Is stamp duty the same thing as transfer duty?

In everyday use, yes. Stamp duty is the common name, but each jurisdiction uses its own legal term: transfer duty in several states, land transfer duty in Victoria, conveyance duty in the ACT and stamp duty in South Australia and the Northern Territory. The revenue office for the state where the land sits administers it.

Who pays stamp duty, the buyer or the seller?

Transfer duty is generally payable by the buyer, and contracts usually reflect that. The deadline varies between jurisdictions: some link it to settlement, others to the date of the contract or transfer. Your conveyancer or lawyer will normally arrange payment, but check the revenue office's rules so the duty is ready in time.

Will my lender add stamp duty to the loan?

Usually not. Lenders generally size a loan against the property's value, not the total cost of buying it, so duty and other purchase costs normally come from your own funds. Some borrowers use equity in another property, which is a separate lending decision. Ask the lender how it treats purchase costs before you exchange contracts.

Do I pay land tax on the home I live in?

Generally not. Most jurisdictions that levy land tax exempt a principal place of residence, provided you meet their conditions about living there and how the land is owned. Land held in some trusts or companies may not qualify. Check the land tax pages of the revenue office in the state where the property is located.

What is landholder duty?

Landholder duty can apply when someone acquires a significant interest in a company or unit trust that owns land above a set value. It is designed so that buying the entity is taxed in a similar way to buying the land directly. Thresholds and the size of a significant interest differ between jurisdictions.

Does Privet's stamp duty estimator include concessions and surcharges?

No. The estimator works from each state's published general schedule where Privet has checked it against the official source. It does not apply first home buyer or residence concessions, foreign purchaser surcharges or landholder duty. Use it as a starting figure, then confirm the amount with the revenue office or your conveyancer.

Stamp duty and land tax by state explained

Two different taxes

Property buyers in Australia deal with two state-level taxes that are easy to confuse.

Transfer duty, widely called stamp duty, is a one-off tax charged when land or certain other property changes hands. It is generally paid by the buyer, around the time of settlement, and is worked out on the dutiable value of the property. That is often the higher of the price and the market value, and for a taxable sale it commonly includes GST.

Land tax is an annual tax on the land a person, company or trust owns in a jurisdiction. It is assessed on the land value rather than the value of buildings, generally excludes the owner's home, and applies once the owner's combined holdings in that jurisdiction pass a threshold.

Both taxes are set by the states and territories, not the Commonwealth. That is why the same purchase can produce very different bills in different places, and why it helps to understand how stamp duty works and how land tax works before you start comparing properties across borders.

What each state calls it

Each revenue office uses its own name for duty, and the differences show up in contracts, settlement statements and official guidance.

Jurisdiction	Common name for duty	Duty page	Land tax page
New South Wales	Transfer duty	NSW stamp duty	NSW land tax
Victoria	Land transfer duty	Victorian stamp duty	Victorian land tax
Queensland	Transfer duty	Queensland stamp duty	Queensland land tax
Western Australia	Transfer duty	WA stamp duty	WA land tax
South Australia	Stamp duty on conveyances	SA stamp duty	SA land tax
Tasmania	Property transfer duty	Tasmanian stamp duty	Tasmanian land tax
Australian Capital Territory	Conveyance duty	ACT stamp duty	ACT land tax
Northern Territory	Stamp duty	NT stamp duty	Check the Territory Revenue Office

The stamp duty estimator works from each published general schedule that Privet has checked, with the source and date shown.

How duty is calculated

Most jurisdictions use a sliding scale: the rate steps up as the dutiable value rises, so duty grows faster than the price. Some add an extra band at the top. In New South Wales, for example, a higher premium rate applies to residential property above $3,870,000^[1].

Several practical points apply almost everywhere:

Duty is usually assessed on the full dutiable value, not just the part you borrow.
When duty is due varies. Some offices count from the contract date, others from settlement or the transfer, so check the deadline early.
Late payment can attract interest and penalties set by the revenue office.
Off-the-plan purchases, transfers between family members and transfers into or out of trusts can each have their own rules.

Concessions for homes you live in

Every jurisdiction offers some form of relief for people buying a home to live in, but the shape differs. There are first home buyer exemptions or concessions, and in some places a separate concession for any principal place of residence. In Victoria, for instance, the principal place of residence concession applies only to homes with a dutiable value up to $550,000^[2]. Queensland describes its home concession on the Queensland Revenue Office website.

These concessions usually carry conditions about moving in within a set period and living there for a minimum time. If you fail a condition, the revenue office may reassess the duty. Privet's estimator does not apply concessions, so confirm your eligibility directly.

Foreign purchaser surcharges

Several states charge foreign persons additional duty when they buy residential land, on top of the standard scale. New South Wales calls this surcharge purchaser duty and charges it at 9%^[1] of the dutiable value. Many jurisdictions also levy a land tax surcharge on residential land held by foreign owners.

The definition of a foreign person is set by each state's law and can catch companies and trusts with foreign interests. A buyer may count as foreign for one state's surcharge and not another's. The foreign purchaser surcharge glossary entry summarises the idea, and the lesson on FIRB for foreign borrowers covers the Commonwealth approval process.

Landholder duty

Buying shares in a company or units in a unit trust does not transfer land, but where the entity holds enough land, landholder duty may apply as if you had bought the land itself. Each jurisdiction sets the value of land that makes an entity a landholder and the size of interest that counts as significant. In the Northern Territory, for example, the land-holding rules turn on land in the Territory valued at $500,000^[3] or more. Restructures, joint ventures and investments in property syndicates can all trigger these rules, so get legal advice before acquiring an interest.

Commercial property

Commercial, industrial and retail property generally pays duty under the general scale without the home concessions. GST often forms part of the dutiable value, unless the sale is GST-free as a going concern; the lesson on the GST margin scheme explains related GST questions. Some jurisdictions are changing how commercial property is taxed. The ACT is gradually replacing conveyance duty with rates and charges no conveyance duty on commercial property valued at or below $2,100,000^[4]. Victoria has begun moving commercial and industrial property that changes hands into an annual property tax in place of future duty. Check the details with the revenue office, because these reforms have transition rules.

How land tax works

Land tax is assessed each year on the taxable land you own at a particular date, which differs between jurisdictions. Key features include:

Aggregation. Your holdings in one jurisdiction are usually added together, so several modest properties can push you over the threshold.
Exemptions. A principal place of residence is generally exempt, and primary production land may be too.
Ownership structure. Trusts and companies can face different thresholds or surcharges. The lesson on borrower structures explains why structure matters.
Development sites. Land held for development is generally taxable while it is held, which adds to holding costs.

The Northern Territory does not currently charge a general land tax, which is why the table above has no Territory land tax page. The land tax tool links to each official source.

How duty affects the cash you need

Picture a hypothetical investor buying a unit. The lender values the property and offers a loan based on a share of that value. Duty, legal fees, inspections and lender fees sit on top of the price, and the lender generally does not fund them. The investor's contribution therefore has to cover the gap between the loan and the price, plus every purchase cost. If the valuation comes in below the price, the gap widens further.

That is why duty matters so much when planning finance. The LVR and loan-to-cost calculator shows how purchase costs change your contribution, and the loan cost estimator adds up interest and fees. Buyers purchasing before selling often fund duty from a bridging loan, as covered in bridging finance.

Common mistakes

Comparing properties in different states without working out duty for each.
Assuming a home concession applies without checking the residence conditions.
Forgetting that a company or trust may be a foreign person under state law.
Overlooking landholder duty when buying into a property entity.
Budgeting for duty but not for annual land tax on an investment property.

What to ask your conveyancer or lawyer

What is the dutiable value of this purchase, and does it include GST?
Which concessions or exemptions might apply, and what conditions come with them?
Could any buyer, company or trust be treated as foreign under this state's law?
When is duty due, and how will it be paid at settlement?
Will this property be subject to land tax, and at what point each year?

Questions and answers

Is stamp duty the same thing as transfer duty?: In everyday use, yes. Stamp duty is the common name, but each jurisdiction uses its own legal term: transfer duty in several states, land transfer duty in Victoria, conveyance duty in the ACT and stamp duty in South Australia and the Northern Territory. The revenue office for the state where the land sits administers it.
Who pays stamp duty, the buyer or the seller?: Transfer duty is generally payable by the buyer, and contracts usually reflect that. The deadline varies between jurisdictions: some link it to settlement, others to the date of the contract or transfer. Your conveyancer or lawyer will normally arrange payment, but check the revenue office's rules so the duty is ready in time.
Will my lender add stamp duty to the loan?: Usually not. Lenders generally size a loan against the property's value, not the total cost of buying it, so duty and other purchase costs normally come from your own funds. Some borrowers use equity in another property, which is a separate lending decision. Ask the lender how it treats purchase costs before you exchange contracts.
Do I pay land tax on the home I live in?: Generally not. Most jurisdictions that levy land tax exempt a principal place of residence, provided you meet their conditions about living there and how the land is owned. Land held in some trusts or companies may not qualify. Check the land tax pages of the revenue office in the state where the property is located.
What is landholder duty?: Landholder duty can apply when someone acquires a significant interest in a company or unit trust that owns land above a set value. It is designed so that buying the entity is taxed in a similar way to buying the land directly. Thresholds and the size of a significant interest differ between jurisdictions.
Does Privet's stamp duty estimator include concessions and surcharges?: No. The estimator works from each state's published general schedule where Privet has checked it against the official source. It does not apply first home buyer or residence concessions, foreign purchaser surcharges or landholder duty. Use it as a starting figure, then confirm the amount with the revenue office or your conveyancer.

Stamp duty and land tax by state explained

Key takeaways

Two different taxes

What each state calls it

How duty is calculated

Concessions for homes you live in

Foreign purchaser surcharges

Landholder duty

Commercial property

How land tax works

How duty affects the cash you need

Common mistakes

What to ask your conveyancer or lawyer

Questions and answers

Check your understanding

Occasional education emails

Review log

Key takeaways

Two different taxes

What each state calls it

How duty is calculated

Concessions for homes you live in

Foreign purchaser surcharges

Landholder duty

Commercial property

How land tax works

How duty affects the cash you need

Common mistakes

What to ask your conveyancer or lawyer

Related reading

Questions and answers

Check your understanding

Related

Occasional education emails

Review log