What stamp duty is and how it works.
Stamp duty is a government tax charged when you buy property or land in Australia. It’s one of the largest upfront costs buyers need to account for — alongside the deposit, legal fees and inspections — and the amount varies depending on which state or territory you’re buying in.
At Lumo, we help buyers understand how stamp duty is calculated, what exemptions or concessions may apply, and how to budget for it confidently before making an offer.
What stamp duty is charged on
Stamp duty applies to most property purchases, including:
Established homes
Vacant land
Newly built homes
Investment properties
Off-the-plan purchases
Some transfers between family members
The rate and calculation method differ between states, and each has its own legislation and thresholds.
What determines the amount you pay
1. Purchase price
The higher the property price, the higher the stamp duty bracket.
2. State or territory
Each state sets its own rates, concessions and rules.
3. Whether you’re a first home buyer
Many states offer reduced or waived stamp duty for eligible first home buyers.
4. Whether the property is owner-occupied or an investment
Investment properties often attract full stamp duty rates with fewer concessions.
5. Whether you’re buying off the plan
Some states allow a reduced dutiable value for off-the-plan purchases under certain conditions.
Understanding these variables helps you estimate costs before searching seriously.
Stamp duty concessions and exemptions
There are several situations where stamp duty may be reduced or removed entirely:
First home buyer concessions
Many states offer stamp duty relief for first-time buyers based on thresholds.
Examples include:
No duty payable under a certain purchase price
Discounted duty for properties within a set range
Eligibility usually depends on residence requirements and whether you’ve owned property before.
Off-the-plan concessions
In some states, stamp duty is calculated on the land value only if certain criteria are met — reducing the upfront cost.
Principal place of residence concessions
Buying a home to live in (rather than invest) can sometimes lower the duty amount.
Pensioner or senior concessions
Certain states offer reduced duty for downsizers or seniors buying a new home.
Each program has specific eligibility rules, so professional guidance is important.
Budgeting for stamp duty
Because stamp duty is paid upfront at settlement (or sometimes earlier), it’s essential to budget for it from the beginning. It may be funded by:
Your deposit
Savings
Loan (if the lender allows capitalisation or increased loan amount — varies by lender and state)
At Lumo, we calculate stamp duty early in your planning to ensure it aligns with your purchase budget.
Using stamp duty calculators
Most state revenue offices offer online calculators, which estimate:
Stamp duty payable
Mortgage registration fees
Transfer fees
Additional government charges
These tools give a helpful guide but may not reflect every concession or unique scenario. We provide personalised estimates during the planning stage to avoid surprises.
How stamp duty affects your deposit strategy
Stamp duty is separate from your deposit — but both need to be paid.
This means a buyer with a 20% deposit must also have enough savings to cover:
Stamp duty
Legal fees
Inspections
Moving costs
Adjustments at settlement
Your true “funds to complete” include all these components. We help clients map out the full picture so they purchase with confidence.
Let’s chat.
Need help estimating stamp duty for your purchase or checking what concessions you qualify for? At Lumo, we calculate your full upfront costs and help plan your strategy. Let’s chat.
This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.