Stamp duty on commercial property, state by state

When a business buys its own premises, stamp duty (also called transfer or conveyance duty) is usually the biggest cost after the deposit. It’s paid by the buyer, it’s due around settlement, and it can’t be negotiated away. It’s also the state tax that varies most across the country: the same factory can cost a large duty bill in one state and none in another.

How does stamp duty on commercial property compare across the states?

State or territory	Duty on commercial property purchases
South Australia	No duty on qualifying (non-residential, non-primary production) land for transfers executed from 1 July 2018
ACT	Nil up to $2.1m (2026–27; $2m in 2025–26); above that, $5 per $100 on the total value
Victoria	Duty paid one final time when a property enters the CIPT reform (first sale from 1 July 2024); annual tax applies 10 years later
New South Wales	General transfer duty scale
Queensland	General transfer duty scale
Western Australia	General transfer duty scale
Tasmania	General transfer duty scale
Northern Territory	Stamp duty applies to transfers under the Territory’s rules

For the four states using general scales, the duty rises with the price, and each revenue office publishes a calculator. Use it early, before you settle on a budget.

Why is South Australia different?

South Australia removed duty on transfers of qualifying land — commercial, industrial, institutional and recreational property — executed on or after 1 July 2018, unless the transfer arises from a contract entered into before that date. Residential and primary production land still attract duty. The state had already abolished duty on leases (2004), mortgages (2009), and business and share transfers (2015).

The practical effect: a business buying a workshop in Adelaide can put the money it would have spent on duty in another state towards the deposit, the fit-out or equipment. Just watch SA’s land tax, which is much harsher on property held in trusts; our land tax comparison explains. More in the South Australia guide.

How does the ACT’s commercial threshold work?

The ACT charges no duty on commercial transfers up to $2.1 million in 2026–27. Above that, the ACT Revenue Office applies a flat $5 per $100 on the total transaction value. Because the rate applies to the whole value, not just the excess, there’s a steep step at the threshold. A property priced just above the line costs noticeably more in duty than one just below. Keep that in mind when negotiating. The ACT guide covers the other territory settings.

What is Victoria’s CIPT reform?

Victoria is progressively abolishing stamp duty on commercial and industrial property and replacing it with an annual Commercial and Industrial Property Tax (CIPT).

1. Entry. A qualifying property enters the reform on its first sale from 1 July 2024. The buyer pays duty one last time.
2. Transition loan. Eligible buyers can borrow that final duty from Treasury Corporation of Victoria and repay it in 10 equal annual instalments, secured by a charge over the property.
3. Annual tax. Ten years after entry, the property pays CIPT each year, and later sales are free of duty.

Before buying in Victoria, find out whether the property has already entered the reform, because that changes both the upfront cost and the long-term holding cost. The Victoria guide has more.

How do buyers fund duty on premises?

Duty has to be paid in cash around settlement, and it isn’t usually covered by the value of the property itself. Owners typically fund it in one of three ways:

• From savings or retained profits, which can leave the business short of working capital just as it moves.
• Within a property-secured business loan, using the new premises and sometimes another property (often the family home) as security to cover the deposit, duty and costs together.
• Through the Victorian transition loan, where eligible.

Borrowing against property covers anything from $20,000 to $5,000,000 over residential or commercial property. If you’re about to make an offer, find out what your business could qualify for first, so your budget includes duty from the start.

What else should be on the premises checklist?

• Land tax once you own — see our land tax comparison.
• GST — commercial property sales can involve GST, depending on the vendor and whether the property is sold as a going concern. Your accountant needs to see the contract.
• Zoning and permitted use, and in the ACT the Crown lease purpose clause.
• Fit-out and moving costs, which are often underestimated.
• Existing leases if you’re buying a building with tenants.

Illustrative example: two engineering businesses of similar size each buy a workshop at a similar price, one in Adelaide and one in Brisbane. The Adelaide buyer pays no duty on the qualifying land. The Brisbane buyer pays duty on the Queensland general scale, funded within a property-secured loan so the business keeps its working capital for the move.

Planning to buy your premises?

Owning the building you trade from is one of the most common reasons owners come to us. Tell us the state, the purchase price range and what security you have. It is done in about a minute, there’s no credit check, and your details stay with one team instead of being spread across lenders. A real person works through the numbers with you, duty included. Please be accurate on the form so we can line up the right option first time.

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