- Who pays stamp duty in Australia?
- The buyer pays stamp duty. It is due at or before settlement — typically within 30 days of signing the contract in most states. Some states allow payment to be deferred if you are building on vacant land. Your conveyancer or solicitor will advise on the exact timing and lodgement process for your state.
- Are first home buyers exempt from stamp duty?
- Most states offer full or partial exemptions for eligible first home buyers. NSW: no duty on properties up to $800,000. VIC: no duty up to $600,000. QLD: a concession on established homes and new builds. WA: no duty up to $430,000. ACT: no duty on purchases up to $1M. SA and NT have no stamp duty concession (only a First Home Owner Grant). TAS: 50% reduction up to $600,000. Thresholds change periodically — always verify current eligibility with your state revenue office before relying on any estimate.
- Does stamp duty differ for vacant land?
- Yes — first home buyers purchasing vacant land face different concession thresholds in several states. In NSW, the FHB exemption on vacant land applies up to $350,000 (versus $800,000 for established homes). In WA, the land exemption applies up to $300,000 (versus $430,000 for established homes). Standard (non-FHB) buyers pay the same rates on land as on established homes. This calculator applies state-specific land thresholds when 'Vacant Land' is selected.
- Do investors pay more stamp duty than owner-occupiers?
- No — investors pay the same standard duty rates as owner-occupiers in all states. The key difference is that investors do not qualify for first home buyer concessions, so they pay full standard rates regardless of price. Stamp duty on an investment property is not immediately deductible in the year of purchase but forms part of the property's cost base, reducing capital gains when sold.
- Is stamp duty included in my home loan?
- Generally no — lenders do not include stamp duty in the loan amount and it must be paid as cash. Some lenders will allow it as part of a guarantor arrangement in specific circumstances, but this is unusual. Budget for stamp duty separately from your deposit when planning your purchase.
- What is the First Home Guarantee and how does it affect stamp duty?
- The First Home Guarantee (formerly the FHLDS) allows eligible first home buyers to purchase with as little as a 5% deposit without paying lenders mortgage insurance — the government guarantees the remaining portion. It does not reduce stamp duty itself, but eliminates LMI costs that can otherwise add tens of thousands to upfront costs. Check nhfic.gov.au for current income thresholds and property price caps.
- Are there extra stamp duty charges for foreign buyers?
- Yes. All Australian states impose a foreign purchaser surcharge on top of the standard duty. In NSW and Victoria the surcharge is 8% of the dutiable value. In Queensland it is 7%, WA 7%, SA 7%. The ACT abolished its surcharge. This calculator shows rates for Australian residents only. Foreign purchasers should check their state revenue office for the applicable surcharge.
- Is stamp duty tax-deductible?
- For owner-occupiers, no — stamp duty is not tax-deductible. For investment properties, stamp duty forms part of the cost base of the property and reduces your capital gain (or increases your capital loss) when you eventually sell. It is not deductible in the year of purchase. Speak to a registered tax agent or accountant for advice specific to your situation.
- What is the ACT doing differently with stamp duty?
- The ACT is phasing out stamp duty and replacing it with a broad-based land tax system. Since 2012, ACT has been progressively reducing duty rates while increasing annual land tax. Owner-occupiers may find lower stamp duty than comparable purchases in NSW or Victoria, but ongoing land tax applies each year. The ACT government expects to complete the transition over the coming decades.