Stamp Duty – Calculate Your Own  

Mon, Jun 23, 2014

Financial Advice, Investment

The home buying process in Australia requires that people calculate the stamp duty for processing the paperwork for their homes. This additional expense can be an unexpected burden if people fail to prepare for it or know the amount that they must pay at the close of their transaction. However, they can adequately budget for this tax by using an online stamp duty calculator and knowing several key facts involving their home buying decision. These facts will help tabulate the estimated stamp duty for which they will be responsible.
State of Residence

The first key piece of information people should use to calculate their stamp duty is the state in which they will reside. The individual states in Australia determine their own duty rates. When people use an online stamp duty calculator, they often will be asked first for the state in which they plan to buy their home.

Value of the Home

Each state assigns different rates to property values. Generally, the lower the price for a home, the less stamp duty people can expect to pay. Once they settle on a price for their home, people can use this amount in the calculator and find out how much stamp duty will apply to their transaction. Some states charge a flat tax per price range while others charge by $100 increments in a home’s price. The calculator will use the home’s price, as well as the state of residence when tabulating the estimate.

Use of Home

The amount that people will pay for their stamp duty also may be determined by the primary use of the home they are about to buy. If they plan to use the home as their primary residence, people could pay a lower tax on their transaction than if they were to use the home as an investment. The calculator may ask them to indicate their intended use for the house before the tax amount can be determined.

First-Time Home Buyer

Some Australian stamp duty calculators found online also ask whether or not people are first-time home buyers. Every state in Australia provides considerations for first-time buyers that let them save money on the stamp duty or even avoid paying it at all. People who are buying their first home should indicate that this fact before they settle their transaction.

Home buyers in Australia often must pay a stamp duty. They can calculate this expense with an online stamp duty calculator by knowing these important facts regarding their transactions.

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