Understanding Stamp Duty — A Complete Guide

Overview

Stamp duty (also called transfer duty or land transfer tax) is a government charge on property purchases. Rates, thresholds and concessions vary by jurisdiction. Because the amount can be many thousands (or tens of thousands) of dollars, understanding how duty is calculated is essential for budgeting deposits and settlement funds. Duty is generally applied using progressive brackets to the dutiable value of your purchase, which may differ from the contract price in scenarios like off‑the‑plan or house‑and‑land packages. Your buyer profile also matters: first‑home buyers (FHB) and principal place of residence (PPOR) purchases may qualify for concessions, while foreign purchasers can face surcharges. Policies, thresholds, and eligibility rules are reviewed periodically with state budgets, so it's important to confirm the settings that apply to your contract date before you sign.

In practice, small changes in dutiable value can move you between brackets or above a concession cap. If you are shopping close to a threshold, consider modelling prices slightly above and below your target to understand the "step" in duty payable. Work with your conveyancer or solicitor to verify how dutiable value is determined for your contract type and to ensure all concessions or surcharges are applied correctly. The calculator linked below lets you test scenarios instantly so you can negotiate with confidence.

What determines duty?

• Property price and tax brackets\
• Buyer type (first‑home buyer, investor, PPOR vs investment)\
• Property type (new, established, land, off‑the‑plan)\
• Surcharges (e.g., for foreign buyers in some regions)

Concessions & exemptions

Some jurisdictions offer concessions or exemptions for first‑home buyers, pensioners, newly built homes, or owner‑occupiers under specific price caps. Always check the official threshold tables for the current year and your contract date.

Estimating your duty

1. Identify your buyer profile (FHB, PPOR, investor, foreign purchaser).\
2. Determine the dutiable value for your contract type.\
3. Apply the relevant brackets.\
4. Apply any concessions or surcharges.\
5. Add any state fees (e.g., title transfer, mortgage registration) to get a full picture of upfront costs.

Other upfront costs to budget

• Title transfer and mortgage registration fees (separate to duty)\
• LMI if your deposit is small (see our LMI Guide)\
• Building/pest inspections, legal fees, and moving costs

Get an estimate with the Stamp Duty Calculator.