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 situation in Tasmania for first homeowners is tougher than it is for those in other Australian states and territories. First homeowners will not receive any stamp duty waivers or reductions. On top of this, the first homeowners grant was reduced from $20,000 in July 2017 for those purchasing a new home, an off-the-plan home or for those building their own home. Nonetheless, a grant valued at $10,000 is still available in Tasmania.