Understand the numbers first

What is stamp duty?

Stamp duty (officially called transfer duty in most states) is a state government tax on property transactions. When you buy a home, land, or investment property, you pay a percentage of the purchase price to your state or territory government. It's one of the largest upfront costs in buying property — often $10,000–$50,000+.

How is it calculated?

Each state uses its own progressive rate schedule. You pay a base amount plus a percentage on the portion of the price above a threshold. For example, in NSW a $700,000 home attracts a base of $17,990 plus 4.5% on the amount over $300,000 — totalling around $31,990.

First home buyer concessions

All states offer either a full exemption or a significant discount for eligible first home buyers. Thresholds vary by state — generally you pay no stamp duty on properties below a certain value, and a reduced rate above that. The calculator accounts for your state's exact concession rules.

When is stamp duty due?

Usually within 30 days of settlement (3 months in some states). Your conveyancer or solicitor will arrange payment. It cannot be added to your home loan — it must be paid from savings, which is why lenders ask for it as part of genuine savings.

Investment vs owner-occupied

Stamp duty is the same rate whether you're buying to live in or to invest. First home buyer concessions, however, only apply to properties you intend to live in as your primary residence for a minimum period (usually 12 months).

Open Stamp Duty Calculator Read the full Stamp Duty guide

How is a mortgage repayment calculated?

Monthly repayments are calculated using the standard annuity formula: each payment covers interest accrued on the outstanding balance plus a portion of principal. Because your balance reduces each month, early repayments are mostly interest — later repayments are mostly principal.

Principal & Interest vs Interest Only

Principal & Interest (P&I) loans require you to pay both interest and reduce your loan balance each month. Your balance falls over time and you build equity.

Interest Only (IO) loans let you pay just the interest for a set period (usually 1–5 years). Repayments are lower now, but your balance doesn't fall — and when the IO period ends, your P&I repayments are higher than if you'd started on P&I from the beginning.

How does the interest rate affect repayments?

A 1% rate increase on a $600,000 loan adds roughly $370/month. The longer the loan term, the more extra interest you pay over the life of the loan — even a small rate difference compounds significantly over 25–30 years.

Offset accounts and extra repayments

An offset account reduces the balance your interest is calculated on. $50,000 in an offset against a $500,000 loan means you pay interest on $450,000. Extra repayments directly reduce your loan balance and can shave years off your mortgage — but check whether your loan has break fees for early repayment (mainly fixed-rate loans).

Fixed vs variable rates

Fixed rates give payment certainty but you can't (usually) make unlimited extra repayments and may face break costs if rates fall. Variable rates move with the RBA cash rate — they can go up or down and typically allow unlimited extra repayments.

Open Mortgage Calculator Read the full Mortgage guide

What is LMI?

Lenders Mortgage Insurance protects the lender (not you) if you default on your loan and the sale of the property doesn't cover the outstanding debt. Despite you paying for it, it provides no benefit to you directly.

When does LMI apply?

LMI is charged when your Loan-to-Value Ratio (LVR) is above 80% — meaning your deposit is less than 20% of the property price. The higher your LVR, the higher the LMI premium. At 95% LVR, LMI can cost several thousand dollars.

How much does it cost?

LMI is calculated as a percentage of the loan amount, scaled by LVR. The two main providers in Australia are Helia (formerly Genworth) and QBE. Rates range from around 0.5% of the loan amount at 80–85% LVR to over 2.5% at 95% LVR. On a $600,000 loan at 90% LVR, LMI is typically $7,000–$12,000.

Can LMI be added to the loan?

Yes — most lenders allow you to capitalise LMI into the loan (adding it to the principal). This avoids paying it upfront but increases the loan amount and total interest paid over the life of the loan.

How to avoid LMI

• Save a 20% deposit — the straightforward route
• First Home Guarantee (FHBG) — government scheme allowing eligible first home buyers to buy with a 5% deposit without LMI
• Guarantor loan — a family member guarantees part of the loan, allowing you to borrow without LMI
• Certain professions — some lenders waive LMI for doctors, lawyers, and other high-income professionals

Open LMI Calculator Read the full LMI guide

How Australian income tax works

Australia uses a progressive tax system — higher income is taxed at higher rates, but only on the portion within each bracket. Your entire income is not taxed at your top marginal rate.

2025–26 tax brackets

• $0 – $18,200 — 0% (tax-free threshold)
• $18,201 – $45,000 — 19¢ per $1 over $18,200
• $45,001 – $135,000 — $5,092 + 32.5¢ per $1 over $45,000
• $135,001 – $190,000 — $34,342 + 37¢ per $1 over $135,000
• $190,001+ — $54,682 + 45¢ per $1 over $190,000

Medicare Levy

An additional 2% on your taxable income, funding Medicare. Lower-income earners get a reduction or exemption (threshold ~$26,000 for singles in 2025–26). The Medicare Levy Surcharge (1%–1.5% extra) applies if your income exceeds ~$93,000 and you don't have private hospital cover.

Low Income Tax Offset (LITO)

A tax offset (not a deduction) that reduces your tax payable. In 2025–26, the maximum LITO is $700, available for incomes up to $37,500, phasing out completely at $66,667. It can reduce your effective tax rate significantly at lower income levels.

HECS/HELP repayments

If you have a HECS-HELP debt, mandatory repayments begin once your income exceeds ~$54,435 (2025–26 threshold). Repayments are a percentage of your income (1%–10%), collected via the tax system. They're not technically "tax" but they reduce your take-home pay in the same way.

Open Income Tax Calculator Read the full Income Tax guide

What is the Super Guarantee?

Employers must contribute a minimum percentage of your ordinary time earnings to your super fund. The rate for 2024–25 is 11.5%, rising to 12% from 1 July 2025. Super is paid on top of your salary — it doesn't come out of your take-home pay unless it's explicitly included in a total remuneration package.

Concessional vs non-concessional contributions

Concessional contributions (employer SG, salary sacrifice, personal deductible contributions) are taxed at 15% in the fund — less than most people's marginal rate. The cap is $30,000 per year in 2024–25.

Non-concessional contributions (after-tax personal contributions) have no tax applied inside the fund. The cap is $120,000 per year (or up to $360,000 using the bring-forward rule).

How does super grow over time?

Super benefits from compounding returns over decades. A 30-year-old with $50,000 in super earning 7% per year, receiving 11.5% SG on a $80,000 salary, could have over $600,000 by age 65. Small differences in fees and returns have an outsized impact over long periods.

When can you access super?

You can generally access super when you reach your preservation age (60 for most people) and retire, or turn 65 regardless of employment status. Early access is only allowed in very limited circumstances (severe financial hardship, terminal illness, etc.).

Open Super Calculator Read the full Super guide

What is CGT in Australia?

Capital Gains Tax isn't a separate tax — it's part of your income tax. When you sell (or "dispose of") an asset for more than you paid, the gain is added to your taxable income for that year and taxed at your marginal rate. Shares, investment property, crypto, and most other assets are subject to CGT.

The 50% CGT discount

If you've held an asset for more than 12 months, you only include 50% of the gain in your taxable income (individuals and trusts). This effectively halves your tax on long-term investments — one of the most valuable tax concessions in Australia.

What counts as a "disposal"?

• Selling shares or property
• Giving an asset away (at market value)
• Swapping one asset for another (e.g. crypto-to-crypto trades)
• A company you own shares in being taken over

Capital losses

Capital losses can only offset capital gains — they cannot reduce your ordinary income. Unused capital losses can be carried forward indefinitely to offset future capital gains. Losses made on assets held less than 12 months cannot be offset against discounted gains from other assets.

Your main residence

Your primary residence is generally fully exempt from CGT. Partial exemptions apply if you've rented it out, used it for business, or it was not your main residence for part of the ownership period.

Open CGT Calculator Read the full CGT guide