More information on stamp duty
What is stamp duty and why do we pay it?
Stamp duty is a form of tax that is paid to the government when a property is sold. It is the buyer who foots the bill for stamp duty, and thus, it is an important (and often costly) expense to take into account when buying a home. When purchasing a property, you’ll usually pay a tax called stamp duty. Stamp duty is the tax of a transaction on the transfer of a property. The amount of tax that needs to be paid varies according to the type and value of the transaction involved and the state or territory you’re buying in. Some buyers may qualify for a stamp duty concession or exemption. First home buyers, for example, can receive exemptions in some areas of Australia depending on the value of the property they’ve purchased. Pensioners and health card holders may also be eligible for a stamp duty exemption.
Looking to purchase a property?
Compare competitive home loan deals from 25+ lenders in 60 seconds, get expert advice on which option is right for you.
What are the benefits for first home buyers?
For those who are constructing a new house valued at up to $750,000 or buying a new home valued at $600,000, the NSW First Home Super Saver Scheme will provide you with a $10,000 grant. On top of this, the scheme includes stamp duty concessions for purchases between $650,000 to $800,000. Unfortunately, if your new home is valued at $650,000 or if you’re looking at new land that’s valued at up to $350,000 you may be exempted from these stamp duty concessions. But it’s not all bad news, as the insurance duty on lenders mortgage insurance has been abolished.