Stamp Duty

Definition

Stamp duty (also known as transfer duty) is a state or territory government tax paid by the buyer when purchasing property. The amount varies by state and is calculated as a percentage of the purchase price, with rates typically increasing for higher-value properties. First home buyers may be eligible for concessions or exemptions in most states.

Why It Matters for Property Investors

Stamp duty is one of the largest upfront costs of buying an investment property and can add tens of thousands of dollars to the purchase price. It directly affects your total acquisition cost and return on investment. Different states have different rates — for example, Victoria and New South Wales have higher stamp duty than Queensland. Some investors factor stamp duty into their location strategy, choosing states with lower upfront costs.