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Conveyancing in Tasmania - Stamp Duty Explained

When purchasing real estate, in addition to professional fees and disbursements, a purchaser must pay the state government tax commonly known as stamp duty. Stamp duty is state based with each state having their own framework.

The amount of stamp duty payable on a property purchase is determined in accordance with the purchase price - the greater the purchase price the greater the stamp duty payable.

Every business, property or commercial transaction where you are acquiring an interest in an asset raises the prospect of stamp duty as an extra cost in the transaction. 

In many cases, the buyer’s financier will pay the stamp duty amount at settlement, with funds from the loan amount. Where there is no lender involved, the purchaser will be required to pay the stamp duty prior to settlement. This is usually handled by the purchaser’s solicitor who will attend to payment with the Office of State Revenue ('OSR').

Recent changes to procedures implemented by the OSR due to information that they are required to provide to the Australian Taxation Office, mean that solicitors have to collect additional information from their client (whether Buyer or Seller) and provide this information to the OSR prior to settlement. This means more work for solicitors and potential delays in settlements if information is not provided in a timely manner.

You should carefully consider the financial impact of stamp duty before entering into any contract for the purchase of an asset.

If you are purchasing property and would like to know how much stamp duty you will be required to pay, visit the State Revenue Office Property Transfer Duty Calculator http://tinyurl.com/7ma5pdc  

If you have any queries or require any assistance in relation to stamp duty, or your sale or purchase of property in general, please contact us on 03 6332 9353 or use our Contact Us form http://www.cormistonlegal.com.au/contact

 

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