Stamp Duty Tasmania

This article will tell you what ‘duty’ is and how it’s calculated. We'll also outline some other concessions and surcharges that may apply.

It features our handy Tasmanian Stamp Duty Calculator to help you work out what charges you may be facing when you buy a property.

Stamp Duty Calculator TAS

What is ‘duty’/stamp duty/property transfer duty?

As we’ve already said, those three are all the same thing with a different name. Property transfer duty is the name that spells out the meaning most clearly.

In the words of the Tasmanian government: ‘Duty (previously known as ‘stamp duty’), is a form of taxation charged by the State Government under the Duties Act 2001, when someone acquires an interest in property, usually by buying a property.’

Tasmania is not the only state to have stamp duty, as it exists in one form or another right across the country. The amount of duty payable depends on several factors, like property price, type of property, and the location. We’ll go into more detail on this later.

As with any tax, the money raised from stamp duty is likely to help fund infrastructure and services across Tasmania.

The good news is that stamp duty is a one-off payment generally made within 3 months of settling the purchase. So, you generally don't need to budget for an ongoing payment.

How is Tasmanian stamp duty calculated?

The calculator below will help you estimate how much duty you may have to pay, depending on your individual circumstances.

To use it, you’ll have to enter a few simple details, like:

• Are you buying in Tasmania or interstate?
• How much are you paying for this property? Generally, you will pay a higher duty for a higher priced property.
• How much is your mortgage?
• Is this your primary home or an investment property?
• Is this a new build or an existing home?

With this information, the calculator could give you a good idea of the duty you’ll have to pay.

It can also give you information on other transfer fees, concessions, or grants that may apply. This is all good information to help you budget more accurately.

Does every home buyer have to pay stamp duty at these rates?

The results from our Tasmanian Stamp Duty calculator are a guide, as The Tasmanian Government will be the final decision maker on costs. But entering your information correctly can help the calculator give you a more accurate result.

There are certain concessions available with Tasmanian stamp duty. Some first home-buyers, pensioners who are downsizing, and transfers between partners in a personal relationship may qualify. For more details, see below.

For foreign investors, a surcharge to the duty may apply, and we cover that off below, too.

What is the concession for first home buyers in Tasmania?

From 16 March 2021 to 30 June 2022, first home buyers purchasing an established home in Tasmania valued at less than $500,000 may be eligible for a 50 percent discount on their property transfer duty.

The Tasmanian Government details the eligibility requirements for purchasers/transferees to qualify for the concession. They should satisfy the following conditions:

• They must purchase an existing home in Tasmania between 16 March 2021and 30 June 2022.
• It must not exceed $500,000.
• They must not be a company or a trust.
• They must be at least 18 years of age*.
• At least one applicant must be an Australian citizen or permanent resident.
• They must not have previously owned a home (or have a spouse/partner who owned a home) in Australia.
• The applicant or spouse/partner must not have previously received a First Home Owner Grant in any state or territory of Australia or the Duty Concession.
• They must fully complete the application form and supply all the relevant documentation.
• All interested parties must be listed on the application form.

On top of these conditions, all eligible transferees must occupy the home as their main residence for a continuous period of 6 months starting within 12 months of buying the property*.

The Tasmanian Government’s definition of ‘principal place of residence’ is fairly clear:

“To comply with the requirement of a principal place of residence, the property must be the place at which you usually eat and sleep – leaving personal belongings at a vacant residence is not sufficient to meet this condition. The duty concession may be applied in anticipation of this requirement being met.”

* The Commissioner has a discretion to vary this requirement in some circumstances.

Refer to the Duty concession Commissioner's discretion guideline for more details.

First home buyers purchasing a new build home may not get the Tasmanian stamp duty concession. However, they may well qualify for the First Home Owners Grant.

What is the concession for pensioners downsizing to a new home?

From 16 March 2021 to 30 June 2022, pensioners downsizing to an established home valued at less than $500,000 may be eligible for a 50% discount on Tasmanian property transfer duty.

The concession can apply to purchasers over 60 who hold a concession or seniors’ card and who are buying property of lesser value than the one they’re selling.

It must be their only property and they must live there for at least six continuous months within a year of the purchase.

Full details of eligibility requirements are here on the Tasmanian Government website.

What is the ‘personal relationships concession’ and how does it work?

Broadly speaking, property transfers between partners in a marital, significant or caring relationship may be exempt from Tasmanian stamp duty.

The property must be the main residence at the time of the transfer. If parties other than the partners are involved in the transfer, then the concession won't apply.

The concession also doesn’t apply to transactions where the property is transferred from joint names of partners to just one of those names. It’s wise to check all eligibility requirements on the Tasmanian Government’s Property Transfer Duties page.

What is the foreign investor surcharge (FIDS)?

A ‘foreign person’ who acquires Tasmanian residential or primary production property may be charged additional duty.

You can see more details of the foreign investor surcharge at https://www.sro.tas.gov.au/property-transfer-duties/foreign-investor-duty-surcharge.

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Last updated: 28/10/2021