When is stamp duty payable on property in Australia?

Stamp duty (also called transfer duty) is a state and territory tax payable when you buy property. It is charged on the purchase price or market value (whichever is higher) and must be paid within a certain timeframe after settlement (usually 30 days). The exact rates vary significantly by state and territory.

As an example, in NSW in 2024, on a $1,000,000 property, stamp duty is approximately $40,090 for an investment purchase. In VIC, the same property attracts about $55,000. First home buyers receive concessions in all states; in many cases properties under certain thresholds are exempt, and above those thresholds a reduced rate may apply.

Stamp duty is not an ongoing annual tax. It is a once-off transaction cost. For investment properties, stamp duty forms part of the cost base for CGT purposes. That means when you sell, the stamp duty you paid is added to your cost base, reducing your capital gain. Stamp duty is generally not deductible as an operating expense in the year you pay it; it is a capital cost, not a revenue expense.