Planning for stamp duty
Dig deep and you’ll find a raft of concessions are available on stamp duty, especially for first home buyers
Stamp duty is a state-based tax that is levied on the price you pay for your property. It is an upfront cost that home buyers and investors need to allow for in their property purchase budget.
Stamp duty varies according to location
The amount you can expect to pay will vary according to the location of the property you buy. Do note, it’s the location of the property – not your home address that determines the stamp duty impost. This is an important consideration for interstate investors.
As stamp duty varies between states and territories, you will need to check the levy that applies to your particular area.
Use our Stamp Duty calculator to work out how much you should budget for.
Tap into generous concessions
In most states and territories, first home buyers enjoy stamp duty savings. But concessions may also be available to other buyers – especially if you’re an existing home owner thinking about building or investing in a new home.
Applying for stamp duty savings
Time limits do apply to claim your stamp duty concessions, and again these vary between states – anywhere from 3 to 12 months following purchase.
You can apply for stamp duty concessions through your solicitor or Mortgage Choice broker, or apply direct to the relevant state or territory revenue office.
Applying early means your concessions will be available at the time of settlement of your property.
Your Mortgage Choice broker is here to help
For further information on the state duty savings you may be entitled to – or to discuss how stamp duty applies to your property purchase, please contact your nearest Mortgage Choice Consultant.
New South Wales
First home buyers
First home buyers in NSW are entitled to savings worth up to $17,990 on stamp duty under the First Home Plus Scheme; or if you build a new home you could save up to $11,245 under the Home Builders Bonus. These savings are in addition to the $7,000 First Home Owners Grant.
Note: From 1 January 2012, the First Home Plus Scheme will be replaced by the First Home – New Home Scheme, which limits the stamp duty concession to first home buyers purchasing a new home or vacant land intended to be used as the site for a new home.
Vacant land
On vacant land priced up to $300,000 first home buyers pay zero stamp duty – a saving of $8,990. This saving reduces by $10.98 for every $100 above this limit, with the stamp duty savings cutting out altogether if you pay $450,000 for the vacant land.
Existing homes
First home buyers gain a complete exemption of stamp duty on established homes priced up to $500,000 – that’s a saving of $17,990. The concession reduces by $22.49 for every additional $100 paid for the property, phasing out altogether on existing homes valued up to $600,000. However, from 1 Jan 2012 next year, stamp duty concession will only apply to new home purchases.
Are you a first home buyer building your home?
Depending on the value of the property you purchase, first home buyers building a new home may be better off claiming stamp duty savings under the Home Builders Bonus (see below). You must choose between either the first homebuyer exemptions or the Home Builders Bonus. You cannot claim both. That makes it important to decide which scheme will give you the maximum savings on stamp duty. Do remember, the Home Builders Bonus is only available for new home constructions though it can also be claimed by all home builders including investors and existing home owners.
Home Builders Bonus – great for investors
If you’re building a new home you could be entitled to stamp duty savings worth up to $22,490, and it’s available to investors or seniors (aged 55-plus) building a home from scratch.
A full exemption of stamp duty is available if you purchase land worth up to $400,000. Or, if you buy an off the plan property where construction hasn’t yet begun, you are entitled to a full stamp duty exemption where the property is valued at $600,000 or less – a saving on stamp duty of $22,490.
A stamp duty saving of 25% off the normal rate of duty is available if the home is partially completed or if you’re purchasing an off the plan property where building work is already underway.
There is no limit to the number of properties that you can claim the Home Builders Bonus for.
For more details contact the NSW Office of State Revenue. Or take a look at our stamp duty calculator.
Victoria
First home buyers who build a new home in metropolitan Melbourne are eligible for a Bonus payment worth $13,000 in addition to the $7,000 First Home Owners Grant. Or, if you build your first home in regional Victoria, you could receive the Bonus of $13,000 plus an extra $6,500 under the Regional Bonus scheme.
The Bonus is only available on properties valued up to $600,000. The Victorian State Revenue Office sets out details of the 48 local government areas that are eligible for the Regional Bonus scheme.
In May 2011, the Victorian state government proposed stamp duty exemptions for eligible pensioners, concession card holders and Commonwealth seniors health card holders. From 1 July 2011, these home buyers will receive a full stamp duty exemption for properties valued up to $330,000, with a partial exemption available on properties valued up to $750,000.
Also from 1 July 2011, first home buyers will receive a 20% stamp duty concession for homes valued up to $600,000. Additional stamp duty cuts of 10% will be available from each of 1 January 2013, 1 January 2014 and 1 September 2014, so that by 1 September 2014, the total stamp duty discount for first homebuyers will be 50%. For more details, visit the first home buyers stamp duty savings section of the Victorian State Revenue Office.
Take a look at our stamp duty calculator for the savings on stamp duty in your area.
South Australia
There are no stamp duty concessions available in South Australia. However in addition to the $7,000 First Home Owner Grant, first home buyers who choose to build a new home in South Australia may be eligible for the First Home Bonus Grant (FHBG) - a helping hand of up to $8,000.
The FHBG of $8,000 is available for first home purchases with a market value of up to $400,000. The Bonus Grant gradually decreases by $16 for every $100, cutting out on properties valued at $450,000.
Do note, from 1 July 2012, the First Home Bonus Grant will halve to $4,000. Then, from 1 July 2013, the Bonus Grant will be phased out altogether.
For more details contact Revenue SA. Or take a look at our stamp duty calculator.
Western Australia
Stamp duty concessions in WA are only available to first home buyers, who can pocket savings on duty worth up to $17,765. This is in addition to the $7,000 First Home Owner Grant.
On properties valued up to $500,000 first home buyers pay zero stamp duty – a saving of $17,765. For properties valued over $500,000 the stamp duty concessions reduces by $22.51 for every $100, cutting altogether at $600,000.
First home buyers can save on vacant land purchases too. Pay zero stamp duty on land valued up to $300,000 – a saving of up to $8,835. Stamp duty concessions phase out by $13.01 for every $100 of land value, cutting out at $400,000.
Contact the WA Department of Treasury and Finance for full details. Or take a look at our stamp duty calculator.
Northern Territory
First home buyers in the Territory can take advantage of stamp duty savings worth up to $26,730.
The Northern Territory government offers the First Home Owner Concession scheme (FHOC). Under the scheme, first home buyers pay zero stamp duty on vacant land priced up to $385,000 – a saving of $12,015. On established homes, first home buyers pay no stamp duty for properties valued up to $540,000 – a saving of $26,730.
Principal Place of Residence Rebate (PPRR)
If you’re buying a block of land to build a new home, you may be entitled to the Principal Place of Residence Rebate (PPRR) – a stamp duty saving of up $3,500.
The PPRR is available to anyone other than first home buyers or buyers entitled to claim a stamp duty concessions as a senior, pensioner or carer.
Contact the Territory Revenue Office for more details. Or take a look at our stamp duty calculator.
Queensland
The Queensland Home Concession for stamp duty payable will end on 31 July 2011. This is the stamp duty concession that people who are not first home buyers receive when buying a home to live in as their principal place of residence.
First home buyers will continue to receive a First Home Concession on their transfer duty costs. On property’s valued up to $510,000, first home buyers can receive a stamp duty saving of $8,750. The concession gradually phases out on properties over this value, falling by $17.50 for every additional $100 on the property’s value, cutting out altogether at $550,000.
First home buyers purchasing vacant land pay no stamp duty on land valued up to $250,000. The stamp duty concession reduces by $4.75 for every additional $100 paid for the land, cutting out completely on land priced up to $400,000.
First home buyers in Queensland are entitled to a savings on stamp duty in addition to the $7,000 First Home Owner Grant. If you buy your first home in a regional area, you may also be entitled to an additional $4,000 as part of the Queensland government’s regional bonus.
Contact the Queensland Office of State Revenue for more details. Or take a look at our stamp duty calculator.
Australian Capital Territory
Stamp duty concessions are available to first home buyers in the ACT however these are means tested (based on your income). Couples or singles with no children must earn below $120,000 in the year they buy their first home. This income limit rises in line with the number of children you have.
First home buyers who meet the income requirements, pay stamp duty of just $20 on existing homes valued up to $362,600 – a saving of $12,923. On properties priced between $362,600 and $460,000, first home buyers pay stamp duty at the rate of $18.80 for every $100 of value. On properties priced at, or above, $460,000 duty is calculated at the standard (non-concession) value.
On vacant land, eligible first home buyers can pay as little as $20 in stamp duty on vacant land valued at less than $202,000. Over this value, stamp duty for first home buyers is calculated at $14.65 for every $100 of value between $202,200 and $254,500. Over this value no concession is available.
These value thresholds are updated in January and July of each year.
In the ACT, pensioners may be entitled to stamp duty concessions if they meet strict criteria - notably moving from their current home to a property that is more 'retiree friendly' - for example moving into a villa or townhouse. However, this scheme is up for review on 1 July 2011.
Contact the ACT Revenue Office for more details. Or take a look at our stamp duty calculator.
Tasmania
In June 2011 the Tasmanian government announced that stamp duty concessions would no longer be available to first home buyers on properties purchased after 16 June 2011. The closure of the concessions applies to both existing homes and vacant land purchased in Tasmania.