Stamp duty is levied by the government when a property is transferred from one party to another. In Australia stamp duty is levied by the Office of State Revenue.  The rate of stamp duty differs from one state to another.  The highest rates are prevalent in Queensland, New South Wales and Western Australia.  The rate of stamp duty varies depending on the property price.  The higher the property value the higher that stamp duty is.  The stamp duty amounts collected is spent by the government in various public welfare services like health, education, public safety and law enforcement.  

Stamp duty is calculated as a percentage of the purchase price of the property.  Some states offer Stamp duty concessions and other bonuses to help the home buyers so that the cost of purchasing their first property is reduced and becomes affordable. Many states have abolished the stamp duty totally.  Many other states are considering the possibility of making large stamp duty concessions. Victoria levies the highest rates of stamp duty for home buyers in Australia.  This levy makes the Melbourne houses very expensive. This is the reason the city of Melbourne is the least affordable city in Australia for buying homes. Victoria has introduced cuts in the stamp duty rates that resulted in making home purchase cheaper by many thousands of dollars.

First time home buyers in Australia can avail a First Home buyer’s grant for buying houses costing below $500,000.  You can also avail Stamp duty concessions in case of some property transfers both residential and business.  To find out which concession you are eligible, you can contact the Office of State Revenue in your state. According to the Bankwest Residential Stamp Duty report, the stamp duty on a typical Australian home has increased 59 percent in the past 5 years.  This is equal to double the increase in household income during the above period. A total of $53 billion that has been collected through stamp duty bills by the State and Territory Governments in the past 5 years. The amount of stamp duty revenues have increased by 77% in the above period.  The stamp duty increase recorded in the past 5 year period in Northern Territory is 145%, Tasmania 177%,  in Western Australia 127%, in South Australia 102%, in ACT 111% and in Queensland 151%  

The increase in tax amounts in recent years has severely affected the residential property market. The heavy burden of stamp duty has prevented thousands of people from owning their homes in spite of the first time home owner’s grants.  The Residential Development Council’s research report has revealed that the combined burden of levies such as various taxes, charges and fees on the purchase price of a new house has increased by more than 300 percent.  The soaring stamp duty bill is hindering the home ownership opportunities of Australians. Stamp duty calculators available online will help you in calculating the stamp duty amounts on purchase of house. You have to enter the rate of stamp duty in the state where the property is located and other parameters to calculate the stamp duty payable.  

Because of the steep and unaffordable rise in stamp duty rates, the home buyers in Australia have to put away 20 percent of their annual household income just for paying stamp duty. Cities falling under this category are Melbourne, Sydney and Adelaide.  Cuts in stamp duty are being designed by the authorities to encourage new entrants into the housing market.