Stamp duty, also referred to as land transfer duty, is a tax that is paid when you buy a property, regardless of whether it’s an investment property or your primary residence. It’s the transfer of the land from one individual to another, and generally must be paid within 30 days of your property settling.
The amount of stamp duty you pay as the purchaser depends on the following factors:
- your property’s value
- how you will use your property
- if you’re a foreign buyer (not an Australian citizen)
- if you can claim any concessions or exemptions
For example, a home in Victoria worth $750,000 at settlement will attract a stamp duty of around $40,000.
Luckily as a first home buyer, if your apartment it is valued at $600,000 or less you can get a one-off duty exemption for a home that will be your is a primary place of residence.
You may be also eligible for other exemptions or concessions on stamp duty, including:
- First-home buyer duty concession: a concession for a primary place of residence with a dutiable value from $600,001 to $750,000
- Off-the-plan concession: a duty concession for an off-the-plan property, if you live in the property as your home
Remember, you must meet the eligibility requirements for the First Home Owner Grant to entitle you to the stamp duty saving.