The cost of stamp duty in the NT

Thinking about buying a property in the Northern Territory? Don’t forget to factor in the cost of stamp duty. We’ve broken down how stamp duty is calculated for property buyers in the Northern Territory and how you could save if any concessions or exemptions apply

According to data from CoreLogic, Darwin is Australia’s most affordable capital city housing market at the time of writing. But if you are considering entering the Northern Territory property market, don’t forget to factor the cost of stamp duty into your budget. Stamp duty can end up being one of the biggest upfront costs you pay when buying a property and could potentially add up to tens of thousands of dollars.

What is stamp duty?

According to the Northern Territory Government’s Department of Treasury and Finance, stamp duty is a general purpose tax relating to the acquisition of property. It says you will need to pay stamp duty if you’re buying a home, land or commercial property in the Northern Territory.

Stamp duty is charged by each state and territory government, so the rules on how it’s calculated will vary from place to place. However, a general rule is that the more expensive your property, the more stamp duty you’ll need to pay.

Stamp duty is primarily determined by three major factors: the state or territory you’re buying the property in, the value of the property, and whether you’re eligible for any concessions or exemptions. Let’s take a look at how stamp duty is worked out in the Northern Territory.

How is stamp duty calculated in the Northern Territory?

The Territory Revenue Office (TRO) calculates how much stamp duty a person has to pay by applying the stamp duty rate to the ‘dutiable value’ of their property. Usually, a property’s dutiable value will be its market value or the amount the buyer agreed to pay for it, whichever is higher.

You can get an idea of how much stamp duty you’re likely to pay in the Northern Territory with our Stamp Duty Calculator. Select NT from the dropdown menu to get started.

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Who has to pay stamp duty in the Northern Territory?

According to the TRO, you will generally need to pay stamp duty if you acquire a home, a block of land or a business property in the Northern Territory.

As well as those who buy a property, stamp duty may also be payable if ownership or interest in a property or land is transferred to you without you actually purchasing anything, the TRO says. For example, this could occur if land is given to you as a gift.

When is stamp duty paid in the Northern Territory?

The NT Government explains that stamp duty is generally payable within 60 days of you entering into the transaction or at settlement, whichever is earlier. If you fail to pay on time, the TRO says you may be charged interest and a penalty.

Remember, your solicitor or conveyancer should be able to assist you with completing and lodging stamp duty documents, and they should also be able to let you know about key deadlines specific to your transaction.

What are the stamp duty concessions in the Northern Territory?

If you are aged over 60, and are a pensioner or a carer holding a Northern Territory Pensioner and Carer Concession card, you can apply for $10,000 in stamp duty relief.

The stamp duty concessions that were previously available to home buyers (including first home buyers) in the Territory ended on 1 July, 2021.

What are the exemptions to paying stamp duty in the Northern Territory?

In some circumstances, you may be exempt from paying any stamp duty. According to the TRO, some of the instances where you’ll be exempt from paying stamp duty could include:

• Family farm – where a farming property is being transferred between family members or entities.
• Matrimonial home – where property is being transferred from single to joint names of spouses (including de facto partners) and is their principal place of residence.

It’s generally a good idea to speak to a solicitor or conveyancer for advice on whether you may qualify for an exemption, and what you need to do to apply for it.

Other fees and finance considerations when buying property in the Northern Territory

On top of stamp duty, you’ll generally also need to pay a mortgage registration fee (if you’re buying with a home loan) and a land transfer registration fee. The mortgage registration fee is a charge for registering a home loan and the property as security on that land. The land transfer fee covers the cost of transferring the title of the property from the previous owner to you.

These fees are set by the Northern Territory Government and are subject to change each financial year. From 1 July 2021, the mortgage registration fee is $152 and the transfer registration fee is also $152.

And don’t forget about solicitor or conveyancing fees, building and pest inspection fees, and other upfront costs you might incur when buying a home.

First Home Owner Grant (FHOG)

If you’re a first home buyer who is buying or building a brand new home, you may be eligible to receive the Northern Territory FHOG, which can be up to $10,000 at the time of writing. Your income and the price of the home you buy or build don’t affect the FHOG.

Additional reporting by Tamika Seeto. Cover image source: Daniela Constantinescu/Shutterstock.com

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