Commercial Finance
What Stamp Duty Applies To Commercial Property?
5 min read- Finance Guide
- Updated 2026
Quick answer
Stamp duty is a separate upfront cost
1+ 0
State based duty rules and rates
- Usually paid by buyer Yes
- Normally lender funded No
- Varies by state Yes
- Can be significant Absolutely
1300 421 044
1300 421 044
Stamp duty on commercial property is usually driven by two main factors
The state or territory where the property is located
Stamp duty is not a single national rate. Each state and territory applies its own transfer duty rules, rates, concessions, and payment timing.
STATE BASED RULES
The dutiable value of the property or transaction
Duty is typically calculated on the dutiable value, which is often the greater of the purchase price or market value, subject to the applicable state rules.
VALUE BASED COSTHow stamp duty affects a commercial property purchase
Duty can materially increase the total amount needed to complete the deal
-
Purchase price funded by loan Often yes
-
Stamp duty funded by lender Usually no
-
Extra cash needed at settlement Very common
For example, if a buyer is purchasing a commercial property worth $1,000,000, they may need to contribute not only the deposit, but also enough additional funds to cover stamp duty and other purchase costs.
Need Help with your Project?
What buyers need to budget for
When buying commercial property, stamp duty is often one of the largest non loan costs. Buyers commonly need to allow for:
Stamp duty or transfer duty- Legal and conveyancing fees
- Valuation fees
- Lender establishment costs
- Any GST or other transaction costs where relevant
Even with a strong loan approval, the buyer still needs to make sure enough cash is available to cover these upfront expenses.
Why the amount can vary so much
Commercial property duty costs can differ widely. Important factors include:
Which state or territory the property is in- The value of the property
- Whether any concession, exemption, or reform applies
This is why buyers should avoid assuming residential rates or treatment will apply to a commercial purchase.
How stamp duty is commonly treated in a finance deal
Stamp duty is generally handled outside the core commercial property loan.
Typical outcomes include:
Buyer Paid
Most common
Stamp duty paid from the buyer's own funds
Additional Equity
Sometimes needed
More equity may be required to complete settlement
Special State Treatment
Can vary
Rules and concessions are not the same everywhere
Because stamp duty can materially change the cash needed to settle, it should be factored in from the beginning rather than treated as an afterthought.
Common problems borrowers face
Many borrowers focus on the deposit and loan approval, but underestimate how much stamp duty can affect the total funds required for settlement.
Not Budgeting For Duty
A buyer may have enough for the deposit but still come up short once stamp duty and other acquisition costs are added.
Possible solutions include:
-
Calculating duty early
-
Confirming total settlement costs in advance
-
Allowing a realistic cash buffer
Assuming The Lender Will Cover It
Commercial lenders generally do not treat stamp duty as part of the standard funded purchase price.
This can leave buyers needing more equity than expected, even after loan approval.
Using The Wrong Duty Assumption
Commercial property duty can differ from residential assumptions, and state rules can change the outcome significantly.
A deal in one state may have very different duty consequences from the same value deal in another.
Applying With The Wrong Lender
Some lenders may be comfortable with the property and borrower, but the buyer still needs help structuring the broader acquisition costs.
A finance specialist can help assess the true total funds required before the deal reaches settlement.
Steps to get Commercial Property Finance
Step
01
Determine the value of the commercial property you want to purchase.
Step
02
Estimate the likely stamp duty and other acquisition costs based on the state and transaction value.
Step
03
Calculate how much deposit, equity, and extra cash will be required to settle.
Step
04
Prepare business financial documents and supporting information for the loan application.
Step
05
Submit the application to commercial lenders with the full purchase cost structure in mind.
Step
06
Once approved, ensure funds are available for duty, legal costs, and settlement to proceed smoothly.
Speak with a Development Finance Specialist
Commercial property finance can vary significantly depending on the purchase price, property type, state based duties, and the buyer's available equity.
A specialist can review your scenario and help determine the likely funding structure and the total cash required to complete the purchase.
Speak with a finance specialist about your commercial property purchase.
Submit the short form below and a commercial finance specialist will review your project and discuss possible funding options.
Contact Form
Your enquiry is confidential
Prefer to speak with someone directly ?
Call us to discuss your commercial property purchase
Additional Questions
You may also find these questions helpful
