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Stamp Duty in The Northern Territory (NT) - Cars and Property

Stamp duty, or transfer duty, is a one-time state tax imposed on buyers when they buy a property. The rules around the duty vary across Australia as it is in the hands of state governments. However, no matter what state you live in – you will pay more stamp duty as the property price increases. In addition to the state you live in and the properties' worth, how much you pay will depend on whether you are eligible for concessions or exemptions. The Northern Territory Revenue Office is responsible for setting the rates and collecting the tax as well. It is charged at a percentage of the purchase price. This stamp duty is on top of deposits, mortgage payments, and any other expenses for real estate home buyers.

Stamp Duty Rates In The NT 

If you are not eligible for NT stamp duty exemptions, the table below outlines the payable stamp duty based on property value. NT uses a formula to calculate stamp duty for properties under $525,000 and for those over $525,001 a percentage applies. 

The formula is (0.06571441 multiplied by V*) +15V*

*V = 0.1% of the property's value

Dutiable Value

Stamp Duty in the NT

Up to $525,000

(0.06571441 x V) + 15V, where V is 0.1% of the property’s value

$525,001 - $3,000,000

4.95% of the property value

$3,000,001 to $5,000,000

5.75% of the property value

More than $5,000,000

5.95% of the property value

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Car Stamp Duty In The NT

In addition to paying stamp duty on property transfers in the NT, you are also required to pay stamp duty for motor vehicle registrations. 

The stamp duty is essentially the cost of transferring a vehicle's registration. Northern Territory uses a simple calculation to work out vehicle stamp duty. It is $3 per $100 of the car's dutiable value. The key is understanding what the term dutiable value means. 

There are two types of vehicle transactions. 

  • Arm's length: Any transaction where neither party has a mutual interest. For example, when a buyer purchases a vehicle from a dealership or a used vehicle. Stamp duty is calculated based on the purchase price. 
  • Non-arm's length: Any transaction where both parties share an interest. For example, when you purchase a vehicle from someone you know. Stamp duty is calculated based on market value. 

You can use a calculator to calculate exactly how much stamp duty you owe on your vehicle purchase. Alternatively, you can avoid paying stamp duty by purchasing an electrical vehicle under $50,000.

Stamp Duty For First-Time Buyers In NT

The good news is you may be able to apply for a concession which the Northern Territory Government provides to first-time buyers. This home owner grant is $10,000 and is applicable whether you are buying or building.

Exemptions & When To Pay 

The only way to avoid stamp duty is to apply for exemptions. Your mortgage broker should be able to advise you of any exemptions or homeowner discounts you may be eligible to apply for if any. Previously, you could apply for a senior pensioner and carer concession, however, this scheme closed at the end of the 2021 financial year and is no longer available. 

You have 60 days from the date of settlement to pay stamp duty. That means you will need to budget the stamp duty, in addition to your deposit, mortgage payment, inspection fees, moving costs, and any other expenses you may incur. It has to be paid upfront, not as part of your mortgage payments. You can settle your stamp duty bill by cheque by post or in-person or via Electronic Funds Transfer over the phone or by email. 

Whatever state you are operating in, use the relevant stamp duty calculator on the local government website to get an accurate calculation before you buy a property, vehicle or otherwise. With QuickBooks Tax Software, you can start the new financial year off on a positive note. What better way to track your expenses, manage your cash flow, and handle your reports? Try it free for 30-days

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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