What is Stamp Duty?

 Stamp duty is a mandatory tax that the state and territory governments levy on a home buyer, whenever they purchase the property. The payment is due by an arbitrary date, depending on the state and territory that property is purchased within. In NSW, the stamp duty tax is mandated to pay within three months after settlement of the purchase. However, the duration may change depending on the region. 

Aside from home or property, stamp duty is also required to pay for things like:

• Insurance policies

• Mortgage

• Motor vehicle registration and transfer

• While purchasing agreement

• While transferring property  and assets like shares or business 

The paying amount keeps on varying depending on the type and value of your transaction.

How to Calculate Stamp duty?

Stamp duty fees vary depending on the state you are purchasing in. Each region has its own sliding scale subject to its calculations which eventually conclude how much money is owed for your property purchase based on what it's worth at the time. Aside from that, the cost of the stamp can also help you determine your property's dutiable value which can be found at what price you paid for it and how much it would auction for in today's market. 

The stamp duty is calculated by applying a sliding scale of taxation with a percentage increasing according to the value of your property. The general rule here is, the cheaper your property gets in value than the less tax you'll pay on that specific piece of land and home. Most states follow up the similar process so we recommend doing research from your end beforehand! 

However, in some cases or circumstances, you may get the advantage to get a concession or exemption from paying the tax. 

Use our stamp duty calculator NSW to get an exact sketch of your tax or how much you will have to pay. If you're a first home buyer and need some help then, we can do it! From finding the best possible mortgage in Sydney to assisting to get the government benefits our mortgage brokers of Sydney are highly skilled and experienced who are aware of all metrics which can favor you. To get in touch with us, call on 9907 4624 or visit us at  https://freshwaterfs.com.au/