Stamp Duty Calculations
Calculating Your Stamp Duty
When you are buying a home, whether this is your first home, second home or investment property, one of the major concerns you will have is whether your finances can stretch far enough to cover all the costs associated with the purchase. To help you make sure you have enough funds available to cover all of those additional purchase costs, at Home Loan Finder we have compiled this comprehensive guide to stamp duty so you can calculate how much extra you will need to save up, to cover this tax.
Stamp duty charges vary from state to state, and are also calculated according to the value of your property. Therefore depending on where youre buying and how much youre spending you could be looking at several thousand dollars in stamp duty, tens of thousands of dollars, or no duty at all on your purchase. So rather than risk having your dream property pushed out of your reach when the stamp duty calculations are added to the purchase price, have all of your stamp duty questions answered now, so you and your finances can be prepared.
Stamp Duty Calculator
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How is stamp duty calculated?
Stamp duty is calculated by each state or territory government on the transfer of land or property. While stamp duty is also often charged on purchases such as car sales or leasing arrangements, in this instance you are concerned with the stamp duty you will be charged when you buy a block of land, or an existing home. There are exemptions available for home buyers in Australia who are buying their first home, or qualify as being in a low income bracket, plus you will not have to pay stamp duty to your builder if you choose to build your home.
However, following are the details of standard stamp duty charges which must be paid on the purchase of property, in each Australian state and territory.
Australian Stamp Duty Rates
| $250,000 House | Regular Stamp Duty | Paid by First Home Owners |
| N.S.W | $7,240 | $0 |
| V.I.C | $8,870 | $8,870 |
| W.A | $6,935 | $0 |
| Q.L.D | $2,500 | $0 |
| S.A | $8,955 | $8,955 |
| T.A.S | $7,550 | $7,550 |
| A.C.T | $7,785 | $7,785 |
| $400,000 House | Regular Stamp Duty | Paid by First Home Owners |
| N.S.W | $13,490 | $0 |
| V.I.C | $16,370 | $16,370 |
| W.A | $13,075 | $0 |
| Q.L.D | $5,250 | $0 |
| S.A | $16,330 | $16,330 |
| T.A.S | $13,550 | $13,550 |
| A.C.T | $15,285 | $15,285 |
| $500,000 House | Regular Stamp Duty | Paid by First Home Owners |
| N.S.W | $17,990 | $0 |
| V.I.C | $21,970 | $21,970 |
| W.A | $17,765 | $0 |
| Q.L.D | $8,750 | $0 |
| S.A | $21,330 | $21,330 |
| T.A.S | $17,550 | $17,550 |
| A.C.T | $20,785 | $13,550 |
| $700,000 House | Regular Stamp Duty | Paid by First Home Owners |
| N.S.W | $26,990 | $26,990 |
| V.I.C | $37,070 | $37,070 |
| W.A | $27,265 | $27,265 |
| Q.L.D | $17,350 | $17,350 |
| S.A | $32,330 | $32,330 |
| T.A.S | $25,550 | $25,550 |
| A.C.T | $32,000 | $32,000 |
How much stamp duty is charged in New South Wales?
In New South Wales stamp duty must be paid when purchasing a new property and is calculated on the full value of the property. New South Wales offers first-time buyers discounts and concessions and if you are a first home buyer in New South Wales you may not have to pay any stamp duty on a property purchase and will pay a reduced rate for a vacant lot of land.
A guide to stamp duty charges in New South Wales based on the property value:
| Property value | Stamp duty payable |
| Less than $14,000 | 1.25% of value |
| $14,001-$30,000 | $175 +1.5% of value |
| $30,001-$80,000 | $415 +1.75% of value |
| $80,001-$300,000 | $1290 +3.5% of value |
| $300,001-$1 million | $8990 +4.5% of value |
| More than $1 million | $40,490 +5.5% of value |
How is stamp duty charged in Victoria?
In Victoria stamp duty may be charged either as a percentage of the value of the transaction or as a flat rate. Exemptions to stamp duty charges and concessions are available if you qualify, as a first home buyer or example.
A guide to stamp duty charges in Victoria based on the property value:
| Property value | Stamp duty payable |
| Less than $25,000 | 1.4% of the value |
| $25,001- $130,000 | $350 +2.4% of the value |
| $130,001-$440,000 | $2870 +5% of the value |
| $440,001-$550,000 | $18,370 +6% of the value |
| $550,001-$960,000 | $28,070 +6% of the value |
| More than $960,000 | 5.5% of the value |
How is stamp duty charged in Queensland?
Only very low value purchases in Queensland will escape transfer duty charges and when you are purchasing a property or a block of land you will be subject to stamp duty charges.
A guide to stamp duty charges in Queensland based on the property value:
| Property value | Stamp duty payable |
| Up to $5000 | Nil |
| $5000-$75,000 | 1.5% of the value |
| $75,000-$540,000 | $1050 +3.5% of the value |
| $540,000-$980,000 | $17,325 +4.5% of the value |
| More than $980,000 | $37,125 +5.25% of the value |
How is stamp duty charged in South Australia?
Stamp duty charges in South Australia are based on the value of the land plus any improvements such as homes or properties. Business purchases can be subject to stamp duty on both the contract of sale and on the total consideration of the contract, while concessions may be granted for first home buyers or when property is being transferred from a deceased estate.
A guide to stamp duty charges in South Australia based on the property value:
| Property value | Stamp duty payable |
| Less than $12,000 | 1% of the value |
| $12,000-$30,000 | $120 +2% of the value |
| $30,000-$50,000 | $480 +3% of the value |
| $50,000-$100,000 | $1080 +3.5% of the value |
| $100,000-$200,000 | $2830 +4% of the value |
| $200,000-$250,000 | $6830 +4.25% of the value |
| $250,000-$300,000 | $8955 +4.75% of the value |
| $300,000-$500,000 | $11,330 +5% of value |
| More than $500,000 | $21,330 +5.5% of the value |
How is stamp duty charged in Western Australia?
In Western Australia stamp duty is charged on all residential properties including primary residences, rental properties and vacant land where building will commence within five years.
A guide to stamp duty charges in Western Australia based on the property value:
| Property value | Stamp duty payable |
| Less than $120,000 | 1.9% of value |
| $120,001-$150,000 | $2280 +2.85% of value |
| $150,001-$360,000 | $3135 +3.8% of the value |
| $360,001-$725,000 | $11,115 +4.75% of value |
| More than $725,001 | $28,453 +5.15% of value |
How is stamp duty charged in Tasmania?
Stamp duty charges on the transfer of property in Tasmania are some of the lowest in Australia and also capped at a low rate to avoid more greatly penalising homebuyers purchasing in the top end of the market adding another reason for the Tasmanian property market remains so affordable.
A guide to stamp duty charges in Tasmania based on the property value:
| Property value | Stamp duty payable |
| Less than $1300 | $20 |
| $1301-$10,000 | 1.5% of value |
| $10,001-$30,000 | $150 +2% of value |
| $30,001-$75,000 | $550 +2.5% of value |
| $75,001 – $150,000 | $1675 +3% of value |
| $150,001-$225,000 | $3925 +3.5% of value |
| More than $225,001 | $6550 +4% of value |
How is stamp duty charged in the ACT?
Australias capital bases its duty calculations on either the purchase price or the market value of the property, whichever is greater and in the ACT Stamp duty is often also referred to as conveyance rates.
A guide to stamp duty charges in the ACT based on the property value:
| Property value | Stamp duty payable |
| Up to $100,000 | $20 or 2% of the value, whichever is greater |
| $100,001-$200,000 | $2000 +3.5% of the value |
| $200,001-$300,000 | $5500 +4% of the value |
| $300,001-$500,000 | $9500 +5.5% of the value |
| $500,001-$1 million | $20,500 +5.75% of the value |
| More than $1 million | $49,250 +6.75% of the value |
How is stamp duty charged in the Northern Territory?
Stamp duty in the Northern Territory is calculated on the purchase price or on the unencumbered value of the property, whichever is greater. The Northern Territory also gives you a formula so you can calculate the exact amount of stamp duty you will be charged by using your exact property value.
A guide to calculating stamp duty charges in the Northern Territory based on the property value:
For properties valued less than $525,000 stamp duty is calculated using the formula,
D = (0.06571441 x V2) + 15V
D is the stamp duty payable in dollars.
V is the value of the property divided by 1000.
Therefore if you are looking at purchasing a property in the Northern Territory valued at $300,000,
V = $300,000/1000 = 300
D = (0.06571441 x 3002) x 4,500
D = $10,415
For properties valued at more than $525,000, stamp duty payable is 4.95% of the property value.
How do I use a stamp duty calculator?
Stamp duty is just one of the charges payable when you buy a new home and while knowing how each state calculate your stamp duty obligations depending on the value of your property is helpful as a guide, to truly understand the amount you will need to pay you will need to have individual calculations done for your situation, your property and your loan amount.
There are a number of online stamp duty calculators which can guide you through your stamp duty obligations based on your situation and to use a stamp duty calculator effectively follow these few simple steps:
- Enter your state. As you have seen above the stamp duty calculations can differ significantly from state to state and around Australia there are different rules for stamp duty concessions and first home buyer exemptions so nominating your state is the first step to achieving an accurate stamp duty calculation.
- Enter the property value. This is not always necessarily the amount you have paid for the property as the purchase price and the market value can be markedly different. That is why most home loan lenders will require an independent valuation as part of your loan application process so this is the amount you will need to include.
- Enter your loan amount. Including your loan amount in your stamp duty calculations will give you a fuller picture of the fees and charges you will need to pay when you purchase a property. Also some states in Australia also still charge mortgage duty, which is another stamp duty charge based on the value of your loan amount.
- Indicate whether you are a first home buyer. Each Australian State and Territory has their own first home buyer concessions and incentives but if you are a first home buyer chances are you are eligible for some sort of stamp duty discount or waiver.
- Use the calculations as a guide only. A comprehensive stamp duty calculation can provide you information on how much transfer duty, mortgage duty, mortgage registration fees and transfer fees you will need to pay in the purchase of your new home. At the same time using an impersonal online calculator should be used as a guide only because just as there are often specific circumstances which determine your home loan borrowing capacity for example, you want to make sure you are budgeting for an accurate stamp duty obligation rather than a generic calculation.
- Consider the information you are not providing. When you think about the information you are not providing you will realise why a stamp duty calculator really is just a guide. For examples some States will offer concessions for lower income earners and most Stamp duty calculators will not ask you for your income, but only your property value and loan amount.
- Have an individual stamp duty calculation done. If you have gathered information on stamp duty charges from on-line calculators it is now time to have an individual calculations done and this is where Home Loan Finder can help. We will listen to your situation and ask you questions about your home loan needs, the property you are looking at purchasing and your financial situation to give you information and calculations based on your individual situation, taking into account all of the concessions you are eligible for, and giving you a stamp duty calculated you can rely on and budget for.
Frequently Asked Questions About Stamp Duty
Now that you understand the basics of stamp duty and how the calculations differ depending on where you are buying and living in Australia, it is time to break down all those questions which are still battling for space in your brain. Here we will guide you through common questions first home buyers, second and third or fourth home buyers and investors may have about stamp duty so you have access to all of the information you need in your property buying process.
Plus if there is a question which we havent answered here you can contact us over the phone or via an online enquiry form and we will explain it to you in person.
What is stamp duty?
Stamp duty, which is also often known simply as duty, is a tax which is charged by each State or Territory government on the sale of assets such as property, land and you will it also notice stamp duty charges when you purchase a new car for example. Each State or Territory government collects stamp duty and uses those taxes for local projects and initiatives such as education and health.
Stamp duty is charged depending on the value of the property or land you are purchasing, and may also be charged again on your loan; this is known as mortgage duty which is similar in that it is another tax levied by the State and Territory governments, but mortgage duty has been abolished in many states.
What is mortgage duty?
Mortgage duty is when you have to pay another stamp duty tax in the process of purchasing your new home, this time you pay tax on the amount you are borrowing. Having said that most state in Australia have already abolished or are in the process of phasing out mortgage duty so this is one less tax to worry about in the future.
For now, mortgage duty in:
- New South Wales is being phased out. The New South Wales government have plans to abolish mortgage duty on all home loans which are opened on or after 1 July 2012. In the process of abolishing mortgage duty New South Wales halved their tax in 2010 to give Australians some more immediate relief.
- Victoria abolished mortgage duty in 2004.
- Queensland abolished mortgage duty in 2009. From January 2008 Queensland halved their mortgage duty tax, before removing the remaining 50% on 1 January 2009 to abolish the tax altogether.
- South Australia abolished stamp duty on mortgages from 1 July 2009.
- WA abolished mortgage duty from 1 July 2008.
- Tasmanian abolished mortgage duty on loans taken out after July 2007.
- There is no mortgage duty payable on home loans in the ACT.
- There is no mortgage duty on home loans taken out in the Northern Territory.
When is stamped duty charged?
In the process of purchasing your own home or building, stamp duty is charged on:
- The purchase of vacant land. When you purchase a block of land with the intention to build your home on it you will be charged stamp duty at the rate applicable for your state and the value of the block of land. Purchasing your home in this way can save you stamp duty charges as the value of a block of land is often significantly less than a completed property and so a smaller percentage of stamp duty is due.
- The purchase of an existing property. Whether you are purchasing a display home, an ex-rental property or you are buying a home which has been standing for many years you will be charged stamp duty as a percentage of the market value of the property as a whole.
When is stamp duty not charged?
In the process of building or upgrading your home you will not be charged stamp duty when:
- You pay a builder to construct your new home. You have already paid stamp duty on your block of land, but when it comes time to pay a builder whether they are a project builder or whether you pay contractors throughout the process if you are an owner builder you do not have to pay stamp duty on the cost of your house. This means that you may have paid stamp duty on your $100,000 block of land but in building a $250,000 home on the block you do not have to pay stamp duty as you would have if you had purchased a $350,000 property.
- You conduct significant renovations. If you have owned a home for several years and have been repaying your mortgage then this coupled with the capital growth of your property will have meant you now have equity in your home. As a result you may have decided to access that equity using a line of credit line or a construction loan to make improvements around your home but you will not have to pay for the value of these improvements.
Am I eligible for exemptions as a first home buyer?
As part of the First Home Owners Grant and first home buyer bonus schemes each State and Territory government offers new concessions or exemptions from stamp duty if you are a first-time buyer. While grants and bonuses for first home buyers have been scaled back the Australian government is still serious about making it easier for young Australians to get into their first home and as you have seen the cost of stamp duty can ordinarily be prohibitive.
To be eligible as a first home buyer for stamp duty exemptions you must be:
- A person, not the company or trust.
- A permanent resident or Australian citizen.
- Over 18 years of age.
- Purchasing with someone who has not previously owned a residential property in Australia.
- Using the property as your principal place of residence for a continuous period of at least six months.
A guide to stamp duty exemptions for first home buyers includes:
- In New South Wales first home buyers do not pay any stamp duty or mortgage duty on properties up to the value of $500,000. You first home buyers are spending between $500,000 and $600,000 they are also still eligible for a concession.
- In New South Wales first home buyers did not pay any stamp duty on a land purchase to build their first home if the land is valued up to $300,000 and they receive their concession on land valued between $300,000 and $450,000.
- Queensland offers first home buyers are tiered exemption from stamp duty charges if they are buying a property up to the value of $500,000 order land up to the value of $300,000.
- In South Australia first home buyers do not pay any stamp duty on properties valued up to $80,000 and are eligible for tiered concessions on stamp duty on properties up to the value of $150,000.
- Western Australia offers a first home buyers stamp duty concession rate for properties valued at less than $350,000 order land valued at less than $200,000.
- In Tasmania first home buyers receive a maximum stamp duty concession of $4000 for the purchase of a property up to the value of $350,000.
- The ACT offers a concession scheme for properties valued at less than $330,000 where eligibility for a reduction in stamp duty is based on household income and the number of children in the family.
While you may not think that it is possible for you to purchase your own home if you are a first home buyer or if you have a low income or both concessions on stamp duty for properties in the first home buyer or lower income earner brackets can take away some of the hurdles to property ownership. There are also a range of nonconforming home loan options which may suit you if you are a low income earner or do not own a traditional income, but you now know you may be eligible to have some common home buying fees waived.
When is stamp duty paid?
In New South Wales the stamp duty on your property purchase is payable at the time you exchange contracts however generally the stamp duty payments can be made more flexibly. For example:
- If settlement is around six weeks from the time you exchange contracts, the stamp duty on your property will need to be paid at least two weeks prior to settlement to avoid any delays in completing the purchase.
- If settlement is longer than six weeks, you can make the payment of your stamp duty is much closer to the settlement date as long as it is paid within three months of the date of exchange because after this time you will accrue interest charges.
- If you are not taking out a mortgage to purchase the property, you can pay your stamp duty at settlement as long as you pay within three months of the date of exchange to avoid interest charges.
- If you are purchasing an off the plan residential unit, you must pay your stamp duty within 12 months of the date of exchanging contracts, or at the completion of the contract, whichever is first.
- If you are purchasing an off the plan commercial unit, and it is subject to subdivision stamp duty must be paid within three months of the date of exchange to avoid being charged interest.
How do I pay stamp duty?
Up until now the stamp duty charges payable on your home purchase have seemed like they are simply intangible calculations however these government charges must be paid and they must be paid correctly for your purchase to be processed and for you to move into your new home smoothly.
When you are paying stamp duty:
- If the stamp duty amount calculated on your home purchase is less than $20,000 you can pay by a bank cheque, building society cheque or personal cheque.
- If the stamp duty you need to pay is more than $20,000 then it must be paid using a bank cheque or a building society cheque.
Your conveyancer, your property lawyer all your lender can organise for the payment of your stamp duty and at the appropriate time they will ask for your payment in one of the above forms, and will submit that payment to your State or Territory government on your behalf, and complete any necessary paperwork.
How do I pay stamp duty from my loan amount?
As you have seen stamp duty on the purchase of a new home can be potentially tens of thousands of dollars and if you have already worked hard to save a deposit for your new home and enough money to cover the application and lender fees then a big stamp duty bill can hit hard. That is why most lenders will allow you to add the cost of your stamp duty to the value of your loan so you do not need to come up with the funds at the time of the sale.
To pay your stamp duty from your loan amount your conveyancer will liaise with your lender to organise a stamp duty cheque to be drawn from your loan amount at the time of settlement and the payment will then be processed with your local Office of State Revenue on your behalf.
If you are paying stamp duty from your loan amount make sure that the settlement of your loan and the settlement of your purchase contract a line because stamp duty must be paid within three months of the date of the contract of sale to avoid interest.
If you have navigated your way through the home buying process to this point then you should be congratulated because it is not an easy path. That is why you need to make sure youre not tripped up at the final hurdle by a large stamp duty charge. Instead use the information, calculations and advice within this guide to help you manage your budget and plan your purchase so that when it comes time to buy your dream home you know that you can afford it and you are prepared for all of the costs and processes which come with this home buying tax.
You also want to make sure that if you are a first-time buyer or a lower income earner that you get the exemptions or concessions you are entitled to so you can either find out more about the benefits available for an individual assessment of your stamp duty obligations and advice on how best to manage those charges because whether you wait and save up to cover the costs of your stamp duty or you negotiate to have them added to your loan amount, once they are calculated and processed you will be well on your way to enjoying your new home knowing all of your obligations are taken care of.
