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Stamp Duty QLD

If you’re looking to buy a property in Queensland you’ve probably heard people talk about stamp duty also known as transfer duty. But what is it, and does it apply to you?

Simply put, stamp duty is a tax we pay when buying a house. The Queensland government will charge a percentage of the price of the property you’re buying. On average, people in Queensland pay tens of thousands of dollars in stamp duty. That’s on top of the mortgage, deposit and other expenses that come when buying a property.

How much does stamp duty cost?

Stamp duty rates are determined by the Queensland state government. There are five different price brackets that determine your stamp duty, and any purchase under $5,000 doesn’t pay stamp duty at all. See the table below to get an idea of how much you will pay.

Property value Stamp duty payable
Not more than $5,000 Nil
More than $5,000 up to $75,000 $1.50 for each $100 or part of $100, over $5,000
$75,000 to $540,000 $1,050 plus $3.50 for each $100 or part of $100, over $75,000
$540,000 to $1,000,000 $17,325 plus $4.50 for each $100 or part of $100, over $540,000
More than $1,000,000 $38,025 plus $5.75 for each $100 or part of $100, over $1,000,000

Find out your stamp duty cost with our free Stamp Duty Calculator QLD

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When do I have to pay stamp duty?

In Queensland, stamp duty is payable within 30 days of the contract being entered into or when your contract becomes unconditional. This means that you need to make sure you budget for stamp duty on top of your deposit, mortgage, building inspection, moving costs and other expenses. Unfortunately, stamp duty needs to be paid up front and can’t be paid periodically as a part of your mortgage.

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Are you entitled to any stamp duty concessions?

Now for some good news! Before you have to hand over tens of thousands of dollars in tax, you might be eligible for a stamp duty concession. The Queensland government offers a $0 fee for stamp duty if you are a first-home buyer and the house buying a house under $500,000, or vacant land under $250,000. You can find out more about stamp duty concessions on the Queensland government website. We recommend always checking to see if you qualify for a stamp duty concession.

Calculate your stamp duty now with our free Stamp Duty Calculator

The issues with stamp duty

An out-dated tax

The original tax for stamp duty comes from an old system of government. Land transfers were less common and property wasn’t logged to the level of detail that it is today. Plus, the actual process to officiate a sale and stamp (yes, a real stamp) the documents took more government time. Stamp duty was therefore an imperfect way to make sure the government was getting taxes from property owners, but things have changed a lot since then. Not only is the process much easier for governments, but there are now accurate and up-to-date records of every piece of land in Queensland. The way we buy and sell property has changed, and so the question is – shouldn’t the taxes that come with it change too?

The cost of stamp duty

Easily one of the most significant purchases the average Australian makes is buying property. It’s an exciting dream that many of us pursue. But at the same time, it’s a high financial bar to get over. Property prices in Queensland have soared upwards over the past few decades and are now vastly higher than the average income. Which means that stamp duty is not only a high tax, but it comes when the difference between the average wage and the average price of property is wider than ever.

Behaviour changes

Perhaps most importantly, the cost of stamp duty can also lead to some behaviour changes. The added cost is a big barrier to anyone trying to enter the real estate market. But not only this, it’s a big deterrent on anyone who’s looking to move to a new house. A growing family may choose to stay and try to renovate or expand their current house just to avoid paying stamp duty again. So too, retirees often stay in houses that aren’t ideal for their needs simply because downsizing will cost them a lot in tax.

The future of stamp duty

Many will be glad to hear that reform is on the horizon. The Australian Capital Territory is currently leading the way to phase out stamp duty. In 2012, the ACT government released a 20-year plan to reform the territory’s property tax, an intention they said aimed to “abolish a number of inefficient and unfair taxes”. Instead, they are replacing it with “barrier free conveyancing”.

At the end of 2020, the New South Wales treasurer, Dominic Perrottet, proposed his own plan for tax reform, with the intention “to help the people of NSW achieve the Australian dream of home ownership.” His solution replaces the upfront cost of stamp duty with a much smaller annual property tax. While the change hasn’t been officially approved yet, many are hopeful that the ideas for reform will lead to change. Ultimately, the future of stamp duty is in the hands of the Queensland state government to reform their taxation or to continue as it is today.

Stamp duty calculator

If you’re buying a house and want to get a quick idea of stamp duty fees, use our free and easy stamp duty calculator also known as a transfer duty calculator.

While keeping on top of your outgoing costs, why not also calculate your conveyancing fees. Our Conveyancing Costs Calculator will provide an estimate in just a few minutes. Calculate your costs now!

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