What is stamp duty?

How stamp duty works

Stamp duty is a one-time fee for recording the transfer of ownership. It applies to properties or land bought for both owner-occupier and investment purposes, and also applies to properties that you receive as gifts or as part of trusts. In some states and territories, it's referred to as transfer duty, conveyancing duty or duty.

Calculating stamp duty

The amount you pay for your stamp duty will depend on the property’s value as well as the state or territory you’re located in, as each one has its own rules and rates. Generally, the higher the property value, the more stamp duty you’ll pay.

Since stamp duty is an upfront cost, you’ll need to include it in your calculations for your house deposit. To help you get an idea of your estimated duty, use our stamp duty calculator.

How to pay stamp duty?

 Your stamp duty is paid on settlement day. This payment is made to the state or territory revenue office. The exact process may vary depending on the state or territory the property is located in, although it usually involves payment via direct deposit, bank transfer, cheque, or credit card. In many instances, your solicitor or conveyancer could also organise for the funds to be transferred on your behalf on settlement day.

Once you’ve purchased the property, meeting your stamp duty payment deadline is critical. A late payment will attract penalties, including fines and additional interest charges. Be sure to check in advance to avoid defaulting.

How to minimise stamp duty?

Stamp duty will increase the total property purchase price. However, you may be eligible to reduce the amount you pay or may be able to avoid paying stamp duty altogether. Each state has its own concessions and exemptions, but there are some common ones that you may want to be aware of.

First time buyer stamp duty

If you haven’t bought a home before, you may be eligible for a stamp duty exemption or concession. Eligibility requirements and what type of reduction you receive will differ depending on your state or territory. You should confirm the government costs, duties payable and any applicable exemption or concession information with the relevant government authority.

You may also be eligible for the First Home Owners Grant (FHOG) alongside any stamp duty savings.

Stamp duty for new homes

Stamp duty is calculated as a percentage of the value of the property you are buying at the time of purchase. If you are buying a block of land and decide to build a new home on it, you will only pay stamp duty on the value of the land, not your new home.

Off-the-plan purchases

Buying a property off-the-plan means purchasing the property before it’s been physically built. This can apply to buying and building on vacant land or buying within a larger complex that has yet to be built. These sorts of purchases can come with concessions on stamp duty and will depend on the dutiable value of the property.

How much stamp duty do you have to pay?

Most state government websites will have online calculators to help you estimate your stamp duty amount.

Stamp duty by state or territory

Find more information on how stamp duty applies in your specific state, or if you qualify for any concessions or exemptions.

ACT Revenue Office, opens in new window

NSW Revenue Office, opens in new window

Territory Revenue Office, opens in new window

QLD Revenue Office, opens in new window

Revenue SA, opens in new window

State Revenue Office of Tasmania, opens in new window

State Revenue Office Victoria, opens in new window

WA Department of Finance, opens in new window

Get professional advice and support

You don’t have to navigate the complexities of stamp duty and home buying on your own. Conveyancers, for instance, can help ensure a smooth transaction and compliance with legal requirements. If the home loan process feels daunting, particularly if this is your first time buying a home, you can get started with NAB’s home loan tool. Alternatively, visit your local branch, or book an appointment to see your nearest banker.