When you purchase a property, be it residential or commercial, State Government stamp duty usually comes into play.
There are a few variables that affect how the stamp duty is calculated. Those include the proposed use of the property, the type of property, the purchasers residency status, and whether or not they are a first home buyer.
Some discounts apply to stamp duty if it is your principle place of residence rather than an investment property. Commercial properties are generally treated the same as residential investment properties when it comes to transfer stamp duty, although there are potentially other tax implications such as GST so it is advisable that you consult your accountant.
Type of Property
If you are buying an established property, stamp duty is payable on the entire value of the property. A to-be-completed property, such as an off-the-plan property or a house and land package, often comes with a lower rate of stamp duty and is generally calculated on the value of the land at the time the contract is signed. In this case, purchasing a property off-the-plan or a house and land package can often mean significant stamp duty savings.
First Home Buyers
Being a first home buyer can also affect the amount of stamp duty paid. The various stamp duty savings and calculations can vary from state to state. Most states have a cut offs as far as the value of the property and also the date of contract, so it is wise to see where you stand prior to making an offer on a property.
Foreign investor stamp duty is calculated at a different rate to Australian citizens or permanent residents. If you are a non-resident of Australia, check with the relevant state body to ascertain what charges you will be looking at.
Stamp duty varies according to the state you are purchasing in so it is recommended that you consult your relevant State Government website for information. Contact us and we can point you in the right direction to find the information you are looking for.