Understanding Stamp Duty: A Guide for Homebuyers

When buying a home in Australia, one of the significant costs you’ll encounter, in addition to the purchase price, is stamp duty. Understanding how it works and what it’s likely to cost you, can help you plan for your next purchase. Here we explain how stamp duty is calculated, when it’s payable, and how Property Credit may be able to help you fund it using the equity in the property you’re selling.

What is Stamp Duty?

Stamp duty is a government-imposed tax on the transfer of property. While the rate and rules can vary depending on the state or territory in which you’re purchasing, it’s generally calculated as a percentage of the property’s sale price or its market value — whichever is higher.

How Much Will Stamp Duty Cost You?

The cost of stamp duty depends on:

• The state or territory where the property is located.
• The value of the property.
• The type of property.

As a general guide, expect to pay around 3-4%*. Each state has its own rates and rules, but here’s a general overview of how stamp duty works:

• New South Wales (NSW): Stamp duty is calculated based on a sliding scale. For properties up to $1 million, the rate typically ranges between 1.25% to 4.5% depending on the price. For properties over $1 million, the rates can go higher.
• Victoria (VIC): Victoria charges a flat rate based on the value of the property. The rate ranges from around 1.4% to 5.5% for properties worth over $960,000.
• Queensland (QLD): Queensland uses a progressive stamp duty system where rates start at 1.5% and increase based on the property price.
• Western Australia (WA): WA has a similar sliding scale system, where stamp duty rates range from 1.9% to 5.15%.
• South Australia (SA): In SA, stamp duty is calculated at a flat rate that ranges from 1% to 5.5%, depending on the property value. For properties valued above $1 million, the rate can increase.

These rates can vary and may be affected by any applicable exemptions or concessions, such as for first-time home buyers.

When is Stamp Duty Payable?

Stamp duty is generally payable within a few weeks of the settlement date. In most states, the buyer is required to pay the stamp duty before settlement or shortly after. Penalties or interest can be imposed if you fail to pay on time, so it’s essential to factor this into your budget before buying.

• NSW: Stamp duty must be paid within three months of settlement.
• VIC: within 30 days of the settlement date.
• QLD: within 30 days after the settlement.
• WA: within two months of settlement.
• SA: within 90 days of the settlement.

How Property Credit Can Help

One of the biggest obstacles for buyers, especially when faced with a longer settlement, is coming up with the funds to cover stamp duty. Clients often come to us with their savings tied up in the property they’re selling, making it hard to pay the stamp duty upfront.

Property Credit allows buyers access to the equity in their current property to cover the cost of stamp duty on their next home purchase. This can be a huge relief for sellers that have their current property on the market, with a contract on their next purchase. Sellers can use their equity to cover the upfront cost of stamp duty.

• Access funds quickly: Instead of waiting for your property sale to finalise, Property Credit allows you to tap into your home’s equity fast.
• No need for upfront payment: You won’t need to find the money for stamp duty upfront, and there’s nothing to pay until your property settles.

For more information on how we can help with stamp duty funding, visit property.credit.

This article was published in April 2025. While we strive to keep rates and timelines as accurate as possible, stamp duty rates and regulations are subject to change. Please be aware that the information provided is intended as a general guide only. We recommend conducting your own research to verify the most up-to-date information for your specific situation before making any decisions.