Australian Stamp Duty
When you are buying or building a house you will be bombarded with information and advice from family and friends – the best suburbs, the best realtors, the best builders and the best home loan provider. While you may be tempted to follow leads provided by family and friends for these steps in the home buying process, something you should never base on the experience of others are your tax obligations.
When you buy or build a home in Australia there are a number of duties you will have to pay throughout the process. These taxes can vary in size, and some you may not mind paying such as taxes on your rental income because you can claim back so many other deductions on your investment. However, the important thing to remember is that most of these taxes will be calculated on the suburb in which you buy or build, and the value of your property or block of land. Therefore, plugging a tax value from a friend or family member into your home buying budget could leave you short of funds at the time of settlement.
Instead, make sure you know how to calculate your tax obligations for your situation, and if you’re still not sure about what you’ll have to pay and when, you can contact Home Loan Finder for a personalised calculation.
What Are the Stamp Duty Rates in Australia?
You will have to pay stamp duty on most property purchases in Australia. However, the amount of stamp duty that you will have to pay will depend on the value of the property and the state or territory in which the property is located.
The amount of stamp duty that is payable on different property values in each state are:
Stamp duty for 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 |
Stamp duty for 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 |
Stamp duty for 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 |
Stamp duty for 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 |
Stamp duty for 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 |
Stamp duty for 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 |
Stamp duty for ACT
| < $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 |
Stamp duty for Northern Territory
For property values up to $500,000 the stamp duty will be calculated at (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.
When you buy a property you will have to pay stamp duty. The stamp duty that you will have to pay will be determined by the value of the property and the state that you live in. You may be able to get concessions if you are a fist home buyer.
Featured Loans to Avoid Paying Stamp Duty
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 State Custodians Mortgage Company Standard Variable Offset Loan |
The First Home Buyer Home Loan of the Year for 2010. | 6.02% | 6.23% | $0 / $345 | 95% | $150,000 / $1,000,000 |
 
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 MyRate Advantage Rate Loan |
One of the best all-round loans on the market with free redraw and zero fees. | 6.15% | 6.15% | $0 / $0 | 95% | $100,000 / $2,000,000 |
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 ANZ Breakfree Home Loan Package ($150,000 – $249,999) |
One of the most popular loans from one of the most popular banks. | 6.55% | $ 0 / $375 | 80% | $150,000 / $249,999 |
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ANZ Simplicity Plus Basic Home Loan |
A loan tailored for the first home buyer group. | 6.35% | 6.40% | $0 / $ 0 | 80% | $50,000 / $1,000,000 |
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 NAB National Choice Package ($100,000 to $249,999) |
National Choice Package ($150,000 /$249,000) | 6.39% | 6.75% | $0 / $395 | 95% | $150,000 / $249,999 |
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What Types of Australian Property Tax Will I Have to Pay When I Buy a New Home?
When you are buying a house in Australia you should be sure that you know exactly what you will have to pay. Most people will think that they will have to pay the deposit, the loan charges and the stamp duty and all will be settled. However, you will generally have to pay more taxes when buying a home in Australia. It is recommended that you get the advice of a tax advisor when you planning on buying a property so you will know what you will have to pay in Australian property taxes.
Goods and Services Tax
- What is the tax for? The government charges the GST on any goods or services that are sold in Australia. The tax will have to be paid by the person purchasing the item.
- How much is the tax? The GST will be 10% of the purchase price.
Stamp Duty
- What is the tax for? The stamp duty will be charged by the government on a variety of things such as agreements for acquisitions of real estate, business and some marketable securities, as well as leases and financing transactions.
- How much is the tax? The stamp duty that you will have to pay will depend on your personal situation. If you are buying a property the amount of stamp duty that you will have to pay will vary depending on the value of the property and the state that you live in.
Land Tax
- What is the tax for? The land tax is a tax that is charged to cover the usage of the land.
- How much is the tax? The tax will vary between the states and territories but will be charged annually.
Capital Gains Tax
- What is the tax for? The capital gains tax is a tax that is charged on the amount of money that you make from a property. The capital gains tax is an income tax and will be determined by the amount of money that you make from the property. This tax will only be charged to people that are selling an investment property.
- How much is the tax? The tax will follow the income tax guidelines. So if you earn $50,000 a year and you sell a property for $50,000 more than what you payed for it 10 years ago you will have to pay the tax of an extra $5000 income a year.
Tax on Rental Income
- What is the tax for? If you own an investment property and are making money from it this will be classified as income.
- How much is the tax? The tax will be included in your yearly tax return as income you have received.
Property Taxes
- What is the tax for? The property taxes will be charged by most states and territories and will cover the costs of the general services in the area. These can include maintenance of the power lines, mail delivery and others.
- How much is the tax? The tax will vary depending on where you live but will be charged every year.
When you buy a property you will have to pay a variety of fees and taxes. By knowing what you will have to pay when you buy a property you will be able to avoid financial stress in the future. When you are budgeting for your new property you should be sure that you include all the taxes that you will have to pay. These will include GST, stamp duty, land tax, capital gains tax, tax on rental income, and property taxes.
It is easy to be caught out by property taxes in Australia because these taxes are rarely included on the enticing brochures or in the stunningly modern display homes which get you excited about being a home owner. However, it is possible to still be excited about buying or building your own home in Australia, and you can even make sure your investment is as profitable as possible, with a little preparation.
Related posts:
- Stamp Duty Exemptions and Rebates
- Stamp Duty on Property Purchase
- UK Stamp Duty
- Stamp Duty Calculation Guide
- Stamp Duty Calculator SA
- Government Stamp Duty
- Stamp Duty Rates
- Property Stamp Duty Rates
- How to Pay Stamp Duty
- Stamp Duty Western Australia
Top Home Loans
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
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