What is Stamp Duty?

One of the many questions we get asked at Cahill Rowe Conveyancing in Geelong is around stamp duty. Unfortunately, stamp duty is a significant cost that all buyers need to account for when budgeting for a new home.

What is Stamp duty?

Stamp duty is a state-imposed compulsory tax that pays for property transfer from one owner to another.

Stamp duty varies state to state. Furthermore, there are extenuating circumstances that may need to be considered that change the rate such as:

• the property type,
• whether the property is used as a primary residence, or
• if the buyer is an Australian citizen.

Residential stamp duty changes in Victoria

In late November 2020, the Victorian government released the 2020-2021 State Budget which announced changes to the cost of stamp duty.

A percentage of the duty is waived for residential properties valued up to $1 million on contracts entered into after 25 November 2020 and before 1 July 2021.

Buyers in Victoria can save:

• 50 per cent of the stamp duty tax on purchases of newly built or off-the-plan residential properties..
• 25 per cent of the stamp duty tax on existing residential properties and vacant residential land. .

These new concessions are significant as they are available not only to home buyers, but also investors who typically are not eligible for any stamp duty concessions at all.

First time home buyers will not have to pay stamp duty on properties valued under $600,000.

In addition, the First Home Owner Grant of $20,000 was extended for those buying or building a new home in regional Victoria if a Contract of Sale is signed by 30 June 2021.

Answering your property questions

Buying your first home or investment property can be a milestone event. We know the Geelong, Bellarine Peninsula and Surf Coast market, the people, and the process involved in buying a home, therefore we can advise you on how to stay on top of all of the legal requirements.

Ensure you understand your legal rights and obligations as a buyer by engaging one of the best property conveyancing lawyers in Geelong, Cahill Rowe Conveyancing on (03) 5292 1994 or email madi@cahillconveyancing.com.au.

Servicing Barwon Heads, Geelong, Ocean Grove, Torquay, Anglesea, Portarlington, and regional areas around the Surf Coast and Bellarine Peninsula, Cahill Rowe Conveyancing is your full-service conveyancing experts.