Stamp duty (also called transfer duty) is charged on commercial, industrial and investment property purchases in every Australian state and territory. Unlike a home purchase, there’s no first-home buyer concession or owner-occupier discount available, so the full rate applies to the dutiable value of the property, whichever is higher between the purchase price and market value.
Each state runs its own scale and its own rules, and factors like GST treatment and foreign purchaser surcharges can add materially to the bill. Getting an early, accurate read on your likely stamp duty means you can plan your deposit and finance around the real settlement cost, not just the purchase price.
At Loanworx, we help commercial property buyers understand where stamp duty fits into their overall settlement costs and structure their commercial finance accordingly, working alongside your solicitor or conveyancer on the specifics.
Buying commercial property and want to understand the numbers? Call us on 1300 562 696 or get in touch and we’ll be back to you shortly.
Every state calculates stamp duty a little differently, but the underlying logic is consistent. Here’s the shape of it.
Duty is charged on the higher of the purchase price or the property’s market value, using a sliding scale where higher-value tiers attract a higher rate on the portion above each threshold, similar to income tax brackets.
There’s no single national rate. Each state and territory sets and reviews its own thresholds, and commercial property doesn’t receive the concessions available to home buyers in any of them.
Where GST applies to the sale, most states calculate duty on the GST-inclusive price. Foreign purchasers face an additional surcharge in most mainland states, on top of the standard rate.
The final figure depends on more than just the purchase price. These are the factors that move it most.
Each jurisdiction sets its own rates and thresholds, so the same purchase price can produce a different duty bill depending on where the property sits. We help you check the current rate for your state before you commit.
Duty is assessed on whichever is higher, the contract price or an independent market valuation, so an under-market purchase price doesn’t reduce the duty payable.
If GST applies to the sale, duty is generally calculated on the GST-inclusive figure in most states. A going concern sale can change this, which is why the sale structure matters before you sign.
A foreign person or foreign-controlled entity generally faces an additional surcharge on top of the standard rate in most mainland states, which can add substantially to the bill on a commercial-sized purchase.
Whether the property will be owner-occupied for your business or held as an investment doesn’t generally change the duty rate itself, but it does affect how your finance is structured and assessed, which is where getting your broker and your conveyancer talking early pays off.
Commercial finance isn’t only about the headline rate. It’s about being matched to a lender that will approve you, structuring the facility so it suits the business long term, and having someone manage the process. Here’s what working with us looks like.
We compare commercial facilities across a broad panel of major banks, second-tier lenders, non-bank funders and specialist commercial lenders, so you see a genuine spread of options. We match the deal to the lender most likely to approve it at a competitive rate, which often isn’t your everyday bank.
You deal with experienced brokers who expect to see trusts, companies, partnerships, partner distributions and complex security, and who know how to present your structure to a lender accurately rather than force-fitting it into a generic application.
From the first conversation to settlement, we prepare the submission, liaise with the lender, coordinate with your accountant and solicitor, and keep you updated at each stage, so the deal keeps moving and you’re never chasing it.
For most commercial transactions, Loanworx is paid an upfront and trail commission by the lender after settlement, and that commission typically does not change the rate or fees you pay. For more complex scenarios a fee for service may apply, and we’ll disclose it in writing before any work begins. No surprises.
Stamp duty is charged on the dutiable value of the property, the higher of the purchase price or market value, using a sliding scale that’s set individually by each state and territory. There’s no national rate, and no home-buyer concessions apply to commercial property.
Often yes. Where GST applies to the sale, most states calculate duty on the GST-inclusive price. A going concern sale of a tenanted commercial property can be GST-free, which is one reason the sale structure should be reviewed before you sign.
Generally yes. Most mainland states apply an additional foreign purchaser surcharge on top of the standard rate where the buyer is a foreign person or a foreign-controlled entity, which can add a substantial amount on a commercial-sized purchase.
Generally no. Stamp duty is a settlement cost paid alongside your deposit, in cash or equity, rather than capitalised into the loan amount. It’s worth factoring into your deposit planning from the start, alongside legal and lender fees.
Rates and thresholds are set and reviewed by each state and territory’s own revenue office and change from time to time. We can point you to the current official calculator for your state, or you can use our own commercial stamp duty calculator for an estimate.
Talk through your scenario with a specialist commercial broker, with no cost and no obligation. Call us on 1300 562 696 or get in touch and we’ll be back to you shortly, ready to map out what’s possible for your purchase.
Disclaimer: The information provided here is general in nature and should not be considered financial, tax or legal advice. Stamp duty rates, thresholds and concessions vary by state and territory and change from time to time. You should consult your solicitor, conveyancer or the relevant state revenue office to confirm the duty payable on your specific purchase, ahead of a discussion with us that will be limited to how to arrange any funding required.
