Stamp Duty 101

Stamp duty explained

Stamp duty is a charge that is applied by state governments in Australia, on transactions relating to the transfer of land or property. It is paid upfront and needs to be budgeted for in addition to your loan deposit.

The amount of stamp duty you are required to pay differs in each state, however there are four key  factors that determine how much stamp duty you will pay. Contributing factors include: 

1.     whether or not the property is a primary residence or investment property;

2.     whether or not you are a first home buyer;

3.     if you are purchasing an established home, a new home or vacant land; and

4.     the value of the property purchased.

Once you have an idea of the value of the property you intend on buying, I can work out the stamp duty that will be payable on your purchase.  Factoring in this additional cost cannot be overlooked when you are considering your capacity to repay a loan!

In a bid by state governments to stimulate home ownership and growth, there are a range of tax concessions available to reduce stamp duty.  In Western Australia, first home buyers do not pay stamp duty on purchases of $430,000 or less.  If first home buyers purchase for between $430,000 - $530,000 there is a sliding scale discount applied to the stamp duty payable.

If you are thinking about making an offer on a house, don’t forget to calculate the stamp duty charges into your costs calculations! Contact me on 0406062324 if you would like to know the stamp duty payable on a specific purchase price.

CRN: 511074
ACL: 391237