It’s not easy to predict the cost of stamp duty because the final figure depends on several variables. These include the state you live in, the value of the property and whether you plan to use it as an investment. In NSW you will pay around $32,000 on an $800,000 primary residence property, whereas a similarly priced property in Victoria attracts around $45,000 stamp duty.
Generally, the cheaper the property, the lower the amount of duty. For example, a $400,000 home in South Australia demands around $20,000 duty, compared with $44,000 for an $800,000 home.
Many states offer exemptions and concessions for first home buyers. Since July 1, 2017, Victorian eligible first home buyers no longer pay any stamp duty when they purchase new or existing properties under $600,000. Properties between $600,000 and $750,000 in Victoria will receive stamp duty concessions. This means first home buyers can save an average of $8,000*. This is in addition to the $10,000 First Home Owner Grant (FHOG) you may be eligible for when you buy or build your first new home valued at under $750,000.
Most state and territory governments have online calculators for estimating stamp duty. For a more detailed guide, give us a call as we’re happy to help.
When is it payable?
It’s a one-off payment and it’s typically paid on or before settlement. To avoid a penalty, stamp duty must be paid within three months after the contract is made.
Can I pay with my credit card?
You can usually pay by credit card, but a surcharge may apply. Check the details on the payment notice you receive in the mail or your state revenue office website.
Can I include it in my loan?
Some lenders may offer to pay stamp duty on your behalf. The duty is added to the principal of the loan, with interest charged. This option is normally only available to borrowers who meet certain conditions like a Loan to Valuation Ratio (LVR) of 85% or less.
If I am refinancing my loan, do I have to pay stamp duty?
Yes, in cases where you are a purchasing a property.
If you’re thinking of buying a property and want to understand more about stamp duty, we can help. Call us on 1300 652 842