Stamp duty can end up being one of the biggest upfront costs you pay when buying a property and could potentially set you back tens of thousands of dollars.
We’ve broken down how stamp duty is calculated for property buyers in Tasmania and taken a look at how you could save with concessions or exemptions.
Use Canstar’s Stamp Duty Calculator to calculate how much stamp duty you may pay. Select TAS from the dropdown menu to get started.
What is stamp duty?
Stamp duty, or property transfer duty as it’s called in Tasmania, is a government tax that’s usually charged when property is transferred from one person to another. For example, when you buy a property.
Stamp duty is charged by state and territory governments, so the rules on how it’s calculated will vary from place to place. However, generally speaking, the more expensive your property is, the more stamp duty you’ll need to pay.
How much is stamp duty in Tasmania?
The cost of stamp duty in Tasmania is based on the value of your property or the purchase price paid, whichever is greater.
The State Revenue Office of Tasmania (SRO) says the following rates will normally apply:
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|Value of the property||Duty payable|
|Not more than $3,000||$50|
|More than $3,000 but not more than $25,000||$50 plus $1.75 for every $100, or part, by which the dutiable value exceeds $3,000|
|More than $25,000 but not more than $75,000||$435 plus $2.25 for every $100, or part, by which the dutiable value exceeds $25,000|
|More than $75,000 but not more than $200,000||$1,560 plus $3.50 for every $100, or part, by which the dutiable value exceeds $75,000|
|More than $200,000 but not more than $375,000||$5,935 plus $4.00 for every $100, or part, by which the dutiable value exceeds $200,000|
|More than $375,000 but not more than $725,000||$12,935 plus $4.25 for every $100, or part, by which the dutiable value exceeds $375,000|
|More than $725,000||$27,810 plus $4.50 for every $100, or part, by which the dutiable value exceeds $725,000|
Source: State Revenue Office of Tasmania
It’s also worth noting that an additional surcharge will apply to foreign buyers.
When is stamp duty paid in Tasmania?
Stamp duty must be paid within three months of the transfer of the property. If you fail to pay on time, the SRO says you may be charged penalty tax and interest.
Your solicitor or conveyancer may be able to assist you with completing and lodging stamp duty documents and advising you on key deadlines specific to your transaction. They may also advise you whether you are eligible for any exemptions or stamp duty concessions.
What are the stamp duty concessions in Tasmania?
You may be able to get a discount on stamp duty if you are a first home buyer, a pensioner downsizing to a new home or you are the beneficiary of a deceased estate.
First home buyers
First home buyers may be able to receive a 50% discount on stamp duty if they are purchasing an established home valued at $500,000 or lower. The SRO notes that this concession is not available to applicants entitled to the First Home Owner Grant for newly built homes.
Eligibility criteria applies. For example, you’ll need to occupy the home as your principal place of residence for six continuous months within a year of purchasing the property.
Pensioners who sell their home and downsize may be able to receive a 50% discount on stamp duty if the new home is valued at $500,000 or less. Both homes must be in Tasmania and the new home must be an established property.
To be eligible, you must be 60 years old or over and hold a Pensioner Concession Card, receive a DVA special rate pension or hold a Commonwealth Seniors Health Card. Other eligibility criteria apply. For example, you’ll also need to live in the newly purchased home for at least six months within a year of its purchase. You also cannot own a home anywhere else in Australia and you cannot have previously received the concession.
A concession may also be available if you receive the property as a beneficiary of a will or inheritance. Exemptions may apply.
Who is exempt from stamp duty in Tasmania?
According to the SRO, you may be exempt from paying stamp duty where the property is transferred between partners in a marriage, or those in a significant or caring relationship.
For this exemption to apply, the SRO says the property must be the parties’ principal place of residence at the time of the transfer and the property must be held as joint tenants or as tenants in common with equal shares.
Stamp duty by Australian states and territories
Cover image Source: Yevgen Belich/Shutterstock.com
Sub edited by Milan Cuk.