The cost of buying a home in Queensland has surged far beyond house prices, with stamp duty bills in some suburbs increasing by more than $180,000 over the past three decades.
Exclusive PropTrack analysis of suburb-by-suburb data comparing transfer duty on median-priced homes today with 30 years ago reveals buyers in Kensington Grove, west of Brisbane, have experienced the state’s biggest jump.
RELATED: Why Qld should look to the ACT for inspo when it comes to stamp duty
This four-bedroom house in Kensington is on the market for offers over $1.1m. The buyer will pay about $35,000 in stamp duty.
Three decades ago, someone buying the suburb’s median-priced home would have paid just $275 in stamp duty. Today, that bill has climbed to almost $34,600.
Brisbane’s prestigious New Farm ranked second, where the stamp duty bill has grown from $1,500 to more than $184,000 — a rise of more than 12,000 per cent. Transfer duty now makes up five per cent of the purchase price of a median-price house in the suburb.
The southeast Queensland suburb of Cedar Grove was third, with duty climbing from about $360 to almost $39,000, followed by Mount Cotton, where the tax bill has jumped from around $420 to $43,500.
QLD SUBURBS WHERE STAMP DUTY HAS INCREASED THE MOST
| Suburb | Stamp duty paid 30 years ago | Stamp duty paid today | Change in stamp duty payable |
| Kensington Grove | $275 | $34,588 | 125 times more |
| New Farm | $1,500 | $184,231 | 122 times more |
| Cedar Grove | $360 | $38,900 | 1081 times more |
| Mount Cotton | $420 | $43,500 | 103 times more |
| Karalee | $450 | $46,318 | 102 times more |
| Bulimba | $1,090 | $106,894 | 98 times more |
| Hamilton | $1,320 | $125,725 | 95 times more |
| Logan Village | $490 | $46,663 | 95 times more |
| Munruben | $520 | $49,250 | 94 times more |
| Kooralbyn | $255 | $24,100 | 94 times more |
Karalee rounded out the top five after its typical stamp duty bill increased from about $450 to more than $46,000.
The figures highlight just how dramatically one of the biggest upfront costs of buying a home has escalated over a generation — and how more affordable suburbs have not been immune to huge transfer duties due to bracket creep.
While some of Queensland’s most expensive suburbs feature prominently, the analysis also shows buyers in formerly affordable acreage and lifestyle suburbs have experienced extraordinary increases.
This property in Karalee is on the market for offers over $1.695m. The buyer will pay about $60,000 in stamp duty.
Brisbane suburbs Bulimba and Hamilton also featured in the top 10, alongside Logan Village, Munruben and Kooralbyn.
REA Group economist Anne Flaherty said huge increases shown in the data highlighted how much of a disincentive stamp duty could be to buying and selling a home.
“I think there’s been an incredibly dramatic increase, and in many cases, bracket creep has been the primary driver, which is quite shocking,” Ms Flaherty said.
“In suburbs like Kensington Grove, it shows that a suburb with what might be more affordable homes are still being taxed as though they are more luxurious properties.”
RELATED: Up $180k: The Qld suburbs where stamp duty has skyrocketed
Ms Flaherty said stamp duty had become a key factor in deciding whether or not to buy or sell a home.
“I think it slows people’s decisions. They’re going to be less mobile when you have to pay such an enormous penalty for moving home.
“We want people not to have a disincentive to move when it suits their lifestyle needs, and in a market where home price growth isn’t particularly strong, it can take longer to make a profit on that home and experience enough capital growth to make up for the stamp duty outlay.”
REA Group economist Anne Flaherty.
The analysis compares the transfer duty payable on the median house price in each suburb today with the duty that would have been paid on the suburb’s median house price 30 years ago. Only suburbs recording at least 20 house sales over the past year were included.
The findings underline how stamp duty has evolved from a relatively modest transaction cost into one of the biggest financial hurdles facing homebuyers.
Unlike a mortgage, the tax generally must be paid upfront, adding tens of thousands of dollars to the cost of purchasing a home alongside a deposit, legal fees and moving expenses.
The growing burden comes as housing affordability remains one of Queensland’s biggest challenges, with rising property values not only making homes more expensive but also substantially increasing the tax buyers must pay to secure them.
While first homebuyers in Queensland are now exempt from paying stamp duty when buying or building a new home, the state continues to rely heavily on transfer duty revenue, with collections climbing as home values have surged over recent years.
This house in Bailey St, New Farm, is on the market for offers over $3.75m. A buyer would pay about $180,000 in stamp duty for this property.
The findings come amid ongoing debate over whether Queensland should eventually replace stamp duty with a broader annual land tax, similar to reforms introduced in the ACT and optional schemes available in NSW and Victoria for some buyers.
Analysis from Money.com.au and Primara Research found the Queensland government collected about $8 billion in stamp duty last financial year, and the average Queensland buyer paid an estimated $53,000 in transfer duty.
“Most economists and housing analysts agree transitioning to a land tax would create a better system overall,” Ms Flaherty said.
“The challenge is that transition. If we take a longer term view, the fact people are staying in homes longer and are likely to continue to stay in homes longer…that is ultimately going to reduce the revenue state governments are getting.”
MORE: ‘Falling quickly’: Expert warns Qld housing correction could last years
100yo pays record price for swanky new beach house
Primara Research head of research and data Peter Drennan said stamp duty was a progressive tax, and as property prices climbed, buyers were pushed into higher brackets where a greater percentage applied to every dollar above each threshold — meaning the tax grew faster than the price itself.
“Stamp duty revenue has nearly doubled in six years, and the progressive nature of the tax means governments benefit disproportionately every time prices rise,” Mr Drennan said.
“Buyers aren’t just paying more because homes cost more. They’re being pushed into higher brackets where the effective rate increases, so the tax bill grows faster than the price tag.”
According to Ray White figures, last financial year, stamp duties on conveyances accounted for 21 per cent of the Queensland government’s taxation revenue.
Ray White chief economist Nerida Conisbee said softening prices and sales volumes could reduce the amount of stamp duty payable going forward.
“State governments rely heavily on revenue from people moving, upgrading, downsizing, investing and restructuring their housing needs,” Ms Conisbee said.
“When fewer properties transact, that revenue stream becomes more vulnerable.”
REIQ CEO Antonia Mercorella. Picture: Liam Kidston.
Real Estate Institute of Queensland (REIQ) CEO Antonia Mercorella said the state government could look to other jurisdictions, such as the ACT, for inspiration when it came to stamp duty reform.
“(Stamp duty) continues to act as a barrier to mobility and home ownership, and we would like to see a pathway toward a more efficient system,” she said.
“While we welcome the Queensland Government’s moves to abolish stamp duty for first home buyers on new homes, and have this now firmly legislated, there is still room to extend this relief.
“The ACT Government has recently taken a nation-leading step by moving to abolish stamp duty for a broader range of buyers — including first homebuyers, those re-entering the market after time away, and eligible pensioners.
“These are the types of bold reforms that improve mobility, unlock housing supply, make better use of existing stock and attract buyers to Queensland.”
English (US) · 