Buying your own home is a rather significant decision. With the pandemic easing off, maybe you’re thinking about finally investing in your dream Australian home. But you can be in plenty of trouble if you don’t know the answer to ‘how much is stamp duty in Sydney?’
Unlike the more casual approach of other countries, the Australian government is a bit more strict with the legal requirements, regardless of how much the property is worth.
So, if you’re searching for houses for sale in Sydney, this guide will tell you all about how much is stamp duty on a house and other related information to help you make a wise purchase.
Essential Reading: Property fees can be intricate, especially in different states. Get the specifics for New South Wales by exploring our piece on stamp duty in NSW.
What is stamp duty?
Whether you’re starting out the buying process or are in the post-purchase cooling off period, you should be aware of some property concepts.
There are several terms in real estate that most people should be well aware of. Stamp duty is one of them. Some people may also know it as transfer duty. It is the amount you pay upfront to verify that you are the property’s new owner.
It is essentially a tax that you pay the government of the state so that they transfer the ownership. Unlike most other prerequisites, it is specific to each state. The government updates the regulations related to stamp duty every now and then.
The amount depends upon the value of the property as well. The cheapest beach towns in Australia charge far less than you might pay for prime real estate in Sydney. More premium houses fall into higher-rate slabs.
Which is why buying property will be one of the biggest financial decisions in your life. So, be sure to research everything from the average home loan in Sydney to stamp duty rates.
Stamp duty rates in New South Wales
If you want to know how much is stamp duty in Sydney, you can refer to the table below. These are the current stamp duty rates that were last edited in July 2022.
| Property value | Stamp duty rate |
| $0 to $15,000 | $1.25 for every $100 (the minimum is $10) |
| $15,000 to $32,000 | $187 and $1.50 for every $100 over $15,000 |
| $32,000 to $87,000 | $442 and $1.75 for every $100 over $32,000 |
| $87,000 to $327,000 | $1,405 and $3.50 for every $100 over $87,000 |
| $327,000 to $1,089,000 | $9,805 and $4.50 for every $100 over $327,000 |
| Over $1,089,000 | $44,095 and $5.50 for every $100 over $1,089,000 |
Remember, the government updates the rates yearly to account for inflation per the Consumer Price Index (CPI).
Premium transfer duty
Many people who Google ‘what is stamp duty’ may come across the term premium transfer duty. It is a separate slab for those who want to buy properties worth $3 million or more. As of 2022, the rate is $160,237 in addition to $7 per $100 for land or properties worth more than $3,194,000.
How can you check the exact stamp duty for your house?
The precise amount for how much is stamp duty in Sydney depends upon numerous factors that can be too many for you to consider. Thus, it is best to use a stamp duty calculator to reduce that job to just a few clicks.
Several online resources offer a stamp duty calculator and describe the various regulations for renting a place in NSW. The rate of how much is stamp duty in Sydney is a fluid value. So, utilising such resources also keeps you updated.
Is there some flexibility for first-time homeowners?
The government of New South Wales understands that those looking to purchase their first house may face some challenges. Thus, it has a First-Home Buyer Assistance Program (FHBAP).
The program focuses on real estate that is less than $650,000 in value. First-time homeowners looking for a property don’t have to pay stamp duty. There is also a concessional rate on houses between $650,000 and $800,000 in value. That rate depends upon the precise value of the property.
To qualify for FHBAP, you need to fulfil the following criteria:
- You are above the age of 18
- You are buying the property in its entirety
- You are not a company or trust
- You, or anyone else purchasing the property, already own residential property within Australia
- Within 12 months of completing the purchase, you shall be using it as your primary residence for at least 6 months
- At least one of the parties purchasing the property is an Australian or a permanent resident
- You have no other exemptions or concessions other than FHBAP
During the COVID-19 pandemic, the economy threw additional hurdles in the way of those struggling to buy a new home. As many had lost money in jobs and investments, the government stepped up with its FHBAP program.
Thus, the revised rules for new and existing properties are as follows, with effect from August 2021.
| New homes | Existing homes |
| Buy a new home less than $650,000 in value and pay no transfer duty if cleared for total exemption. Those who buy a new home valued between $650,000 and $800,000 can apply for a concessional stamp duty rate. The exact rate depends upon the value of the property. | Buy an existing home valued at less than $650,000, and pay no transfer duty if cleared for total exemption. Those who buy an existing home valued between $650,000 and $800,000 can apply for a concessional rate. The exact rate depends upon the value of the property. |
Considering how much is stamp duty in Sydney, the state government also created a separate slab for homeowners who wish to build a new property over vacant land. The stamp duty rates for vacant land are as mentioned below.
- Those who want to purchase vacant land under $350,000 don’t have to pay any stamp duty.
- Those who wish to purchase vacant land valued between $350,000 and $450,000 can apply for concessional rates. They are available on the official NSW Government Revenue website.
How can you deposit your stamp duty?
Once you determine how much is stamp duty on a house, you can choose to pay it before the final settlement or the first EMI of your loan. You can pay it yourself or assign a solicitor or conveyancer specialising in such documents.
The NSW government accepts online or cheque payments for all properties within its jurisdiction. However, you should best pay it on your own if the settlement does not occur before the date of duty payment. Your loan agency can also assist in making that payment.
Need more financial advice?
We hope this guide on how much is stamp duty in Sydney helped you gain helpful insight. For more, you can view our finance category. It’s full of hacks and advice from industry professionals who have operated within NSW for years.
You can also download the Soho app on your iPhone or Android device for browsing and property matching. It can help you get your dream home much faster.
