Stamp duty is a payable tax for every buyer that decides to purchase a property in Australia. However, it is a tax that few buyers understand and is often forgotten about, especially in regard to the concessions and savings certain buyers are eligible for.
As you plan and budget for your next property purchase, it is important to understand what stamp duty concessions and exemptions you have available.
What Is Stamp Duty?
Stamp duty is a compulsory form of tax that pays for the transfer of property from the owner to the purchaser. Stamp duty is paid for by the purchaser; and is sometimes referred to as Transfer of Land duty (Purchase Price x 5.5% = Stamp Duty). In Clayton and the City of Monash, stamp duty is payable within 30 days of the transfer of the property.
What Factors Determine How Much Stamp Duty You Will Pay?
How much stamp duty you will pay will depend on a number of factors, including the cost and type of property purchased, whether the property is an investment or your principal place of residence, and whether you are an Australian citizen.
How Many Stamp Duty Concessions Are Available?
There are multiple concessions available for eligible buyers, including the newly introduced “Land transfer (stamp) duty waiver”, that was announced as part of the Victorian Budget 2020-21 concessions for home buyers.
What Are All The Stamp Duty Concessions Available For Homes Purchased In Clayton And The City Of Monash?
NEW- Stamp Duty (Land Transfer)
For purchases of newly built residential properties in Victoria with a dutiable value of up to $1 million, a land transfer (stamp) duty waiver of up to 50% applies to contracts entered into on or after 25th November 2020 and before 1st July 2021.
And for those purchasing established homes in the same bracket, a land transfer (stamp) duty waiver of up to 25% applies for the same period.
First Home Buyer Duty Exemption, Concession Or Reduction
As a first home buyer in Victoria, you may be exempt from paying stamp duty when you buy a property for $600,000 or less; if the property is your principal place of residence and you live in it for at least 12 months. When you purchase a property for $601,000 to $750,000, a first home buyer duty concession is also available for eligible first home buyers.
Principal Place Of Residence (PPR) Concession
You may be entitled to a concession from duty when purchasing a property up to the value of $550,000 that you intend to live in for a continuous period of 12 months, within 12 months of settlement.
Off-The-Plan Duty Concession
The Victorian government offers an off-the-plan duty concession to eligible buyers, purchasing land and a building that is yet to be constructed or built. Commonly referred to as ‘buying off-the-plan’, eligibility factors are based on when you sign your contract.
Image: Amara Oakleigh South
Pensioner Duty Exemption Or Concession
If you are an eligible pensioner, you may be eligible for a once-off stamp duty exemption when buying a home valued at under $330,000, or a concessional rate when buying a home valued between $330,001 and $750,000.
To be eligible, you need to hold an approved concession card and intend for the property to be your principal place of residence.
Foreign Purchasers Of Property Duty Exemption
If you are a foreign purchaser of a residential property, you will be required to pay additional duty on your share of the property you purchase. If the residential property purchased is exempt from duty, an exemption may be available in some circumstances.
First National Clayton JXRE is here to help you discover your stamp duty savings in finding you your perfect property
If you have any questions regarding your stamp duty eligibility or any general enquiries, please do not hesitate to contact First National Clayton JXRE on 9975 7888.
This is a general guide to stamp duty in Victoria and is subject to change. Please contact our team for more details.