Stamp duty as we know it can be the most costly for when purchasing a home. Did you know though that you may be eligible for an exemption or discount when it comes to paying stamp duty?
What is Stamp Duty?
Stamp duty also known as land transfer duty is the cost from transferring from one individual to another. Stamp duty applies when purchasing a home of residence, investment property, holiday home or a vacant block of land.
Can I get a discount or an exemption?
Although stamp duty can be quite costly there are some circumstances that can give you a discount or even an exemption. The most common reductions are through being a first home buyer or eligible pensioners. To receive a discount or an exemption you have to apply directly through State Revenue Office Victoria and have attached the link directly to their website for you https://www.sro.vic.gov.au/
How much will I need to pay in stamp Duty?
How much stamp duty you pay depends on the value of the property but also whether it’s going to be your permanent place of residence or investment which also is factored in. Stamp duty can range from 1.4% up to 5.5% and it is charged on dutiable value. Dutiable value is the price you paid for the property or its market value, whichever value is greater. We have attached a table below explaining how stamp duty is calculated to give you a better idea at the cost involved if you aren’t eligible for a discount or concession.
|Stamp Duty Range|
|Dutiable Value Range||Rate Payable|
|Up to $25,000||1.4% of the dutiable value of the property|
|$25,000 – $$130,000||$350 plus 2.4% of the dutiable value in excess of $25,000|
|$130,000 – $960,000||$2,870 plus 6% of the dutiable value in excess of $130,000|