How much is stamp duty costing you?

Adam Smith 15 July 2016

Piggy_Oz_Money_Shutterstock_450Stamp duty could be costing you more than $90 a month, a housing lobby has claimed.

The Housing Industry Association (HIA) has released its Stamp Duty Watch report, claiming stamp duty is adding significant material cost to mortgage repayments. The report found that during June 2016, the average stamp duty bull for a non-first home buyer owner-occupier was $17,811. The HIA said this added an additional 3.6% to the cost of purchasing a home, or the equivalent of four months of after tax income.

“By eroding deposits and making home buyers borrow more, stamp duty is estimated to add $91 per month to household mortgage repayments for a median priced home,” HIA senior economist Shane Garrett said.

Garrett argued that stamp duty was “hurting ordinary households”, as well as restricting economic activity and obstructing the national dwelling stock “from achieving its full potential”.

“Including the new FIRB application fee, foreign investors in Australia’s biggest rental markets now face major costs on entry. This is most severe in Melbourne, where the purchase of the typical unit involves almost $65,000 in stamp duty and fees. The situation is not much better in Sydney, with foreign investors hit for over $58,000 on the acquisition of a unit of average price. Under the new rules, foreign investors in Brisbane units will be charged $29,000 in transaction taxes alone,” Garrett said.

Garrett said foreign investors were a “key tent” of supply for rental markets, and that rental conditions would tighten in their absence.

“These additional costs will act as a deterrent,” Garrett said.

Find out how much stamp duty will cost you

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2 Responses

  1. Default Gravatar
    jackieDecember 13, 2016

    Houses around my suburb of North Fitzroy are costing more than a $1 million + How much stamp duty would you have to pay on $1 million, please.

    • Staff
      MayDecember 13, 2016Staff

      Hi Jackie,

      Thank you for your question and for contacting finder.com.au we are a financial comparison website and general information service we are not mortgage specialists so can only offer general advice.

      Generally, the stamp duty is 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. Furthermore, rates vary across the country and can change quite often, depending on whether or not the state governments are trying to encourage people to purchase homes. I suggest that you read more about our guide on calculating the stamp duty on this page, which you may find useful.

      Cheers,
      May

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