When buying a home, there are a number of taxes and fees that must be paid before the property becomes yours.
One of these is stamp duty. But what is it, and how much will it impact your buying power?
What is stamp duty?
Stamp duty is a tax paid by the buyer on the transfer of a property. It’s usually the largest upfront cost - besides the property itself - when purchasing a property. As it’s paid in addition to the agreed sale price, you’ll need to factor in the cost when looking for a home and arranging your loan.
How is stamp duty calculated?
Just as the amount of income tax you pay depends on the amount you earn, stamp duty increases on a sliding scale as the purchase price increases. In simple terms, the more expensive the property, the more stamp duty you’ll pay. In SA, the stamp duty payable is the same for owner occupied and investment properties.
How much will I pay?
Stamp duty is a state tax, and the amount payable on a property differs from state to state. The easiest way to work out the amount you’ll need to pay on a property purchase in South Australia is with a stamp duty calculator.
How and when do I pay stamp duty?
Again, this differs from state to state, but in South Australia the stamp duty is paid on or before settlement day.
Are there concessions or exemptions?
Unlike many other states, South Australia does not offer concessions for first home buyers. There is however, a first home owners grant which the buyer can apply for.
Under certain circumstances, you may be exempt from paying stamp duty, such as when a property is left to you in a will or it’s a domestic partnership transfer.