When Do I Have To Pay Stamp Duty In Australia?

During property sale transactions, Australian state governments impose taxes and levies. These include stamp duty, which is a type of tax that a buyer pays after the purchase of a residential or commercial property.

Each state has different rates of stamp duty, payment period and exemption rules so it is worth learning how these can affect your property purchase.

In this article we will go through everything you need to know about stamp duty in Australia. To learn more about stamp duty and how it applied to your specific situation and circumstances including how to take advantage of state duty exemptions and concessions it is advisable to consult with an expert property lawyer in Australia.

What Is Stamp Duty In Australia?

In Australian law, transfer or stamp duty is a tax paid to the state/ territory government for the purchase or transfer of property ownership. The properties may include motor vehicles, real estate, vacant land, and commercial properties.

Stamp duties are usually paid by the party purchasing the property. The payable amount varies depending on the property’s market value and the state laws.

How Is Stamp Duty Calculated In Australia?

Each state and territory has its unique way of calculating how much a buyer will pay for stamp duty. In various Australian regions, foreign citizens pay higher stamp duty rates when purchasing properties.

Certain exemptions and concessions may also apply when calculating the stamp duty. It’s advisable to seek legal help when buying property to understand how you can benefit from your state’s exemptions.

When To Pay Stamp Duty In Australia

The time frame for paying stamp duty in Australia depends on the laws of the state/territory where the transaction occurs. For example, in Victoria, the law requires the buyers to pay the stamp duty within 30 days after finalising the property sale.

That’s different from New South Wales, where you must pay the stamp duty within three months after completing the transaction. However, you might extend your payment time frame for up to 12 months if you purchase off-the-plan while intending to live in the purchased property.

Failure to make the stamp duty payment by the due date may incur interest on the amount owed. You might also receive penalties for late duty payments. In case of penalties or interests, consult a professional legal expert for assistance.

How Do I Pay Stamp Duty In Australia?

State and territory governments provide various ways for buyers to pay stamp duties. You can apply independently to your state’s revenue office or have your lawyer review your documents and make the payment arrangements.

The most common payment method for stamp duties is online. However, your revenue office may offer other options, including credit/debit cards, electronic fund transfers, and cheques. In some states, you can apply for a payment plan of up to 12 months.

Stamp Duty Laws In Australia

Each state and territory in Australia has laws outlining the stamp duty rates and time frames for payment. Below, we’ve provided the links to state governments’ resources regarding stamp duty laws.

Stamp Duty Exemptions And Concessions In Australia

You can enjoy stamp duty exemptions or concessional rates in certain states when purchasing a property. What’s the difference between concessions and exemptions?

An exemption means the buyer doesn’t have to pay any stamp duty for the transfer process of a property. On the other hand, a concession is a reduced stamp duty, meaning you’ll pay less than the usual rate.

You can benefit from stamp duty exemptions and concessions in various situations. These include:

  • If you’re a first-time homeowner buying a residential property
  • Lower rates when you buy another home after the first one
  • When you purchase vacant land
  • When transferring property ownership to your spouse
  • Lower rates when buying properties in certain price ranges (depending on the state/territory laws)
  • When changing tenure
  • If you’re a pensioner purchasing a property

It’s essential to check with your local revenue office to understand if you qualify for any exemptions or concessions. In some cases, you might be eligible for a full exemption or concessional rates, saving you money.

Though saving your dollars is exciting, going through complex calculations and commercial laws might be daunting. Save time and money while avoiding stress by consulting an expert property lawyer to help you navigate the property ownership or transfer process.

Get Help With Stamp Duty In Australia

Purchasing or transferring property ownership takes more than making payment arrangements to the seller. You’ll have to pay stamp duty to the state government unless you qualify for a full exemption.

If you plan to transfer/buy property in Australia, make sure you aren’t paying too much stamp duty. At Aditum Lawyers, our experienced lawyers can advise you on your exemption and concession opportunities. Feel free to contact us via 1300 234 886 or fill in our contact form to speak to one of our professional property lawyers.

Resources & Further Reading

  1. https://business.gov.au/finance/taxation/stamp-duty
  2. https://www.homeloanexperts.com.au/non-resident-mortgages/foreign-citizen-stamp-duty
  3. https://www.qld.gov.au/housing/buying-owning-home/financial-help-concessions/transfer-duty-concessions-exemptions#:~:text=Different%20to%20a%20concession%2C%20an,still%20needs%20to%20be%20assessed.

Disclaimer: The information provided in this article is for general informational purposes only and should not be construed as legal advice. Consult with a qualified commercial lawyer for personalised advice regarding your specific situation.