Buying or selling a place of your own isn't just about signing on the dotted line and grabbing the keys. There are a few important property taxes in Australia to keep in mind, and getting your head around them early can make a big difference to your budget and peace of mind.
This guide will explain the basics of stamp duty, the Goods and Services Tax (GST), and capital gains tax (CGT) so you can feel more confident and in control of your property journey.
Taxes when buying a home in Australia
Stamp duty is usually the first tax on a buyer's radar. This state-based charge is calculated on the purchase price (or market value if that's higher), and each state or territory sets its own rules and rates. How much you'll pay depends on where you buy, how much you spend, and what kind of property it is.
If you'd like a quick estimate, try Aussie's stamp duty calculator to get a ballpark figure.
Are there any first home buyer stamp duty exemptions?
Many states offer stamp duty discounts or exemptions for first-home buyers who meet certain criteria. Some even offer reduced rates for off-the-plan purchases. If you think you qualify, check your local First Home Owner Grant (FHOG) or chat with your local Aussie Broker for the latest details.
Does GST apply to property purchases?
Generally, GST doesn't apply to established residential homes. That's a win for most Aussie homebuyers. However, if you're buying brand-new or off the plan, you might need to budget for GST, usually around 10%. When in doubt, ask the seller or developer if GST applies, or talk to an expert if you'd like extra clarity.
For more details on GST rules on property purchases, visit this residential property guide.
Taxes when selling a home in Australia
Capital gains tax kicks in if you sell a property at a profit. In basic terms, Capital gain = Sale price – Purchase price (including certain costs). If you've owned the property for over 12 months, you might score a 50% CGT discount (for individual sellers).
You'll generally include any CGT in the tax return you file for the year of the sale. Chatting with a tax professional can help you avoid surprises if you're unsure how this affects you.
Are there any CGT exemptions?
Main residence exemption: If the property has been your main home the entire time, you likely won't pay CGT.
Partial exemptions: If you rented out the place, you may reduce what you owe.
Investments and inherited homes: Special rules can apply, so ensure you know where you stand before selling.
Does GST also apply to property sales?
If you're selling an established residential home, GST generally doesn't apply.
However, GST on property sales can apply to certain property types, like new builds, vacant land, or commercial real estate.
Developers selling newly built places usually work with a GST withholding arrangement. This arrangement means the buyer passes part of the sale price directly to the Australian Taxation Office (ATO), helping keep things transparent for everyone.
For more information on ATO rules for property sales, visit their GST at settlement guide.
Tax deductions and benefits for property owners
If you own an investment property, there are a few property tax deductions and benefits that might help you hold on to more of your cash:
Interest on home loans: If you borrowed to invest, the interest component of your repayments could be deductible.
Depreciation: You can often claim wear-and-tear costs for things like carpets or appliances.
Maintenance costs: Basic repairs or upkeep can usually be claimed. Bigger improvements might be treated differently, so make sure you check the guidelines.
Many investors also consider negative gearing tax advantages, where rental income is less than property expenses. This can reduce your overall tax bill if structured correctly.
Can I reduce my CGT liability?
Certain costs, like legal fees, stamp duty on investment properties, and eligible renovation expenses, can all affect your property's "cost base." A higher cost base can translate to a smaller capital gain if you sell for a profit.
Not sure where to start? Your local Aussie Broker can talk you through the basics and, if needed, point you towards a tax professional.
Special tax considerations for foreign buyers and sellers
If you're buying from overseas or selling property here as a non-resident, you may face a few extra rules:
Additional stamp duty surcharges vary from state to state, so it's best to get up-to-date advice.
Selling a property over $750,000? The buyer is required to withhold part of the purchase price to ensure CGT is accounted for. You can apply for a variation if you've already sorted out your tax.
Key deadlines: when to pay these taxes
Stamp duty: Often due around settlement, but rules differ by state or territory.
CGT: Must be included in your annual tax return (usually lodged by 31 October, unless you use a registered tax agent who can sometimes get more time).
GST: For new builds or certain property sales, you'll generally pay GST at settlement (and developers often use a withholding arrangement for GST on newly built homes).
Make a note of these timelines, keep your documents handy, and seek help if needed.
How to minimise tax when buying or selling
Plan for CGT.
If you can wait, holding the property for at least 12 months might allow you to access the 50% CGT discount.
Renovations may increase your property's cost base, which can reduce your taxable gain down the track.
Choose the right ownership structure.
Depending on your situation, you could buy as an individual, in a trust, or through a self-managed super fund (SMSF). Each option has its own legal and tax perks.
If you're buying as a couple or family, a straightforward joint purchase might fit the bill.
Get professional help.
If you're new to investing or have a more complex portfolio, a tax accountant or financial adviser can highlight tax-saving strategies you might not know about.
Every property journey is different, and your tax obligations will vary depending on your circumstances. That's why having a quick chat with an accountant or financial planner will help, and a local Aussie Broker can support you with your tax obligations.
How can your local Aussie Broker help with tax matters?
While we're not financial planners, an Aussie Broker can:
Discuss how stamp duty and other taxes might fit into your home loan planning.
Suggest ideas that may help reduce CGT or guide you toward a tax specialist for deeper advice.
Work alongside your other advisers so your property and tax strategies go hand in hand.
Ready to get started? Book a free^ appointment now. We'll help guide you through the basics so you can focus on finding (or selling) your place.