Stamp duty is a kind of tax that is levied by the state governments in Australia on individuals buying a property. It is an integral part of all real estate transactions. Different states have different rates of stamp duty and they also offer exemptions to certain categories of properties and buyers.
How much is the stamp duty?
The amount of stamp duty is dependent upon the market value of the property or the price that a buyer pays to get it registered in their name. It is therefore clear that you pay a higher amount of money on stamp duty as the price of the property increases.
Stamp duty is a state tax and hence, it is decided by the state governments and territories rather than the federal government. Rates may vary depending on where you are buying the property. You need to keep in mind the location and the price of the property if you do not want to pay a high amount as stamp duty. Different states have different rates of stamp duty with slabs for properties in different price brackets.
Time frame to pay the stamp duty
Just like the rates, different states and territories have set different time frames within which stamp duty needs to be paid by the buyer of the property. In Tasmania and New South Wales, one gets up to 3 months to pay the stamp duty. In Victoria and Queensland, the buyer needs to pay his stamp duty within 30 days of buying the property. You need to set aside the amount of money you have to pay in the form of stamp duty when you are buying a property.
Exemptions from stamp duty
Stamp duty is a major source of revenue for the state governments. This is the reason why there are only a few exemptions given to individuals buying a property. In some states, concessional rates of stamp duty apply for eligible buyers. In general, most states and territories give concessions in stamp duty to first-time home buyers. Pensioners get concessional stamp duty in some states. In some states, the concession is dependent on whether the buyer is going to live in his property or whether he has purchased it for investment purposes.
How is stamp duty paid?
The most popular method of paying stamp duty to the state government is online payment. Buyers can also pay using their credit or debit cards. In some states, payment of stamp duty is also allowed through cheques.
Stamp duty is paid by the buyer of the property. However, if you are planning to buy a property in the future after selling property now, it is prudent to set aside the required amount of money so that you do not face any difficulty later on. The stamp duty you pay is utilized by the government for the developments in the fields of health, infrastructure, energy, welfare schemes, etc.