06 Nov Stamp Duty Costs on a $1.5M Property: A State-by-State Guide

Buying property in Australia is a major financial commitment, accompanied by various taxes and fees. Among these, stamp duty—or transfer duty—is often the largest additional cost. Each state and territory applies its own stamp duty rates, which adds tens of thousands of dollars to the price of a home or investment property. Since rates vary significantly across the country, it’s essential for prospective buyers, especially property investors with location flexibility, to understand these differences.

This comprehensive guide delves into what an owner-occupier and an investor would pay in stamp duty on a $1.5 million unit purchase across Australia’s states and territories. We also explore recent and proposed changes, particularly in Victoria, that could significantly impact these costs.  These figures do not account for any potential concessions or surcharges that may apply to foreign buyers or vacant properties.

Summary Table of Stamp Duty Costs on $1.5m Property Purchase

Rank	State/Territory	Owner Occupier Stamp Duty	Investor Stamp Duty
1	Victoria	$78,000	$78,000
2	South Australia	$73,830	73,830
3	Northern Territory	$73,100	$73,100
4	New South Wales	$67,500	$67,500
5	Western Australia	$66,415	$66,415
6	Tasmania	$64,935	$64,935
7	Queensland	$58,950	$78,000
8	Australian Capital Territory	$50,500	50,500

New South Wales (NSW)

In NSW, stamp duty rates are calculated on a sliding scale based on the property’s value, with higher-priced properties attracting higher rates. Currently, there is no distinction between stamp duty payable on owner-occupied or investment properties.

• Stamp Duty for $1.5M Owner-Occupied Property: Approximately $67,500
• Stamp Duty for $1.5M Investment Property: Approximately $67,500

Note: First home buyers are offered incentives by the NSW government, who have introduced an opt-in annual land tax for first home buyers purchasing properties up to $1.5 million. However, for properties at $1.5 million and above, traditional stamp duty applies.  

Victoria

Victoria has traditionally imposed some of the highest stamp duty rates in Australia, dampening investor interest. However, the state government has recently proposed substantial reforms that could transform the property tax landscape.

Proposed Changes in Victorian Stamp Duty

The Victorian Government is considering replacing the upfront stamp duty with an annual property tax for high-value transactions. Under this proposal, buyers of properties over a certain threshold—potentially around $2 million—would have the option to pay an annual land tax instead of a lump-sum stamp duty at the time of purchase. This shift aims to reduce the initial financial burden on buyers and stimulate the property market by making high-value properties more accessible.

While the specifics are still under discussion, the potential impacts include:

• Owner-Occupied Properties: The option to pay an annual tax could make homeownership more attainable by lowering upfront costs.
• Investment Properties: Investors might benefit from improved cash flow due to reduced initial expenses but would need to consider the long-term implications of ongoing tax payments.

As of now, the traditional stamp duty rates apply:

• Stamp Duty for $1.5M Owner-Occupied Property: Approximately $78,000
• Stamp Duty for $1.5M Investment Property: Approximately $78,000

Note: Victoria recently introduced a temporary stamp duty concession on off-the-plan strata unit purchases up until 25 October 2025.

Queensland

Queensland offers comparatively lower stamp duty rates for owner-occupied properties but imposes higher rates on investors.

• Stamp Duty for $1.5M Owner-Occupied Property: Approximately $58,950
• Stamp Duty for $1.5M Investment Property: Approximately $71,175

Note: Queensland provides concessions for first-home buyers on properties priced up to $800,000.

South Australia

South Australia’s stamp duty rates do not differentiate between owner-occupiers and investors at this price level.

• Stamp Duty for $1.5M Owner-Occupied Property: Approximately $73,830
• Stamp Duty for $1.5M Investment Property: Approximately $73,830

Western Australia

Western Australia applies the same stamp duty rates to both owner-occupied and investment properties for transactions of this value.

• Stamp Duty for $1.5M Owner-Occupied Property: Approximately $66,415
• Stamp Duty for $1.5M Investment Property: Approximately $66,415

Tasmania

Tasmania’s stamp duty rates do not differentiate between owner-occupiers and investors at this price level.

• Stamp Duty for $1.5M Owner-Occupied Property: Approximately $64,935
• Stamp Duty for $1.5M Investment Property: Approximately $64,935

Australian Capital Territory (ACT)

The ACT is in the midst of a significant tax reform, gradually replacing stamp duty with increased annual rates (similar to land tax). This transition aims to reduce the upfront costs associated with property transactions.

• Stamp Duty for $1.5M Owner-Occupied Property: Approximately $50,500
• Stamp Duty for $1.5M Investment Property: Approximately $50,500

Note: The ongoing tax reforms may further reduce these amounts in the future.

Northern Territory

The Northern Territory imposes some of the highest stamp duty rates in the country, with no distinction between owner-occupied and investment properties.

• Stamp Duty for $1.5M Owner-Occupied Property: Approximately $73,100
• Stamp Duty for $1.5M Investment Property: Approximately $73,100

Key Takeaways

• Variations Across States: Stamp duty costs vary significantly across Australia, with rates varying up to 54% depending on the state in which you purchase property.
• Owner Occupier Benefit: Queensland is the only state that offers reduced stamp duty for owner occupiers – all the rest of the states have the same stamp duty rates regardless of whether an investor or owner occupier.
• Policy Reforms: Both the ACT and Victoria are exploring reforms to reduce upfront stamp duty costs, which could have long-term implications for property affordability and investment strategies.

Navigating the Changes

The proposed changes in Victoria, along with ongoing reforms in other states, highlight the dynamic nature of property taxation in Australia. Prospective buyers should:

• Stay Informed: Keep up-to-date with the latest policy announcements and legislative changes that could affect stamp duty costs.
• Consult Professionals: Engage with experienced buyers’ agents and financial advisors who can provide personalized guidance based on the most current information.
• Consider Long-Term Implications: Evaluate the long-term financial impact of opting for annual property taxes versus upfront stamp duty payments, especially in light of potential policy shifts.

Stamp duty remains a significant consideration in the Australian property market, affecting both affordability and investment returns. Understanding the nuances of each state’s approach—and staying informed about proposed changes—is essential for making informed purchasing decisions.

For tailored advice and assistance navigating these complexities, consider reaching out to professional buyers’ agents like Premier Home Finders, who can provide expert insights and help you make the most financially sound choices in this evolving landscape.