Stamp Duty in Australia
Stamp duty is a form of tax charged by the state government for certain transactions including selling real estate, cars and business assets. Stamp duty is paid by the purchaser of the assets. The amount of stamp duty to be paid on a transaction will vary depending on which state you live in, each state and territory in Australia imposes stamp duty on real estate purchases.
How is it calculated?
There are a number of factors that affect the amount of stamp duty that you will pay. For example the location of your property or land, If you have previously purchased a home or If you are a first time home buyer, If you are buying a land or a dwelling and If you are planning to live in the home or if you are purchasing it as an investment property all affect the amount of stamp duty you will be required to pay. The stamp duty amount may be calculated on a number of values including the value of the land and building or the purchase price as at the date of the contract of sale. Stamp duty calculators are offered by many financial institutions and the State Revenue Office’s website to estimate how much stamp duty will be applied to your real estate purchase.
When do you have to pay it?
Stamp duty is paid before the lodging of the transfer of land to the land titles office and is paid to the State Revenue Office. Generally, your legal representative or lender will pay stamp duty after settlement.
Stamp duty is part of purchasing or a home or land and should be budgeted for when saving for your deposit so that you are prepared when the time comes to pay it. Utilising the stamp duty calculator to estimate your stamp duty amount will allow you to make sure you are not out of pocket with an unexpected expense.