In this blog post, we cover everything residents of Victoria need to know about Stamp Duty in 2020. Let’s dive in…
1. When you’ll be charged Stamp Duty?
You’ll be charged Stamp Duty, also referred to as land transfer duty, when you buy a home or an investment property. In addition, transferring of any property titles into your name will also attract Stamp Duty. For example, if you acquire it through a lease, gift or declaration of trust, once the change in beneficial ownership is complete you will be subject to Stamp Duty. Properties without water entitlements or fixtures are still liable for stamp duty.
In short, it is wise to assume that almost all property purchases and title transfers will attract Stamp Duty.
2. How much Stamp Duty will I pay?
There is no specific amount of Stamp Duty each resident must pay as it varies from property to property. Duty varies from 1.4% to 5.5% depending on the value of your property. For example, properties worth $960,000 or over are subject to the highest duty. This official Stamp Duty calculator will give you the precise Stamp Duty payable for your purchase: www.e-business.sro.vic.gov.au/calculators/land-transfer-duty
3. How can I get any Stamp Duty exemptions?
The government has allowed some exemptions from Stamp Duty and they will be available to you if you meet any of these criteria:
- You are a first home buyer and your home has a dutiable value of $600,000 or less.
- You are transferring land because of a deceased estate
- You are transferring land because of divorce
- You are transferring your principal place of residence to your spouse
- You are transferring your family farm (depending on the class of land and nature of transfer)
- You are a young farmer buying your first farmland property
- You are performing a corporate consolidation or restructure (depending the nature of the transaction)
- You are a charity or friendly society (depending on the type of charity/friendly society)
If you believe you are eligible for Stamp Duty exemptions, for example, if you are transferring a property to your spouse or you are transferring a property to a charity. To do this you need to gather all of the relevant documents, such as a copy of the sales contract and land transfer documentation. You must then register an account and lodge your claim via the State Revenue Office of Victoria government website.
4. Can I get any concessions on Stamp Duty?
You may be able to get a concession on Stamp Duty if you are a young farmer buying their first farmland property. You may also qualify for a concession if you purchase a property in Victoria for an industrial or extractive purpose if the contract was under or entered on or after July 1st 2019. You should contact conveyancing services firm if you’d like further advice about Stamp Duty concessions. If you have recently been affected by the 2019-20 Victoria bushfires, a range of tax relief measures have been introduced to ease your state taxes so it is advisable to see if you apply for any relief with your Stamp Duty if you have been affected by the fires.
5. How W Legal Group can help
Understanding Stamp Duty can be a time-consuming and confusing process. For this reason, it is much more beneficial to contact W Legal Group as we can handle all conveyancing and title transfer matters for you. If you have any questions about Stamp duty or our conveyancing fees, do not hesitate to email us at firstname.lastname@example.org or call us on +61 3 9590 618. Our expert team can answer any queries and we work hard to ensure your sales or purchasing experience is as stress-free and straightforward as possible.