A property is a huge investment that comes with an equally important responsibility – paying additional fees like stamp duty.
Also known as the land transfer tax, this is a general tax imposed on the purchase of real estate. The Australian government imposes stamp duties on several types of asset purchases. This applies to home purchases, whether for your investment or for your own use. The state collects stamp duties which are then invested in various projects.
Costs of stamp duty
Your stamp duty is calculated as a percentage of the market value or purchase price of the target property. However, each state has its own scheme:
Australian Capital Territory
Property value
Due law
Up to $ 200,000
$ 20 or $ 1.30 per $ 100 or part thereof, whichever is greater
$ 200,001 to $ 300,000
$ 2,600 plus $ 2.30 per $ 100 or part of it whose value exceeds $ 200,000
$ 300,001 to $ 500,000
$ 4,900 plus $ 3.60 per $ 100 or part of it whose value exceeds $ 300,000
$ 500 001 to $ 750 000
$ 12,100 plus $ 4.56 per $ 100 or part of it whose value exceeds $ 500,000
$ 750,001 to $ 1,000,000
$ 23,500 plus $ 6.10 per $ 100 or part of it whose value exceeds $ 750,000
$ 1,000,001 to $ 1,455.00
$ 38,750 plus $ 6.60 per $ 100 or part of it whose value exceeds $ 1,000,100
Over $ 1,455.00
A flat rate of $ 4.73 per $ 100 applied to the total value of the transaction
Source: ACT Revenue Office
New South Wales
Property value
Due law
No more than $ 14,000
1.25% of the customs value
$ 14,001 – $ 30,000
$ 175 + 1.5% of the customs value greater than $ 14,000
$ 30,001 – $ 80,000
$ 415 + 1.75% of the customs value greater than $ 30,000
$ 80 001 – $ 300 000
$ 1,290 + 3.5% of assessed value greater than $ 80,000
$ 300,001 – $ 1 million
$ 8,990 + 4.5% taxable value greater than $ 300,000
$ 1 million to $ 3 million
$ 40,490 + 5.5% taxable value greater than $ 1 million
Over $ 3 million
$ 150,490 + 7% of the customs value greater than $ 3 million
Source: Revenue NSW
Northern Territory
Property value
Due law
For properties whose value does not exceed $ 25,000
This formula applies:
Stamp duty = (0.06571441 x Y²) + 15Y
Where Y = deductible value / 1000
For example:
Property value: $ 150,000
Y = $ 150,000 / 1000 = 150
Stamp duty = [0.06571441 x (150²)] + 15 (50) = $ 3,728.57 *
* Estimated value of stamp duties
Source: Government of the Northern Territory
Queensland
Property value
Due law
No more than $ 5,000
No stamp duty
More than $ 5,000 to $ 75,000
$ 1.50 for every $ 100 or part of $ 100 over $ 5,000
$ 75,000 to $ 540,000
1050 plus $ 3.50 for every $ 100 or part of $ 100 over $ 75,000
$ 540,000 to $ 1,000,000
17 $ 325 plus $ 4.50 for every $ 100 or part of $ 100 over $ 540,000
Over $ 1,000,000
$ 38,025 plus $ 5.75 for every $ 100 or part of $ 100 over $ 1,000,000
Source: Queensland Government
South Australia
Property value
Due law
No more than $ 12,000
$ 1.00 for every $ 100 or part of $ 100
$ 12,000 – $ 30,000
$ 120 plus $ 2.00 for every $ 100 or part of $ 100 over $ 12,000
$ 30,001 – $ 50,000
$ 480 plus $ 3.00 for every $ 100 or part of $ 100 over $ 30,000
$ 50,001 – $ 100,000
$ 1080 plus $ 3.50 for every $ 100 or part of $ 100 over $ 50,000
$ 100 001 – $ 200 000
$ 2,830 plus $ 4.00 for every $ 100 or part of $ 100 over $ 100,000
$ 200,001 – $ 250,000
$ 6,830 plus $ 4.25 for every $ 100 or part of $ 100 over $ 200,000
$ 250,001 – $ 300,000
$ 8,955 plus $ 4.75 for every $ 100 or part of $ 100 over $ 250,000
$ 300,001 – $ 500,000
$ 11,330 plus $ 5.00 for every $ 100 or part of $ 100 over $ 300,000
Over $ 500,000
$ 21,330 plus $ 5.50 for every $ 100 or part of $ 100 over $ 500,000
Source: Revenue SA
Tasmania
Property value
Due law
No more than $ 3000
$ 50
$ 3,000 – $ 25,000
$ 50 plus $ 1.75 for every $ 100 or part thereof, whereby the duty payable exceeds $ 3,000
$ 25,000 – $ 75,000
$ 435 plus $ 2.25 for every $ 100 or part thereof, whereby the duty payable exceeds $ 25,000
$ 75,000 – $ 200,000
$ 1,560 plus $ 3.50 for every $ 100 or part thereof, whereby the duty payable exceeds $ 75,000
$ 200,000 – $ 375,000
$ 5,935 plus $ 4.00 or every $ 100 or part thereof, whereby the duty payable exceeds $ 200,000
$ 375,000 – $ 725,000
$ 12,935 plus $ 4.25 for every $ 100 or part thereof, whereby the duty payable exceeds $ 375,000
Over $ 725,000
$ 27,810 plus $ 4.50 for every $ 100 or part thereof, whereby the duty payable exceeds $ 725,000
Source: State Revenue Office Tasmania
Victoria (non-principal place of residence)
Property value
Due law
No more than $ 25,000
1.4% of the customs value of the goods
$ 25,001 – $ 130,000
$ 350 plus 2.4% of the customs value greater than $ 25,000
$ 130 001 – $ 960 000
$ 2,870 plus 6% of the customs value greater than $ 130,000
Over $ 960,000
5.5% of the assessed value
Source: Revenue Office Victoria
Western Australia
Property value
Due law
No more than $ 120,000
1.9% of the customs value
$ 120 001 – $ 150.00
$ 2,280 + $ 2.85 per $ 100 or part thereof above $ 120,000
$ 150,001 – $ 360,000
$ 3,135 + $ 3.8 per $ 100 or more of $ 150,000
$ 360,001 – $ 725,000
$ 11,115 + $ 4.75 per $ 100 or more of $ 150,000
Over $ 725,000
$ 28,435 + 5.15% for every $ 100 or more of $ 725,000
Source: State Revenue Office WA
When to pay
As an investor, you should be aware that it is your responsibility to pay the stamp duty. The tax is generally payable to the state within 30 days of the payment of the purchase of your property.
However, if you purchase the plan, the levy must be paid within three months from the date of conclusion of the agreement. This can lead to cost savings, since stamp duty only applies to the value of the land – as the building has not yet been constructed.
The schedule for payment of stamp duties varies from state to state:
State
Timetable for payment of stamp duties
Australian Capital Territory
Within 14 days of receipt of a notice of assessment from Access Canberra
New South Wales
Payable within three months of the payment
Northern Territory
Payable 60 days after the settlement
Queensland
Payable no later than 30 days after the settlement of the property
South Australia
Generally required to be paid on or before settlement day
Tasmania
Payable within three months
Victoria
Payable within 30 days of the transfer of ownership
Western Australia
Payable within two months of the settlement
The fees can be paid by BPay, electronic funds transfer, electronic funds transfer abroad, mail or prepayment. Other payment options include credit or debit cards and checks.
Concessions and exemptions
Each state has its own set of rules for granting exemptions and concessions for special cases of property taxes. States generally levy stamp duties when property is transferred to a person whose marriage has been dissolved or annulled. The transfer of ownership of property to a spouse is also exempt. Discounts are also granted in cases where the property of a deceased person is transferred through a beneficiary.
Be sure to consult an expert for more information on the application of stamp duty in your state. You can also visit the following government websites for more information:
Top suburbs:
Narara
,
West rockhampton
,
Kawana
,
Artarmon
,
Keperra
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