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Can you claim the stamp duty on your investment property?

When it comes to buying an investment property, there are plenty of costs involved in the process.

Buy A HomeInspection reports, legal work, loan applications, title transfers… and that not-insignificant cost of the actual property.

The list goes on and on, and it can feel like everyone has their hand out – not just the seller.

But arguably the most annoying expense you’re gouged with as a buyer is stamp duty.

That pesky land tax can add tens of thousands of dollars to your outlay, which a growing number of boffins recommend governments consider axing, is a bugbear of investors.

Can you claw some of it back?

What is Stamp Duty?

It’s a tax on land, plain and simple.

Stamp duty is a massive source of revenue for state governments and there aren’t many reasons for it to still exist today.

Taxation reviews over the past decade or so have suggested dumping it.

And research has found it has an impact on the quality of living.

Stamp Duty Calculator Singapore

The tax, based on the value of the land, adds to the price of property at a time when cracking the market is hard enough.

It also dissuades people from moving to certain areas and therefore increases commute times and forces people to sacrifice their proximity to family, work and schools, among other things.

And it acts as a barrier to older Aussies downsizing.

The Real Estate Institute of New South Wales has been lobbying hard for the State Government to review stamp duty.

The industry body says that despite a softening of the Sydney property market, which has seen the median house price drop to $945,000 (in the 12 months to February), the transfer duty payable on the median house price ($41,000) is unaffordable for most purchasers trying to get into the market.

In fact, the total NSW Transfer Duty revenue for the 2018-19 financial year was just over $7.5 billion.

Further data shows that the number of dutiable transactions in June 2019 was 15,964 which was the lowest number of dutiable transactions in NSW in the past 13 years.

The Real Estate Institute of Victoria (REIV) has also been pressing the issue hard.

Can you claim Stamp Duty on an Investment Property?

Being a property investor opens you up to some pretty good perks, especially when it comes to tax deductions.

Stamp Duty land TaxYou can claim a number of those costs I mentioned – legals, rates and inspection reports to name a few – to reduce your taxable income.

Given stamp duty is an expense directly related to your investment, you should be able to whack that in next tax time… right?

Wrong, unfortunately.

The Taxation Office considers that huge chunk of change to be part of the cost of acquiring the property.

In their view, it’s part of the base cost of the property and given you can’t claim the purchase price… you can’t claim the tax either.

It’s not very fair, but that’s the way it is.

So… I can’t recoup any of it?

On the stamp duty, there is a bit of good news.

Tax & Stamp DutyBut you’ll have to wait for it to materialise.

You can put the outlay of stamp duty towards lowering your capital gains tax liability when it comes time to selling your property.

Just as the taxman counts it as part of the base acquisition cost, so can you on the other end.

Let’s say you recently paid $800,000 for an investment property in inner Melbourne in September 2019.

The stamp, or transfer, duty on that purchase because it is an investment property is currently a staggering $43,000 – another reason why it needs to be axed!

If you sell it in five years for $1 million, then the capital gain is $157,000 – not $200,000 – which will reduce the tax you will have to pay.

That’s something, right?

Getting the right financial advice about stamp duty

First home buyer New

Investing in property involves myriad costs including a big lump sum to the relevant state government in the form of stamp duty.

While there’s long been debate about whether it should be axed, the reality is it’s probably not going anywhere anytime soon.

The world of banking and finance can be a pretty daunting one for both novice and sophisticated investors and since our establishment in 2002 we’ve focused on providing outstanding service and business standards.

This approach has been vindicated many times by our multi award-winning approach.

So, if you’d like to understand more about stamp duty, why not contact Intuitive Finance located in Melbourne today to ensure you have the right information and expert support on your side from the very beginning.

If you’d like an expert to teach you more about stamp duty and tax or if you have any other questions, please just contact us directly and we’ll be in touch.

Discuss your specific needs & formulate the right strategy for you. Get in touch to organise your complimentary 60min session today!

The information provided in this article is general in nature and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information with regard to your objectives, financial situation and needs.

Andrew Mirams

Andrew Mirams

Andrew Mirams is the Managing Director of Intuitive Finance and is a highly qualified mortgage advisor who holds dual diplomas in Financial Planning (Financial Services) and Banking and Finance (Mortgage Broking). Andrew’s expertise covers all aspects of lending for a diverse range of applications – from first home buyer loans or property upgrader loans, property investor loans, expatriates and loans for self-employed. With almost 30 years of experience, Andrew has been acknowledged by the mortgage industry as one of its best performers with multiple awards including regularly featuring in both the top 100 mortgage brokers list and Top 50 Elite business writers. Andrew was voted Victoria's favourite Mortgage Broker at the 2015 Investors Choice Awards, and won again for the same category at the 2017 Better Business Awards. The team at Intuitive Finance has also figured prominently by winning the 2016 "Best Independent Office (<5 brokers)" and "Best customer Service" Awards, and more recently at the 2017 MFAA National Awards, they also took out the "Best Customer Service" Award, a recognition which speaks for itself! Visit Intuitive Finance for more information.
Andrew Mirams

10 Comments. Leave new

If i buy an established investment property in Brisbane Region. But will move into property within 6 months, can i claim back stamp duty that i have paid at the time of purchase, as this will be my first property.


Hi Pardeep,
That is a great question and one that needs a little more research. Do you mean as a home owner or 1st time buyer? If so, i’d go the local state revenue office website and seek the answers there or call the SRO.
If not, on what basis would you seek the duties back? If your intention is to move into it in any case then I’d buy it as a home from the outset and then you won’t need to bother.
I hope this helps?


If I purchase a property as a home but don’t move in and after. 3 months rent it out what stamp duty is payable


Hi Sonia,
It’s a good question and it will depend on which state you are in and their jurisdiction.
But, in principle, if you got the lower stamp duty rates as an owner occupier but after 3 months converted it to an investment, unless there were extenuating circumstances as to why you had to convert it, then you are likely to to be liable for the full stamp duty rates as an investor.
I would recommend that you seek advice from either your solicitor/conveyancer firstly and then even contact your local State Revenue Office to seek there guidance.
I hope this helps you.


Hi there,
Currently i am living in SA and hoping to build a house in VIC with the intention of moving to it by the end of 2021. At the start it would go as a investment property. Bit once i move into VIC can I claim the stamp duty back? If so what should I do?

Avatar for Andrew Mirams
Andrew Mirams
July 25, 2019 8:40 am

Thanks for your enquiry however it’s not clear what you mean by “claiming the stamp duty back”?
Stamp duty is payable once at time of purchase and that’s it. There is not a way to claim it back.


I am living in Melbourne and want to Move to Western Australia.My question is can I get loan approved for a property (residential) in Perth while working in Melbourne


Hi Gunpreet,
Great question and one we are faced with regularly. Yes is the answer but then there is a bit of work around logistics and other requirements.
We’d be glad to discuss and assist you with this further if you’d like?
Feel free to call the office on 1300 342 505 and one of our finance strategists can discuss this with you further.


I recently purchase land in Victoria and will build a house for investment purpose. At settlement of the land purchase, the mortgage included land value and stamp duty. Can I claim the interest payable on the mortgage for land and stamp duty as interest deductions in my tax returns?


That’s a great question Jo but probably one that needs to be directed to your Accountant as that’s specific tax advice you are seeking.


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