| Stamp duty is a tax that has existed for hundreds of | | | | The basic method for calculation stamp duty is |
| years in countries with English law. It is essentially a tax | | | | essentially the same all across Australia. As the value |
| that is levied on documents. Historically, the documents | | | | of the property being transferred increases, the |
| were stamped as evidence that the duty had been | | | | percentage rate used to calculate the amount payable |
| paid. In modern times, physical stamps are no longer | | | | also increases. |
| used. | | | | Each state has a minimum threshold so lower value |
| Transferring property from one party to another is a | | | | properties avoid having stamp duty applied to any |
| transaction that can attract stamp duty. This is why it | | | | transfers in ownership that may occur. This is to |
| is payable when you buy a home. The tax is paid | | | | ensure that low income earners are not unfairly levied |
| because property is being passed from the seller to | | | | with a tax they cannot afford. |
| the buyer. It is the buyer of the property who must | | | | There is also an upper limit over which the rate applied |
| pay the duty. | | | | remains the same. The upper limit is usually around one |
| Although stamp duty is levied in all states and | | | | million dollars and the rate of tax applied can be more |
| territories in Australia, it is not a federally collected tax. | | | | than five percent once the value exceeds the upper |
| Each state and territory is responsible for administering | | | | limit. |
| the duty. Variations between the rules and regulations | | | | Each state and territory has their own Office of State |
| exist between each state, including variations in how | | | | Revenue that is responsible for collecting the duty. |
| the tax is calculated. | | | | Each Office of State Revenue (OSR) has its own |
| Buying a house for $300,000 in one state may | | | | website with up to date information on stamp duty. If |
| therefore require a different amount of stamp duty to | | | | you need to find out any information about stamp duty, |
| be paid than buying a house of the same value in | | | | visit the website of your local OSR in the first instance. |
| another state. | | | | If you do not find what you are looking for and are still |
| Added to this, concessions may be applied to property | | | | confused about whether you will be required to pay |
| purchases based on whether certain conditions are | | | | stamp duty on your next property purchase, speak to |
| met, and these rules differ between the states as well. | | | | a qualified mortgage broker. A mortgage broker should |
| Concessions may be awarded under special | | | | be able to help with your questions and provide you |
| circumstances such as the recipient of the property | | | | with contacts to look into the issue further if required. |
| being a first time buyer, and the value of the property | | | | Mortgage brokers usually keep up with all the latest |
| being too low to attract the duty. | | | | news and rule changes concerning stamp duty and |
| Although there are many variations between the | | | | are therefore a good source of information. |
| states and territories, some important similarities occur. | | | | |