Stamp Duty is a tax levied on legal documents. Stamp duties are levied by Australian State Governments on the transfer of property from one owner to another. It is payable on land and also on the purchase price of an existing property.
It is levied at different rates by each of the states and each offers various concessions and incentives.
Stamp Duty is a taxation measure by government. It is an acquisitions cost or ‘capital cost’ when purchasing a property.. It is not tax deductible immediately or in stages over the first few years of ownership of the property as say loan costs are, but may be offset against any capital gains tax payable when the property is eventually sold.
Stamp duty is payable on the full purchase price for a house, townhouse, apartment or single contract purchase.
Stamp duty is payable only on the land content of a house and land package, which is a 2 part contract.
There are a large number of online stamp duty calculators available.
Stamp duty on property purchases is a tax revenue raising exercise for state and territory governments. As the rate of stamp duty increase as the price of the property increase it is a progressive tax. If you can afford to purchase a $1million property it is considered equitable that you pay more stamp duty than someone who can only afford to purchase a $350,000 property.
Stamp Duty is normally due and payable at settlement. It is a cost that you cannot avoid and must be budgeted for in the purchase costs.