Stamp duty
A state government tax on property purchases, calculated on the price or value of the property.
- Also called transfer duty
- Rates and concessions differ by state
- Usually the largest purchase cost after the deposit
How it works
Each state sets its own duty scale, rising with the price. Investors generally do not receive first home buyer concessions. Some states charge a surcharge for foreign buyers.
When it is paid
Usually within a set period after exchange or by settlement, depending on the state.
Stamp duty is a sunk cost, which is one reason short-term buying and selling rarely works for investors. It generally forms part of your cost base.
Common questions
Is stamp duty charged on house and land packages?
Often only on the land, depending on the state and the contract.
Can stamp duty be added to my loan?
Sometimes, if your deposit and LVR allow it.
Related terms
Sources
General information only. It does not consider your objectives, financial situation or needs, and is not financial, credit, tax or legal advice. Rules change, so check current law and get advice from a licensed professional before acting.