Stamp Duty on House and Land Packages: Who Pays and How Much?

January 23, 2026 Udit Thakur RealEstate

You have made up your mind to build your own house, and to this point you have had a pretty exciting time of it. You have researched the designs of houses, as well as visited the neighbourhood of your dreams, and even selected your local coffee shop. However, now the conversation begins to become a little more serious, and we are talking about taxes, loans and baffling finance terminologies.

Don’t worry, stick with us. It does not sound as complex as it may be!

Stamp duty is one of the most important costs to understand when buying property in Australia. It is a government tax charged on property transactions and can significantly affect your overall budget if not planned for correctly. A common question many buyers ask is: Who pays stamp duty? Buyer or seller?

Who Pays Stamp Duty When Buying Property in Australia?

Here’s how it goes: purchasers handle stamp duty, never the vendors. Across every Australian state, buying any home means the buyer covers this cost, even when getting a house combined with land. New construction? That changes things quietly – sometimes better deals hide in those details instead of older properties. Rules shift slightly here, making early clarity useful for anyone looking at freshly built places.

Stamp Duty on Home and Land Packages

Picture this: you’re buying a home and land combo in Australia. The rules around stamp duty might seem tangled at first glance. One thing stands out though – the buyer usually covers the tax bill. Costs shift based on location, property value, and local regulations. Some states treat these purchases differently than standard homes. That difference? It sometimes means less tax. Not every region hands out breaks, but where they do, savings pop up quietly. These deals don’t scream discounts – they just sit there, built into the system. So while one person pays full rate elsewhere, another pockets relief without fanfare.

Stamp Duty Basics for Home Buyers

When someone buys a house, they usually pay a single fee called stamp duty – some places call it transfer duty instead. Each state and territory sets its own rules, so what you owe changes based on location. This charge comes straight from the buyer, not the seller. Where the building sits decides how much ends up due.

Here’s that point made once more, just to be clear – it is the buyer who covers stamp duty, never the seller. When ownership shifts hands, the person selling isn’t on the hook for stamp duty. Their expenses tend to include things like agent commissions, lawyer charges, and maybe capital gains tax down the line.

When Do Buyers Pay Stamp Duty?

Stamp duty is usually payable:

Right away, once the sale agreement is signed, yet
Once everything is finalized, rules might differ based on where you live

Falling behind on stamp duty payments might bring extra fees or added costs – better fit it into your schedule right at the start.

How Is Stamp Duty Calculated?

Stamp duty is calculated based on:

The purchase price or market value of the property (whichever is higher)
The state or territory where the property is located
Whether you qualify for concessions (such as first home buyer benefits)

Stamp duty is generally worked out using this simple calculation:

Stamp Duty = (Property purchase price − First Home Owner Grant) × applicable duty rate

First Home Owner Grant (FHOG):
If you are buying your first home, you may qualify for a First Home Owner Grant of up to $10,000, which can reduce the amount used to calculate stamp duty.

Duty Rate:
The duty rate depends on the total purchase price of the property. Your rate may fall under a general rate, concessional rate, or a first-home buyer rate, based on your eligibility. In Western Australia, general duty rates start at around 1.9% for properties valued below $120,000 and can increase to approximately 9% for properties priced above $725,000.

For buyers in Western Australia, you can explore a more detailed breakdown using this detailed WA stamp duty calculator, which helps estimate costs before committing to a purchase.

House and Land Packages: The Stamp Duty Advantage

House and land packages are increasingly popular across Australia, particularly with first-home buyers and investors. One of the biggest advantages lies in how stamp duty is calculated.

How Stamp Duty Works for House and Land Packages

In most cases, when you purchase a house and land package:

Stamp duty is charged only on the land value, not the total value of the land plus the house built
This applies when the land and construction contracts are separate, and the home has not yet been built

This is very different from buying an established home, where stamp duty is calculated on the full purchase price, including the building.

Why This Can Save You Thousands

Because land is usually much cheaper than a completed house, paying stamp duty only on the land component can result in substantial savings. For example:

Land value: $300,000
Build cost: $400,000
Stamp duty payable on: $300,000 (instead of $700,000)

These savings can be redirected toward upgrades, furnishings, or reducing your loan amount.

Buyers exploring modern new-build options can look at examples such as Ross North Homes specialises in house and land packages with over 50 suburbs to choose from, which demonstrate how house and land combinations can suit different budgets and lifestyles across Australia.

What You Need to Know Before Buying

While house and land packages offer stamp duty benefits, buyers should still plan carefully and understand all associated costs.

Typical Costs to Budget For

In addition to stamp duty, buyers should consider:

Land deposit
Construction progress payments
Legal and conveyancing fees
Loan establishment fees
Site works and upgrades

Stamp duty remains one of the largest upfront expenses, even when reduced through a house and land package.

Ignore This, You’ll Pay More

Stamp duty is a compulsory cost when buying a home, and the buyer is responsible for paying it on time. Missing the payment can lead to late penalty tax . You must pay stamp duty before a Certificate of Duty is issued, as this is required to proceed with the property purchase. In Western Australia, payment is usually due within one month of receiving the duties assessment notice from the government. Check here for complete information on stamp duty payment requirements.

State-by-State Differences

Stamp duty rules vary across Australian states and territories. Differences may include:

Tax rates and thresholds
First home buyer exemptions
Concessions for vacant land purchases

Always check your state revenue office or use official calculators to confirm current rates.

First Home Buyer Concessions

Many first home buyers may be eligible for:

Full stamp duty exemptions up to certain property values
Reduced stamp duty for properties above the exemption threshold

These benefits often apply to vacant land and house and land packages, making new builds even more attractive for first-time buyers.

Tips for Calculating Total Costs

Confirm whether stamp duty applies only to land or the full contract value
Check eligibility for grants and concessions early
Use online calculators for accurate estimates
Speak with a conveyancer or mortgage broker before signing contracts

Conclusion

Folks on the hunt for a home handle stamp duty – sellers stay clear of that bill. Spotting this upfront means housebuyers can map out expenses calmly, sidestepping surprise charges down the road.

Starting fresh can mean paying less tax – just on the land, not the whole property. That difference adds up fast when buying something new instead of older homes already built. With today’s floor plans plus incentives for those entering the market, these deals stand out across the country.

Thinking ahead? Stamp duty needs a spot in your spending plan. Rules change depending on where you are, so look up what applies locally. Some people qualify for reductions, worth checking if that could be you. Good timing and homework mean this cost fits smoothly into the process. Owning the place you want might include this fee – just one part of getting there