February 2, 2023

What is Transfer Duty?

Transfer duty, sometimes called ‘stamp duty’, is a tax imposed by state governments in Australia on certain transactions, including the transfer of property.

Who Pays Transfer Duty?

Transfer duty is paid by the buyer. It doesn’t matter whether the property is being bought as a home or an investment property, although this may effect whether any transfer duty concessions apply.

How Much Stamp Duty Will I Pay On My Purchase?

The amount of transfer duty payable on your purchase depends on the ‘dutiable value’ of the property, and whether any concessions apply. The value of the property is taken as the greater of the market value of the property and the agreed purchase price. The higher the value of the property, the more stamp duty will be payable.

Broadly, the Queensland government determines the rate of transfer duty by applying price brackets to the dutiable value of the property. The price brackets are set out in the table below;

Dutiable Value Duty Rate
Not more than $5,000 $0
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

To calculate stamp duty on the property you are purchasing, you can use the Queensland government’s transfer duty estimator.

How Do I Pay Transfer Duty?

Stamp duty in Queensland is usually payable within thirty days of when the contract becomes unconditional or when the contract is entered into, and it is is normally paid by the buyer at settlement.

Because stamp duty falls due as a lump sum, it is not payable in instalments as part of your mortgage. It’s important to budget for transfer duty along with your bank deposit and other expenses associated with buying a house.

Part of your conveyancer’s job is to prepare all the necessary documents for stamping, advise you as to whether any concessions will apply, and assist you with the paperwork involved in applying for concessions. Your conveyancer will also alert you to the amount of stamp duty that will be payable ahead of time, and facilitate the payment of stamp duty at settlement.

What Concessions Are Available?

The following stamp duty concessions are available;

  1. The Home Concession
  2. The First Home Concession
  3. First Home Vacant Land Concession.

For more information about stamp duty concessions, take a look at the Queensland Government website, and remember to seek legal advice in relation to your eligibility for any concessions.

More Questions? Give Us A Call

Our friendly, experienced conveyancing solicitors are more than happy to chat about any aspect of conveyancing in Queensland. If you have any questions, contact us today.

The above is not legal advice and is general information only.