Most sellers want to keep as much of the final sale price as possible. Government fees are one of the charges you can expect to pay. Which costs are yours, and which ones belong to the buyer?

What Government Fees Do You Pay When Selling a House?

Continue reading to learn what each government fee covers. The guide also explains which bills you get back when the sale finishes.

Key Takeaways

• Property searches are one of the main government fees a seller pays.
• Only the buyer pays stamp duty.
• With a home loan, a small state fee applies when the bank removes its claim from the property title.
• Land tax rules differ by state, with the home you live in mostly free from it.
• The buyer refunds you for council rates and water bills paid in advance.
• Capital gains tax applies to investment properties, but mostly not to your own home.
• A free clearance certificate from the tax office lets you receive the full sale price.

The Main Fees for Sellers

Sellers in Australia pay fewer government fees than buyers do. The main charges in the selling process cover searches and the release of a home loan.

For a property in Victoria, the seller’s Section 32 statement has certificates from council, the water authority and state offices. Search costs vary by location.

Since August 2025, anyone selling a house in Queensland also pays for certificates in a Form 2 disclosure statement. A conveyancer or solicitor arranges the searches when you sell your property.

The Buyer Pays Stamp Duty

Stamp duty is a state tax the buyer pays when a property changes owner. Most states call it transfer duty.

Owners do not need to pay stamp duty when selling a house. The tax applies to them only when they buy another property.

Fee to Close Your Home Loan

Sellers with a home loan pay off the balance from the sale money at settlement. The lender then removes its claim from the property title.

The legal name for the process is a mortgage discharge. Each state’s land titles office charges a small registration fee to record it. A conveyancer can confirm the exact amount before settlement.

Your lender may add its own cost for closing the loan. A conveyancer can confirm all mortgage discharge fees before settlement.

Land Tax Rules in Each State

Land tax is a yearly state charge based on what the block is worth. The home an owner lives in is free from it in most cases.

Investment properties and holiday homes are taxed above a set value, which differs by state. Since January 2024, Victorian sellers with a price under about $10 million pay the full yearly bill.

In other states, the contract can share the cost between the owner and the buyer.

Refunds for Rates and Water Bills

Owners of residential property pay council rates and water service charges in advance. At settlement, the costs are split by the days each side owns the home.

The buyer pays the seller back for the days after the buyer takes over. Your conveyancer adds the refund to the final settlement amount.

Who Pays Capital Gains Tax

Capital gains tax, or CGT, is a federal charge on profit from selling property or other assets. Owners report the gain to the ATO in their return for the year of the sale.

Under the main residence rule, the home you live in is free from CGT in most cases. Owners of a rental or holiday home may need to pay tax on the profit.

Australian residents who have owned the property for at least 12 months can get a 50% discount on the gain. An accountant works out the exact tax you pay.

Get a Free Clearance Certificate

Since January 2025, Australian residents need a clearance certificate to sell land or property at any price. The document lets the seller receive the full selling price, with no 15% sent to the tax office.

The ATO website offers the form for free. Each certificate is valid for 12 months.

Most are issued within a few days, while some take up to 28 days. Apply as soon as you decide to sell.

Ask a property lawyer to help you apply for the clearance certificate as soon as you decide to sell.

Help With Your House Sale

As a seller, your government fees cover property search certificates and a mortgage discharge registration fee if you have a home loan. Land tax and CGT apply mostly to investment properties and holiday homes. Stamp duty is the buyer’s cost.

The clearance certificate is free from the ATO. You also get back prepaid council rates and water charges at settlement. A clear breakdown of the cost of selling a house helps you plan with confidence.

Melissa Barlas brings over a decade of work in property law. When you are ready to sell your home, book a meeting with her. She can talk through your questions, problems or past property experiences.

Frequently Asked Questions

Do agent fees and conveyancing costs count as government charges?

They are private selling costs, separate from government fees. The real estate agent commission and marketing fees are paid to the agency. Your conveyancer or solicitor bills you for the legal work. Add them to government charges to see the true cost of selling.

Can you claim discharge of mortgage fees on tax?

Owners of an investment property can claim them. The deduction counts in the tax year you pay the fee. The loan must have been used to earn income, such as rent.

Do the Form 2 rules apply when you sell a house in QLD?

Yes, for most house sales in Queensland. The rules cover contracts signed from 1 August 2025, even if the house was listed earlier. Sellers can prepare the statement themselves or ask a conveyancer or solicitor for help.

Can a seller get back the 15% sent to the tax office at settlement?

Yes, you get the full amount back if you have no tax debts or CGT to pay on the sale. The refund is paid after your next yearly return is processed.

Do you pay capital gains tax on a former home you now rent out?

In some cases, no CGT applies. A special rule lets you treat a former home as your main residence for up to six years while it is rented. The rule applies when another property is not your main place to live in the same period.