Stamp duty in Australia: Complete guide for UK buyers

Disclaimer: The information in this article is for general informational purposes only and does not constitute financial, tax, or legal advice. See full disclaimer.

When you’re buying property in Australia, you’ll need to set aside funds to cover the transfer duty, commonly known as stamp duty.

Stamp duty rate in Australia varies by state, and costs can differ between NSW, Victoria and Queensland especially for foreign buyers.

This guide covers how stamp duty works in Australia, how much you might pay, and what to expect before settlement.

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What is stamp duty in Australia?

In Australia, stamp duty is commonly known as transfer duty and is a land transfer tax on property.¹

In Australia, you have to pay the transfer duty as part of the purchase process and generally at or before the settlement. Without it, the property cannot be transferred and registered in your name.

Do you pay stamp duty/transfer duty in Australia?

Yes. Stamp duty, or transfer duty in Australia, is a mandatory state-based tax that you must pay when buying a house, commercial property, or investment assets.²

Transfer duty can also apply if you receive land or an interest in land without a standard purchase. For example, this may include certain gifts, trust arrangements, or transactions that change the ownership of a property.

If you’re a UK resident investing in property, note that most states in Australia demand an additional foreign purchaser surcharge on top of the standard transfer duty. The exact percentage depends on the state that we'll cover in more detail below.

How much is the stamp duty in Australia?

The stamp duty in Australia usually costs between 3% and 5% of the property value; however, the final amount depends on the type of property you purchase, its price, the state and territory where it’s located, and your residency status.

Unlike the UK, transfer duty in Australia doesn't have a single national rate, and each Australian state sets its own rules.³

Here is a quick overview of stamp duty rates and thresholds in three of Australia’s largest property markets:

Who has to pay the stamp duty/transfer duty?

Transfer duty in Australia must be paid by the property buyer, and if there is more than one owner in the settlement, then you are jointly bound to pay the duty.

In practice, if you have a solicitor or conveyancer, they usually arrange payment as part of the settlement process, but you must know that the legal responsibility ultimately sits with you as the purchaser.

Do first time buyers have to pay stamp duty in Australia?

It depends on the state and territory in which you purchase your property. Some first time buyers in Australia may qualify for an exemption or reduced stamp duty, but it isn’t automatic.

NSW, Victoria and Queensland all offer first home buyer concessions, usually for lower-value properties and only if the home will be your main residence.

Here’s a quick overview of each:

However, you must note that first time buyer eligibility rules vary and often depend on your residency status. If you’re buying from the UK and are not an Australian citizen or permanent resident, you may not qualify for these concessions.

Since the thresholds differ by state and change over time, it’s important to check the relevant state revenue authority before buying a property in Australia.

Is stamp duty higher for foreign buyers in Australia?

Yes. If you’re buying a residential property in Australia from the UK, you’ll usually face an additional surcharge on top of the standard transfer duty rate.

The foreign buyer surcharge in Australia is calculated on the property’s dutiable value, typically the purchase price or its market value (if higher), and is added to the normal transfer duty you pay at settlement.

This means your total upfront tax bill can be significantly higher than that of an Australian citizen or permanent resident buying the same property.

Here is a quick overview of how the foreign buyer surcharge works in different states:⁵

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When is stamp duty/transfer duty due?

You mustpay the transfer duty in Australia shortly after signing the contract or completing the settlement, but the deadline depends on the state.

• In NSW the transfer duty is due within 3 months of signing the contract (or by settlement, if earlier).

• In Victoria, you should pay the land transfer (stamp) duty within 30 days of settlement.

• In Queensland, you need to pay the transfer duty within 30 days of signing the contract.

Note that late stamp duty payment can lead to interest and penalties, so you'd better make sure to pay it in the settlement process.

If you’re transferring large amounts from the UK to Australia, it’s important to do your research and plan it carefully to avoid delays and minimise your exchange rate cost.

Stamp duty/transfer duty exemptions

Exemptions from transfer duty in Australia are limited and don’t apply to most standard property purchases. They’re usually available in specific situations, such as transfers between spouses, inherited property, or certain legal restructures.

If you’re buying a home or investment property in Australia from the UK, you should expect to pay full duty and the foreign buyer surcharge.

Note: Buying property overseas can affect how rental income, capital gains and even inheritance are treated in both Australia and the UK. It’s worth understanding the tax position in both countries before you commit. All tax decisions should be made after thorough research and consultation with a qualified financial advisor.

FAQs about stamp duty in Australia

Why is stamp duty so high in Australia?

Stamp duty is high in Australia because it’s a major source of revenue for state governments. States rely greatly on transfer duty to fund public services such as infrastructure, transport and schools. The tax is also progressive, meaning higher-value properties attract higher marginal rates.

Do you pay property tax in Australia?

No, Australia does not have a national annual property tax like the UK. But property owners in Australia pay local council rates each year, and land tax may apply to investment properties or second homes, depending on the state. If the property is your main residence, land tax is often not charged.

Key takeaways

• Stamp duty, officially known as transfer duty, is a mandatory state-based tax paid by the property buyer at or before settlement.
• There is no single national rate in Australia, and each state sets its own progressive rates that generally range between 3% and 5% of the property value.
• UK residents and other international buyers usually face an additional foreign purchaser surcharge ranging from 8% to 9% depending on the state.
• While exemptions and concessions exist for first-time buyers, eligibility varies by state and these benefits are typically restricted based on your residency status.
• Deadlines to pay the tax vary by location, with payments due within 30 days of signing the contract in Queensland, within 30 days of settlement in Victoria, and within 3 months of signing in New South Wales.
• Sending large sums internationally to cover property costs can lead to high bank fees and hidden exchange rate markups. Wise offers a smart solution with transparent fees and mid-market exchange rates, helping buyers save money on big transfers.

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Sources used:

1. revenue.nsw.gov.au - official Revenue NSW info on what is transfer duty
2. sro.vic.gov.au - State Revenue Office Victoria explaining the land transfer (stamp) duty
3. business.gov.au - stamp duty varies between states and territories
4. revenue.nsw.gov.au - NSW government’s transfer duty rate
5. revenue.nsw.gov.au - NSW surcharge purchaser stamp duty rate
6. sro.vic.gov.au - State Revenue Office Victoria on understanding land transfer (stamp) duty
7. sro.vic.gov.au - State Revenue Office Victoria on understanding foreign purchaser additional duty
8. qro.qld.gov.au - Transfer duty rates Queensland Revenue Office
9. revenue.nsw.gov.au - NSW’s first home buyers assistance scheme
10. sro.vic.gov.au - Victoria’s first home buyer duty exemption or concession
11. qro.qld.gov.au - Queensland’s first home concession

Sources last checked on date: 27-Feb-2026