Stamp duty basics: what transfer duty is and why it varies so much

Stamp duty, more formally called transfer duty in most states now, is one of the larger upfront costs in an Australian property purchase, and it is also one of the more confusing, mainly because the amount owed is not a single national figure but the product of eight separate state and territory systems that each set their own rules.

At its core, transfer duty is a tax charged by state and territory governments on the transfer of property ownership. It is calculated on a sliding scale tied to the value of the property — generally the higher of the purchase price or an assessed market value — with the rate increasing in bands as the value increases, broadly similar in structure to how income tax works in bands, though the specific bands and rates differ by jurisdiction.

The reason it varies so much between buyers is that each state and territory revenue office runs its own duty scale independently, and reviews and revises it periodically, sometimes as part of a state budget. This means an identical purchase price in two different states can produce a genuinely different duty bill, and a scale that applied last year is not a reliable guide to what applies now. On top of the base duty, some states apply an additional surcharge for foreign purchasers, and separate ongoing charges such as land tax or an absentee owner surcharge can also apply depending on the buyer's circumstances — these are related costs but calculated separately from the one-off transfer duty paid at settlement.

Most, though not all, states and territories offer a reduced rate or full exemption from transfer duty for eligible first home buyers, generally up to a certain property value, with the concession commonly tapering off or disappearing entirely above that threshold. Eligibility conditions commonly include never having owned residential property before, and a requirement to move into the property as a principal place of residence within a set period and live there for a minimum length of time. The Northern Territory has been reported as a notable exception, currently without a dedicated first-home-buyer duty concession, though every jurisdiction's settings are reviewed periodically and can change. Specific dollar thresholds are deliberately not listed here, since they are set independently by each revenue office and are exactly the kind of detail that changes with little notice.

Working out exactly how much duty applies to a specific purchase, and whether a concession is available, is normally handled by a conveyancer or solicitor as part of the transaction — they calculate the duty payable, check eligibility for any relevant concession or exemption, and typically arrange for it to be paid at or shortly after settlement, commonly through the same electronic settlement platform used for the rest of the transaction, since unpaid duty attaches to the property title.

Because rates, thresholds and concessions are reviewed periodically and differ by state, this article deliberately does not quote current dollar figures — the reliable source for a specific number is your state or territory revenue office's own duty calculator, alongside confirmation from your conveyancer or solicitor once they know your exact circumstances. This is general information about how transfer duty works, not a substitute for that calculation. Our directory lists Australian conveyancers and property solicitors by area if you are ready to get a figure for your own purchase.

Frequently asked questions