Tasmania is growing its popularity for both holidays and moving for good. Besides the fact that is incomparably more affordable than Sydney or Melbourne, it also offers the perfect mix of city and nature.
Whether you decided to purchase a property or build one, you have a responsibility towards the Tasmanian government to pay a tax known as stamp duty. Its amount depends on the property’s price – the higher it is, the more money you’ll need to prepare for it. The transfer duty is calculated on a sliding scale that ranges from 1.75% to 4.5% and you can easily do it yourself using the official Stamp Duty Calculator.
When do you need to pay the stamp duty?
Within the 3 months of the purchase, you’ll need to pay the full amount to the State Revenue Office (SRO). You don’t have to worry about exceeding the deadline since the SRO office will send you an assessment with the exact number you are obliged to pay. You can also calculate the amount yourself and pay as soon as you sign the contract with the builder or seller.
Besides the duty lodgement cover sheet, the additional documentation you need to present at the SRO includes the agreement for sale or transfer instrument, which is the most important document you get when purchasing.
Are there any concessions or duty exemptions included?
When it comes to stamp duty exemptions, it is certainly provided in the situation when the property transfer takes place between the married couple, or within some other significant relationship. Also, stamp duty exemption can be available for foreign buyers too. For this particular buyers’ category, there are regulations included in the Foreign investor Duty Surcharge(FIDS).
However, if you are a first home buyer and you’ve never applied for a stamp duty concession or First Home Owners Grant (FHOG) anywhere in Australia or Tasmania, you are already eligible. Two main conditions that give you a solid chance to reduce the property’s transfer duty to 50% include your new house not exceeding the value of $400,000 and you meeting all the requirements for getting the FHOG.
Platinum Pro's simple process will move you through all administrative stages without stress and hassle.
The example of the rates of stamp duty
So, if you are buying a property that has been valued at $350,000, your stamp duty will include $5,935 with an additional $4 for every $100, which makes $11,935 in total. The official SRO rate table will help you to get more familiar with the way that stamp duty fee is determined and charged.
You will see that the amount you will have to pay depends on the value of your property. In case you have a limited budget, we suggest you get the exact value of the property including the chattels and calculate all additional costs in advance, so you don’t get into a situation where you do not have enough money for the stamp duty in the end.
In case this confuses you, the Platinum Pro construction experts will be there to help you and guide you through each stage of the process, including this one. We keep the strap with all the changes and updates of the regulations, so you can be sure that the information we provide is precise. You can be sure that together, we'll get you your dream home.