First Home Buyer Stamp Duty
The Australian Government poses a tax called a stamp duty on a variety of different purchases including home buyers. First home buyers often find the stamp duty makes it more difficult for them to purchase a home since the stamp duty on homes is often extremely high.
While the stamp duty on property purchases are used for worthwhile works such as health care, transport, roads, police, emergency services and more it doesn’t make coming up with this tax any easier for those people who are trying to buy a home.
When it comes to property the amount of stamp duty you pay depends on the value of the property with each of of Australia’s states setting their own rates. However, the normal rule of thumb is the more expensive the property the more you will pay in stamp duty. Other variables that also figures into the amount of the stamp duty includes:
- Whether or not you are a first time home buyer
- Whether you are buying an established home, new home, or vacant land
The stamp duty cannot be covered by your home loan and the duty is due to be paid within 30 days after a settlement is reached.
Here is a look at how different states in Australia handles First Home Buyer Stamp Duty.
- Queensland- First time home buyers may qualify for a stamp duty concession for properties costing less than $550,000.
- South Australia offered a stamp duty concession up to 2018 for new home.
- Tasmania- offers no stamp duty concessions
- Victoria offers first home buyer stamp duty concessions resulting in these first time buyers paying no stamp duty for properties up to $600,000. They also receive a partial concession for any property up to $750,000.
- New South Wales- A first home buyer stamp duty is 0 on properties costing $650,000 or less and get a reduced rate on properties costing up to $800,000.
- Western Australia doesn’t offer any any stamp duty concessions for first home buyers.
- Australia Capital Territory- First time buyers can only get a stamp duty concession if they purchase a brand new home, have an off-the-plan purchase agreement or are buying vacant land. However, you can’t claim the concession if someone has previously lived in the home and the concession only applies to homes costing $590,000 or less.
- Northern Territory- First time buyers can get a stamp duty concession up to $7,000, but only if they don’t qualify for the New Home Owners Grant.
The information in this article are based on Stamp duty and stamp duty concessions in 2018, so make sure that you check with official state government sources before you purchase a home today as some the stamp duty rates and concessions may have changed over the last couple of years.
Stamp duty is no laughing matter and may actually bar some first time home buyers from purchasing a home for many years to come so make sure that you know the stamp duty rates for the state you want to buy a home in and if there are any concessions open to you.