Stamp Duty and First-Home Buyer Concessions in Australia: A Plain-English Guide

Stamp duty is one of the biggest upfront costs when you buy property in Australia, and it catches many buyers off guard. If you’ve been asking, “How much stamp duty will I pay, and can I get any help as a first-home buyer?”, this guide will help you find the answers – starting with what the rules actually say.

How stamp duty works

Stamp duty – officially called transfer duty in most states – is a state or territory government tax you generally pay when property ownership is transferred to you. The amount depends on the property’s market value (or purchase price, whichever is higher), the property type, and whether you qualify for any exemptions or concessions. Each state sets its own rates and thresholds, and they change from time to time, so it’s worth checking the official revenue office website for the state where you’re buying.

The duty is usually paid as a lump sum at settlement, and you’ll need to budget for it on top of your deposit and other purchase costs (like legal fees and building inspections). It’s not a fee that your mortgage broker or lender sets or collects – it’s a government charge.

First-home buyer concessions

Many first-home buyers can reduce – or even avoid – stamp duty altogether, but the rules differ between states. In New South Wales, the First Home Buyers Assistance Scheme detailed by Revenue NSW may provide a full exemption or a reduced rate of transfer duty. The scheme has strict eligibility criteria based on property value, whether the home is new or existing, and your status as a first-home buyer. You can find current thresholds and eligibility requirements on the Revenue NSW First Home Buyers Assistance Scheme page.

Other states and territories run their own schemes, often with different value caps, sliding scales of duty concessions, and separate first-home owner grants (which are typically cash payments, not stamp duty reductions). If you’re buying outside NSW, you’ll need to review the rules published by the revenue office in that jurisdiction.

What about foreign buyers?

Foreign purchasers of residential property in Australia face an additional surcharge on top of the standard duty. In NSW, this is called surcharge purchaser duty, and it applies to foreign persons who acquire residential-related property. The exact rate and any exemptions are set by Revenue NSW and available on their transfer duty pages. Other states have similar surcharges – they’re worth factoring in if you’re not an Australian citizen or permanent resident.

Other purchase costs to plan for

Stamp duty isn’t the only cost you’ll face. Here are some of the common ones:

Legal and conveyancing fees: Your solicitor or conveyancer will handle the contract and settlement. Fees vary, so get a few quotes.
Building and pest inspections: These are not mandatory, but highly recommended to uncover hidden issues.
Loan application fees: Some lenders charge an upfront fee to set up your home loan, though many basic loans come without them.
Lenders Mortgage Insurance (LMI): If your deposit is less than 20%, you’ll typically need to pay LMI, which protects the lender (not you) if you default.

You can’t always wrap these costs into your loan, so it’s essential to save for them in advance.

How a mortgage broker fits in

As an Australian credit licensee, Arrivau can help you understand how your home loan options fit with your overall purchase budget, but we don’t lend money or set stamp duty rates. The information here is general in nature and isn’t personal financial advice – it won’t take your individual circumstances into account. If you need tailored guidance on how stamp duty and other costs might affect your borrowing power, reach out to a qualified professional, such as a broker or financial adviser.

Stay secure

When you’re paying stamp duty, always verify payment details directly with your solicitor or conveyancer. Scammers sometimes impersonate revenue offices, so never act on unexpected payment requests without checking first.

Key sources

For buyers in other states, visit the relevant state revenue office website for their current rates and concessions.