Under the Duties Act 1997 duty must be paid on the transfer of dutiable property and in relation to certain other dealings. For the purposes of conveyancing dutiable property generally includes land, leases and goodwill in relation to a business.

Stamp duty on the transfer of land is calculated on the amount paid for the property or the current market value, whichever is the higher.

Stamp duty must be paid within 3 months from the contract date (ie. the date that Contracts are Exchanged) unless it is an off-the-plan purchase. However, if you are obtaining a loan for the purchase your Lender will require Stamp Duty be paid at settlement so that the stamped Transfer can be lodged with their Mortgage at the Department of Lands.

Sometimes there are exemptions from the payment of Stamp Duty such as in relation to a transfer of a property:

• due to a relationship breakdown;

• to  a spouse or defacto partner; or

•  to a First Home Buyer.

 

Current Government Incentives

The government often introduces incentives to boost the housing market and one of the most common is stamp duty exemptions or concessions for First Home Buyers or the purchasers of new homes.

The current First Home—New Home scheme provides exemptions or concessions on transfer stamp duty for people who are buying their first home in NSW. This includes buying vacant land on which they intend to build their first home.

The First Home—New Home scheme provides eligible purchasers with exemptions on transfer stamp duty on new homes valued up to $500,000 ($550,000 from 1 July 2012) and concessions on transfer duty for new homes valued between $500,000 ($550,000 from 1 July 2012) and $600,000 ($650,000 from 1 July 2012).

Eligible purchasers buying a vacant block of residential land to build their home on will pay no duty on vacant land valued up to $300,000 ($350,000 from 1 July 2012) and will receive a concession on duty for vacant land valued between $300,000 ($350,000 from 1 July 2012) and $450,000.

First Home—New Home exemptions or concessions do not apply to the purchase of an existing dwelling.

 

Leases

Although Stamp Duty is no-longer payable on the execution of a Lease, Stamp Duty is still payable on the Transfer, Assignment or Surrender of a Lease.

To calculate Stamp Duty payable have a look at the Office of State Revenue Stamp Duty Online Calculator.

We know the property business inside out. We are your one-stop property and lease shop.

If you have any questions on whether you are eligible for any Stamp Duty exemptions or concessions please call Property Platinum Law.

For More Information Call Us Now On : 02 9627 7400