In recent months the cost of purchasing a property has increased and because stamp duty is calculated on a sliding scale that means you will now pay more stamp duty for the same property if purchasing it months ago!
What is stamp duty?
When it comes to property, stamp duty is a tax levied by the state government and is payable by the purchaser.
When do you have to pay stamp duty?
It’s a legal requirement that stamp duty is paid within 30 days of the property transaction, which for real estate means within 30 days of settlement of the property. Settlement is when you get the keys so that means after taking possession of the property and not before.
Who pays stamp duty?
All transfers of land or sales of property, including gifts of property attract a duty. However, in certain circumstances there are some exemptions or concessions that may apply within certain states. The following are some of the benefits available to purchasers:-
First Home Purchaser Scheme: Any person in NSW who is buying their first home or block of land on which they intend to build their first home may be entitled to a full exemption from duty or a concessional rate of duty.
NSW Home Builders Bonus:- Any person in NSW purchasing off the plan or vacant land on which a new home is to be built or a new home may be entitled to an exemption or concession. Furthermore under the Home Builders Bonus scheme seniors may be entitled to a full exemption from duty if they are purchasing a newly built home to be occupied as their principal place of residence and have or are selling their existing residence.
Intergenerational Transfers/Transfer of Farming Property Between Family Members:- Persons transferring primary production land between family members may be entitled to an exemption from the duty payable on the Transfer.
Why is stamp duty charged differently in other states?
Our Australian Federal Government doesn’t levy stamp duty, instead this is done by the state and territory governments. And to make it even more confusing, every state has a different levy.
But on a lighter note, it is generally calculated on either the market value of the property or the price paid for the property.
Enter your details on this calculator to estimate what stamp duty you will pay in NSW.