Stamp duty in Australia is not one tax but eight, because each state and territory sets its own rates, thresholds and concessions. British buyers who are used to a single Stamp Duty Land Tax table for England and Northern Ireland are often surprised by how much the bill changes from one side of a state border to the other. This piece explains how the Australian system works, how it compares with SDLT, and the points that catch new arrivals out.

Same idea, different structure

The principle will feel familiar. When you buy property, you pay a one-off tax calculated on the purchase price or market value, whichever is higher, and the rate rises in bands as the price goes up. In the UK, SDLT is set by HM Revenue and Customs, while Scotland and Wales run their own versions, Land and Buildings Transaction Tax and Land Transaction Tax. Australia takes that devolution much further. New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, the ACT and the Northern Territory each run their own duty regime through a state revenue office.

The names vary too. New South Wales and Queensland call it transfer duty, Victoria refers to land transfer duty, and most people simply say stamp duty. The ACT has been gradually reducing duty and shifting towards annual rates, which makes it the odd one out.

The amounts can be substantial. On a typical house in Sydney or Melbourne, duty commonly runs to tens of thousands of dollars, and it usually has to be paid in cash rather than added to the mortgage unless your lender agrees to lend for it. The New South Wales revenue office sets out its transfer duty rates and calculator, and the State Revenue Office in Victoria publishes its own guide to land transfer duty, including the concessions available. Both are worth reading before you set a budget.

Concessions for first home buyers

Most states offer exemptions or reduced rates for first home buyers below certain price limits, and some also have grants for buying or building a new home. The limits and conditions change regularly as state governments adjust them in their budgets, so check the current figures with the relevant revenue office rather than relying on an old article or a forum thread.

The detail that matters for British arrivals is eligibility. First home concessions usually require at least one buyer to be an Australian citizen or permanent resident, and the buyer normally has to live in the property for a set period. Owning a home in the UK, now or in the past, can also affect whether you count as a first home buyer in the eyes of a state revenue office, so do not assume you qualify simply because this is your first purchase in Australia.

Foreign purchaser surcharges

This is the part that causes the biggest surprises. Most states charge an additional duty surcharge when the buyer is classed as a foreign person, which usually means someone who is not an Australian citizen or permanent resident. A Briton on a temporary work visa can fall into this category, and the surcharge adds several percentage points to the bill. Some states also charge an annual land tax surcharge on foreign owners.

Separately from state duty, foreign persons generally need approval from the Foreign Investment Review Board before buying residential property, and the federal government introduced a temporary ban on foreign persons buying established homes from April 2025. The rules have exceptions and are subject to change, so check the current position before signing anything. If you are applying for permanent residency, the timing of a purchase relative to your visa grant can make a real difference, and that is a conversation to have with a migration agent or lawyer.

Your visa status also affects borrowing, and our guide to getting a home loan as a new arrival from the UK covers how lenders treat temporary and permanent residents.

When and how it is paid

In the UK your solicitor or conveyancer files the SDLT return and pays the tax, usually around completion. Australia works in a similar way, with your conveyancer or solicitor arranging payment, often through the electronic settlement system. The deadline varies by state and may run from the date of the contract or from settlement, so confirm it early. Late payment can attract interest and penalties.

A few other differences are worth knowing:

• Duty may also apply to off-the-plan purchases, transfers between family members and some changes of ownership share, with specific concessions in some states.
• There is no UK-style surcharge on additional homes across the board, but investment properties attract annual land tax in most states.
• Duty paid in one state does not count towards anything in another, so moving states and buying again means paying again.

Questions readers ask

Can I add stamp duty to my mortgage?

Sometimes, if your lender is willing and your deposit and borrowing capacity allow. Many buyers pay it from savings, so include it in your deposit planning from the start.

Do I count as a first home buyer if I owned a house in the UK?

Often not, as many states look at property owned anywhere. Check the definitions with the relevant state revenue office before assuming a concession applies.

Is stamp duty cheaper in some states?

Rates and thresholds differ, so the same price can produce different bills. Property prices also vary widely, which usually matters more than the duty rate itself.