The joy of purchasing a property can quickly be soured once you realise the amount of extended costs that are involved in the final transactions. In this blog, Terry Johnson Legal break down one of the biggest additional costs in buying a property – stamp duty.
Stamp Duty Breakdown
In a nutshell, stamp duty is a tax imposed by the government on various larger transactions (transfers of properties, vehicles, insurances and so forth). In discussions about real estate, it is sometimes referred to as ‘land transfer duty’, or ‘conveyance duty’. The amount itself will vary depending on where the property you are purchasing is located, as well as its value. Payment will generally be required to be paid to the ACT Revenue Office within 14 days after receiving a stamp duty assessment, after settlement.
How Much You Will Have to Pay on Stamp Duty
As mentioned above, stamp duty charges are set at different rates across all of Australia. Other contributing factors include:
- If you are a first home buyer, or a pensioner looking to downsize
- If you are set to buy a new home, established property, or vacant land
- Whether you are an Australian citizen or classified as a foreign purchaser
- Whether the property is set to be your primary residence or if it is for investment purposes
Is Anyone Exempt from Stamp Duty?
Stamp duty is no different to other taxes where exemptions are provided as certain concessions or incentives. Again, these will depend heavily on your situation and location, but if you’re a first home buyer, it is likely you are eligible for benefits that will either cancel stamp duty, or offset them. It may also be possible to defer your stamp duty payment under special conditions, which can be done with an application to the ACT Revenue Office.
Learn More About Stamp Duty from Terry Johnson Legal
Regardless of whether you are a first home buyer or investor, the less you can pay for a property, the better. To find out more on how much stamp duty you may have to pay, or about the exemptions available in the ACT, please contact the ACT Revenue Office on 6207 0028, or speak with Terry Johnson Legal. You can contact us for a free consultation by calling (02) 6262 9376, or by completing our simple online enquiry form.