Stamp Duty on Investment Property Australia: What You Pay and When

Stamp duty is the single largest upfront cost of buying investment property in Australia — often larger than the deposit itself in high-value states. On a $900,000 property in New South Wales, stamp duty alone is approximately $35,805. In Victoria it is $49,070. These are not recoverable costs: stamp duty adds to your cost base for CGT purposes but produces no income, no yield, and no tax deduction in the year of purchase.

Understanding exactly what stamp duty costs in each state, when surcharges apply, and how to factor it into investment property calculations is essential before committing to any purchase. This guide covers every state and territory, the key surcharges, and how stamp duty interacts with your investment property strategy.

Stamp duty (formally called transfer duty or conveyance duty in most states) is a state tax payable on the transfer of property. It is calculated on the purchase price or the market value of the property — whichever is higher. Progressive rates apply: the more expensive the property, the higher the rate on the upper portions of the price.

Stamp duty is payable by the buyer, not the seller. Timing varies by state — in most states it must be paid at or shortly after settlement; in some it must be paid at exchange of contracts.

Key investment property fact: Unlike your primary residence, investment property stamp duty is not deductible in the year of purchase. However, it does increase your cost base for CGT purposes — reducing your capital gain when you eventually sell. The full CGT cost base framework: CGT on investment property: the complete guide.

New South Wales
NSW uses a progressive bracket system. At key price points:
$600,000: approximately $22,090
$750,000: approximately $29,090
$900,000: approximately $35,805
$1,200,000: approximately $50,105
$1,500,000: approximately $64,405
Foreign purchaser surcharge: 8% of the dutiable value (applies to foreign persons and certain trusts with foreign beneficiaries).
Payment: Within 3 months of settlement.

Victoria
Victoria has higher rates than NSW at most price points and applies a progressive structure.
$600,000: approximately $31,070
$750,000: approximately $40,070
$900,000: approximately $49,070
$1,200,000: approximately $63,330
$1,500,000: approximately $75,330
Foreign purchaser surcharge: 8% additional duty on residential property.
Note: Victoria recently announced an additional 2% surcharge on investors (non-owner occupiers) in some circumstances — confirm current rules with a solicitor for any Victorian purchase.

Queensland
Queensland rates are generally lower than NSW and VIC for properties under $1 million:
$600,000: approximately $17,350
$750,000: approximately $24,525
$900,000: approximately $31,525
$1,200,000: approximately $45,625
Foreign purchaser surcharge: 8% additional duty.
Payment: Within 30 days of settlement.

Western Australia
WA has relatively competitive rates:
$600,000: approximately $19,665
$750,000: approximately $25,415
$900,000: approximately $31,165
$1,200,000: approximately $46,665
Foreign purchaser surcharge: 7% additional duty.
Payment: Within 2 months of liability arising.

South Australia
$600,000: approximately $26,830
$750,000: approximately $34,830
$900,000: approximately $42,830
Foreign purchaser surcharge: 7% additional duty.
Payment: At settlement.

ACT (Canberra)
The ACT uses a different model — general rates with a conveyance duty component. Broadly comparable to other states at higher price points.
$600,000: approximately $21,340
$750,000: approximately $26,590
Note: The ACT is transitioning toward a land value tax model over many years.

Tasmania
Tasmania has relatively low rates:
$600,000: approximately $20,828
$750,000: approximately $26,328
No foreign purchaser surcharge currently applies.
Payment: Within 3 months of the dutiable transaction.

Northern Territory
NT applies stamp duty but at relatively competitive rates, with an additional stamp duty on foreign persons.
$600,000: approximately $26,775

Most states apply a foreign purchaser surcharge — additional stamp duty on top of standard rates — for foreign persons purchasing residential property. In NSW, VIC, QLD, WA, and SA, this surcharge ranges from 7% to 8% of the purchase price.

On a $900,000 property, an 8% foreign purchaser surcharge adds $72,000 to the stamp duty cost — making total upfront duty approximately $107,000 in NSW or $121,000 in Victoria.

Who it applies to: Foreign citizens; temporary residents; companies incorporated overseas; and certain trusts where foreign persons hold beneficial interests. Permanent residents and Australian citizens are generally exempt regardless of where they currently live. The rules vary by state and some states have reciprocal arrangements — confirm with a property lawyer for any trust or company purchase structure.

Stamp duty is a friction cost that your property must grow past before you have broken even on the transaction. Understanding the payback period is useful when assessing how long you need to hold before a sale makes sense.

Example — NSW $900,000 property:
Stamp duty: $35,805
Legal and conveyancing costs: $2,500
Total transaction entry costs: $38,305

At 6% annual capital growth: $900,000 × 6% = $54,000 growth in year one.
The transaction costs are recovered in approximately 8-9 months of growth.

At 3% annual growth: $900,000 × 3% = $27,000 growth in year one.
Transaction costs require approximately 17 months of growth to recover.

This calculation is why short holding periods destroy value in property investment. A property sold after 2-3 years in a flat market may produce a capital gain insufficient to cover the round-trip transaction costs (stamp duty on purchase plus agent fees and legal costs on sale). The minimum viable holding period in most Australian markets to cover transaction costs and generate meaningful net returns is 7-10 years.

While stamp duty is not immediately tax-deductible, it does form part of the cost base of your investment property for CGT purposes. This is one of the most frequently overlooked cost base items.

When you eventually sell, the cost base is subtracted from the sale price to calculate the capital gain. A higher cost base means a lower capital gain and therefore less CGT. Every dollar of stamp duty, legal fees, and other acquisition costs that you properly document and include in your cost base directly reduces your eventual CGT liability.

Example:
Purchase price: $900,000
Stamp duty: $35,805
Legal/conveyancing: $2,500
Loan establishment fees: $800
Total cost base at entry: $939,105

If sold 15 years later at $2,100,000:
Gross gain: $2,100,000 - $939,105 = $1,160,895
After 33% CGT discount: $777,800 assessable
CGT at 47%: $365,566

If you had incorrectly used $900,000 as the cost base instead:
Gross gain: $1,200,000 → assessable $804,000 → CGT $377,880
Difference: $12,314 additional CGT paid unnecessarily

Keep every invoice, duty assessment, and settlement statement from the day of purchase. Your accountant needs them at sale, potentially 15-20 years later. Full CGT cost base guide: CGT on investment property: the complete guide.

Stamp duty should be included in your total acquisition cost when calculating genuine investment returns. Many online property calculators ignore it or treat it separately, which overstates returns.

Correct total acquisition cost for a $900,000 NSW investment property:
Deposit (20%): $180,000
Stamp duty: $35,805
Legal and conveyancing: $2,500
Loan establishment: $800
Building and pest inspection: $600
Landlord insurance (first year, upfront): $1,400
Total capital required: $221,105

The true return on invested capital is based on the $221,105 committed — not the $180,000 deposit alone. Investors who calculate returns against the deposit understate the true capital commitment by approximately 23% in this example.

For the complete return calculation including stamp duty in the cost base: property investment calculator Australia.

NSW introduced an opt-in annual property tax (land value tax) as an alternative to upfront stamp duty for eligible properties. Under this scheme, buyers of properties under a threshold can choose to pay an annual property tax (calculated on land value) rather than upfront stamp duty.

For investment properties, this option requires careful modelling. The annual tax accumulates over time and may exceed the stamp duty equivalent after 10-15 years depending on land value growth. For short to medium holding periods, the annual tax option can reduce upfront capital requirements significantly. For properties held 20+ years, the cumulative annual tax typically exceeds the forgone upfront duty.

This election is made at the time of purchase and cannot be reversed. If you purchased an eligible NSW property and opted into the annual property tax, your holding cost calculations need to include this annual charge — it is deductible as a property expense in the year incurred. Seek specific advice from your solicitor and accountant on this option for any NSW acquisition.

Book a Strategy Call
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Disclaimer: Stamp duty rates and thresholds change regularly and vary by state. The rates shown are approximate and based on information current as at mid-2026. Always verify with the relevant state revenue office or a qualified solicitor before making purchase decisions. The information provided by Australian Retirement Office is general in nature and educational only. It does not constitute financial product advice or legal advice. Obtain professional advice before making financial decisions.

Related: Property Taxes Australia: Every Tax Investors Pay | Land Tax Australia: What Investors Pay | CGT: Complete Guide | Property Investment Calculator | Property Investment: Complete Guide