Stamp duty is part and parcel of buying property in Australia. But it’s also a tax that few buyers understand.
What is Stamp Duty?
Stamp duty is a form of tax. It is applied to a number of transactions, including transfers of property, mortgages and motor vehicle registrations. The transaction is charged, with the amount based on the greater of the market value of the property or the price paid, including any GST. This means, the more expensive the property, the higher the stamp duty. It is the buyers responsibility to pay stamp duty.
How much is stamp duty?
Stamp duty is decided by separate state and territory governments, rather than the federal government, so rates vary. It’s also important to note that some states offer concessions to first-time buyers. And that rates also vary for those buying land. If you are buying a $350,000 home in Tasmania you could expect to pay around $12,000 in stamp duty, but if you qualify as a first home buyer you may be eligible for a 50% discount on that cost, so its best to chat with your solicitor or conveyancer about this.
Original article seen on realestate.com.au