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Stamp Duty on Commercial Property

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 

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.

State by State Stamp Duty on Commercial Property 

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.

Stamp duty on commercial property in New South Wales (NSW) 

For an unimproved value of $120,000, you can expect to pay $2,560 in stamp duty and $50,200 for a property valued at $1.2 million. 

NSW Stamp Duty calculator 

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.

Stamp duty on commercial property in the Northern Territory (NT)

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. 

NT Stamp Duty calculator

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Stamp duty on commercial property Tasmania (TAS)  

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. 

TAS Stamp Duty calculator

Stamp duty on commercial property in the Australian Capital Territory (ACT) 

In the ACT, stamp duty does not come into effect until you make a purchase of $1.7 million  or greater. 

ACT Stamp Duty calculator

Stamp duty on commercial property Queensland (QLD)

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. 

QLD Stamp Duty calculator

Stamp duty on commercial property Victoria (VIC) 

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. 

VIC Stamp Duty calculator

Stamp duty on commercial property in Western Australia (WA) 

Stamp duty in WA is calculated on the market value, not the purchase price. 

WA Stamp Duty calculator

Stamp duty on commercial property South Australia (SA) 

Stamp duty is not applicable to commercial property purchases in South Australia.

Do You Pay Stamp Duty On Commercial Property? 

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.

QuickBooks Software To The Rescue 

QuickBooks offers a variety of solutions for small business owners – from tax and accounting to cloud payroll software and cash flow management. Choose the right plan for your business and integrate it with a variety of apps designed to help you manage and grow your business.

While every care has been taken to ensure the accuracy of the information presented as at 01 May 2023, 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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