Key Takeaway Points
- Australia’s stamp duty and land tax landscapes demonstrate variations in each State’s approach to property taxes, but there are now some growing similarities.
- Recent changes to Queensland property taxes have impacted the State’s previous competitive advantage for foreign buyers.
Overview
Property taxes vary across States and Territories within Australia. With new thresholds and rate changes, potential buyers, investors and foreign buyers need to ensure they are aware of how property taxes function in the specific State alongside how they compare to others. Specifically, understanding stamp duty and land tax as of 2026 is necessary for effective budgeting and legal compliance. In this article, we will provide a comparative overview of stamp duty and land tax across Queensland, New South Wales and Victoria including what these taxes are, how they are calculated, any exemptions or concessions, and specific rates and surcharges.
What is stamp duty?
Stamp duty or transfer duty is a State tax paid on dutiable transactions including but not limited to:
• a transfer of real property;
• an agreement for the transfer of real property;
• a partnership acquisition;
• the creation or termination of a trust of dutiable property; and
• a trust acquisition or surrender.
How is stamp duty assessed?
Across Queensland, New South Wales and Victoria, stamp duty is calculated on the greater of the current market value of the dutiable property or consideration paid.
Exemptions and concessions
Exemptions and concessions to transfer duty vary between the States. Some common exemptions include:
• transactions involving residential land and a transfer of an interest to a spouse / change of tenure / manufactured home;
• death of a property owner exemption; and
• charitable institutions exemptions.
The following concessions are also available to those who meet the respective requirements:
• home concession;
• first home concession; and
• first home vacant land concession.
Queensland foreign transfer duty rates
Additional duty applies to foreign acquirers purchasing residential land in Queensland. As of 1 July 2024, the Additional Foreign Acquirer Duty (AFAD) rate is 8% on top of the standard transfer duty.
New South Wales foreign transfer duty rates
A classified foreign person in New South Wales must pay an additional 9% surcharge on purchases of residential property. New South Wales considers an individual to be a foreign person unless they are an Australian citizen; or they have lived in Australia for more than 200 days within 12 months prior to the date of the contract and are a permanent resident of Australia.
Victoria foreign transfer duty rates
An additional 8% surcharge applies to foreign purchasers of residential property in Victoria. An individual is a foreign purchaser in Victoria unless they are an Australian citizen, a New Zealand citizen who ordinarily resides in Australia for a continuous period of at least 6 months starting no more than 12 months prior to, and ending no more than 12 months after, the date of settlement or acquisition, or holds a permanent visa.
What is land tax?
Land tax is an annual state tax, calculated on the freehold land you own in each state and is calculated annually.
How is land tax calculated?
Assessing land tax depends on what type of owner you are, the total taxable value of your land, and if any exemptions apply. The Valuer-General of each State assesses the value of said land, excluding any buildings or improvements.
Queensland land tax rates
Land tax is calculated statewide each year on 30 June midnight.
An additional 3% surcharge applies to absentee individuals and foreign investors on taxable land valued at $350,000 or more. A person is deemed an absentee if they are a foreign individual who does not hold a permanent visa and does not usually live in Australia. This surcharge is an increase from Queensland’s previous 2% yet remains lower than that of New South Wales and Victoria.
New South Wales land tax rates
The 2024-2025 State Budget announced a freeze of the land tax thresholds for 2025 and subsequent land tax years. However, an additional 5% applies to all residential land owned by foreign persons. The taxing date in New South Wales is 31 December each year, also occurring at midnight.
Victoria land tax rates
An absentee owner surcharge of 1% applies to all residential land across Victoria left vacant for more than 6 months in a calendar year. Further, an additional 4% in land tax applies to all land owned by absentee owners. Land taxing in Victoria takes place at midnight on 31 December each year.
How do these rates compare?
Queensland often has lower duty rates for owner-occupiers, with New South Wales and Victoria imposing some of the highest stamp duty rates in the country, particularly for high-end homes. For instance, stamp duty on a $1,000,000 property excluding any concessions would be roughly $38,025 in Queensland, $39,412 in New South Wales and $55,000 in Victoria. When factoring in applicable concessions such as those for first-home buyers, Queensland purchasers may in some circumstances pay nothing at all.
In contrast, New South Wales appears to lead the way for lower land tax rates and a greater tax-free threshold of $1,075,000 compared to Queensland’s $600,000 and Victoria’s significantly lower $50,000.
Queensland’s recent increase in AFAD and absentees surcharge now closely aligns with that of New South Wales and Victoria, meaning Queensland no longer holds a competitive advantage in relation to foreign duty and land tax rates. The Property Council of Australia is advocating for these taxes to be reduced or removed to encourage inward investment in Queensland.
Outcome
Understanding stamp duty and land tax across the States is crucial for buyers and investors who wish to avoid unexpected costs and ensure compliance. As discussed in this Insight, each State and Territory in Australia has its own rules and rates, making it essential to stay up to date about the relevant requirements in your region. Understanding how property taxes are calculated and whether there are concessions or exemptions available ensures more informed and strategic property decisions.
Next steps
Our Property team is happy to assist if you have any queries on the different stamp duty and land tax rules operating across Australia and how it may affect you or your transactions in the future.
