ACT Stamp Duty has recently undergone major changes. Stamp Duty is part and parcel of buying property in Australia, but here is what you need to know.
Let’s start with explaining what exactly Stamp Duty is. Whether you are buying a car, insurance policy or a new home, all purchasers are subject to paying a tax to the state government. The amount of tax you will have to pay is subject to your location, as different states have different criteria when calculating the amount of tax you will have to pay. When it comes to buying a new property, the amount of Stamp Duty you will be subject to pay will also depend on the type of buyer you are.
Most states in Australia have Stamp Duty concessions for First Home Buyers, to help them into the property market. However, prior to these concessions, the amount of stamp duty payable is calculated on the greater market value of your property at the time of purchase. Therefore, the more expensive the property, the higher the stamp duty.
Investors may not find any benefit to the Stamp Duty concession available, however they will benefit from tax savings at the end of the financial year. For home buyers, there are concessions available to help get them into the market, making the purchase process much more affordable.
How do you calculate your Stamp Duty?
The amount of Stamp Duty you pay, depends on the market value of the property you are planning to buy.
However, if you purchase vacant land under one contract and decide to build a home on the land under a separate contract, you will be required to pay Stamp Duty on the land contract only.
In the ACT, from 1 July 2019, stamp duty changed in a big way.
As of 1 July, Canberrans will not pay stamp duty on their first home if:
Visit these websites for more information on how this may affect you.
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