At a basic level, stamp duty is a tax that is levied against sales of property and transfers of land, and can have a significant impact on your home buying budget. It’s charged by both state and territory governments and varies depending on where you live and whether the property is an investment or owner-occupied. Stamp duty is due within 30 days of settlement on your property, so you’ll want to make sure it’s included in your budget when you’re looking for a home.
The calculation of stamp duty is different from state to state. This is because the Australian Federal Government doesn’t levy stamp duty; it’s instead done by state and territory governments. However, it is generally based on two factors: the market value of the property, or the price paid (including any GST) for the property.
Because calculating stamp duty can get complicated, the most accurate way to calculate stamp duty on a property is to use one of the many available stamp duty calculators online, making sure to use the correct calculator for your state.
For more information about calculating stamp duty in your location, visit the appropriate government website below:
While stamp duty is a necessary evil for home buyers in Australia, the good news is that there are stamp duty concessions available which can save you money, including those for first time home buyers, pensioners, owner-occupied homes, and off-the-plan sales.
Whether you’re buying your first house or building your dream home from scratch, you may be able to save money with first home buyer stamp duty concessions. Currently, every state offers concessions for first time home buyers, although they vary from state to state.
Because stamp duty rates and first home owner’s grants are subject to change at any time, be sure to get the facts from your government’s website (linked to above) or consult with one of our broker partners, who can give you advice on what options are available to you.