Purchasing a new home can an be expensive process. With insurance, conveyancing fees, council rates and borrowing fees, the ‘extra’ costs can really rack up. One of the larger upfront rates you will be required to pay is stamp duty.
Although the added cost can be painful, it is a necessity when buying in Australia. Read our guide below to understanding stamp duty and how it is calculated.
WHAT IS STAMP DUTY?
Stamp duty is a tax charged by Australia’s state governments in relation to the transfer of land or property. So whenever your purchase land or property you will pay stamp duty.
Every state calculates stamp duty differently, and various factors can influence the cost of it including location, the value of the home and whether you are a first home buyer.
HOW IS IT CALCULATED?
Stamp duty is calculated differently according to where you plan to buy in Australia. Usually the cheaper the property the lower stamp duty will be.
Most states will use price categories, for example $200,000 – $300,000, and charge you according to where your home fits in the price range.
Generally, if you purchase a block of land and build later, you will only pay stamp duty for the land cost. For a comprehensive guide on how your state or territory calculates stamp duty visit your local state revenue office or follow the links provided below.
You can also use a stamp duty calculator for a rough indication of the cost you are up for by clicking here.
ARE YOU ELIGIBLE FOR A DISCOUNT?
First home buyers are generally eligible for a concession or discount cost on stamp duty in order to help them enter the market.
Again, this varies for each state. Head to your local revenue office via the links below for full criteria, or find your local Hotondo Homes dealer here.