A state-by-state guide to understanding Stamp Duty
When searching for our ideal home or next investment in the property market, the topic often left to the end is the elephant in the room – Stamp Duty. This inescapable factor in a property purchase journey isn’t just any old tax obligation, it’s the gatekeeper to achieving that property milestone.
Courtesy of respective state governments, the revenue the state or territory receives from Stamp Duty is added to that state government’s budget. Your Stamp Duty contribution does the heavy lifting for the community as it aids in improving the health, transport and emergency services sectors. While it’s good to know that your money is going to good use – how deep will you have to dig into those pockets?
Short answer – it depends.
Each state and territory has its own rules, its perks for first-time buyers, and, of course, its slice of your pie. The Stamp Duty also varies depending on whether you are setting up your homestead, or making an investment move.
We are taking you through Stamp Duty, and giving you an insight on what you might be up against. Finally, we will show you how our calculator can remove the guesswork from your Stamp Duty confusion.
Australian Capital Territory (ACT)
In the ACT, it’s a sliding scale of excitement with Stamp Duty. Starting at just $20 or $1.48 per $100 for those bargain properties under $200,000; it ramps up to $5.09 per $100 for those higher-end properties valued at $1,455,000+.
First-home buyers, you’re in for a treat with some possible concessions—if you tick all the right boxes. And for the seasoned crowd, some exemptions make getting older a bit more golden.
Rezzi’s take: Estimated Stamp Duty on a $500k residence? About $13,460. Not too shabby for a slice of the ACT.
New South Wales (NSW)
NSW is where the Stamp Duty scale can feel like a roller coaster ride. For those mid-range homes between $300,001 and $1 million, you’re looking at $8,990 plus a little extra for every $100 over $300k. For the swankiest properties above $3 million, it’s a hefty leap to the luxury tax bracket attracting a Stamp Duty of $150,490 plus $7 for every $100 or part thereof that the value exceeds $3 million. (Please note, premium duty is only payable on residential land).
First-home buyers, keep your eyes peeled for concessions along with a $10,000 grant—because every bit helps.
Rezzi’s take: Dropping $500k on a home? Your Stamp Duty comes to an estimated $17,990.
Northern Territory (NT)
In the NT, properties up to $525,000 have a unique calculation (duty payable is equal to (0.06571441 x V2) + 15V, where V is the dutiable value of the property divided by 1000.).
Beyond that, it’s a straightforward percentage of the dutiable value. Seniors, your golden years are looking brighter with concessions, and new homeowners might snag up to $7k off their Stamp Duty.
Rezzi’s take: For a home worth half a mil, expect to part with about $23,928.60 in Stamp Duty.
Tasmania
Tasmania starts the bidding at $20 for those almost mythical properties priced at $1,300 or below (FYI: properties in Tasmania are affordable, but not THAT affordable). From there, it’s a steady climb based on your property’s value. Unfortunately, first-home buyers and pensioners, the concession well is dry here.
Rezzi’s take: Are you looking at a $500k Tassy home? That’ll be $18,247.50 in Stamp Duty.
South Australia (SA)
Kicking things off in the budget-friendly zone, if you’re eyeing a spot that’s $12,000 or less, the Stamp Duty’s a mere 1% of what you’re shelling out. But it’s an uphill climb from there. If you are eyeing a property that is more than half a mil in SA? The starting line is $21,330 in Stamp Duty, with an extra 5.5% tacked on for every dollar over $500,000.
Rezzi’s take: Have your heart set on a $500k residence? Fork over $21,330 in Stamp Duty fees for the privilege of calling it yours.
Victoria
Victorians, rejoice! The sliding scale of Stamp Duty is tempered with a bit of grace for first-home buyers—properties under $600k are exempt from Stamp Duty! From there, there are discounts for properties up to $750k. Pensioners, there are some perks for you too, with exemptions and part concessions on the menu.
Otherwise, Stamp duty in Victoria starts at 1.4% for properties valued at $25,000 and below, and goes up to 5.5% for properties over $960,000.
Rezzi’s take: For a mid-range home of $500k, you’re looking at a Stamp Duty bill of around $25,070.
Queensland
Welcome to sunny Queensland, where if you’re snagging a property for less than $5k, you’re skating by without dropping a cent on Stamp Duty. But, once you cross that $5,000 threshold, and start browsing in the $5,000 to $75,000 neighbourhood, a 1.5% rate applies.
Now, for those playing in the $75,000 to $540,000 playground, you’re shelling out $1,050 plus an extra $3.50 for every hundred over $75k. If you aim to live large with a property tipping over the million-dollar mark, you’re looking at a hefty $38,025, plus an additional $5.75 for every hundred past that million mark.
Rezzi’s take: For a half-million-dollar home, the Stamp Duty estimate stands at $15,925.
Now, to our home turf, Western Australia
We’ve found our way back home! In Western Australia, for properties worth $120,000 and below the Stamp Duty is payable at a rate of 1.9%. It increases in increments to $28,435 plus 5.15% of dutiable value over $725,000. If you are a first-time home buyer, you’re in luck, because the Stamp Duty bill is scrapped for you on properties or vacant land valued at up to $430,000. This exemption aims to facilitate homeownership for first-time buyers.
Plus, the First Home Owners Grant (FHOG) is set at $10,000. This grant is designed to assist first-time homebuyers in purchasing their initial home but is only available for new homes or land with an attached building contract.
Rezzi’s take: You will be dropping about $17,765 on Stamp Duty for a $500k WA dwelling.
- How is Stamp Duty calculated in WA? In Australia, the Stamp Duty you must pay is the same regardless of whether the property is residential, investment, mixed-use or commercial. The only time it changes is if you are a first home buyer.
- Calculating Stamp Duty on vacant land in WA: The calculation of Stamp Duty on vacant land follows specific guidelines set by the WA Department of Finance. The initial stamp duty is calculated at the general rate upon purchasing vacant land. This applies to all vacant land transactions before any developments are made. Buyers can apply for a stamp duty refund if a residence is constructed on vacant land, and this construction qualifies for the First Home Owners Grant. This refund is granted once the FHOG is issued. For instance, if you build a family home on the purchased land and it meets the criteria for the FHOG, you become eligible for this refund.
- Understanding the Stamp Duty Surcharge for foreign investors in WA: Foreign investors purchasing property are subject to a Foreign Buyers Duty, also known as a Stamp Duty Surcharge. This is in addition to the standard transfer duty. The surcharge for foreign buyers is set at 7% of the property’s dutiable value.
At Rezzi, we want to help you navigate these waters with the confidence of a seasoned property pro, that is why we created the Stamp Duty Calculator.
Removing the guesswork out of stamp duty with our stamp duty calculator
Are you ready to demystify the stamp duty maze? Introducing our easy-to-use stamp duty calculator.
Cracking the code on what you’ll actually pay when you snag that next piece of Aussie real estate just got a whole lot easier. Now, you can wave goodbye to any guesswork surrounding stamp duty.
So, here’s the deal: our calculator is your first-class ticket to pinpointing those inescapable stamp duty costs across any corner of Australia. It considers your situation, is straightforward, and can act as your go-to tool for budgeting your property dreams.
However, please note that our calculator is a crystal ball, not a fortune teller. It produces solid estimates to slot into your financial game-plan, but it’s not the final word. For the intricate details of your stamp duty dues, consult with professionals to understand your specific obligations.
