Stomping on stamp duty

Are there options to avoid it?

State Governments around the country have widened stamp duty exemptions in an effort to fire up the struggling housing sector. But could this widely unpopular tax ever be abolished all together?

Last year Federal Housing Minister Clare O’Neil backed calls for stamp duty to be scrapped, labelling the State-based duty a bad tax that discouraged people from moving to homes that better suited their needs as their life changes.

The Housing Industry Association’s Stamp Duty Watch report, released in June, estimated stamp duty costs had jumped 55 per cent since 2019, now adding around $31,000 to the cost of an average home. But State Governments collect tens of billions in stamp duty that they’re not keen to delete from their budgets.

We look at the pros, cons and alternatives, as well as which States are offering home buyers some of the best options to avoid, or at least minimise, the hefty tax.

What is stamp duty?

Stamp duty (also known as transfer or conveyancing duty) has been around since the 1860s, and is a tax levied on the purchase of property to help State Governments fund infrastructure and services used primarily by residents, such as roads, hospitals and schools. Each State sets its own stamp duty rules and rates, levying a percentage of the purchase price of properties, often on a sliding scale.

The reason it’s copping so much criticism lately – apart from the fact no one loves paying tax – is that house prices have rocketed, and that means stamp duty has too.

Hitting homebuyers with added tax costs in the middle of a housing supply crisis and cost of living crisis isn’t exactly popular. Which is why many States have been carving out exemptions, mainly for first home buyers, although some have extended them to off the plan buyers, to support the struggling construction sector.

These shifting duties means buyers in some States are forking out tens of thousands more in tax on median-priced homes, meaning it may pay off to look further afield.

Haven has crunched the numbers for capitals around the country (see our State-by-State analysis below)*. Melbourne easily ranks as the highest for stamp duty by percentage, with transfer duty of 5.4 per cent adding a whopping $44,150 to the cost of a median-priced $818,000 home. Queensland and the ACT came in joint lowest with a rate of 2.9 per cent.

The case for and against

The upside of stamp duty includes:

• It funds essential services and infrastructure.

• It has a nod to equity in that buyers of more expensive homes pay more tax.

• It can help discourage property speculation.

Among the negatives are:

• It discourages movement. Empty-nesters may prefer not to downsize and growing families find it difficult to upsize.

• Some say the duty penalises the young who may move more often, and benefits those who can afford a forever home first up.

• It increases in line with rising property prices.

• Critics say it is an inefficient tax because it relies on sales turnover in property.

What’s the alternative?

Alternatives methods of raising tax that have been floating include lifting GST or phasing in a broad-based annual property tax for all households.

Rates State by State

Here’s how stamp duty rates and concessions compare around the country.**

Queensland

Brisbane median home price: $908,000.

Stamp duty (based on median home price): $26,710.

Rate: 2.9 per cent.

Exemptions: On May 1 this year, Queensland abolished stamp duty for all first home buyers building or buying a new home, with no price or income caps. Buyers are also able to rent out a room and retain their owner/occupier stamp duty concession.

New South Wales

Sydney median home price: $1,182,000.

Stamp duty (based on median home price): $47,602.

Rate: 4.0 per cent.

Exemptions: First home buyers can access full stamp duty exemption for new or existing homes valued at $800,000 or less under the First Home Buyers Assistance scheme (lifted from $650,000 on July 1, 2023).

Victoria

Melbourne median home price: $818,000. Stamp duty (based on median home price): $44,150.

Rate: 5.4 per cent.

Exemptions: First home buyers pay no stamp duty on homes valued at $600,000 or less, regardless of whether it is a new or established property. To encourage downsizing, pensioners can also access stamp duty exemptions if they buy a new home valued at $750,000 or less that will become their principal place of residence. To support the construction industry there is also a temporary duty concession for off-the-plan purchases entered into before October 21, 2025.

South Australia

Adelaide median home price: $837,000.

Stamp duty (based on median home price): $39,865.

Rate: 4.7 per cent.

Exemptions: In 2024, the Government abolished price thresholds for first home buyers to access stamp duty exemptions if they build or buy a new home, acknowledging rapid rises in valuations had rendered caps unworkable. First-time buyers do not have to pay duty regardless of the value of the property they buy or build.

The State’s Liberal Opposition has announced plans to extend concessions to established properties if elected in March 2026.

Western Australia

Perth median home price: $836,000.

Stamp duty (based on median home price): $34,170.

Rate: 4.1 per cent.

Exemptions: In April this year, thresholds for first homebuyers to access stamp duty concessions were lifted to $700,000 for Perth metro properties.

Like Victoria, the WA Government is also offering concessions to all buyers, not just first-timers, purchasing off-the-plan until June 30, 2026. Those who buy before construction commences may access full stamp duty exemptions for properties valued up to $750,000 and concessional rates up to $850,000.

Northern Territory

Darwin median home price: $525,000.

Stamp duty (based on median home price): $25,988.

Rate: 5.0 per cent.

Exemptions: The Territory’s House and Land Package Exemption (HLPE) allows first-time buyers to avoid paying any stamp duty, with no income or house-price thresholds. In an effort to bolster construction, existing homeowners who enter a contract to build or buy a new home in the NT before September 30, 2026 can access a $30,000 FreshStart grant. This can also be used for relocatable homes.

ACT

Canberra median home price: $836,000.

Stamp duty (based on median home price): $24,282.

Rate: 2.9 per cent.

Exemptions: Stamp duty concessions are available to first-home buyers subject to income and price thresholds. Income thresholds start at $250,000. The current price threshold is $1.02 million and will be indexed to local inflation.

Pensioners looking to downsize can also access significant concessions, with property purchases up to $1.02 million exempt from stamp duty.

Tasmania

Hobart median home price: $656,000.

Stamp duty (based on median home price): $24,878.

Rate: 3.8 per cent.

Exemptions: First-home buyers are eligible for stamp duty exemption for new and existing home purchases up to $750,000. Supporting mobility and construction, concessions of up to 50 per cent are available to home buyers who buy off the plan, and to pensioners downsizing within Tasmania, provided they are moving to a cheaper property.

*Figures calculated using median capital city home prices (including houses and units) according to PropTrack’s Home Price Index, June 2025.

**Median home prices sourced from PropTrack Home Price Index June 2025. Stamp duty calculated using online state-based transfer duty calculators.