Stamp duty rates in Australia vary from state to state and differ for different transactions. The government of Australia levies a duty on the sale of land, property, business or shares or on the hire of goods.  This is also known as transfer duty and transaction duty.  The stamp duty is levied by the state governments in Australia. The proceeds of stamp duty are spent by the state governments on healthcare, education, law and order and public safety.   There are some stamp duty concessions on owner occupied property transfers and business property transfers. The details of these rates and concessions along with eligibility criteria can be had from the Office of State Revenue.

As stamp duty can add significantly to the purchase price of a property, the buyer should consider how much it is by adding to the purchase price before deciding to buy any property.  The stamp duty rates is the main expense to take into account when buying a property in Australia as the amount you pay as stamp duty plays a major role in your buying decision. This is because in four of the Australian states a buyer should allocate equal to 20 per cent of their annual income for paying stamp duty on the purchase of a home.   

In Western Australia, the mortgages transfers were subject to tamp duty before 1st July 2008. For mortgages executed after that will not be subject to stamp duty.  Except for Tasmania all the seven other jurisdictions have stamp duty concessions in place for corporate reconstructions.  This concession offers relief of up to 100 per cent of stamp duty.  This concession is provided with two exceptions: in South Australia it may be only 95 per cent but 100 per cent exemption is considered in exceptional circumstances.  

In the Australian Capital Territory the exemption for 95 per cent of the stamp duty is available without any change in the eligibility criteria. Recent studies reveal that Queensland has become the most attractive place to buy homes as the stamp- duty rates are the lowest in Australia.  The Bankwest report singles out Brisbane as the cheapest city to buy residential property. The stamp duty you pay in Brisbane is just one third of what you would pay for the purchase of the same property in Sydney or Canberra. The stamp duty rates in Queensland are the lowest at 1.3 per cent of the property value and Australian Capital Territory has the highest stamp duty rates at 4%.  Tasmania is one the states having a low stamp duty rate.  The next cheapest rates are prevalent in the Northern Territory after Queensland. Victoria also has a high stamp duty rate that amounts to 5 to 6 per cent of the property value.

Stamp duty concessions or exemptions are available to first home buyers in most of the states. In the past five years alone stamp duty has registered an increase of 59 per cent.  The revenue earned by state governments through stamp duty levies has touched $53 billion during this period. Adelaide, Sydney, Melbourne and Perth are cities with the highest stamp duty rates. The main reason making it difficult for most Australians to enter the housing market is the high stamp duty rates.