When purchasing a property, it can feel like there are so many different types of government fees and charges you have to pay. Stamp duty is just one of those fees.
Stamp duty is a tax that is charged by the relevant State and Territory for various transactions, including when you purchase a property, or transfer title to some other assets like a car. It usually has to be paid within 30 days of the property transaction, which is upon settlement of the property in real estate terms. Consult your conveyancer or solicitor to confirm details around the deadline.
Stamp duty in different States/ Territories
As it’s levied by the States and Territories, the amount of stamp duty you have to pay may differ depending on where the property you are purchasing is located. It also depends on the value of the property, with all states and territories in Australia levying a tiered rate of stamp duty. This means that the higher the value of your property, the more stamp duty you will pay. It’s generally levied as a percentage of the property value, which is normally the sale price.
Stamp duty rates can change, so make sure to check with your State Revenue Office for the most up to date information, or try Pepper’s stamp duty calculator to see how much you may need to pay.
Stamp duty concessions
In some circumstances, you may be eligible for a concessional rate of stamp duty, but this will depend on a range of factors. For example, most states and territories have some type of concession for first home buyers, the amount of which depends on the value of the property and whether you’re buying a vacant block of land or a new house.
Other types of concessions can include stamp duty concessions for pensioners, or some states also provide concessions depending on whether your property is going to be your home rather than an investment.
We recommend that you speak to your accountant or tax adviser to find out more about stamp duty concessions before purchasing a property to get the best advice on how to proceed.
If you simply want to calculate how much stamp duty you will need to pay for a property you’re interested in, you can use the Pepper stamp duty calculator. This handy calculator also includes some other government fees and charges that you may have to pay as part of the purchase of your new property.