You might be familiar with the term stamp duty tax, but what exactly is stamp duty and does it apply to you?
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What is Stamp Duty and how to Calculate it
What Is Stamp Duty?
Stamp duty is a tax set by and paid to the relevant state revenue office. It is a tax you are required to pay for a transfer of land or the purchase of a vehicle.
How Much Is Stamp Duty?
Stamp duty depends on three factors:
- The state you live in
- The dutiable value of the property you plan to purchase
- Whether you are entitled to exemptions or concessions
Stamp Duty Considerations in Australian States
Stamp Duty In New South Wales (NSW)
Many variables impact how much stamp duty you pay in NSW. You have three months from the contract date to pay stamp duty.
Learn more about Stamp Duty in NSW.
Stamp Duty In the Australian Capital Territory (ACT)
You may be entitled to concessions to reduce the amount of stamp duty you owe. Regardless of what you owe, you have 14 days from receipt of the notice of assessment to pay.
Stamp Duty In Queensland (QLD)
There are many concessions available to first-home buyers in QLD, but if you do owe stamp duty it must be paid within 30 days of settlement.
Learn more about Stamp Duty in QLD.
Stamp Duty In Tasmania (TAS)
Tasmania provides you with three months from the transfer date to pay any stamp duty you owe, but there are concessions available for first-home buyers.
Learn more about Stamp Duty in TAS.
Stamp Duty In Victoria (VIC)
You have just 30 days to pay stamp duty in Victoria after settlement, and there is a range of variables that factor into how much you owe.
Learn more about Stamp Duty in VIC.
Stamp Duty In South Australia (SA)
Not only is stamp duty due at settlement in SA, but they also have limited concessions available.
Learn more about Stamp Duty in SA.
Stamp Duty In Western Australia (WA)
Once the duties assessment notice has been issued, you will have one month to settle your stamp duty liability in WA.
Learn more about Stamp Duty in WA.
Stamp Duty In The Northern Territory (NT)
If you owe stamp duty in NT, you have 60 days from settlement to pay it.
Learn more about Stamp Duty in the NT.
How To Calculate Stamp Duty?
Every state calculates stamp duty differently so to get the most accurate calculation you should use the relevant state stamp duty calculator. It also depends on whether you're purchasing a residential property, for the first time, and whether you are eligible for exemptions or concessions.
For example, first-home buyers in the ACT can spend up to $1,000,000 on a home and access the Home Buyer Concession Scheme. They would pay no stamp duty, but a non-first-time buyer would cost $34,504.
In comparison, in South Australia, when you buy a residential property for the purchase price of $607,000 you will pay a stamp duty of $27,215 regardless of whether you are a first-time buyer or not.
Stamp Duty On Cars
If you are planning to purchase a new or used vehicle, then you have to factor in stamp duty.
Just like property stamp duty, the car stamp duty is also imposed by state governments. It is calculated differently by each state or territory government, so the best way to get an accurate calculation is to use the relevant stamp duty calculator. Car stamp duty covers the cost of vehicle registration.
Stamp Duty On Property
First-time buyers
The majority of concessions on stamp duty are available to first-home buyers. However, this is dependent on where you live and the dutiable value of the home you are purchasing.
Commercial property
How much stamp duty you pay on commercial property will depend on where the property is and whether you are eligible for concessions.
Land
Stamp Duty Land Tax is calculated on the purchase price as a percentage. Different rates apply depending on the type of property, the location of the property, and the type of purchaser.
You can read our article about stamp duty on a property to learn more about the different rates that may apply.
Stamp Duty Exemptions
The most common exemption available is for first-home buyers. However, you are exempt from stamp duty if transferring a title in a divorce, or inheriting as a beneficiary in a will.
Recovering Stamp Duty Fees
You can't recover stamp duty fees – they aren't tax deductible. However, if it's an investment property, you can offset the stamp duty against Capital Gains Tax (CGT) if you sell the property at a profit.
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While every care has been taken to ensure the accuracy of the information presented as at 12 April 2024, Intuit is not providing you with professional advice and we recommend you obtain your own professional advice. Intuit is not liable for your use of the information presented.
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