Can I claim stamp duty on my tax return?

Stamp duty (transfer duty) on residential investment property purchases is a 'capital cost' rather than an annual revenue cost under ITAA 1997 s110-25. That means you can't deduct it against rental income in the financial year you buy. The ATO is consistent about this across all states.

What stamp duty does do is increase your CGT cost base. When you eventually sell, your taxable capital gain equals sale price minus cost base, and stamp duty is a third-element of that cost base. So a $40,000 stamp-duty payment on purchase reduces your eventual CGT liability by roughly $40,000 × (your marginal rate) × 50% (after the 12-month CGT discount), around $4,500-$9,500 depending on bracket.

Exceptions exist: ACT residential transactions structured as 99-year leases get different treatment (ACT uses Crown leasehold, not freehold). Commercial property duty has different deductibility rules. New-build off-the-plan concessions can interact with depreciation schedules.

Bottom line for residential investors: pay stamp duty at purchase, store the receipt with your settlement documents, and surface it again at sale time as part of cost base. Don't try to claim it in the year of purchase, the ATO will reject it on audit.