So what is Stamp Duty and why do we have to pay and where does the money go?
It adds to the cost of buying a property and can be a nasty surprise to some people when they are adding up the sums to do their budget.
Stamp Duty is a tax on certain acquisitions including gifts, home loans, insurance and of course real estate.
It has to be paid to your local State or Territory Government within 30 days of the date of purchase settlement. The State and Territory Govts then re-invest the duty in services for all in the community – police, health, education, roads, transport and emergency services to name a few.
As Stamp Duty is decided and managed by the various State and Territory Governments the rate of stamp duty can vary from state to territory and possible exemptions and discounts can vary as well. First home buyers for instance may receive a discounted rate in some states to help get people into the housing market.
For those of you here in Victoria just click on this link to get more detail on Stamp Duty including access to a calculator and a list of exemptions and concessions.