State and territory governments have been quietly raking in billions of dollars more from homebuyers, with new figures revealing stamp duty revenue has almost doubled in just six years despite property sales barely rising.
New analysis from Money.com.au and Primara Research shows governments collected a record $34.4 billion in stamp duty last financial year — up from $18.8 billion in 2018-19.
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New figures show state and territory governments have made double the revenue from stamp duty in the past six years.
The massive windfall comes as soaring property prices push buyers into higher tax brackets, causing stamp duty bills to rise faster than home values themselves.
The latest ABS figures show stamp duty collections jumped 12 per cent in the past year alone, while property sales volumes increased by just 5 per cent.
The average Australian homebuyer now pays about $61,714 in stamp duty every time they buy a property.
| AVERAGE STAMP DUTY PAID PER TRANSACTION BY STATE |
| New South Wales: $73,855 |
| Western Australia: $63,860 |
| Victoria: $62,355 |
| Northern Territory: $53,902 |
| Queensland: $53,268 |
| South Australia: $45,911 |
| ACT: $38,399 |
| Tasmania: $31,852 |
| SOURCE: Primara/Money.com.au |
The research found the growing tax burden is being driven largely by rising property prices rather than increased market activity.
New South Wales buyers face the highest burden, handing over an average of $73,855 before even picking up the keys — that’s up 28 per cent since the pandemic.
Western Australia follows at $63,860, although it has seen the biggest jump in stamp duty revenue of any state — up 119 per cent in six years, despite sales volumes falling in that time.
Victoria is next at $62,355 (only an 8 per cent increase since 2018-19).
Queensland buyers are paying an average of $53,268 in stamp duty — up from just $36,000 in 2018-19, while South Australians are handing over $45,911 — a jump of 78 per cent in six years, despite lower sales volumes.
Sydney homebuyers paid the most stamp duty last financial year for a median-priced home – $65,963.
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In Sydney, a buyer of an established home at the median price of $1.5m faces a stamp duty bill of $65,963.
Double the purchase price to $3m million and the stamp duty bill jumps to $149,563 — an increase of 126 per cent despite the property’s value rising by 100 per cent.
Primara Research head of research and data Peter Drennan said many buyers failed to realise how quickly stamp duty escalated as prices increased.
“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.”
Ray White chief economist Nerida Conisbee.
Ray White chief economist Nerida Conisbee said the federal budget’s proposed tax reforms would likely only trigger a fall in sales volumes because people may be reluctant to transact.
“If the budget encourages investors to hold for longer, adds uncertainty for buyers and sellers, and does little to free up established housing stock, the impact will not stop at the housing market,” Ms Conisbee said. “It will flow through household spending, business activity and state government revenue.
“State governments rely heavily on revenue from people moving, upgrading, downsizing, investing and restructuring their housing needs. When fewer properties transact, that revenue stream becomes more vulnerable.”
According to Ray White figures, last financial year, stamp duties on conveyances accounted for 21 per cent of total state and local government taxation revenue nationally.
In Queensland and New South Wales, the share was even higher, at 22.5 per cent and 22.4 per cent respectively.
Victoria was also heavily exposed, with stamp duties on transactions making up 20.4 per cent of total state and local government taxation revenue.
The ACT, which has been shifting from stamp duty to land tax, is the least exposed.
The findings are likely to reignite debate about stamp duty reform, with critics long arguing the tax discourages people from moving.
Some states are taking action, including South Australia, which has abolished stamp duty for people aged over 60 buying a new home or an off‑the‑plan apartment valued at up to $2m.
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