Stamp duty is probably the biggest cost you’ll need to budget for when buying a house.

Also called transfer duty, stamp duty is a tax on property by Australian state and territory governments, paid at settlement or shortly after, when ownership of a property is transferred.

Who has to pay stamp duty?

Most people will have to pay stamp duty tax when they buy a residential or investment property unless you’re a first home buyer or qualify for an exemption. Many subsequent home buyers forget about budgeting for stamp duty as they may not have had to pay it for their first home. So it can be a nasty surprise and slightly stressful when you find out you have to pay stamp duty within 30 days of settlement.

Stamp duty can be expensive, but on a positive note you do get to see the benefits of it. The money gets added to the state budget for things such as transport and roads, health and hospitals, emergency services, police and other essential services that help to keep the state running.

To find out more about your stamp duty, go here.