What is stamp duty and how is it calculated?

Common queries we receive from borrowers is ‘what is stamp duty’, ‘how is it calculated?’ and ‘why do we have to pay it?’

Essentially, stamp duty refers to the tax charged by each of the state and territory governments on certain transactions and documents. You are required to pay stamp duty when you purchase a house to cover the cost of transferring the legal title in your name.

The amount of stamp duty you pay depends on the property’s value and the state or territory in which you are buying. Stamp Duty rates may also vary for different types of properties such as vacant land, independent units or a property bought off the plan.

Stamp Duty varies based on location​

Generally speaking, stamp duty charges amount to 4-5% of a property’s value. It means you could be paying as much as $37,500 in stamp duty when purchasing a house worth $750,000.

As an example, this is how much stamp duty you would pay in each state based on a $700,000 purchase (established home, primary residence and not a first home buyer):

Sunshine Coast Brokers

Estimated Stamp Duty:

  • VIC: $38,911
  • SA: $38,626
  • NT: $34,954
  • WA: $27,757
  • TAS: $27,105
  • NSW: $27,002
  • QLD: $19,668
  • ACT: $19,751

In terms of calculating stamp duty, the best resource (in our opinion) to use is www.stampdtycalc.com.au. It allows you to calculate the duty depending on purchase and state.

However, when it comes to purchasing property, here are a few tips to minimise the ‘impact’ of the tax:

Stamp Duty Concession:

Depending on the state in which you are buying, you may be eligible for a stamp duty concession or exemption as a first home buyer, pensioner, or someone in a specified financial situation. Get in touch with the relevant state bodies to assess your options. You could save thousands!

Budget for Stamp Duty:

Enlisting a smart mortgage broker will enable you to budget for additional fees when purchasing property.

Note: it is not just the one-off purchase price that you pay when buying a house.

Short-term Property purchase:

If you are looking to flip properties over a short period, be mindful that stamp duty charges can eat into your profits. Take this into account when budgeting and selecting properties.

If in doubt, do your research and understand the costs involved in purchasing property – it’s not as scary as you think

Get in touch

Request a call back from a lending specialist. 

Book your free discovery call directly using the link below, or complete our contact form and we will be in touch.

E.G. I want to 'buy a new property', 'refinance', 'buy an investment property'...

Subscribe to
Weekly Market News

Ynance Mortgage Broker

We help our clients achieve their property dreams. we’ll take the time to understand your goals and aspirations, with your financial welfare front of mind.

Copyright 2022 by Ynance. All Right Reserved.
Certified Credit Representative (No:537731) of Mortgage Loans Australia Pty Ltd (No:385592)