Canstar Editor in Chief Nina Tovey

 

Nina Rinella, Editor-in-Chief | Fact Checked | Updated 16 May, 2022

 

If you are purchasing a property in Australia, you may be required to pay a tax, called ‘stamp duty’. This is an extra expense, on top of the purchase price. We’ve gathered some important information you might like to consider, including a handy calculator to help you figure out the costs you can expect from your state or territory government.

What is stamp duty?

According to the Australian Government, stamp duty (sometimes also known as transfer duty) is a tax on written documents and certain transactions. Stamp duty is imposed by state and territory governments and the exact amount varies depending on the state or territory you reside in. Depending on the circumstances, this tax can be paid by the purchaser or borrower at a flat rate or based on the value of the transaction.

What transactions might I pay stamp duty on?

While this article focuses on stamp duty for people buying a home, there are also some other transactions that you may need to pay stamp duty on.

According to the Australian Government, some common types of transactions that could incur stamp duty include:

  • Real estate
  • Motor vehicle registration
  • Insurance policies
  • Leases and mortgages
  • Hire purchase agreements
  • Transfers of some shares
  • Gifts

Please note that the calculations shown are an estimate only based on current charges. You should seek legal and financial advice before committing to a property purchase.

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How is stamp duty calculated?

Stamp duty costs vary from state to state. It also depends on the type of property (or possession) and the selling price as well as the intention (i.e. to live in or as an investment). The calculation can vary between different jurisdictions but normally involves an assessor calculating the amount of stamp duty you will need to pay based on the laws in your state or territory.

More information for your particular state or territory:

How is stamp duty paid?

Generally, stamp duty on a property is paid by the person making the purchase. Typically, if you are buying a property, your conveyancer or solicitor will give you more information about stamp duty and advise you how much stamp duty you will need to pay. Alternatively, you may receive a notice in the post containing this information.

Explore further: Can stamp duty be added to a mortgage?

The deadline for the payment of stamp duty can vary depending on your state or territory. In general, full payment is required between one to three months.

The payment of stamp duty can typically be processed via direct debit, credit card, bank transfer or cheque. Your solicitor or conveyancer, or the notice you receive, will specify the details of the bank account that your stamp duty payment must be sent to.

Do I qualify for an exemption from stamp duty?

Each state and territory offers some exemptions from stamp duty and it is a good idea to do your research to see if you qualify for any. Some exemptions include:

Even if you don’t qualify for an exemption, it’s possible you may qualify for a stamp duty concession (reduced rate) in your state or territory.

Explore:

Compare home loans for first home buyers

Australia’s First Home Owner Grants and concessions

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Nina Rinella, Editor-in-Chief 

As Canstar’s Editor-in-Chief, Nina heads up a team of talented journalists who research and write articles to provide our readers with valuable insights about the home loan and property markets. Previously Nina founded her own agency where she provided content and communications support to clients around Australia for eight years. She also spent four years as the PR Manager for American Express Australia, and has worked at a Brisbane communications agency where she supported dozens of clients, including Sunsuper and Suncorp.

Nina has ghostwritten dozens of opinion pieces for publications including The Australian and has been interviewed on finance topics by the Herald Sun and the Sydney Morning Herald. When she’s not dreaming up ways to put a fresh spin on finance, she’s taking her own advice by trying to pay her house off as quickly as possible and raising two money-savvy kids.

Nina has a Bachelor of Journalism and a Bachelor of Arts with a double major in English Literature from the University of Queensland. She’s also an experienced presenter, and has hosted numerous events and YouTube series.

You can follow her on Instagram or Twitter, or Canstar on Facebook.

You can also read more about Canstar’s editorial team and our robust fact-checking process.


 

This content was reviewed by Deputy Editor Amanda Horswill and Sub-Editor Tom Letts as part of our fact-checking process.