Stamp Duty
Buying a property involves more than just saving a deposit. Stamp duty can be a significant upfront expense, so it's important to understand what it is, how it's calculated, and what you might need to budget for.
What is Stamp Duty?
Stamp duty is a government tax that may be payable when you purchase a property, including a home, vacant land or an investment property.
The amount you'll pay depends on several factors, including the property's purchase price, its location, and the rules in the state or territory where you're buying. As each Australian state and territory has its own stamp duty rates and eligibility criteria, the amount can vary significantly.
Do you have to pay stamp duty?
Not always.
If you're buying your first home, you may be eligible for a stamp duty exemption or concession, depending on the state or territory you are purchasing in and whether you meet the relevant eligibility requirements.
Additional concessions may also be available in certain circumstances, such as for eligible pensioners or other qualifying purchasers.
Because stamp duty rules differ between states and territories and can change over time, it's important to confirm your eligibility with your solicitor or conveyancer, or speak with Redlend Home Loans.
How is stamp duty paid?
Your solicitor or conveyancer will usually calculate the amount payable and arrange payment to the relevant state or territory revenue office as part of the settlement process.