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?
Stamp duty is no longer a worry for first home buyers in Victoria if they’re looking at a home valued up to $600,000. The way it works for properties valued in the higher price range of $600,000- $750,000 is that concessions are offered on a sliding scale. This means that the closer the property is to $600,000, the greater the concession will be. Those who are looking at regional properties valued at up to $750,000 will be treated with a significantly higher first home owners grant of $20,000 as of 30 June 2020. This is double the typical grant of $10,000 that is provided to first home owners who are buying properties in Metropolitan Melbourne.