Stamp Duty

What is stamp duty? Stamp duty is a tax that is charged for documents. This was attacked to legal documents such as receipts, checks, marriage licenses, military commissions, and land deals. A physical stamp was either placed or stamped on a document to verify the stamp duty had been paid before the document was officially active. Today most versions of the tax do not require a physical stamp.

 

In Australia, the Federal government does not levy stamp duty. The Australian states do and they levy stamp duties on various written documents and transactions. The stamp duty rates vary as do the nature of the instruments or the transactions. Some of the major forms of duty are: sale of land; business shares and other forms of dutiable property; mortgage duty; lease duty; and duty on the hire of goods. Those who purchase their first home may be eligible for a rebate of exemption from mortgage and/or transfer duty.

How does the stamp duty calculator work? Stamp duty is applied by the state governments in Australia. It is done in regards to the purchase of property in Australia for owner, occupied, investments, or as a first time home owner.

The State Government charges vary which is based on the purpose of the security purchased. An example would be that as a first time homeowner, would be charged a different rate than a person who has previously owned property.

Each Australian state has its own unique scale of charges. These charges are available in the stamp duty calculator. By using this calculator you will learn what the associated costs would be for the proposed purchase.

The Stamp Duty charges are different for investment property than for owner occupied home purchases.  They duty payable could be a deciding factor in as to whether to or not to purchase the property.

To use a stamp calculator you have to input the following: purchase price, loan amount, purpose, type of purchase, interest rate, loan term, regular payment option, the type of purchases, the interest rate, loan terms, and regular payment option.

The Stamp Duty calculator gives you an indication of costs. Your solicitor or conveyancer will give you your final costs for your purchase. It is important that one realize how much the rate of interest is when paying your loan.

The interest rates can vary and change with changes in the nation.  It is at the discretion of the  state governments as to how much is charged for interest which is stated.

 

 

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