Stamp duty in Australia: the state-by-state transfer duty landscape

Why stamp duty is state-by-state

Stamp duty, also called transfer duty in some jurisdictions, is a tax levied on the transfer of ownership of dutiable property. Responsibility for administering this tax rests with each state and territory government. This means that each jurisdiction operates under its own Duties Act, which governs the specifics of stamp duty collection.

Because stamp duty is a state and territory responsibility, each government has the power to determine the details of the tax. This results in significant variation across Australia. Each state sets its own rates, thresholds, exemptions and concessions relating to stamp duty.

The duty is generally paid by the purchaser of dutiable property, such as residential property, business assets, and certain share transfers in some states. Understanding the specific rules in the relevant state or territory is essential for compliance. Add stamp duty deadlines to your compliance calendar tool to stay organised.

What's dutiable

Transfers of real property are the most common dutiable transaction across all Australian states. This includes land and buildings.

Beyond property transactions, many states apply stamp duty to transfers of business assets. This can encompass items such as goodwill and licences.

Certain transfers of shares are also subject to duty in some states. This applies to shares in unlisted companies and unit trusts where the company or trust holds significant land or property assets. It is important to recognise that cars and other motor vehicles are subject to a separate vehicle registration duty, rather than stamp duty.

• Goodwill
• Licences
• Shares in unlisted land-rich companies
• Shares in unlisted property-rich unit trusts

Foreign purchaser surcharges

Most states in Australia apply an additional duty surcharge to residential property acquisitions made by foreign persons. This surcharge is applied in addition to the standard stamp duty rate and typically ranges between 7% and 8% of the property’s dutiable value.

The definition of a ‘foreign person’ differs between states and can extend beyond individuals to include corporate entities. States have established thresholds for foreign ownership that, if exceeded, will trigger the foreign purchaser surcharge. It is essential to carefully review the specific definition applicable in the relevant state.

Beyond the transfer duty surcharge, some states also levy an annual land-tax surcharge on residentially-zoned land owned by foreign persons.

Concessions and exemptions

Stamp duty legislation incorporates various concessions and exemptions designed to address specific circumstances. Most states offer reduced or waived transfer duty for first home buyers, although eligibility is conditional on meeting certain criteria relating to property value and residency. Similarly, some states provide concessions for purchases of new apartments or units bought ‘off-the-plan’.

Certain types of property transfers are also frequently exempt or partially exempt from stamp duty. These include transfers occurring as part of family transfers, the administration of a deceased estate, and particular corporate restructuring activities. The specific conditions and applicability of these exemptions vary considerably between states.

Because stamp duty laws and associated concessions are subject to change, it is essential to verify the current rates, thresholds, and exemptions applicable in the relevant state. State revenue offices regularly update this information, often on an annual basis.