if the property is the principal place of residence (NT)
$10,700 (WA)
$11,330 (SA)
$13,660 (Victoria).
For a more expensive purchase, around $500,000 dutiable value, stamp duty will be between $15,975 (Queensland) and $25 660 (Victoria).
Recent changes to stamp duty laws
In recent state budget announcements for the 2006-2007 financial year, a number of changes were made to stamp duty legislation. Victoria has overhauled concessional rates and raised the upper threshold. New South Wales has introduced provisions to reduce or abolish certain duties over a number of years and includes changes to mortgage duty. The other states and territories have also overhauled their own legislation, in some cases making stamp duty charges for property transfer much more affordable.
For more information contact the Office of State Revenue or the State Government Treasury in your state.
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