Stamp duty may seem like a foreign concept but it is something to understand thoroughly when purchasing a home. At a basic level, stamp duty is a tax imposed on numerous acquisitions, including selling real estate, cars and assets belonging to a business. It can also be imposed on home loans, gifts and some insurance.
As the circumstance varies, so can the person who is responsible for paying. In the case of real estate the purchaser is the one who takes on Stamp Duty. Although taxes may at times seem tedious, it is important to remember their underlying reason for existence. Taxes help make Australia what it is and provide the public amenities that Australians rely on.
Stamp duty must be paid within 30 days after the property transaction. Those that are subject to stamp duty are most transactions involving property including homes and land. There are several exceptions and concessions available. Some of these include:
- Deceased estates
- First home buyers
- Family farms
- Young farmers
- Principle place of residence
- Off-the-plan sales
Stamp Duty can vary by state as this is not levied by the Australian Federal Government but rather the state legislation. To decipher how much stamp duty you should be paying on your property, utilise the Stamp Duty calculator.
It is important to be informed about stamp duty and make timely payments to the government to avoid fines and confusion.
Quotes and information taken from source: http://www.realestate.com.au/blog/understanding-stamp-duty/