Introduction
Stamp duty is a transaction tax imposed by state and territory governments on property purchases in Australia. Rates, thresholds, and first home buyer exemptions vary significantly across states. As at early 2026, New South Wales charges up to 5.75% on properties valued over AUD 3 million; Victoria tops out at 6.24%; Queensland’s maximum reaches 6.5%. First home buyers in all states receive partial or full exemptions, but eligibility criteria and exemption amounts differ substantially. Understanding your state’s duty structure is essential for purchase budgeting.
New South Wales Stamp Duty
New South Wales applies stamp duty on a sliding scale based on property value. Properties up to AUD 14,000 attract no duty; duty increases progressively to 5.75% on values exceeding AUD 3 million (as at early 2026). First home buyers purchasing a property under AUD 900,000 receive a full exemption if the property is their principal place of residence. Properties valued between AUD 900,000–1,500,000 are eligible for a partial exemption (reducing duty owed). Revenue NSW adjusts these thresholds annually; check their website before purchase.
Victoria and Queensland Comparison
Victoria levies stamp duty to a maximum of 6.24% on purchases exceeding AUD 1.36 million. First home buyers are fully exempt on properties up to AUD 600,000 and receive graduated relief up to AUD 750,000. Queensland’s duty peaks at 6.5% for properties over AUD 5.1 million. Queensland offers first home buyers full exemption on purchases up to AUD 500,000 and partial exemption up to AUD 505,000. Both states adjust thresholds periodically; recent adjustments (FY25–26) reflected inflation. Buyers should obtain duty estimates from their conveyancer, as cumulative errors compound over a AUD 1 million purchase.
Western Australia and South Australia
Western Australia imposes stamp duty to a maximum of 6.5% on properties valued above AUD 3 million. First home buyers receive a full exemption for purchases under AUD 430,000 and graduated relief to AUD 530,000. South Australia’s duty reaches 6% on properties exceeding AUD 1.5 million. First home buyers in South Australia are fully exempt on purchases under AUD 550,000. Both states offer additional concessions for new build properties. The combined effect of state duties and local council charges (in WA, for instance) can add 1–2 percentage points to total transaction cost, so purchase price should factor in these components.
Calculating Total Stamp Duty Liability
A practical example: a property purchased for AUD 800,000 in NSW (non-first home buyer) incurs approximately AUD 34,000–40,000 in stamp duty; the same property in Queensland attracts roughly AUD 28,000–32,000. Conveyancing costs, legal fees, and building inspection add another AUD 2,000–5,000 across all states. First home buyers should model their specific state exemptions using the state revenue office’s online calculators before submitting an offer. Duty is payable at or before settlement; failure to pay incurs penalty interest at approximately 10% per annum, compounded daily.
FAQ
Q: Can I negotiate with the seller to split stamp duty?
A: Stamp duty is a state tax, not a negotiable component. However, purchase price negotiation is common. If you negotiate a lower purchase price, duty is calculated on that lower amount, effectively reducing your duty liability.
Q: Do I need to pay stamp duty on refinancing an existing loan?
A: No. Stamp duty applies only to changes in ownership. Refinancing with the same lender or switching to a different lender does not trigger stamp duty.
Q: Are new build properties eligible for stamp duty exemptions?
A: Many states offer concessional rates or exemptions for new off-the-plan apartments and new houses. NSW and Victoria both have new build concessions; check your state’s revenue office website for current criteria.
Q: If I’m a first home buyer, am I automatically exempt from stamp duty?
A: Not automatically. You must meet your state’s definition of a first home buyer (usually: never owned residential property in Australia) and lodge a declaration with your conveyancer. Your conveyancer and the revenue office will verify eligibility before settlement.
Q: What happens if I don’t pay stamp duty by settlement?
A: The property transfer cannot be registered with the Land Titles Office. Settlement will stall until duty is paid. Unpaid duty accrues penalty interest (approximately 10% p.a., compounded daily) and can trigger enforcement action by the state.
Sources
- NSW Revenue, Stamp Duty on Property, revenue.nsw.gov.au (FY25–26)
- State Revenue Office Victoria, Stamp Duty on Property Purchases, sro.vic.gov.au (2026)
- Queensland Revenue Office, Stamp Duty, qro.qld.gov.au (FY25–26)
- Department of Finance WA, Duties on Property Transfers, wa.gov.au
- South Australian Revenue Office, Stamp Duty Guide, revenuesa.sa.gov.au
This article is informational only and not financial or legal advice.