WHAT YOU NEED TO KNOW ABOUT STAMP DUTY BEFORE BUYING A HOME IN AUSTRALIA

Stamp duty is a tax that is implemented on documents specifically the legal documents. The legal documentations might include transactions of land, cheques, receipts, and so much more. This amount is legally very important to be paid and after an individual has paid it, a ‘’stamp’’ is attached to the papers to indicate the payment of that certain amount. To summarize this up, stamp duty is the amount levied by the government on the purchase and the transfer of land. The amount varies for different states and different countries.

WHAT YOU NEED TO KNOW ABOUT STAMP DUTY BEFORE BUYING A HOME IN AUSTRALIA
Whenever one purchases a piece of property, they do not only consider the actual price of that specific property but also consider the additional price levied through the stamp duty or by the government. In Australia, the different states have different scale of charges.

HOW MUCH IS THE STAMP DUTY EXACTLY IN AUSTRALIA?

Although, this specific amount varies from state to state depending upon the currencies and other different factors, but a rough estimation can be made. It is said that the stamp duty is about 4% of the actual amount of the specific property. But you cannot exactly on the whole tell what the stamp duty on a specific property will be as it is dependent upon the actual price of the property. Therefore, the most convenient way or if you urgently need to know the amount of stamp duty so you can sort your budget out, what you can do is use the Stamp duty calculator at calculators.tech.

WHEN IS STAMP DUTY TO BE PAID?
It is an obligation to pay the stamp duty within 30 days of the contract. Serious legal actions can be taken against individuals who do not pay it and show negligence towards paying this amount. Therefore, the deadline of 30 days is very essential.

WHAT IS THE STAMP DUTY UTILIZED IN, IN AUSTRALIA AND WHAT IS ITS SIGNIFICANCE?
Now many people are not aware of the significance of stamp duty in Australia and what the stamp duty is utilized in.
the state directly receives this money and this amount is utilized in not just some specific sectors but various sectors in the state. These might include, security, healthcare, maintenance of different public places under the government and so much more.

When it comes specifically to Australia, then Australia has about 8 states. Each state has different sets of rules that accompany the stamp duty. Below is a summary of all that you need to know about each individual state.

1.    Australian Capital Territory

Starting off with the Australian Capital Territory. In this territory, the stamp duty is said to be payable within approximately 28 days. So 28 days are the ultimatum (after settlement). The buyers receive a Notice of Assessment from Access Canberra. And within 14 days after receiving this notice, the amount has to be paid.

In ACT, you have to pay around 5.09% of the property’s value. So we can say that an individual has to pay 1.48% on a piece of property that has a cost of $200,000 or even lower than that.

Moreover, one good news for the first time buyers in this territory is that they can get concession in the stamp duty if the home that they are buying had not been lived in by anyone before.

2.    Queensland

Moving towards Queensland, there are 2 variations. One which might prove to be good and the other might be bad.
Queensland shows relaxation on properties worth maximum of $5,000 or lower than that. I.e. they do not charge the stamp duty on such properties. However, when you hit above this price range, you have to pay a good amount of stamp duty. To summarize it up, if you purchase a property worth $450,000, you’ll have to pay a stamp duty of 3.5% over the initial $375,000.

There is however, some concession for individuals in some cases.

3.    Northern Territory

There is a formula which is applied to calculate the stamp duty in this state, this formula has been mentioned below.

(0.06571441 x V2) + 15 x V
Where V is the cost of the property’s value divided by 1000.

The first home buyers can claim concession under certain conditions. But the good news is that the pensioners can also claim concession. However, they must be of the age of 60.

4.    South Australia

In South Australia, the stamp duty criteria is a little different. There are around 09 different steps or levels of the stamp duty in South Australia.
If your property costs to about $12,000 then the stamp duty implemented is at the rate of 1%. However, if the property has a cost of 12 to 30 thousand, the amount increases to 2%.

  1. Victoria
    The stamp duty here is payable within 30 days of the purchase. However, the price of the property here is extremely high. Due to this reason, different relaxations are offered to the first hand buyers and the pensioners. But for the regular people, Stamp duty rates are estimated to be about 1.4% of the property’s value.
  2. Western Australia
    Western Australia is a bit different than other states in a way that it does not allow any kind of relaxations or concessions to the first hand buyers or pensioners. But despite this bad point, the good point is that the state has the most affordable and lowest prices of the property.

    You have to pay about 5.15% rate of the property’s value over the prices that are beyond $725,000.

  3. Tasmania
    You can pay the stamp duty after about 3 months of transfer.

    Tasmania, like Western Australia, offers no concession which is bad luck. This means that no matter what your conditions are, you have to pay stamp duty in this state.
    Overall, you have to pay about 4.5% on the value of $725,000 plus.

  4. New South Wales
    In New South Wales, the prices of the property are sky-high. And there is a little difference in concessions here. The first-time buyers do get a concession at about $650,000. However, when it comes to the pensioners, they are offered no concessions.

    In general, you have to pay to about 4.5% of the property’s value at a cost of about 300,000 dollars.

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