If you’re looking to buy a home, you’ve probably heard the word “stamp duty” thrown around a few times. But what is it?
To put it simply, stamp duty is a tax paid when buying a house. The exact amount depends on which state or territory you live in, the price of the property you’re buying plus, any exemptions that might apply to your situation.
On average, Australian’s pay tens of thousands of dollars in stamp duty, on top of the mortgage, deposit and other expenses that come along with buying a house.
So, let’s break it down state by state.
New South Wales:
Stamp duty is payable in NSW when you buy a home including:
· Your first home
· An investment property
· A holiday home
· A farming property
However, if you are a first home buyer, you may be entitled to a concessional rate or even an exemption from paying stamp duty under the First Home Buyers Assistance Scheme (FHBAS)*. This applies to:
· Buying an existing home
· Buying a new home
· Vacant land on which you intend to build a home
Buying off-the-plan which you plan to use as a main residence? You maybe be able to defer your stamp duty payment for up to 12-months after you sign the agreement, or until the property is completed or handed over, whichever comes first.
Learn more about stamp duty in NSW.
Staying consistent with NSW if you purchase a first home, investment property, holiday home or farming property you are required to pay stamp duty.
Victoria offers a number of exemptions including many aimed at first home buyers. If you fall into this category, you may be entitled to a concessional rate or an exemption*.
Discover more about stamp duty in Victoria.
The South Australian Government recently announced that first home buyers may be eligible for stamp duty relief on their new home purchase.
· Stamp duty is reduced to zero if your new home is below $650,000 or $400,000 for vacant land.
· Stamp duty is partially reduced if your new home is below $700,000 or $450,000 for vacant land.
There is also relief for those who lost their homes in the recent Murray Riverlands region floods.
If your existing principal place of residence was destroyed or substantially damaged in the recent floors and you are looking to purchase or re-build a replacement home constructed within 3 years from date of purchase, you can receive relief up to $48,830 in stamp duty.
Find out more about stamp duty in South Australia.
Stamp duty in Queensland is applicable to the same dwellings as the previously mentioned states and offers a home or vacant land concession to first home buyers.
· Home Concession: Your first home concession only applies to a home valued under $550,000 and can save you up to $15,925.
· Vacant Land Concession: The first home vacant land concession only applies to vacant land valued under $400,000 and you can save up to $7,175.
Learn more about stamp duty in Queensland.
To learn how much stamp duty, you could expect to pay on your new home purchase or vacant land purchase use our Stamp Duty calculator.
All you have to do is enter your details and our calculator will automatically break down the government fees that you are required to pay.
Chat with your local MyChoice Home Loans consultant about available home loan options for you.
*Terms & Conditions apply. Head to your appropriate states’ website for further details.