If you’re purchasing property in Australia, one term you’ll be sure to run into is Stamp Duty. But what on earth is it, and WHY do you need to pay another fee (Please, make it stop).
MMF, What’s Stamp Duty?
Glad you asked, lol. I’m actually writing a whole blog about it.
Stamp Duty is a tax you pay to the government when buying a property. Think of it as a one-time fee you’ve got to pay for transferring ownership from the seller to you. It’s kind of like an annoying house-warming gift that you pay the government (they’re not always the best guests).
Why do I need to pay it?
As we all know, money makes the world go round – The main reason Stamp Duty exists is to generate revenue for the government. Th money that you pay, is used to fund public services like hospitals, schools and infrastructure. While every extra ‘fee’ tends to feel like an extra burden, itis part of the process which helps to keep your local community run smoothly.
Does everyone pay stamps?
Not always, most states have exemptions or concessions available. First Home Buyer’s tend to receive the most privileges in this area, with state by state concessions that help reduce the burden when purchasing your first home, or even waiving the fee completely.
Some states do also offer Stamp Duty relief for pensioners, or to those purchasing off-the-plan properties.
Is Stamp Duty expensive?
Isn’t everything these days?
The amount you’ll need to front when paying stamps depends on a few things –
Property Value: The higher the bill for your property, the higher the bill for your stamps.
State: The cost is calculated on a state-by-state basis, meaning the price you’d pay in Victoria will be vastly different to what you’d pay in Western Australia.
Concessions: Like we said, if you’re eligible to concessions you may be entitled to slice a chunk from your bill or to even have the fee totally waived. Unfortunately, the government doesn’t accept discount codes though (MMF10 doesn’t work, I’ve tried).
Calculate your Stamp Duty
Your solicitor will give you your exact bill, but if you’d like to calculate your Stamp Duty you can visit your relevant states website.
WA | NT | SA | QLD | NSW | VIC | TAS
Purchasing a house takes a hefty amount of admin and Stamp Duty definitely isn’t the most glamourous part of purchasing property. But it is super important for you to have a well-rounded understanding of all the intricacies that come with buying a home. Working with an informed broker who can provide you with up-to-date information, will allow you to make smarter decisions and avoid any nasty surprises.
The team at My Mortgage Freedom are here to help you understand your concessions or exemptions when it comes to Stamp Duty, to ensure you’re fully prepared for all the financial aspects of property purchase.
