Home Buyers Guide To Understanding Stamp Duty
Getting yourself home could be one of the most stressful things you could do, especially when doing it for the first time. However, there are a few exemptions. When you purchase a new property in Australia, and if you are eligible, you will have to pay stamp duty. Keep reading to find out exactly what stamp duty is.
What is stamp duty?
Stamp Duty, also known as Land Transfer Duty, is a tax levied by the Australian government that you might have to pay if you buy any property.
How much does it cost?
The stamp duty is calculated as a percentage of the purchase price or, in some cases, market value if the purchased price is higher than the land at the date of the contract. The stamp duty is collected by territory and state governments rather than the Federal Government. Most state governments/territories do have an online stamp duty calculator available that you can use to calculate stamp duty. Here’s good news for people who are building their house for the first time, as they may have access to concessions and stamp duty. However, the price may vary for those who are buying land.
Stamp Duty exemptions
Stamp duty exemptions are rare, but under exceptional circumstances, they are allowed:
- • The death of the owner of the property
- • The death of a joint tenant
- • Transfer of ownership to a husband or wife
- • Change of tenure
Some concessions apply to stamp duty for:
- • First home buyers
- • Properties that are purchased for non-investment purposes
Not eligible for exemption or concession (VICTORIA)
If you are not eligible for the exemption or concession, you can still be entitled to a duty reduction of 50% duty. This applies if
- • You have signed your contract between 25 November 2020 and 1 July 2021; and
- • The dutiable value is $1 million or less than that.
When do you pay?
The stamp duty is due within 30 days from the date of settlement. However, stamp duty is usually included as part of the settlement process and paid along with that.
For more detailed information on stamp duty calculation, please check your state revenue office:
At Ridgewater Homes, we will advise you about the construction cost that you can budget in our house and land package. For more information contact our expert team.