Stamp duty

Stamp duty (or transfer duty in some states) is a state-government tax payable when a property changes hands. It's calculated on a sliding scale against the purchase price, with each state having its own bracket schedule. Rates range from roughly 1.5% on cheaper purchases up to 7%+ on luxury properties, and the bill is typically due within 30-90 days of contract signing depending on the state. For investors it's a major sunk cost - $20,000-$50,000 on a typical capital city purchase - and it forms part of the cost base for CGT purposes when you eventually sell. First home buyers, owner-occupiers, and some off-the-plan purchases get concessions or exemptions; investors generally don't.