Understanding Australian Stamp Duty

Stamp duty (or transfer duty) in Australia is a state-based tax, meaning rates and thresholds vary significantly across states and territories. Unlike the UK system, stamp duty is calculated on the full property value rather than progressive bands in most states.

State-by-State Differences

• NSW — Progressive rates from 1.25% to 7%, with exemptions under $800k for first homes
• VIC — Rates from 1.4% to 6.5%, plus a premium for properties over $2M
• QLD — Rates from 1.5% to 5.75%, first home concessions under $500k
• WA — Rates from 1.9% to 5.15%, first home exemptions under $430k
• SA — Rates from 1% to 5.5%, no stamp duty on new homes under $650k (first buyers)

First Home Owner Grant (FHOG)

The FHOG is a one-off grant for eligible first home buyers purchasing or building a new home. Amounts range from $10,000 to $30,000 depending on the state. To qualify you must be an Australian citizen or permanent resident, over 18, buying a new home under the state price cap, and intending to live in it for at least 6-12 months.

Foreign Buyer Surcharge

Foreign buyers face a surcharge of 7-8% on top of the standard stamp duty rate. This applies in all states and can add tens of thousands to the purchase cost. Some states also impose an annual land tax surcharge on foreign-owned residential property.