Stamp duty is simply the tax levied upon some certain purchase or selling of property. It is also implemented on certain transactions. It is the amount which is to be paid as a necessity because serious actions are taken against those who do not pay it by the government. An individual does not get the ownership of a certain property if he or she does not pay this amount. Moreover, there’s also some ultimatum of a few days provided to people with in which, the amount has to be paid.
People usually eagerly ask the exact amount of stamp duty that they need to pay but sadly, this amount isn’t fixed. Stamp duty varies in different ways especially with the price of the property that you are purchasing. It is also different in different countries.
Stamp Duty On Transfer Of Real Property (Land) In Australia
The complexity of buying a home or any piece of property in Australia cannot be ignored or neglected. By complex, we do not only refer to the process and the amount differing greatly with in Australia. But we also refer to the prices which might be a little high (not to discourage the first-time buyers) and might take the first time buyers aback especially the ones having no idea about it. Stamp duty is one of the ‘’major’’ costs to be paid and cannot be taken lightly when one is deciding the budget out for the purchase of a certain thing.
Each step for the transfer of real property in Australia must be clearly understood.
If you want to know the amount that you are due to pay, try using the Stamp duty calculator at calculators.tech to help you calculate the accurate amount in whatever state of Australia you live in.
Australia, being comprised upon 08 states, has a different rate of stamp duty which obviously differs because the prices of certain properties in each states show a difference. This is the reason why it becomes difficult for one to know the amount of stamp duty that they are required to pay.
Stamp duty is levied upon two categories of lands
• The Qualifying land
• Residential land
Let’s discuss what each type of land refers to and the considerations before the stamp duty is levied on each.
The Qualifying Land and Non-qualifying land
This simply refers to the non-residential land. This definition of the qualifying land was provided by the stamp duty act given out in 1923.
The commissioner takes the help of certain codes which are considered by him to know if the land is residential or qualifying.
Below are all the non-qualifying lands.
Vacant-land having minor improvements – In the rural living (LUC 4151)
Vacant-land, rural residential – (LUC 4150)
Vacant-Land having slight improvements (LUC 4101)
Vacant-Land Urban (LUC 4100)
Primary production (LUC 9100-9990)
Residential, including some exceptions (LUC 1100-1999)
In the qualifying/non-qualifying land, the reduction in Stamp duty is applied under certain circumstances. These specifically include the date upon which the contract of sale and purchase is done. It might not apply in certain cases hence, the consideration of the date is an important one. One thing to be considered is that the date of Memorandum is not considered for the reduction.
The purchaser is held responsible for the payment of the amount at the Lands Titles office.
Primary production/Residential Land
The land which is not being used for primary production but it is considered to be a land suitable for that and is seen through that point of view, is also brought under the category of primary production along with the one being already used.
Residential purpose land
The land used for residential purposes. It might even be vacant at that specific point but if it is categorized to be a land used for residential needs, it must be considered a residential purpose land.
If the land is however, unimproved or containing minor improvements, zones might be importantly considered.
The coding is again considered for the purpose of differentiation.
Rates of Stamp duty
Stamp duty rates, being dependent upon numerous factors (as has been mentionedabove), are highly differentiable and varying. The rates are therefore, suggested to be calculated using a Stamp duty calculator. You can use one on calculators.tech to know the amount of duty that is payable.
Below is an outline mentioned to help you.
-If the value of property exceeds $500,000
$21,330 along with $5.50, for every dollar 100 or even a part of 100
-If the price of property exceeds $300,000 but not $500,000
$11,330 plus the same rule for every dollar 100 or part of 100
-The price exceeds $250,000 but not $300,000
In this case, $8.995 along with $.475 for each dollar 100 or even a part of 100
-Price exceeding $200,000 but not 250,000
$6,830 plus dollar 4.250 for hundred and part of hundred
-Price that is Exceeds $100,000 but not $200,000
$2,830 plus $4.00 for every $100 or part of $100 over $100,000
– Rates that exceeds $50,000 but not $100,000
$1,080 plus $3.50 for every $100 or part of $100 over $50,000
– Value that exceeds $30,000 but not $50,000
$480 plus $3.00 for every $100 or part of $100 over $30,000
– Exceeds $12,000 but not $30,000
$120 plus $2.00 for every $100 or part of $100 over $12,000
– Values that do not rise above $12,000
$1 needs to be paid for every 100 or a part of 100.