Stamp duty when selling – who pays?
Stamp duty, now known as land transfer duty is paid by the purchaser of a property. It can have an effect on some buyers’ willingness to purchase your property. Especially if the property is valued at a high price. Stamp duty can also affect you as a homeowner looking to sell. The cost of selling, buying a new property and paying stamp duty can be off-putting. But, if you’ve got the right support through the process, you can cut down on other avoidable selling costs.
How much does stamp duty cost?
Stamp duty is calculated as a percentage of the purchase price or a percentage of the market value of the property being purchased (the greater of the two). It varies across Australia, as is applied by your state government. Most states and territories have a system whereby the cheaper the property, the less tax will be paid. Generally, stamp duty is paid at settlement. But the buyer can have up to 30 days to pay. Until then, they don’t receive title to the property.
Rates in Victoria
In Victoria, duty is calculated on a sliding scale, starting at 1.4 per cent for properties valued at $25,000 and rises to 5.5 per cent for those properties valued at and above $960,000.
|Dutiable Value Range||Rate|
|$0 – $25,000||1.4 per cent of the dutiable value of the property|
|$25,001 – $130,000||$350 plus 2.4 per cent of the dutiable value in excess of $25,000|
|$130,001 – $960,000||$2,870 plus 6 per cent of the dutiable value in excess of $130,000|
|More than $960,000||5.5 per cent of the dutiable value|
Source: State Revenue Office Victoria
Rates in New South Wales
Similarly to Victorian stamp duty, stamp duty is calculated on a sliding scale, starting at $1.25 for every $100, or part, of the dutiable value and rises to $40,490 plus $5.50 for every $100, or part, by which the dutiable value exceeds $1 million.
|Dutiable Value Range||Rate|
|Not more than $14,000||$1.25 for every $100, or part, of the dutiable value|
|$14,000 – $30,000||$175 plus $1.50 for every $100, or part, by which the dutiable value exceeds $14,000|
|$30,001 – $80,000||$415 plus $1.75 for every $100, or part, by which the dutiable value exceeds $30,000|
|$80,001 – $300,000||$1,290 plus $3.50 for every $100, or part, by which the dutiable value exceeds $80,000|
|$300,001 but not more than $1 million||$8,990 plus $4.50 for every $100, or part, by which the dutiable value exceeds $300,000|
|More than $1 million||$40,490 plus $5.50 for every $100, or part, by which the dutiable value exceeds $1 million|
Source: NSW Office of State Revenue For up-to-date stamp duty rates for your state or territory, it’s a good idea to head to the website of your state government or Office of State Revenue. Most of these sites will offer online stamp duty calculators too.
Exemptions and concessions
First-home buyers in all states apart from Tasmania and Northern Territory can benefit from stamp duty concessions. For example, in New South Wales, first home buyers are provided with an exemption from stamp duty on properties worth up to $550,000. And concession rates on properties valued between $550,000 and $650,000. In Victoria, first-home buyers who purchase property with a dutiable value of $600,000 or less are exempt from GST. First-home buyers buying a home with a dutiable value from $600,001 to $750,000 will be able to pay a concessional rate of stamp duty, which is calculated on a sliding scale. There are a number of other exemptions and concessions available for land transfer duty. Examples include off-the-plan properties, deceased estates, young farmers and more.