Stamp duty in Australia: what buyers often miss

Model your numbers in our first home buyer hub — funds to complete, borrowing power, stamp duty, and 5% · 10% · 20% deposit paths for every state.

Stamp duty — transfer duty — is one of the largest cash lines on a settlement sheet, and it is the line many buyers mentally skip when they run "price minus deposit". It varies by state and territory, by buyer type, and by concessions that change when budgets change. Getting duty wrong does not mean you misunderstood the mood of the market; it usually means you assumed national rules where none exist.

Use this as a briefing on blind spots: timing, dutiable value, interaction with first-home programs, and the ledger around duty. Confirm every figure with your conveyancer and your jurisdiction's official calculator — we link states from stamp duty planning. Pair with first-home costs beyond the deposit and deposit needs.

What trips people up

Treating duty like a single national rate. It is not. Budgeting only the headline duty and forgetting registration, searches, and adjustments. Assuming concessions from a friend's purchase — caps and eligibility move. Confusing contract price with dutiable value in nominee, off-the-plan, or linked deals without advice.

General information only. This article does not consider your objectives or situation. Speak with a mortgage broker or qualified adviser before acting.

Where each state actually stands, September 2026

The gap between jurisdictions is now wider than most buyers assume, and it has moved a lot in the last eighteen months. The table is first-home-buyer relief on an established home unless noted, because that is where the states differ most.

Two of these deserve a second look, because they change the arithmetic rather than trim it.

Queensland's new-build exemption has no price cap. A first home buyer purchasing a $900,000 new home in Brisbane pays no transfer duty, while the same buyer purchasing a $750,000 established home pays the full amount. That is a larger swing than most buyers get from any rate negotiation, and it argues for pricing new and established stock as genuinely different transactions rather than comparing headline prices. Note the offsetting change: the First Home Owner Grant reverted from $30,000 to $15,000 for contracts entered from 1 July 2026.

The ACT's abolition has no cap either. Not an income cap, not a value cap. For a first home buyer able to buy in Canberra, duty has simply stopped being a line in the budget.

Concessions and grants move — and the caps are the part that bites

First-home relief, pensioner discounts, and regional incentives shift with policy, usually at a state budget. Price caps, property types, prior ownership tests, and residency rules all matter — re-verify each purchase, not each rumour.

The caps are where people come unstuck, because they are cliffs rather than slopes in some states and slopes in others. In NSW the concession tapers between $800,000 and $1,000,000, so a $10,000 increase in purchase price costs you a slice of relief rather than all of it. Where a threshold is a hard cut-off, paying $5,000 over it can cost tens of thousands in duty — which is worth knowing before you raise your hand at an auction.

Timing relative to exchange and settlement

When liability crystallises and when cash must be available depends on your state's rules and your contract. Misalignment between duty timing and your finance approval can leave a hole you need to fill from savings — see why we harp on funds to complete, not just deposit.

Beyond duty: the rest of the ledger

Mortgage registration, transfer fees, conveyancing, and adjustments (rates, water, body corporate) stack alongside duty. First-home buyers mapping cash should read the costs article linked above before they lock a spending ceiling.

Foreign purchaser and surcharge overlays

Additional duty can apply to certain foreign or trust purchasers in particular states — definitions and rates are local. Whether you are caught usually turns on the "ordinarily resident" test (200 days in Australia in the 365 days before the contract date, plus a non-time-limited right to remain). See the ordinarily resident rule for home buyers for the full breakdown of who counts as a foreign person, the current 2025–2027 ban on foreign buyers acquiring established dwellings, and a state-by-state surcharge summary. This is conveyancer and tax territory; the practical point is to ask early so you are not budgeting at the domestic rate by default.

Investors and different imposts

Some jurisdictions layer investor or foreign surcharges. Your borrowing plan still has to survive those cash calls at settlement — weave duty into the same conversation as LVR and post-settlement buffer.

Frequently asked questions

Can duty be financed into the loan?

Sometimes indirectly via higher lending needs, subject to LVR, LMI, and lender policy — but cash must still work at settlement; there is no magic "defer duty" button on every file.

Where do I get an accurate estimate?

Your state or territory official calculator, linked from our calculators hub — not a generic national widget.

Do first-home concessions apply to established homes?

Depends on the scheme — some target new builds only, others include established stock within caps. Verify each time.

Does duty affect pre-approval?

Funds to complete (including duty) affect whether your cash position matches the purchase — brokers and lenders model both.

Need borrowing aligned with settlement cash?

First home buyer guidance, home loans, or contact — we line up loan structure with the cash reality at settlement.

General information only. This article does not consider your objectives or situation. Speak with a mortgage broker or qualified adviser before acting.

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