Stamp duty is a one-off state and territory government tax charged when you buy land or property. In general terms, is a fee for transferring the legal ownership of an asset.
It can also be known as property transfer duty, land transfer duty or transfer duty.
Stamp duty is calculated based on several factors, including the type of property you’re buying, its value and its location. Stamp duty charges vary from state to state.
To get an estimate of how much stamp duty you could owe, try our Stamp Duty Calculator.
Yes, even first home buyers are charged stamp duty.
However, if you’re a first home buyer you may be able to access stamp duty concessions or exemptions depending on the government initiatives available in your state or territory.
Stamp duty is decided by separate state and territory governments, rather than the federal government, so rates vary.
Stamp duty will usually cost around 3-4% of the value of the property. Stamp duty charges will vary depending on the type of property, value and location.
Yes, stamp duty transactions are not subject to GST.
However, if you buy a commercial property, stamp duty is payable on the GST inclusive amount of the purchase price.
Investors may be wondering if stamp duty is tax deductible.
Generally, no, you can’t claim a tax deduction on the stamp duty of your investment property. This is because stamp duty is a capital cost related to the acquisition of your investment property and forms part of its cost base.
However, in the Australian Capital Territory, property under the ACT’s leasehold system may be deductible.
In some states and territories, stamp duty exemptions and concessions may be available for eligible first home buyers, seniors and pensioners. There might also be concessions based on the value of the property purchased or the buyer’s annual income.
Check with your solicitor or conveyancer about your stamp duty and whether you’re eligible for a stamp duty exemption or concession.
Stamp duty is payable at different times, depending on your state or territory. See below for a general guide.
- New South Wales: within 3 months of signing a contract for sale or transfer.
- Victoria: within 30 days of signing a contract for sale or transfer.
- Queensland: after receiving confirmation that the required documents you’ve lodged have been assessed.
- Tasmania: within 3 months of signing a contract for sale or transfer.
- Western Australia: 1 month from receiving a Duties Assessment Notice.
- South Australia: when the transaction or sale is finalised and contracts are either exchanged or completed.
- Northern Territory: within 60 days of entering into the transaction or settlement of your property.
- Australian Capital Territory: after settlement and within 14 days of receiving a Notice of Assessment.
You generally must pay stamp duty upfront on settlement of a property, although payment requirements differ from state to state.
For example, in NSW you must pay stamp duty within 3 months of signing a contract of sale or transfer. In Queensland, you may be able to use the extended payment option (EPO) to make 3 equal payments 45, 90 and 150 days after the date of the assessment notice.
For a new build or house and land package, you typically won’t be charged stamp duty on the house, as no transfer is taking place.
Provided the construction on the house has not yet started, you will likely only be charged stamp duty on the value of the land.
No, you won’t have to pay stamp duty when you sell property or land. The buyer will have to take on the stamp duty costs.
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