News & Advice.

Buying a home is usually the biggest purchase you will ever make, and there are a lot of fees and costs that contribute to this considerable price tag.  

One of the most commonly misunderstood fees is stamp duty. So we’ve answered some frequently asked questions to help you learn the ins and outs of this property tax. 

What is stamp duty? 

Stamp duty is a tax designed to cover the costs of documents and transactions, such as property transfers.  

Property stamp duty, also known as land transfer tax, is a state or territory tax payable when you purchase a home. The fee is on top of the purchase price.  

How much does stamp duty cost? 

How much stamp duty you pay depends on the state where you are buying, the type of purchase, and the property’s value. 

Exemptions or concessions can apply to first-home buyers and inherited properties. Foreign investors who want to invest in residential property in Australia must pay a foreign ownership surcharge.  

Check out this online stamp duty calculator to estimate what you may owe, or get in touch with a financial advisor to see what you can expect to pay. 

Do I have to pay stamp duty as a first-home buyer? 

Most states and territories offer concessions or exemptions to eligible first-home buyers. These concessions are subject to change depending on the property’s value and whether it is an existing property, a new build, or a block of land. 

It’s a good idea to check the first homeowner grant website to see if you are eligible for concessions or exemptions. 

When does stamp duty have to be paid? 

Stamp duty is typically due around the 30-day settlement period; however, every state and territory has different stamp duty payment terms.  

A conveyancer or solicitor will organise the stamp duty payment process on your behalf. If you manage your own finances, make sure you know the exact timings that apply to your settlement to avoid surprises.  

Can stamp duty be added onto a home loan? 

Stamp is required up-front when purchasing a property and cannot be included in the cost of mortgage repayments. 

It is essential to factor stamp duty into a deposit. If you do not have the funds to cover 20 per cent of the purchase price plus stamp duty, you may need to pay Lenders Mortgage Insurance (LMI).  

What other costs do I need to consider when buying? 

To learn more about the cost of buying property in Australia, read our blog: 5 Costs to Consider When Buying Property in Australia. 

In addition to Stamp Duty, Land Tax, Council Rates, Council Rates, FIRB Approval, and Insurance, all buyers should factor in pest and building inspections, solicitor and conveyancer fees, a deposit, and, if applicable, a home loan, bank fees, moving costs, repair and renovation costs, and Lenders Mortgage Insurance (LMI).