Many people consider buying a home into be a milestone in their lives. While they appreciate that they will have to negotiate a fair price to pay for their new home, they may be unaware of additional expenses that come with this kind of financial transaction. In fact, regardless of where people live in Australia, they should expect to pay a stamp duty along with the purchase price of their house. To help them prepare for this added expense, homebuyers should know some basic facts about the Australian stamp duty.
The stamp duty is not so much a national tax as it is an additional duty levied by each individual state in the country. Indeed, each state determines the amount of its stamp duty, as well as how the tax is calculated based on the purchase price of a home. Moreover, the duty applies to the mortgage, title, or other documentation for the transaction rather than the property being purchased itself. When people find a home that they want to buy, they should be aware that they will pay this additional tax before the sale of the home can be completed.
Along with preparing for this duty, homeowners should be aware of when they actually have to pay this tax to the state. Every state requires that homebuyers pay the stamp duty within 30 days of settling their house transaction. Once they close the purchase of their home, they have 30 days to pay the tax as it applies to the final amount that they paid for the house.
The amount of duty that they will pay for their house varies with each state. Some states charge less for stamp duties than other states. Even so, they can use an online stamp tax calculator or visit with a qualified real estate agent who can help them calculate the amount of stamp duty they will pay after the transaction. In most cases, the higher the price for a home, the higher the stamp duty that goes along with its sale.
However, some homebuyers may be able to escape paying a stamp duty or claiming a discount for this obligation. Australian states allow first-time homebuyers, along with pensioners, some farmers, and deceased estates to claim an exemption or avoid paying the stamp duty altogether. Because the circumstances for these exemptions and discounts are subject to changes, people should stay abreast of the latest stamp duty laws in Australia.