When you are buying a property in Australia it is a tax that is payable on your purchase! How much it is and who gets the money are some interesting topics to discuss.
So you have found the perfect property, how much is stamp duty going to cost you?
Remember that as a conveyancer I am here to provide you with all the below amounts and dates of payment. This is just to give you an idea of the costs that may be involved in your purchase.
Who has to pay stamp duty?
- Every buyer of real estate has to pay stamp duty.
- A transfer of property incurs stamp duty.
- A mortgage incurs stamp duty.
Is there ever an exemption?
State governments can offer exemption when there is a change of hands following divorce or death and often when it is between family members.
First home buyers in most states receive a concession or exemption.
NSW – Within 3 months of settlement
VIC – Within 30 days of settlement
QLD – Payable within 30 days of settlement
ACT – Payable within 28 days of settlement
WA – Within 2 months of settlement
SA – Payable on settlement day
NT – Within 60 days of the transaction or settlement, whichever is closer
TAS – Payable within 3 months of transfer but generally on settlement
How much is it?
The cost of stamp duty is decided by the individual state and territory governments. This is why it can vary depending on where you are purchasing a property.
There are also concessions in some states for first home buyers and the rates can vary if you are buying land only without a house.
Have a look at the links below to see the calculators for your state.
What is the money used for?
Typically it is added to the budget for the government of that state and helps to pay for health, transport, emergency services and more. If you are curious just have a look at the pages above for further information.
If you are curious about what stamp duty will be payable on your next purchase – speak to Nicola at Select Conveyancing