How this has changed over time
Reliance on stamp duty has grown substantially over recent decades due to rising property prices (bracket creep under progressive rates), higher transaction volumes in boom periods, and limited indexation of thresholds in some states. It is highly volatile—surging in housing booms and falling sharply when sales volumes or prices drop.
• Longer-term trend (2000s–2010s): Stamp duty rose from roughly 10–15% of own-source revenue in earlier periods to peaks near or above 20% in NSW and Victoria during strong markets. National own-source share was around 13.5% in 2018–19 and 16–17% in the mid-2010s before some softening.
• 2015–19: NSW ~16–18%, Victoria ~18–22%, SA ~12–15% of own-source revenue (varying with market cycles).
• 2020–23 boom: Shares rose further. NSW stamp duty hit record levels (e.g., ~$9.6–9.7 billion), contributing over 20% of state/local tax revenue in peak years; Victoria and others followed. National stamp duty revenue reached records (e.g., ~$24 billion in one year, later higher).
• Post-2022/23 softening: Declines in transaction volumes and price growth led to write-downs. NSW and Victoria have faced multi-billion-dollar downward revisions in forecasts. Shares remain elevated relative to history but are more volatile and under pressure. Overall property-related taxes (including land tax) are forecast around 16–19% of total revenue in NSW/Victoria and ~8% in SA in the mid-to-late 2020s.
Key drivers of change:
• Strong house price growth + progressive rate scales = automatic revenue growth (“bracket creep”).
• Market cycles: High turnover and prices boost collections; downturns (higher rates, lower volumes) cut them sharply.
• Policy: Some states (e.g., ACT long-term shift to land tax; limited SA concessions for seniors/new homes) have tried to reduce reliance. NSW and Victoria remain the most dependent. Foreign-buyer surcharges have added revenue in recent years.
• Compared with other taxes: Stamp duty has become one of the largest single state taxes (often rivaling or exceeding payroll tax in NSW/Victoria during peaks), while other traditional stamp duties (e.g., on financial transactions) were largely abolished.
In short, NSW and Victoria derive a significantly higher share of their budgets from real-estate transaction fees (mainly stamp duty) than SA—roughly 18–23% of own-source revenue vs ~15%, or ~9–10% vs lower single digits of total revenue in recent data. This reliance has increased over the past 15–20 years but fluctuates with the property market and is now a recognised vulnerability in state budgets. Exact percentages vary year-to-year with housing activity; the most precise figures come from annual CGC assessments and state budget papers.