StampDuty-Property-2

Stamp Duty Calculator

Rates and Fees verified correct on May 29th, 2015

When purchasing a house you will most likely have to pay a tax called stamp duty. Find out more about this tax and if exemptions apply to you.

When you are looking to buy a home, you will be required to pay a variety of fees and charges upfront. One of these major costs is stamp duty; which is payable on nearly all home purchases. It is a tax that is charged by the government on the sale of property and shares and covers the costs of changing the title of the property and ownership details. By knowing how much you will have to pay in stamp duty, you can better plan for the expenditure of finalising the sale of your home.

The amount of stamp duty that you will be charged will be determined by the state or territory that you live in, the amount you pay for the home and the type of property that you are buying. Depending on your personal circumstances you may qualify for an exemption on stamp duty.


How much stamp duty will I have to pay?

The amount of government stamp duty that you will have to pay depends on a number of factors. These are :

  • What state or territory you live in. Some states will charge more stamp duty than others but most will be around the same amount.
  • The cost of the property. One of the major factors that will affect the amount of stamp duty that you pay will be the cost of the home that you bought. Generally, if you buy a home that is worth more than $500,000 then you will have to pay a lot of stamp duty.
  • The type of home you buy. The amount of stamp duty that you will be charged will be different depending on the type of home you buy. A vacant property will have less stamp duty charged to it when compared to buying a home.

Use the finder.com.au calculator below to help you work out how much exactly you need to pay.

Remember: Make sure you select the state you are buying when making your calculations.

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Are there any exemptions from stamp duty?

Government stamp duty can be a very large cost, however there are some exemptions that you will be able to apply for, depending on what state you live in. These include :

  • The value of your house. If you pay less than the threshold amount for your state you may find that the amount of stamp duty that you pay will be quite low. This is because people who are buying homes that are not worth as much will get exemptions from the full amount.
  • First home owners. If you are a first home owner then you may find that you can get exemptions from stamp duty. In some states, first home buyers will not have to pay stamp duty at all, while in others stamp duty will always be payable. However, if you use the first home owner’s grant to pay the stamp duty then you will technically not pay any stamp duty.
  • Pensioners and health card holders. If you currently receive Government benefits, you may be eligible for a concession or exemption. Check your local Office of State Revenue to find out if any apply to you.

How to find out if you’re exempt from paying stamp duty

There are a number of fees associated with the purchase of a home or property in Australia, including stamp duty. This is a separate tax charged by the local Office of State Revenue where the property is located and is meant to cover the administration cost of transferring ownership and changing the title for the property.

Stamp duty tax is not a pre-set amount, but rather determined by the state or province you are purchasing in, the cost of the property and its type. There are certain circumstances that may allow an individual to be exempt or to receive discounts from this tax. As stamp tax can be a major cost, it’s important to do your research to see if you can receive any exemptions or concessions.

It’s important that you consider the stamp duty tax when looking into making a home purchase, as it could end up saving a few thousand dollars off your upfront costs.

Find out the rates and any applicable exemptions and concessions for the location where you are planning to buy a home and make sure you can afford this extra charge before making a commitment to a mortgage.


How to avoid paying stamp duty

As you've already seen, paying stamp duty can significantly increase the cost of your home. However, there are steps you can take to avoid paying stamp duty or at least significantly decrease the amount you pay, which can save you a lot of money.

Consider that the rate of stamp duty you will pay increases according to the value of the property you are purchasing.

Thus, you should consider negotiating to decrease the value of the property to below a certain threshold to avoid paying a larger tax if the difference isn't too great.

If you are building a house, think of reducing the costs by purchasing cheaper fixtures, for example. Lowering the cost of building your home by a few thousand dollars can save you thousands more in taxes.

Stamp duty is significantly greater in most states on properties worth more than $500,000, so consider purchasing a home below this value to save money. Similarly, vacant properties over $300,000 will incur a much higher stamp duty so try to look for properties below this threshold.

Don't forget that in some states you will be charged on the market value of the property rather than the purchase price, so take this into consideration when negotiating. You might not necessarily be able to reduce the stamp duty you are being charged but you may be able to come to an agreement with the seller so that you can negotiate the price of the property down by at least the amount of stamp duty you need to pay.

If it's an option, you can also consider relocating to another state where stamp duty is significantly lower or, if you are a first time home buyer, where you are completely exempt from paying stamp duty. Also, make sure to fully inform yourself regarding any other concessions you might be eligible for.

Since stamp duty can be a significant cost, minimising how much you pay can help you in the long run. The money you save can be put towards paying off the loan, which will save you money on interest costs as well or it can be used to make renovations. You need to remember that it does pay to do your due diligence and see what other options are available to you to reduce the amount of stamp duty you have to pay.


Do I have to pay stamp duty on a loan I am refinancing?

In most cases you will have to pay stamp duty again even if you are refinancing. However, there are situations in which you can avoid paying stamp duty. For example, if the names of the borrowers are the same and the amount of the loan is the same, there might be a chance you could avoid paying stamp duty. In some cases, you might also have to refinance with the same lender to avoid this cost.

Note that in some situations you may have to pay the fees but you can then apply for a refund from the lender. Thus, it pays to make sure you do your research before deciding to refinance because any savings you incur from a lower rate might be completely obliterated if you have to pay stamp duty again. In this case, refinancing may simply not be worth the hassle.


How do I budget for the stamp duty costs on my new home?

stamp-cal

Budgeting for stamp duty costs when purchasing a new home requires a bit of research. First and foremost, you have to consider approximately how much you will be paying for the property and what state you are making the purchase in. This is because in some states, the market value of the property will supersede the purchase price if it is higher. Also consider whether you will be paying stamp duty on your loan or not, since this will mean that you have to pay it upfront.

The easiest way to get an idea of how much your stamp duty will cost you is to use a stamp duty calculator. While the figure won't be exact, it will still provide enough of a guideline for you to create a budget. On the other hand, if you want an exact figure, you can ask a professional to calculate the cost of this tax for you as he or she can take into consideration your personal circumstances.

Don't forget that in some states and some situations you might be exempt from paying stamp duty so make sure to do your research thoroughly.


How do I pay my stamp duty?

Paying stamp duty is not all that difficult, as long as you have the funds available. You will generally receive a notice through the mail to the address of the property you have purchased or a specified address if you chose a different mailing address. The letter will contain all the information regarding this tax, including the amount you need to pay.

In terms of when it needs to be paid, each state differs, but on average you will have about three months to make the payment in full. Note that you can't avoid paying it and if you are late, you will incur interest charges and other costs since you won't be able to complete the transaction.

Physically paying the tax is usually a matter of depositing the money in the account provided in the letter. You can do this via direct deposit, bank transfer, cheque or credit card. You don't need to worry, though, because all the payment options will be mentioned in the letter.


Top tips for home loan stamp duty

stamp-home

Here are a few tips to take into consideration to ensure the settlement process goes smoothly for both parties and unnecessary delays are avoided, which also means saving money in the long run.

Buyer tips

  • When composing the Offer and Acceptance, you need to be very specific with the Special Conditions. This means stating exactly what the condition is, who is responsible for its payment, by when the condition must be met at the latest and what the consequences will be if it is breached.
  • Note that banks generally require around 21 days to process approve your loan from when you submit your application so take that into account and make sure you allow plenty of time.
  • Banks also need 28 days from when you receive unconditional approval to release the money for the final settlement.
  • In terms of stamp duty, you will need to give seller a stamped Transfer of Land to be signed to be in full compliance with the Joint Form of General Conditions for the Sale of Land. If you don't have the funds available, advise the bank that you need the money to pay stamp duty before settlement because you will find that most lenders will be willing to help you with this to make sure you meet your obligations.
  • To expedite matters and avoid settlement delays, it is essential that you attend the signing and make sure all documents are returned as quickly as possible.
  • Make sure that you let your Settlement Agent know if you are not going to be present at any point during the settlement.

Seller tips

  • Read the Offer and Acceptance thoroughly and make sure you have understood every condition stated on it because if anything hasn't been fulfilled, there is a good chance settlement will be delayed.
  • It takes the bank 21 days to prepare the documentation to discharge your mortgage after the relevant form has been filed so make sure to let them know you will be discharging your mortgage in advance.
  • If you receive a rates notice for the adjustment of rates, which can occur during settlement, make sure your Settlement Agent receives the document as soon as possible.
  • If the title deed is in your possession because the property isn't being used as security, you will need to make sure you have it available. If you can't find it, speak to your Settlement Agent to resolve the issue as quickly as possible to avoid any delays.
  • Make sure you are present at the signing and that all documents are returned as quickly as possible to avoid unnecessary delays and inform your Settlement Agent if there is a chance you might be away during any stage of the settlement process.

Divorce and stamp duty

Stamp duty isn’t payable if one of you is transferring the title to a home or land to another. However, you can only save on stamp duty if the transfer is done so you can obey a court order. The court must be able to know what assets are owned by each of the parties. This includes all of your assets like land, bank accounts and superannuation. It may be necessary to hire an expert to value an asset.

It’s important to know that parenting is seen as a very important contribution. If the marriage has been a long one, it is often seen as equal to financial contributions. Usually, the court gives the party whose financial future is not as good as the other some extra part of the property owned by the parties.

If you are looking to buy a property in Australia then you should know how much government stamp duty you will have to pay. If you are buying a property then you should also find out if you are exempt from paying the stamp duty in any way as you will be able to save a lot of money if you are able to avoid paying the duty.


Frequently asked questions

When do I pay stamp duty if I'm buying a home?

Generally, you will find that stamp duty is included in the purchase price of the home you are buying. For example, if you are buying a home for $300,000 and the stamp duty in your state is $7,500, then the actual purchase price of the home is $307,500. This means that basically, you will be paying stamp duty when you settle the transaction.

Note, though, that if you've decided to build your home, you can save a fair amount on stamp duty because you will only pay it once, when you purchase the land. When you start building the home, you won't have to pay stamp duty again and since the price of the land will generally be lower than purchasing an established home, you can save quite a bit on this tax.

When do I pay stamp duty on my loan?

Stamp duty is payable up front when you are applying for a loan, exactly like the deposit and application fee. So, you need to make sure you do your calculations properly in advance to make sure you have enough cash available to have the loan and sale processed. Some recommend that you allow a minimum of 10% of the purchase price besides your deposit for things to go smoothly but the best approach is to consult a professional and have everything calculated in advance just to make sure you don't need more since there are also other fees involved.

When is stamp duty payable?

Stamp duty is payable in a number of situations. For example, stamp duty may have to be paid if you are selling or buying a larger item such as a car or boat.

Of course, you will also have to pay stamp duty when purchasing a home, so you need to be prepared since it can be a fairly high tax.

Stamp duty is also payable when a property is transferred from one person to another. Most people only associate this tax with an actual sale of property but it is payable even if there is a simple transfer. A transfer refers to a property being given by one person to another without any funds being exchanged.

For example, if a married couple gets a divorce and one person becomes the owner of the property, this is known as a transfer of property. Likewise, if the property passes to a person as an inheritance after the death of a relative, this is also considered a transfer of property. In both cases, stamp duty will be charged when the property is transferred and will be calculated based on the market value of the property in question.

There are certain exceptions, though, where property transfers will not be charged stamp duty. There are some situations in which the de facto partner or spouse receives the property via a divorce in which they won't be charged tax. Additionally, stamp duty will not be charged if joint tenants transfer the property to tenants in common in equal shares or the latter transfer the property to the original joint tenants.

When it comes to property transfer, it's best to check with a professional to ensure whether or not you have to pay stamp duty and exactly how much you will need to pay.

Are there any exemptions from stamp duty?

While stamp duty is a pretty hefty cost for anyone purchasing a property, there are certain exemptions you may be eligible for. In certain states, if the purchase price or value of your property is below a certain level, you might find that you can enjoy a relatively low rate as you will get an exemption because you are purchasing a low value property.

Also, in many states, if this is the first home you are buying, you can get certain exemptions.

In some areas you will be able to avoid paying stamp duty completely while in others you will receive a discount. However, some states offer a first home owner's grant which can be used to pay the stamp duty instead of waiving the fee completely. So, if you are eligible for the grant and you use it to pay stamp duty, it's basically like not paying this tax at all.

How is the stamp duty Exemption Act applied?

If are purchasing a home or a property in Australia, you can expect to pay stamp duty. However, depending on your personal circumstances, the value of the property and the type of property, there are situations in which you may be exempt from paying this tax.

For example, in New South Wales, if you are purchasing your first property and it's worth less than $500,000, then you won't have to pay this tax. This also applies to properties worth less than $350,000.

In Victoria, you are exempt from paying stamp duty in the following circumstances:

  • If you are an elderly citizen with a pensioners card
  • If you are a first time home buyer with a family
  • If the property will be used as your principal residence
  • If you are buying a farm that you will be using for primary production

In Queensland, properties purchased as gifts, that are transferred from one owner to another or will be used as the principal place of residence are not subject to stamp duty. Additionally, stamp duty will be waived in the case of a change of tenure or the purchase of a manufactured home.

In South Australia, only homes worth less than $80,500 are exempt from stamp duty while in Western Australia, you will have to pay this tax regardless.

In the Northern Territory, you are eligible for stamp duty exemption if the property was received as a settlement in full or in part, if it is a farm that will be used for primary production or if it is a family home in joint names.

While there are no exemptions on stamp duty in the Australian Capital Territory, you will only have to pay $20 for properties worth less than $349,800.

As a Tasmanian resident, you are exempt from this tax if you received the property as a result of transfer between partners or if you have become the owner of it after a divorce or relationship breakdown.

How do I budget for the stamp duty costs on my new home?

Budgeting for stamp duty costs when purchasing a new home requires a bit of research. First and foremost, you have to consider approximately how much you will be paying for the property and what state you are making the purchase in. This is because in some states, the market value of the property will supersede the purchase price if it is higher. Also consider whether you will be paying stamp duty on your loan or not, since this will mean that you have to pay it upfront.

The easiest way to get an idea of how much your stamp duty will cost you is to use a stamp duty calculator. While the figure won't be exact, it will still provide enough of a guideline for you to create a budget. On the other hand, if you want an exact figure, you can ask a professional to calculate the cost of this tax for you as he or she can take into consideration your personal circumstances.

Don't forget that in some states and some situations you might be exempt from paying stamp duty so make sure to do your research thoroughly.

How much stamp duty will you pay?

The amount of stamp duty you will pay depends on the type of property you are purchases as well as your status. Rates vary across the country and can change quite often, depending whether or not the state governments are trying to encourage people to purchase homes. Generally, the rates are based on a sliding scale, with percentages increasing according to the value of the property.

Note that you might be eligible for an exemption or a discount depending on the area you live in and the type of property you are buying as well as your status. For example, in some states, first time home buyers will be fully exempted from paying stamp duty while in others senior citizens are exempt or receive a discount.

It pays to check that your information is up to date before trying to figure out how much stamp duty you will have to pay.

When will you have to pay stamp duty?

You usually have to pay stamp duty right before settlement to avoid delays but generally not longer than three months after the contracts are exchanged to avoid paying interest charges. Note, though, that in New South Wales, you will have to pay the tax as soon as the contracts are exchanged.

However, in other areas things aren't quite as strict. Thus, if settlement is approximately six weeks from when contracts are exchanged, you should pay the tax two weeks before that to avoid any delays in the transaction going through. If settlement is longer than six weeks, you don't have to pay it quite so early but you should do it within three months of the date of exchange or you will end up paying interest.

If you aren't taking out a loan to purchase the property, you should pay your stamp duty within three months of the exchange to avoid paying interest. In the case in which you are buying an off the plan residential unit, stamp duty needs to be paid within 12 months or when the contract is completed, whichever is earlier.

In terms of commercial units, if you are buying an off plan one that is subject to subdivision, you will need to pay within three months of contract exchange to avoid interest. Note that if you don't pay on time, you won't be able to register your title and the transaction will fall through. The result is that you are liable to lose your deposit and have to pay late settlement penalties.

How do I pay my stamp duty?

Paying stamp duty is not all that difficult, as long as you have the funds available. You will generally receive a notice through the mail to the address of the property you have purchased or a specified address if you chose a different mailing address. The letter will contain all the information regarding this tax, including the amount you need to pay.

In terms of when it needs to be paid, each state differs, but on average you will have about three months to make the payment in full. Note that you can't avoid paying it and if you are late, you will incur interest charges and other costs since you won't be able to complete the transaction.

Physically paying the tax is usually a matter of depositing the money in the account provided in the letter. You can do this via direct deposit, bank transfer, cheque or credit card. You don't need to worry, though, because all the payment options will be mentioned in the letter.



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Stamp Duty


Marc Terrano

A passionate publisher who loves to tell a story. Learning and teaching personal finance is his main lot at finder.com.au. Talk to him to find out more about home loans.

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215 Responses to Stamp Duty Calculator

  1. Default Gravatar
    Will | May 12, 2015

    Hello.

    My wife and I have purchased our first property off my parents. The property is a duplex worth more than 550,000. We are buying a half share and with the plan to occupy one tenancy out of the two. Our purchase price is below the 550,000.

    We’ve been told that that we are to pay stamp duty based on the total value not our financed and purchased value. Is this correct? We are not receiving rental income from the other dwelling.

    • Staff
      Belinda | May 27, 2015

      Hi Will,

      Thanks for your enquiry.

      The legislation for stamp duty differs from state to state, so it would be best to contact your state government department directly to discuss your options.

      Thanks,
      Belinda

  2. Default Gravatar
    Danny | May 7, 2015

    If I buy a block of land for $250000 and then build a house on it for $250000 (this is an investment property, do I have to pay stamp duty on the value of the land only or on the toal ($500K)

    • Staff
      Jodie | May 12, 2015

      Hi Danny,

      Thanks for your question.

      Please note that rules and regulations regarding stamp duty vary according to the state or territory that holds the property, please contact your local state government agency for further details.

      You may however be liable for land tax if you own vacant land, assessed on a calendar year basis. Generally if your land holdings have a total taxable value of at least $250,000 you must pay land tax.

      Regards
      Jodie

  3. Default Gravatar
    Steven | April 30, 2015

    Hi being on a disability pension do i have to pay stamp duty on the insurance of my house and contents. Thank You.

    • Staff
      Belinda | May 20, 2015

      Hi Steven,

      Thanks for your enquiry.

      Depending on which state you reside in, your may be exempt from paying stamp duty tax if you are on a disability pension.

      Please contact your local state government agency for more details.

      Thanks,
      Belinda

  4. Default Gravatar
    sany | April 29, 2015

    Hi
    My brother is first home buyer he is buying a property of 650k in vic and i will be joint holder with 20 percent value of the property. I am not first home buyer, would my brother still be eligible of first home owner stamp duty reduction, because of the value of the home is over 600k. But his share value is 570k and he will be living in there.

    • Staff
      Belinda | May 20, 2015

      Hi Sany,

      Thanks for your enquiry.

      To be eligible for first home buyer duty concessions, no co-purchaser may have previously owned a residential property within Australia.

      However, it would be best to contact the VIC Revenue Office to discuss your options.

      Thanks,
      Belinda

  5. Default Gravatar
    Linda | April 28, 2015

    Hi,
    We are buying a property for personal use, but have to sell our current property before we move into the new property. If we pay primary residence stamp duty, are we able to let the property out whilst our current property is being sold – i.e. for about 6 to 8 months?
    Thanks,
    Linda

    • Staff
      Belinda | May 20, 2015

      Hi Linda,

      Thanks for your enquiry.

      Please note that rules and regulations regarding stamp duty vary according to the state or territory that holds the property, please contact your local state government agency for further details.

      Thanks,
      Belinda

  6. Default Gravatar
    Mark | April 24, 2015

    If I buy an established home in WA and later choose to subdivide the property and create two lots, one lot containing the existing residence, the other lot being vacant land. Am I liable for any Duty on the creation of the new title for the rear vacant land? Or would Duty only be applicable for the future purchaser of the land if I ever choose to sell?

    Using the same scenario, am I correct in my understanding that a CGT event could be triggered if we then sell the vacant land? but I could avoid CGT if I live in the existing residence for a subscribed period?
    Regards
    Mark

    • Staff
      Jodie | May 8, 2015

      Hi Mark,

      Thank you for getting in touch.

      The subject of when capital gains tax is payable is complicated, we have emailed you some further advice for your query.

      Regards
      Jodie

  7. Default Gravatar
    Sarah | April 24, 2015

    Good morning,

    So we are buying a unit which we currently live in my partner owns this property with his ex wife which we are now buying her out and removing her name and putting my name on the loan. I am a first home buyer and he is obviously not so I will have some type of an exemption. But what my question is how long do we have to live here in order so we are not charged to pay back the exemption that may be provided on my behalf I think I get $4,500 off the stamp duty? We have lived at this property for 12 months I just wanted to see as it’s a little complicated :)

    Thank you,

    Sarah

    • Staff
      Jodie | May 8, 2015

      Hi Sarah,

      Thank you for your comment, we have followed up directly via email to your query.

      Regards
      Jodie

    • Default Gravatar
      muhamad | May 10, 2015

      i want get my stamp duty refund

    • Staff
      Belinda | May 22, 2015

      Hi Muhamad,

      Thanks for your enquiry.

      Depending on your circumstances, you may be able to apply for a refund for stamp duty.

      We suggest that you contact your state government department directly.

      Thanks,
      Belinda

  8. Default Gravatar
    | April 9, 2015

    hi i wanted to know what stamp duty i would have to pay on a property when its transferred to me and an aunty of mine when my share is only 10% do i still have to pay half the stamp duty or only 10%. the property was transferred to us from my grandma and we now have to pay stamp duty around $15,000 what do i have to pay

    • Staff
      Jodie | April 28, 2015

      Hi Adam,

      Thank you for contacting us.

      The rules and regulations regarding stamp duty vary depending on which state or territory the property is located in.

      Generally when the ownership of a property is split each owner is only responsible to for the percentage amount that they have ownership over.

      For further clarification please contact your state or territories land and property department.

      Regards
      Jodie

  9. Default Gravatar
    Anne | March 19, 2015

    Is stamp duty more on vacant land than on land with a house?
    If you have purchased a home and already paid the stamp duty,
    but had a pension card at the time, can you apply for a concession/part refund?

    • Staff
      Shirley | March 19, 2015

      Hi Anne,

      Thanks for your question.

      Typically stamp duty is more expensive on land with a house. In Western Australia there are no concessions available for pensioners, only for first home buyers.

      Should you require anymore information, please speak to the WA Department of Finance on 1300 368 364.

      Cheers,
      Shirley

  10. Default Gravatar
    Margaret | March 16, 2015

    At present there are 3 names on our property title. We wish to remove our daughters name as we are buying out her share. What exact form do we have to fill out and is there stamp duty to pay

    Thanks

    • Staff
      Shirley | March 16, 2015

      Hi Margaret,

      Thanks for your question.

      Please note that finder.com.au is an online comparison service and is not in a position to provide legal advice. Here is a list of forms that you may need to fill in, though your conveyancer or solicitor will be able to advise on which forms are required.

      If the property is to be used as a matrimonial home, generally stamp duty is exempt.

      Cheers,
      Shirley

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