Stamp Duty Explained: State by State Guide
Break down stamp duty costs across every Australian state and territory, including exemptions and concessions.
Stamp duty, also known as transfer duty, is a tax levied by state and territory governments on property purchases, and for most buyers it is the single largest upfront cost outside the deposit itself. The amount varies significantly depending on where you buy and the value of the property, with thresholds, surcharges, and concessions changing almost every state budget cycle.
In New South Wales, stamp duty on a 1 million dollar home runs to about 40,000 dollars, with first home buyers fully exempt up to 800,000 dollars and partially exempt up to 1 million dollars on existing homes. NSW also offers an annual property tax option for first home buyers in lieu of upfront stamp duty on properties up to 1.5 million dollars — a useful cash flow tool but worth modelling carefully against expected hold periods.
Victoria's duty schedule is among the steepest in the country, with about 55,000 dollars payable on a 1 million dollar purchase. First home buyer exemptions cover purchases up to 600,000 dollars, with concessions tapering to 750,000 dollars. Foreign purchasers pay an additional 8 percent surcharge, and absentee owner surcharges apply annually on land tax.
Queensland charges roughly 30,000 dollars on a 1 million dollar home, with first home buyer concessions covering homes up to 700,000 dollars (full exemption to 500,000 dollars). Vacant land used to build a first home attracts its own concession up to 350,000 dollars. The state also applies a 7 percent foreign buyer surcharge.
Western Australia's duty is comparatively friendly, with 1 million dollar purchases attracting around 42,500 dollars. First home buyer exemptions apply to homes under 450,000 dollars. South Australia, Tasmania, ACT, and the Northern Territory each run their own scales — the ACT is unusual in offering a no-stamp-duty pathway for many buyers in exchange for higher annual rates.
Beyond the headline duty, watch for layered surcharges. Foreign buyers face additional duty in every mainland state, typically 7 to 8 percent of the purchase price. Premium property duty in NSW kicks in above 3 million dollars and lifts the marginal rate sharply. Off-the-plan apartments may attract concessions in some states but not others, so cross-check before signing a contract.
Finally, plan stamp duty payment timing carefully — it is generally due 3 months after exchange in NSW, at settlement in Victoria, and within 30 days of settlement elsewhere. Late payment attracts interest and penalty notices. A good conveyancer will calculate your exact liability before exchange and confirm any concessions you qualify for in writing, so there are no surprises at settlement.