Stamp Duty

Stamp duty (technically "transfer duty" in some states) is a tax levied by state governments on property purchases. It's calculated on the purchase price using progressive brackets, and rates vary significantly by state.

Typical rates for a standard owner-occupier or investor purchase in 2026: NSW, VIC, and QLD apply duties of roughly 4-5.5% on mid-price properties, with discounts for first home buyers under specific thresholds. SA, WA, and TAS are broadly similar. ACT uses a different system that's transitioning away from stamp duty toward annual land tax. The NT has its own schedule with concessions for new builds in some circumstances.

For an investor, stamp duty is typically the single largest transaction cost, often $25,000 to $60,000 on a median-priced property, and over $100,000 for premium homes. It's payable at settlement and cannot be financed without using a separate loan, so investors need the cash upfront.

Stamp duty is not tax-deductible for investors in the year it's paid; it's added to the cost base of the property and reduces the capital gain (and therefore CGT) when the property is eventually sold. First home buyers and foreign purchasers face different schedules in most states.