STAMP DUTY IN NEW SOUTH WALES
Stamp Duty is a tax payable to the State Government in relation to certain transactions such as the purchase or real estate or the purchase of a business.
Other transactions that might attract Stamp Duty are motor vehicle registration/transfers, leases and mortgages.
The rate of Stamp Duty payable is determined by the value of the transaction involved, for example in relation to the purchase of real estate the Stamp Duty payable will be calculated based on the purchase price of the property.
It is important to remember, in the context of real estate, that Stamp Duty is payable in addition to the purchase price and you should budget for this if you are saving to purchase a home.
There are some transactions for which you can get a Stamp Duty concession or exemption. These include:
- The First Home – New Home Scheme under which first home buyers purchasing properties with a value of up to $550,000.00 will be entitled to a 100% stamp duty exemption. This also applies to first home buyers purchasing a vacant block of land valued up to $350,000.00 on which they will build their first home.
- The First Home Owner Grant (New Homes) Scheme. This scheme provides a $15,000.00 grant to new home buyers who are purchasing a brand new property (including a vacant block of land).
- The New Home Grants Scheme. This scheme offers a $5,000.00 Stamp Duty reduction to any person who purchases a brand new home with a value not exceeding $650,000.00, or purchases a vacant block of land on which to build a home with a value not exceeding $450,000.00. You do not need to be a first home buyer to be eligible for this grant.
If you are buying a property, it is usually the role of your Lawyer or your Mortgage Broker to complete the application for you. If you are purchasing real estate or a business and you want to know how much Stamp Duty you will have to pay, you can calculate this by visiting www.osr.nsw.gov.au and clicking on the “Transfer of Land or Business Duty” link. This website also contains detailed information about the various grants that may be available to you.
If you have any questions about Stamp Duty or any other aspect of purchasing or selling a property or business, contact the team at Complete Legal & Conveyancing for expert advice.
