Gold Coast Property Buyers

When it comes to buying a property in Australia, one of the fees you need to be prepared for is stamp duty. Stamp duty, also known as transfer duty, is a one-time fee imposed by state and territory governments on property transactions. It is payable whenever the legal ownership of a property is transferred through the use of legal documents. This includes various types of properties such as houses, holiday homes, investment properties, vacant land, and farming properties.

Unlike some other costs associated with buying a property, stamp duty is not tax-deductible. However, it can be deducted from any future capital gains tax if you sell the property at a profit.

Stamp duty is typically paid upfront as a standalone fee to the government. It cannot be added to your mortgage. However, in certain cases where buyers may struggle to arrange all the necessary funds for the property purchase, some lenders may be willing to add the stamp duty amount to the loan.

For example, the stamp duty on a $500,000 property without any concessions across states is: 

  • NSW – $17,990
  • Victoria – $25,070
  • Queensland – $15,925
  • South Australia – $21,330
  • Western Australia – $17,765
  • Tasmania – $18,247.50
  • ACT – $13,460
  • Northern Territory – $23,928.60

First Home Buyer Exemptions and Concessions:

In Australia, most states and territories offer exemptions or concessions for first home buyers and pensioners. However, the specific details and eligibility criteria for these concessions can vary widely and are subject to change, especially with changes in government policies. Here’s a breakdown of some current stamp duty concessions for first home buyers as of October 2022:

  1. New South Wales (NSW):
    • First Home Buyer Assistance Scheme (FHBAS): Offers significant concessions for first home buyers purchasing an existing home, a new home, or vacant land for building a home. Under this scheme:
      • Full transfer duty exemption is available for new or existing homes valued at less than $650,000.
      • Concessional rates apply for properties costing between $650,000 and $800,000.
    • First Home Buyer Choice initiative: Allows first home buyers purchasing properties up to $1.5 million to pay an annual property tax instead of transfer duty. This option aims to lower upfront costs and boost home ownership rates.
  2. Victoria:
    • First home buyers are exempt from paying stamp duty on properties valued at less than $600,000.
    • Reduced stamp duty applies to properties priced between $600,001 and $750,000.
    • Additionally, there is a First Home Owner Grant of up to $10,000 for purchasing a new home or one requiring renovation.
  3. Queensland:
    • First home buyers are exempt from paying transfer duty on properties valued up to $550,000.
    • Concessions are available for properties valued up to $600,000 under the First Home Concession program.
    • To retain the benefit of the First Home Concession, the property must not be disposed of wholly or partially within 12 months.
  4. South Australia:
    • Currently, there are no stamp duty exemptions or concessions for first home buyers in South Australia.
    • However, there is a First Home Owner Grant scheme that offers a government grant of up to $15,000 for eligible individuals purchasing or building a new property.
  5. Western Australia:
    • First home buyers receive a full stamp duty exemption if the property’s cost is under $430,000.
    • Concessions are available for properties valued between $430,000 and $530,000.
  6. Tasmania:
    • Tasmania offers a 50% stamp duty concession for first home buyers of established homes up to the value of $600,000.
    • Concessions are also available for buyers of new homes.
  7. Australian Capital Territory (ACT):
    • First home buyers in the ACT can receive stamp duty concessions of up to 100% under the Home Buyer Concession Scheme, subject to certain criteria.
  8. Northern Territory: The Northern Territory currently offers some limited stamp duty exemptions for buyers of new house and land packages but does not offer any concessions on established properties.

It’s important to note that the terms and conditions of these concessions vary between jurisdictions. Stamp duty is generally payable within 30 days of signing the contract or 30 days from settlement.

Stamp Duty Rates:

Stamp duty rates vary across states in Australia. As a general rule of thumb, stamp duty is typically around 3% to 4% of the property’s value or purchase price. However, to obtain an accurate estimate of the stamp duty for your specific situation, it is recommended to use a stamp duty calculator provided by the respective state government.

Exemptions from Stamp Duty:

First home buyers are often eligible for exemptions or concessions on stamp duty under specific circumstances. However, it’s important to check the current conditions and eligibility criteria on the relevant state government websites to ensure you have the most up-to-date information.


Stamp duty is a one-time fee levied on property transactions in Australia. It is payable when the legal ownership of a property is transferred. First home buyers may be eligible for exemptions or concessions on stamp duty in various states and territories. The specific concessions and eligibility criteria differ between jurisdictions, and it’s essential to consult the respective state government websites or seek advice from financial advisors or mortgage consultants for accurate and up-to-date information.

Rodney Reinsma from Gold Coast Property Buyers (Buyers Agent)

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