Stamp duty, also known as transfer duty, is a government tax amount you pay on the majority of property transactions. Whether you purchase a residential property or a commercial property, stamp duty is payable. But what you are liable to pay will depend on a variety of factors. You must pay stamp duty at the time of purchase or soon thereafter.
Stamp duty rates depend on the state or territory, the intended use, whether the purchaser is foreign if there are applicable concessions or exemptions, and whether it will be used as a principal place of residence. The dutiable value is also relevant to the rate – the dutiable value is whichever is higher between market value and purchase price.
A stamp duty calculator can help you determine what you owe. Be sure you have the relevant information, including the execution date and the valuation or purchase price of the property. Stamp duty works on a sliding scale when you buy land. It hinges on the value of the property and should be paid within three months of signing contracts.
For an unimproved value of $120,000, you can expect to pay $2,445.00 in stamp duty and $49,055 for a property valued at $1.2 million.
The NSW Government provides new home buyers with an option to pay annual property taxes on properties valued up to $1.5 million instead of a stamp or transfer duty.
If you purchase a property for $120,000 today in the NT, you can expect to pay $2,746.25 in stamp duty. For a property purchased for $1.2 million, the stamp duty would rise to $59,400.
If you purchase a commercial property valued at less than $3,000 in TAS you would be liable for $50 in stamp duty. For properties over $725,000, you would pay $27,810. Plus an additional $4.50 per $100 over the $725,000.
In the ACT, stamp duty does not come into effect until you make a purchase of $1.8 million or greater.
You do not need to pay stamp duty in QLD unless your purchase is greater than $5,000. Then it is $1.50 per $100 up to $75,000. This increases on a sliding scale for three different value categories.
The stamp duty in VIC is 1.4% of a property's dutiable value up to $25,000. It rises to 2.4% for properties in the range of $25,001 and $130,000. The highest rate is $100,000 for properties greater than $2 million and 6.5% of the value that exceeds $2 million.
From 1 July 2024, stamp duty will be abolished in Victoria for commercial and industrial properties. Commercial stamp duty will be replaced with a 1% tax on the property's value.
Stamp duty in WA is calculated on the market value, not the purchase price.
Stamp duty is not applicable to commercial property purchases in South Australia.
If you purchase a property with the intent to use it for business purposes, it is classed as a commercial property. The commercial term covers a wide range of properties, and can even include some residential dwellings. It's always wise to consult an expert to ensure you have the full picture before you complete any commercial property purchases.
Do I pay stamp duty on commercial property? The short answer is yes. Though, you may be able to apply for other stamp duty exemptions.
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While every care has been taken to ensure the accuracy of the information presented as at 12 April 2024, Intuit is not providing you with professional advice and we recommend you obtain your own professional advice. Intuit is not liable for your use of the information presented.
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