Fisrt Time Buyers Stamp Duty in Aus
Apr 19th 2005, 1:29 am
#46
Dismembered Bat
Joined: Jul 2004
Posts: 851
Re: Fisrt Time Buyers Stamp Duty in Aus
Originally Posted by Bordy
If you buy land Jo you will pay stamp duty but not on a new house if you are building.
Not necessarily, I'm afraid, Bordy.
To start with, it depends in which state the property is located - different states have different legislation. It will also depend on the value of the building contract. Most states offer a 'discount' on stamp duty (subject to form filling, etc) for a home as opposed to an investment property, and it may be only up to a certain value. Some states get you to pay stamp duty and then claim it back - there are many variations.
Apr 19th 2005, 1:50 am
#47
Rocket Scientist
Joined: Aug 2003
Location: Dreamland AKA Brisbane which is a different country to the UK
Posts: 6,911
Re: Fisrt Time Buyers Stamp Duty in Aus
This is from the Victorian State Revenue Office - each state is different!! Check your own states SRO.
What is stamp duty?
Stamp duty is an old term commonly used to describe the duty charged on various commercial transactions. It is imposed under the Duties Act.
What is the Duties Act?
The Duties Act means the Duties Act 2000 which is Victorian legislation that imposes duty on various transactions. It applies to transactions occurring on or after 1 July 2001. The Duties Act replaced the Stamps Act 1958 under which stamp duty was charged.
The Taxation Administration Act 1997 provides for the administration and enforcement of the Duties Act and is read in conjunction with the Duties Act.
How is duty charged?
Depending on the nature of the transaction, duty is charged at a flat rate, or at an ad valorem rate based on the value of the transaction. Duties rates
What is dutiable under the Duties Act?
Land Transfers
The purchase of land, including buildings, attracts duty. Unless exempted, the transaction is charged with duty based on the greater of:
(a) the market value of the property, or
(b) the consideration (price paid) – including any GST.
The rate of duty charged is on a sliding scale down from a top rate of 5.5% for property valued at more than $870,000 to a bottom rate of 1.4% for properties valued at not more than $20,000. These rates have applied since 21 April 1998. The purchaser is liable to pay the duty within 3 months of settlement.
Declarations of Trust
Declarations of Trust that do not declare a trust over land attract $200 duty. A trust over land attracts duty at the same rate as land transfers.
Mortgages
Mortgages, or further advances, were charged with duty to 30 June 2004. The rate was based on the amount borrowed. Mortgages with an initial advance of between $0 and $10,000 were charged $4 duty. Where the initial advance was more than $10,000, the duty was $4 plus $0.80 for every $200 or part thereof in excess of the $10,000. Further advances to a mortgage attracted duty of $0.80 for every $200 or part thereof of the amount that exceeded the amount to which the mortgage is currently stamped. The mortgagor was liable to pay the duty within 3 months of giving the mortgage or receiving the further advance.
Mortgage duty was abolished from 1 July 2004. For further information please refer to Bulletin D1/04 - Abolition of Duty on Mortgages.
Motor Vehicle Duty
Duty is payable when registering or transferring a motor vehicle in Victoria. If the vehicle is purchased from a licensed motor car trader, the duty is paid to the trader. If the vehicle is acquired from a person who is not a licensed motor car trader, the duty is paid by the acquirer to VicRoads.
The amount of duty payable is based on the “dutiable value” of the vehicle. Dutiable value means the greater of:
(a) the consideration in money (or money’s worth) given for the vehicle; or
(b) the price at which the vehicle might reasonably be sold in the open market.
If GST is applicable it forms part of the consideration. The rates of duty depend on whether the vehicle is a registered or unregistered (passenger or non passenger) vehicle.
Hire of Goods
Businesses hiring out goods may be liable to pay duty. If the income earned from hiring exceeds $6000 in any month, the business is required to register with the SRO. Duty is charged at a rate of 0.75% of the amount of income derived from hiring that exceeds $6000.
General Insurance
General insurance is any kind of insurance applicable to Victorian property, risk, contingency or event. It includes insurance for trauma and disabilities, but not life insurance. Duty of 10% is charged on the gross premium and paid by the insurer who usually passes the cost on to the insured.
Life Insurance
Life insurance is any insurance concerning a life or lives of people living in Victoria when the policy is issued. It does not include insurance against an accident. The amount of duty is based on the premium paid for term and temporary life insurance policies, and on the sum insured where the life policy is not for a fixed term. The insurer is liable but the cost is usually passed on to the insured.
Livestock sales
Duty is payable on the sale of cattle, sheep or goats - or their carcases. If the sale is made through an Approved Agent, the agent is liable to pay the duty but will usually pass the cost on to the vendor. Duty on sales by Approved Agents is paid to the State Revenue Office by way of a monthly return. For all other sales, duty is payable by the vendor by affixing cattle, sheep or goat duty stamps to the Statement of Sale retained by the purchaser.
Is duty payable on share transfers, leases or deeds?
No. Duty on transfers of listed (on the stock exchange) marketable securities (shares and units) was abolished from 1 July 2001, and duty on transfers of unlisted marketable securities was abolished from 1 July 2002. No duty has been charged on residential leases since 1985, and duty on commercial leases was removed from 26 April 2001. Deeds have not been dutiable since 30 April 1997.
Are there any benefits or concessions available for first home buyers?
Yes. If you are a first home buyer with a family, or you hold a concession card at the time you buy a home, you may be eligible for a full or partial exemption from, or refund of, the duty payable on the land transfer and mortgage. The eligibility conditions are set out in the information provided at benefits for families and concession card holders benefits.
Is there an exemption from duty for the transfer of a family farm?
Yes. The transfer of all, or part, of a family farm may be exempt from duty. The conditions are that:
the property must be a certain class of land and must be used for primary production;
the transferor must be a natural person, or a trustee for a natural person, or a company in which all the shares are owned by related natural persons;
the transferee must be a relative, or a trustee of certain types of trust, or a shareholder of the transferring company; and
the transfer must not be part of a tax avoidance scheme.
A family farm exemption statutory declaration is required when the transfer is lodged for stamping, along with a copy of the duly stamped trust deed if a trust is involved. More information about the conditions is available on this site.
Further Information
More information can be obtained by using the links provided below or calling the SRO on 132 161.
Document Stamping Requirements Booklet
Findings List
What is stamp duty?
Stamp duty is an old term commonly used to describe the duty charged on various commercial transactions. It is imposed under the Duties Act.
What is the Duties Act?
The Duties Act means the Duties Act 2000 which is Victorian legislation that imposes duty on various transactions. It applies to transactions occurring on or after 1 July 2001. The Duties Act replaced the Stamps Act 1958 under which stamp duty was charged.
The Taxation Administration Act 1997 provides for the administration and enforcement of the Duties Act and is read in conjunction with the Duties Act.
How is duty charged?
Depending on the nature of the transaction, duty is charged at a flat rate, or at an ad valorem rate based on the value of the transaction. Duties rates
What is dutiable under the Duties Act?
Land Transfers
The purchase of land, including buildings, attracts duty. Unless exempted, the transaction is charged with duty based on the greater of:
(a) the market value of the property, or
(b) the consideration (price paid) – including any GST.
The rate of duty charged is on a sliding scale down from a top rate of 5.5% for property valued at more than $870,000 to a bottom rate of 1.4% for properties valued at not more than $20,000. These rates have applied since 21 April 1998. The purchaser is liable to pay the duty within 3 months of settlement.
Declarations of Trust
Declarations of Trust that do not declare a trust over land attract $200 duty. A trust over land attracts duty at the same rate as land transfers.
Mortgages
Mortgages, or further advances, were charged with duty to 30 June 2004. The rate was based on the amount borrowed. Mortgages with an initial advance of between $0 and $10,000 were charged $4 duty. Where the initial advance was more than $10,000, the duty was $4 plus $0.80 for every $200 or part thereof in excess of the $10,000. Further advances to a mortgage attracted duty of $0.80 for every $200 or part thereof of the amount that exceeded the amount to which the mortgage is currently stamped. The mortgagor was liable to pay the duty within 3 months of giving the mortgage or receiving the further advance.
Mortgage duty was abolished from 1 July 2004. For further information please refer to Bulletin D1/04 - Abolition of Duty on Mortgages.
Motor Vehicle Duty
Duty is payable when registering or transferring a motor vehicle in Victoria. If the vehicle is purchased from a licensed motor car trader, the duty is paid to the trader. If the vehicle is acquired from a person who is not a licensed motor car trader, the duty is paid by the acquirer to VicRoads.
The amount of duty payable is based on the “dutiable value” of the vehicle. Dutiable value means the greater of:
(a) the consideration in money (or money’s worth) given for the vehicle; or
(b) the price at which the vehicle might reasonably be sold in the open market.
If GST is applicable it forms part of the consideration. The rates of duty depend on whether the vehicle is a registered or unregistered (passenger or non passenger) vehicle.
Hire of Goods
Businesses hiring out goods may be liable to pay duty. If the income earned from hiring exceeds $6000 in any month, the business is required to register with the SRO. Duty is charged at a rate of 0.75% of the amount of income derived from hiring that exceeds $6000.
General Insurance
General insurance is any kind of insurance applicable to Victorian property, risk, contingency or event. It includes insurance for trauma and disabilities, but not life insurance. Duty of 10% is charged on the gross premium and paid by the insurer who usually passes the cost on to the insured.
Life Insurance
Life insurance is any insurance concerning a life or lives of people living in Victoria when the policy is issued. It does not include insurance against an accident. The amount of duty is based on the premium paid for term and temporary life insurance policies, and on the sum insured where the life policy is not for a fixed term. The insurer is liable but the cost is usually passed on to the insured.
Livestock sales
Duty is payable on the sale of cattle, sheep or goats - or their carcases. If the sale is made through an Approved Agent, the agent is liable to pay the duty but will usually pass the cost on to the vendor. Duty on sales by Approved Agents is paid to the State Revenue Office by way of a monthly return. For all other sales, duty is payable by the vendor by affixing cattle, sheep or goat duty stamps to the Statement of Sale retained by the purchaser.
Is duty payable on share transfers, leases or deeds?
No. Duty on transfers of listed (on the stock exchange) marketable securities (shares and units) was abolished from 1 July 2001, and duty on transfers of unlisted marketable securities was abolished from 1 July 2002. No duty has been charged on residential leases since 1985, and duty on commercial leases was removed from 26 April 2001. Deeds have not been dutiable since 30 April 1997.
Are there any benefits or concessions available for first home buyers?
Yes. If you are a first home buyer with a family, or you hold a concession card at the time you buy a home, you may be eligible for a full or partial exemption from, or refund of, the duty payable on the land transfer and mortgage. The eligibility conditions are set out in the information provided at benefits for families and concession card holders benefits.
Is there an exemption from duty for the transfer of a family farm?
Yes. The transfer of all, or part, of a family farm may be exempt from duty. The conditions are that:
the property must be a certain class of land and must be used for primary production;
the transferor must be a natural person, or a trustee for a natural person, or a company in which all the shares are owned by related natural persons;
the transferee must be a relative, or a trustee of certain types of trust, or a shareholder of the transferring company; and
the transfer must not be part of a tax avoidance scheme.
A family farm exemption statutory declaration is required when the transfer is lodged for stamping, along with a copy of the duly stamped trust deed if a trust is involved. More information about the conditions is available on this site.
Further Information
More information can be obtained by using the links provided below or calling the SRO on 132 161.
Document Stamping Requirements Booklet
Findings List
Apr 25th 2005, 7:16 pm
#48
High in the Dandenongs
Joined: Apr 2003
Location: Listening to Puffing Billy
Posts: 9,183
Re: Fisrt Time Buyers Stamp Duty in Aus
Now i've finished reading that Mrs DB 
I just though i'd add that here in Vic we get to not only pay 10% GST on car and home insurance but a further 10% stamp on the whole bill, the higest of all the states 
I just though i'd add that here in Vic we get to not only pay 10% GST on car and home insurance but a further 10% stamp on the whole bill, the higest of all the states
Apr 25th 2005, 9:00 pm
#49
Mount Eliza
Joined: Feb 2005
Location: Mount Eliza
Posts: 382
Re: Fisrt Time Buyers Stamp Duty in Aus
Originally Posted by hevs
Now i've finished reading that Mrs DB I just though i'd add that here in Vic we get to not only pay 10% GST on car and home insurance but a further 10% stamp on the whole bill, the higest of all the states
I just though i'd add that here in Vic we get to not only pay 10% GST on car and home insurance but a further 10% stamp on the whole bill, the higest of all the states 
Perhaps Exmouth isnt quite so bad after all! Jo
