All transfers of land are subject to duty on the instrument of transfer based on the value of the land (including improvements) or the consideration (including GST) whichever is greater (unless an exemption, concession, rebate or reduction applies).
Stamp duty on non-residential, non-primary production land ("Qualifying Land") is being phased out. From 7 December 2015 the duty payable was reduced by one-third, with a further one-third reduction from 1 July 2017 (a total reduction of two-thirds). Stamp duty on transfers of non-residential, non-primary production land will be abolished from 1 July 2018.
What is Qualifying Land?
Qualifying land means land that is being used other than for residential purposes or for primary production as defined in Section 71DC of the Stamp Duties Act 1923.
The Commissioner will generally rely on land use codes to determine whether he considers land to be residential or primary production land. The land use codes within the following Land Use Code (LUC) headings will be taken to be qualifying land:
Stamp duty on transfers of residential and primary production land will remain unchanged. Vacant land will be considered to be used for primary production or residential purposes in certain circumstances.
What is land used for Residential Purposes?
Land will be taken to be used for residential purposes where it is determined that:
In some cases the zoning of the land will be relevant where the land is unimproved or there are only minor improvements.
A further exception is in relation to land which although coded as residential by the Valuer-General will nevertheless be considered by the Commissioner to be commercial in nature.
This treatment will be consistent with the Local Government zoning of the land. Land uses that fall into this category are Hostels, Hotels, Motels, Serviced Apartments and short term unit accommodation.
What is land used for Primary Production?
Land will be taken to be used for primary production purposes where it is determined that:
The land use codes within the following LUC headings are not considered to be qualifying land:
Application of the stamp duty reductions are based on the date of the contract for sale and purchase of the qualifying land, not the date of the Memorandum of Transfer or other conveying instrument. If a contract has been assigned, the date of the contract is used to determine whether a stamp duty reduction applies.
It is important that the purchaser legally records their interest in any land they purchase quickly and efficiently to protect their investment.
The usual practice is that the purchaser will be responsible for the payment of the appropriate stamp duty and Lands Titles Office registration fees at the time either the purchaser or their representative arranges stamping and then lodges the documentation for registration at the Lands Titles Office.
Most transfers of land are charged as detailed below. A number of concessions are detailed in the Stamp Duties Act 1923 (for example, the purchase of an off-the-plan apartment which meets certain criteria), and other conveyances may be exempt (for example, transfers from an estate of a deceased person to a beneficiary under the will).
The stamp duty rates for conveyances are shown below.
Please note: the calculation of stamp duty on transfers of real property can take into account a number of factors (e.g. Section 67, land holder provisions).
|Where value of the property conveyed||Amount of Duty|
|Does not exceed $12,000||$1.00 for every $100 or part of $100|
|Exceeds $12,000 but not $30,000||$120 plus $2.00 for every $100 or part of $100 over $12,000|
|Exceeds $30,000 but not $50,000||$480 plus $3.00 for every $100 or part of $100 over $30,000|
|Exceeds $50,000 but not $100,000||$1,080 plus $3.50 for every $100 or part of $100 over $50,000|
|Exceeds $100,000 but not $200,000||$2,830 plus $4.00 for every $100 or part of $100 over $100,000|
|Exceeds $200,000 but not $250,000||$6,830 plus $4.25 for every $100 or part of $100 over $200,000|
|Exceeds $250,000 but not $300,000||$8,955 plus $4.75 for every $100 or part of $100 over $250,000|
|Exceeds $300,000 but not $500,000||$11,330 plus $5.00 for every $100 or part of $100 over $300,000|
|Exceeds $500,000||$21,330 plus $5.50 for every $100 or part of $100 over $500,000|
Download the rates chart