Funding stamp duty on a business or investment property purchase

Stamp duty is the cost that never shows up in the asking price. On a business or investment purchase it can run to tens of thousands, sometimes hundreds of thousands, and banks commonly lend against the property itself rather than the duty owed on top. The cash has to come from somewhere, and often on a date that suits the revenue office rather than you.

If you own property with equity, a short-term secured loan can pay the duty on time and leave your working capital where it belongs: in the business.

When is stamp duty due in each state?

Every state and territory sets its own timetable, and several run from the contract date, not settlement. The table summarises what each revenue office says.

State or territory	When duty is due	Note for business buyers
NSW	By settlement or within three months of the contract, whichever is earlier	Daily interest on overdue amounts
Victoria	Usually at settlement, with up to three months after settlement	Title does not transfer until duty is paid
Queensland	Liability usually arises when the contract is signed or becomes unconditional; payment is due within 30 days	Different steps apply where a self assessor lodges
WA	Liability generally arises when the document is signed	Penalty tax may apply if the assessment is not paid by its due date
SA	Paid when the transfer is stamped and lodged	No duty on qualifying commercial, industrial and most vacant land since 1 July 2018
Tasmania	Within three months of the dutiable transaction, usually settlement	Payable by the purchaser
ACT	14 days after the title is registered	From 1 July 2026, commercial property up to $2.1m dutiable value pays none
NT	Lodge and pay within 60 days of signing	Penalty tax and interest if late

Two points stand out for business buyers. First, in NSW and the NT the clock can start at signing, so a long settlement can mean paying duty before you own the property. Second, Revenue NSW’s off-the-plan deferral is for owner-occupiers only, and purchases by trusts or companies are not eligible. Your conveyancer will confirm the exact figure and date for your contract.

Why would a business borrow to pay stamp duty?

• The bank funds the price, not the duty. The gap must come from cash or another source.
• Working capital matters more. Draining the business account to pay duty can leave payroll, stock or a contract short.
• The timing is awkward. Duty due within three months of a contract can arrive before a planned sale or refinance completes.
• The purchase is part of a bigger plan. A developer or investor may want cash free for the next deposit.

How does stamp duty funding work?

There are three common structures.

Situation	Structure	How duty is paid
You own other property with equity	Caveat or second mortgage over that property	Paid at settlement through the electronic workspace, or direct to the revenue office
You are buying with a private lender	Private first mortgage over the purchase, sized to include duty	Paid from loan funds at settlement
Duty already overdue or due after settlement	Short loan over the purchased or another property	Paid direct to the revenue office

Duty loans secured behind an existing bank loan (a caveat or second mortgage) cost more than first-ranking debt, since the lender takes second place. The price for each one reflects the security, LVR, term and exit, and we look for the sharpest outcome the deal can carry. Our total cost of a short-term loan guide shows how to weigh the full cost.

The steps are simple: enquiry, specialist call, indicative terms, Letter of Offer, documents, settlement. For small amounts, our small secured business loans page explains why a caveat loan often fits.

What does stamp duty funding look like in numbers?

Illustrative example: a Brisbane café owner signs a contract to buy the freehold shop her café leases, for $1.1m. The bank lends against the purchase but not the transfer duty or costs, which together come to around $60k, and the deposit has already used most of her spare cash. She owns an investment unit worth about $550k with $300k owing. A $70k caveat loan over the unit settles the same day she needs the funds, covering the duty and costs. Interest is capitalised. Five months later, after two strong trading quarters, the bank increases its facility and the caveat loan is repaid in full.

The café kept its working capital for stock and wages through the changeover, and the caveat came off the unit’s title within months.

Who does a stamp duty loan suit?

It usually suits:

• business owners buying their premises or a second site;
• investors buying residential or commercial investment property;
• developers buying sites where duty falls due before the project is funded;
• buyers at auction who need duty settled on a fixed timetable (see buying at auction).

It usually does not suit:

• buying a home to live in, which is outside what we lend for;
• buyers with no equity in any property to secure the loan;
• anyone without a clear way to repay within the term.

If GST is also part of the purchase, read funding GST on a commercial purchase.

What happens if stamp duty is paid late?

Late duty costs more and can hold up the transaction itself.

• Interest. Revenue NSW charges daily interest on any overdue amount until it is fully paid.
• Penalty tax. The WA and NT revenue offices both warn that penalty tax can apply when duty is not paid by the due date.
• No title. Consumer Affairs Victoria says you cannot receive transfer of the title until the duty is paid.

A short secured loan that settles before the deadline is usually cheaper than any of those outcomes, and far less disruptive to a refinance that depends on clean title.

What documents should I prepare?

• The contract of sale and your conveyancer’s duty estimate and due date
• Photo ID for borrowers, directors and security owners
• Company or trust details if an entity is buying
• Details of any property offered as security and what is owing on it
• The bank’s approval, if a bank is funding the purchase
• Evidence of the exit: refinance, sale or business cash flow

Duty due soon? Tell us the amount and the date and a specialist will confirm whether same-day funding is possible.

Key terms

• Transfer duty: the state tax on acquiring land, commonly called stamp duty.
• Liability date: the date duty becomes owed, which in some states is the contract date.
• Qualifying land (SA): generally commercial, industrial and most vacant land, on which no duty arises.
• Exit: how the duty loan is repaid.

Duty deadline approaching? See if you qualify

There is no credit check when you first enquire, and your details go to a real specialist, not out to a panel of lenders. Our lending partner fundU makes the decision itself and assesses property directly, with no formal valuation required, so a small duty loan is not held up waiting for reports.

Tell us the purchase, the duty amount and due date, the property you can offer and what is owing on it. Accurate answers get the right answer first time. If the bank is also running late, see settling a purchase on time. Start your 60-second enquiry.