Tasmania is growing its popularity for both vacations and moving for good. Besides the fact that is incomparably affordable than Sydney or Melbourne, it also offers a metropolitan lifestyle within nature.
If you decided to purchase a property or build one, your main responsibility towards the Tasmanian government is paying 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.
PlatinumPro has a long tradition of being one of the best first home builders in the Devonport area, and except for the highest-quality work, our offer includes supporting and helping our clients move through all administrative stages without stress and hassle.
The Tasmanian government is also awarding all senior citizens who are interested in downsizing and moving to a smaller property by 50% concession on stamp duty. If you are 60 or over, a holder of Pensioner Concession Card or Senior Health Card, you can prepare to apply. Also, you must not own a home anywhere else within Australia or Tasmania at the time of transaction. We at PlatinumPro have all the experience and expertise needed to make you a lovely and accessible home that will serve you for many years to come. Take a look at our design plans that include two and three-bedroom homes, and don’t hesitate to reach us for any additional information.
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 PlatinuPro 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 will find the best solution and help you get a perfect home.
We Can Make the Procedure as Simple as PossibleLocal council regulations are well-known to us, so whatever is your case, we can help you get the necessary documentation and reduce the stamp duty rate as much as possible. Whether you want your forever home to be in the metropolitan area of Devonport or anywhere else on the North West Coast, our team is here to turn your ideas into life. Even if you still don’t have many, our innovative designers’ team will present you with unique and perfect solutions for your future home.