Property Buyer's Guide
Buying Property in Australia: What It Actually Costs
Whether you're buying your first investment property or expanding your portfolio, understanding all the upfront and ongoing costs is essential. This guide walks you through every tax, fee, and expense you can expect — so there are no surprises on transfer day.
Last updated: 22 April 2026
Budget 8–10% above the purchase price for taxes and fees when buying property in Australia. The calculator below gives you an exact figure for your situation.
NSW transfer duty (stamp duty) applies to all property purchases. It uses a progressive sliding scale — you only pay each rate on the portion of the purchase price within that band. Thresholds are CPI-indexed annually on 1 July. The rates shown apply to the 2025–26 financial year. Rates shown are for investors / non-first-home-buyers — first home buyer concessions and exemptions are not modelled.
Rates vary by region. Australia has 6 regions with different Transfer Duty (NSW) rates. The rates shown below are the national default. Select your specific region in the calculator for accurate rates. See our full regional breakdown for details.
Transfer Duty (NSW) works on a sliding scale — you only pay the higher rate on the portion of the price that falls within each band, not on the full purchase price.
| Property value | Rate | Tax on this band |
|---|---|---|
| $0.00 – $17,000.00 | 1% | Up to $212.50 |
| $17,000.00 – $37,000.00 | 2% | Up to $300.00 |
| $37,000.00 – $99,000.00 | 2% | Up to $1,085.00 |
| $99,000.00 – $372,000.00 | 4% | Up to $9,555.00 |
| $372,000.00 – $1,240,000.00 | 5% | Up to $39,060.00 |
| $1,240,000.00 – $3,721,000.00 | 6% | Up to $136,455.00 |
| $3,721,000.00 and above | 7% | 7% of amount above $3,721,000.00 |
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On top of the transfer tax, there are several legal and administrative fees that you need to budget for. Here's what to expect.
Transfer / conveyancing fees
These fees apply whether you're paying cash or taking out a bond.
Bond registration fees (only if you're taking a bond)
If you're financing your purchase with a home loan, the bank's bond also needs to be registered at the Deeds Office. These are the fees for that process.
Agent Commission
Real estate agent commission in Australia is paid by the seller. Rates are negotiable and vary by location — typically 1.8–2.5% in metro areas, 2.5–3.5% in regional areas. GST (10%) applies on top of the commission. Marketing costs (A$5,000–A$10,000) are charged separately.
The purchase price is just the beginning. As a property owner in Australia, you'll have recurring costs that eat into your rental income. Knowing these upfront helps you model realistic returns.
- annualCouncil RatesSet by your local council based on the land value of the property. Sydney metro average ~A$1,500–A$2,500/year. IPART rate peg limits annual increases.Typically escalates ~3% per year
- annualWater RatesFixed water service charges paid by the landlord. Typically A$1,000–A$1,400/year in Sydney. Usage charges are passed to tenants.Typically escalates ~3% per year
- annualLandlord InsuranceCovers building damage, landlord liability, loss of rent, and malicious damage. Typically A$1,200–A$2,200/year in NSW.Typically escalates ~3% per year
- annualMaintenance & RepairsBudget for ongoing repairs and maintenance. Typically 1–2% of property value per year. Landlords are legally required to maintain the property in a reasonable state of repair.Typically escalates ~3% per year
- annualLand Tax (NSW)NSW general land tax: $100 + 1.6% × (aggregate unimproved land value − A$1,075,000). Premium rate: $88,036 + 2% above A$6,571,000. Thresholds frozen from 2025. Principal place of residence is exempt. Land value is typically 50–70% of purchase price for houses, 25–40% for apartments.Typically escalates ~5% per year
- annualForeign Owner Surcharge Land Tax (NSW)Surcharge Land Tax — 5% of unimproved residential land value (no threshold) for foreign owners. Increased from 4% on 1 January 2025. Worked example: A$1.5M house, ~60% land ratio = A$900K × 5% = A$45,000/year.Typically escalates ~5% per year
Additional costs for Apartment / Unit properties
- Strata / Body Corporate LeviesCovers building insurance, common area maintenance, sinking fund, and management. Typically A$3,000–A$6,000/year for small-to-mid buildings in Sydney. High-rises A$8,000–A$12,000+.Charged annual
Additional costs for Airbnb / Short-Term Rental properties
- STRA RegistrationNSW STRA Register registration fee (A$65/year initial, A$25 renewal). Required for all short-term rental properties. Non-hosted STRA capped at 180 days/year in Greater Sydney.Charged annual
- Strata / Body Corporate LeviesStrata levies if the property is in a strata-titled building. Typically A$3,000–A$6,000/year.Charged annual
Don't forget escalation: Most recurring costs increase every year. Budget for 3–6% annual increases on rates, insurance, and maintenance. The ROI calculator lets you set a custom escalation rate for each expense.
When you sell a property for a profit, you'll pay Capital Gains Tax (CGT) on your gain. Australia uses an inclusion rate system — only a portion of your profit is added to your taxable income for the year.
How much of your gain is taxable?
| Who you are | Portion of gain included |
|---|---|
| Individual | 50% of your gain |
| Trust | 50% of your gain |
| Company | 100% of your gain |
| Smsf | 66.67% of your gain |
That included amount is then taxed at your marginal income tax rate — not a separate flat rate.
Exemptions that reduce your CGT
- ✓ Your main home: If it's your primary residence, the first $90,071,992,547,409.90 of your profit is completely tax-free.
When you eventually sell, there are costs that come out of your sale proceeds before you see the cash. Here's what to factor in when modelling your exit.
Important: Foreign buyers face significant restrictions in Australia — including a ban on purchasing existing (established) properties that runs to at least 31 March 2027.
- 1 FIRB approval is mandatory: All foreign persons must obtain Foreign Investment Review Board (FIRB) approval before purchasing any residential property in Australia. Fees start at A$15,100 for properties up to A$1,000,000 and scale up with the purchase price.
- 2 Established dwelling ban (2025–2027): Foreign buyers generally cannot purchase existing (established) residential properties. The ban runs from 1 April 2025 to 31 March 2027. Foreign buyers may still purchase new dwellings direct from developers, or vacant residential land where they commit to building within 4 years.
- 3 +9% Surcharge Purchaser Duty in NSW: Foreign persons pay an additional 9% transfer duty on the full dutiable value on top of the standard progressive rates. This applies in NSW — other states have similar surcharges (e.g. 8% in VIC and QLD).
- 4 Annual vacancy fee: If an FIRB-approved property is left empty or not genuinely available for rent for more than 183 days in a 12-month period, an annual vacancy fee applies. The fee equals the original FIRB application fee — payable each year the property remains vacant.
- 5 State land tax surcharges: Foreign owners pay additional land tax surcharges in most states. In NSW, the foreign owner surcharge is 5% on the total taxable land value of residential land holdings — on top of the standard land tax rates.
- 6 Temporary residents: Temporary visa holders have more flexibility than foreign non-residents. They can generally purchase one established dwelling to live in as their primary residence, but must sell within a set period if they leave Australia permanently or their visa expires. FIRB approval is still required.
Different property types come with different income potential, vacancy assumptions, and cost profiles. Here's how the main types compare in our calculator defaults for Australia.
- Agent commission
- 1.80%
- Vacancy rate
- 2%
- Rent escalation
- 3.0% p.a.
- Agent commission
- 1.80%
- Vacancy rate
- 2%
- Rent escalation
- 3.0% p.a.
- Agent commission
- 2.50%
- Vacancy rate
- 5%
- Rent escalation
- 3.0% p.a.
- Agent commission
- 2.00%
- Vacancy rate
- 25%
- Rent escalation
- 3.0% p.a.
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Comparing property investment across countries? These guides cover the same detail — transfer taxes, closing costs, ongoing expenses, and capital gains tax.
Our free calculator puts all of these costs together in one place — transfer duty, closing fees, ongoing expenses, bond repayments, and your projected exit return. Takes about 2 minutes.
Use the free Australia ROI calculator →