Understanding Stamp Duty
Buying a house is the largest transaction that most people will make and the sums involved mean that the amount of stamp duty payable can be a problem. But what is stamp duty?
It is a tax levied by all states and territories on property purchases. The stamp duty buyers pay is based on the property purchase price, location, and loan purpose. Take note that some states charge different rates on investment properties than on places of residence.
How is stamp duty calculated?
Stamp duty is calculated by applying a sliding scale of taxation, with percentages increasing according to the value of the property. The general rule is that the cheaper the property, the less tax will be paid. Most states and territories have a system that will slot your property into a value category ($100-$200,000), and will ask for a lump sum plus an extra amount for every $100 over the lower end of the category (e.g. $100,000).
Most states and territories have a first-time buyer concession in place for stamp duty. This is designed to make it easier for people to get their first home.
Check with your state or territory revenue office for more information: ACT, NSW, NT, QLD, SA, TAS, VIC and WA