A property is a huge investment that comes with an equally great responsibility—paying additional costs like stamp duty.
Also known as land transfer duty, it is a general tax imposed on the purchase of real estate. The Australian government imposes stamp duty to several types of asset purchases. It applies to home purchases regardless if it’s for your investment or own use. The state collects stamp duty payments which are then invested in various projects.
Stamp duty costs
Your stamp duty is calculated as a percentage of the market value or purchase price of the target property. However, each state has its own scheme:
Australian Capital Territory
|
Property value |
Payable duty |
|
Up to $200,000 |
$20 or $1.30 per $100 or part thereof, whichever is greater |
|
$200,001 to $300,000 |
$2,600 plus $2.30 per $100 or part thereof by which the value exceeds $200,000 |
|
$300,001 to $500,000 |
$4,900 plus $3.60 per $100 or part thereof by which the value exceeds $300,000 |
|
$500,001 to $750,000 |
$12,100 plus $4.56 per $100 or part thereof by which the value exceeds $500,000 |
|
$750,001 to $1,000,000 |
$23,500 plus $6.10 per $100 or part thereof by which the value exceeds $750,000 |
|
$1,000,001 to $1,455,00 |
$38,750 plus $6.60 per $100 or part thereof by which the value exceeds $1,000,1000 |
|
More than $1,455,00 |
A flat rate of $4.73 per $100 applied to the total transaction value |
Source: ACT Revenue Office
New South Wales
|
Property value |
Payable duty |
|
Not more than $14,000 |
1.25% of dutiable value |
|
$14,001 - $30,000 |
$175 + 1.5% of dutiable value over $14,000 |
|
$30,001 - $80,000 |
$415 + 1.75% of dutiable value over $30,000 |
|
$80,001 - $300,000 |
$1,290 + 3.5% dutiable value over $80,000 |
|
$300,001 - $ 1 million |
$8,990 + 4.5% dutiable value over $300,000 |
|
$1 million - $3 million |
$40,490 + 5.5% dutiable value over $1 million |
|
Over $3 million |
$150,490 + 7% of dutiable value over $3 million |
Source: Revenue NSW
Northern Territory
|
Property value |
Payable duty |
|
For properties with values no more than $25,000 |
This formula applies: Stamp duty = (0.06571441 x Y²) + 15Y Where Y = Dutiable Value/1000 |
|
For example: Property Value: $150,000 Y=$150,000/1000 = 150 Stamp duty= [0.06571441 x (150²)] + 15(50) = $3,728.57* *Estimated Stamp Duty Value |
|
Source: Northern Territory Government
Queensland
|
Property value |
Payable duty |
|
Not more than $5,000 |
No stamp duty |
|
More than $5,000 up to $75,000 |
$1.50 for each $100, or part of $100, over $5,000 |
|
$75,000 to $540,000 |
1,050 plus $3.50 for each $100, or part of $100, over $75,000 |
|
$540,000 to $1,000,000 |
$17,325 plus $4.50 for each $100, or part of $100, over $540,000 |
|
Over $1,000,000 |
$38,025 plus $5.75 for each $100, or part of $100, over $1,000,000 |
Source: Queensland Government
South Australia
|
Property value |
Payable duty |
|
Not more than $12,000 |
$1.00 for every $100 or part of $100 |
|
$12,000 - $30,000 |
$120 plus $2.00 for every $100 or part of $100 over $12,000 |
|
$30,001 - $50,000 |
$480 plus $3.00 for every $100 or part of $100 over $30,000 |
|
$50,001 - $100,000 |
$1,080 plus $3.50 for every $100 or part of $100 over $50,000 |
|
$100,001 - $200,000 |
$2,830 plus $4.00 for every $100 or part of $100 over $100,000 |
|
$200,001 - $250,000 |
$6,830 plus $4.25 for every $100 or part of $100 over $200,000 |
|
$250,001 - $300,000 |
$8,955 plus $4.75 for every $100 or part of $100 over $250,000 |
|
$300,001 - $500,000 |
$11,330 plus $5.00 for every $100 or part of $100 over $300,000 |
|
Over $500,000 |
$21,330 plus $5.50 for every $100 or part of $100 over $500,000 |
Source: Revenue SA
Tasmania
|
Property value |
Payable duty |
|
Not more than $3,000 |
$50 |
|
$3,000 - $25,000 |
$50 plus $1.75 for every $100 or part, by which the dutiable exceeds $3,000 |
|
$25,000 - $75,000 |
$435 plus $2.25 for every $100 or part, by which the dutiable exceeds $25,000 |
|
$75,000 - $200,000 |
$1,560 plus $3.50 for every $100 or part, by which the dutiable exceeds $75,000 |
|
$200,000 - $375,000 |
$5,935 plus $4.00 or every $100 or part, by which the dutiable exceeds $200,000 |
|
$375,000 - $725,000 |
$12,935 plus $4.25 for every $100 or part, by which the dutiable exceeds $375,000 |
|
Over $725,000 |
$27,810 plus $4.50 for every $100 or part, by which the dutiable exceeds $725,000 |
Source: State Revenue Office Tasmania
Victoria (Non-Principal Place of Residence)
|
Property value |
Payable duty |
|
Not more than $25,000 |
1.4% of the dutiable value of the property |
|
$25,001 - $130, 000 |
$350 plus 2.4% of the dutiable value in excess of $25,000 |
|
$130,001 - $960,000 |
$2,870 plus 6% of the dutiable value in excess of $130,000 |
|
Over $960,000 |
5.5% of the dutiable value |
Source: Revenue Office Victoria
Western Australia
|
Property value |
Payable duty |
|
Not more than $120,000 |
1.9% of dutiable value |
|
$120,001 - $150,00 |
$2,280 + $2.85 per $100 or part thereof above $120,000 |
|
$150,001 - $360,000 |
$3,135 + $3.8 per $100 or part thereof above $150,000 |
|
$360,001 - $725,000 |
$11,115 + $4.75 per $100 or part thereof above $150,000 |
|
Over $725,000 |
$28,435 + 5.15% per $100 or part thereof above $725,000 |
Source: State Revenue Office WA
When to pay
As an investor, you need to be aware that it is your responsibility to pay for stamp duty. The tax is usually payable to the state within 30 days of the settlement of your property purchasing.
However, if you’re buying off the plan, the levy must be settled within three months from the date of completion of the agreement. This can result in cost savings, as the stamp duty only applies to the land value – as the building hasn’t been constructed yet.
The payment schedule of stamp duty varies from state to state:
|
State |
Stamp duty payment schedule |
|
Australian Capital Territory |
Within 14 days of receiving a Notice of Assessment from Access Canberra |
|
New South Wales |
Payable within three months of settlement |
|
Northern Territory |
Payable 60 days after settlement |
|
Queensland |
Payable no later than 30 days after settlement of the property |
|
South Australia |
Usually required to be paid on or before settlement day |
|
Tasmania |
Payable within three months |
|
Victoria |
Payable within 30 days after property transfer |
|
Western Australia |
Payable within two months after settlement |
The duty can be paid through BPay, Electronic Funds Transfer, Overseas Electronic Funds Transfer, mail, or advanced payment. Other payment options include credit or debit card and cheques.
Concessions and exemptions
Each state has its own set of rules in granting exemptions and concessions for special cases of property taxes. States typically lift stamp duties when a property is transferred to an individual whose marriage was dissolved or annulled. Transferring ownership of a property to a spouse is also exempted. Discounts are also given in instances when the property of a deceased person is transferred through a beneficiary.
Make sure to consult an expert for more information on how stamp duty applies in your state. You may also visit the following government websites for more information:
