Stamp Duty in Australia
necessary compulsion in Australia, and we all know that after death, taxes are the only other certainty. Before moving ahead, let us understand what stamp duty is and who introduced it. Stamp duty is a tax levied on certain documents over the purchase of property, cars, assets, and gifts. In other words if you want the government to recognize you as the owner of any asset you are bound to pay stamp duty and register yourself as the owner of the asset to the government. These taxes in Australia are not levied by the Australian Federal Government, but by the respective state governments on certain documents and this is the reason why stamp duty in Australia varies from state to state. Here we have discussed stamp duty for Queensland and South Australia for the first time home buyers.
Queensland Stamp Duty for first time home buyers: - Queensland is offering exemption up to a certain limit to the first time home buyers. Eligible first home buyers will be provided a concession of up to $8,750 from the stamp duty for purchasing a new dwelling or a highly renovated established home costing $504,999 and above. The concession will be applied continuously on a decreasing scale for properties costing over $504,999. For properties valuing above 550,000, no exemption will be granted. Also, the concession will be granted only to those buyers who will purchase a principal place of residence and will also have to use the dwelling as their principal residence for a minimum period of 12 months.
Additionally, no exemption will be provided for the contracts signed before 1st July, 2012. Further, the exemption covers only residential properties, no exemption will be provided over non-residential properties. Also, no exemption will be provided if the buyer acquires less than 100% of the property.
South Australia: - In line with other Australian states South Australia too is offering some degree of exemption to the first home buyers. South Australia uses date to determine the amount of concession. For contracts signed after 15th October, 2012 $15000 would be granted and for contracts signed prior to 14th October, 2012 up to 1st July, 2002 $7000 would be granted. For purchase of established home first home buyer grant will be provided for properties whose value doesn’t exceed $400,000 and will be granted to buyers of new dwellings valuing between $400,000 and $450,000.
South Australia also offers concession on off the plan purchase within a defined area. On purchasing a new dwelling or substantially refurbished apartment between 31st May, 2012 and 30th June, 2014, you can be eligible for a concession of up to $21,330. This concession is in addition to the first home owner grant.