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.
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What are the benefits for first home buyers?
The Northern Territory Government provides a generous first home owners grant of $26,000 for those who are buying or building their first home. This is available regardless of the home value and is the largest grant provided in Australia. Additional stamp duty concessions are provided as well. For a property valued at up to $500,000, expect to be able to purchase the property free of paying any stamp duty. The stamp duty situation differs for those who are buying an established home valued between $500,000 or $650,000. Concessions will still be available on a sliding scale for homes that fit this criterion.