Stamp Duty – It’s one of those things we have heard of from time to time but may not necessarily be a concept that we all quite understand. Many people forget about the infamous tax that is Stamp Duty that comes when purchasing a new home, this tax varies from state to state.
In South Australia the cost of Stamp Duty tax is approximately 25% of the value of the property for example if a property is $500,000 you are looking at paying $25,153 in Stamp Duty. There are online stamp duty calculators which are available to assist you in estimating the amount of stamp duty payable.
According to finder.com.au “Stamp Duty is a tax which is set by each state or territory government that is imposed when the purchase of assets such as real estate, cars and assets that belong to a business. With regards to purchasing a new home you are legally required to pay stamp duty within 30 days of settlement to the property. The amount paid is set in relation to the value of the property.”
For new investors or even those who are purchasing interstate stamp duty can be a nasty surprise and something that can slide under the radar. If you are thinking of buying a property this is a tax that you need to budget for; if this is a value that is considered from the offset it can be something which saves you a lot of stress in the long run.
Stamp duty is invested into the economy by the state and territory governments that collect it. This revenue is then added into all the state government budgets which include the sectors of health, transport and roads, police, justice and emergency services. Whilst stamp duty is a compulsory tax there are some exemptions such as: the death of a property owner or joint tenant, transfer of ownership to a spouse, change of tenure and even exemptions for some first home buyers.
Revenue SA have developed an internet based system called RevNet which enables approved clients to transact with Revenue SA 24 hours a day therefore making it more flexible and easy for home buyers.
For more information on Stamp Duty visit: https://www.revenuesa.sa.gov.au/taxes-and-duties/stamp-duties