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. It’s common for your solicitor or conveyancer to 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.

Can you add stamp duty to your home loan?

Since it’s an upfront cost, stamp duty isn’t included in your home loan. However, your lender may let you borrow extra to cover its cost, depending on your deposit size, borrowing power and eligibility. It’s important to remember that adding this cost to your mortgage, will mean you’ll pay more interest overall, over the life of your home loan.

How to minimise stamp duty?

Stamp duty will increase the total property purchase price. However, if you’re a first home buyer, you may be eligible for a concession (pay a reduced rate) or exemption (avoid paying stamp duty). Each state has its own concessions and exemptions, but there are some common ones that you may want to be aware of. If you’re an investor or buying a home for the second time, you’ll pay full stamp duty unless you’re eligible for any other concessions/incentives on offer in the state/territory you are purchasing in – your solicitor, conveyancer or banker can help you to understand your options.

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 contract. 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?

Use the stamp duty calculator to help you estimate your stamp duty amount. Alternatively, you can also chat with your conveyancer or solicitor to get a more accurate estimate which is tailored to your circumstances.

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

NSW Revenue Office

Territory Revenue Office

QLD Revenue Office

Revenue SA

State Revenue Office of Tasmania

State Revenue Office Victoria

WA Department of Finance

Stamp duty can often be a complicated topic to navigate so if you’re unsure about anything, your conveyancer, solicitor or banker can help to answer questions you might have.

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.