When purchasing a property, you must pay land transfer duty (otherwise known as stamp duty) on exactly that; the transfer of the land from one individual to another. The amount of duty depends on the value of your property, what you will use it for, if you are a foreign purchaser, and if you are entitled to any exemptions or concessions.
The amount of land transfer duty you pay depends on the dutiable value of your property. This is the price you paid for the property or its market value, whichever is greater. Duty is calculated on a sliding scale, starting at 1.4 per cent for properties valued at $25,000 and rising to 5.5 per cent for those valued at or above $960,000 as per table below.
|Dutiable Value Range||Rate|
|$0 - $25,000||1.4 per cent of the dutiable value of the property|
|$25,001 - $130,000||$350 plus 2.4 per cent of the dutiable value in excess of $25,000|
|$130,001 - $960,000||$2870 plus 6 per cent of the suitable value in excess of $130,000|
|More than $960,000||5.5 per cent of the dutiable value|
There are some exemptions and concessions available for land transfer duty, especially for first-home owners and pensioners buying a property. You may be eligible for more than one of these exemptions or concessions. Discuss these with your conveyancer and/or representative before settlement. Some exemptions and concessions include;
- First-home buyer duty exemption or concession – a one-off duty exemption for a PPR (Principal Place of Residence) valued up to $600,000, or a concession for a PPR with a dutiable value from $600,001 to $750,000. This duty exemption/concession is separate and distinct from the First Home Owner Grant. The grant is a payment made to you, whereas the first home buyer duty exemption/concession is a reduction in the amount of land transfer duty you pay.
- First-home buyer reduction – a one-off duty reduction of up to 50 per cent for a PPR valued up to $600,000 if you entered into your contract before 1 July 2017.
- Off-the-plan concession – a duty concession for an off-the-plan property, either as a land and building package, or as a refurbished lot.
- Pensioner concession – a one-off duty exemption or concession for a new or established home valued up to $750,000.
- Principal place of residence (PPR) concession – a duty concession for when a property you buy, valued up to $550,000, is intended as your primary home.
- First-home owner with family exemption/concession – a one-off duty exemption or concession for properties valued at $200,000 or less.
- Young farmer’s exemption/concession – a one-off duty exemption/concession for young farmers buying their first farmland property.
For further information please visit the State Revenue Office website
By Emma Jackson - 27-Jun-2019
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