Stamp duty is a tax imposed by the government during the acquisition of property or land, serving to formalize the transfer of ownership from the seller to the buyer. The amount of stamp duty owed is contingent upon the property’s value, its geographical location, and whether the buyer is acquiring their first home or an investment property. Certain states or territories may provide concessions or exemptions for first-time home buyers, which can considerably lessen the financial burden.

Typically, the tax is calculated as a percentage of the property’s purchase price, and in some instances, it may also apply to related expenses such as legal fees or mortgage registration. Stamp duty is a one-time charge that is generally required to be paid upfront, often due before or at the time of settlement. It is crucial to consider stamp duty costs when budgeting for a home purchase, as it can represent a substantial expense in addition to the deposit and other associated fees. The legal completion of the property transfer is contingent upon the payment of stamp duty.