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| Home » Australia » New South Wales » NSW Stamp Duty |
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NSW Stamp Duty |
NSW Stamp Duty on houses purchased off the plan has been waived now. This means that the buyers do not need to pay any stamp duty on a home that is undergoing construction. The industry comprising the real estate and housing construction sectors is expected to get a big boost under this new initiative known as $140 million Home Builder's Bonus program. The home buyers, especially the first home buyers, can now save a significant amount of money while purchasing off-the-plan house and land packages or new apartments. The new rules are applicable to even investors and those buying a second home. Real estate agents and home builders are preparing to see a flood of activities as a result of this Act, which will be effective from July 01, 2010.
Stamp duty is an ad-valorem tax that is levied on certain documents and some undocumented acquisitions. The stamp duty in NSW is imposed on title transfers involving the sale of a real estate property, commercial property, apartments, residential houses, mortgages, business assets, insurance policies and vehicles. Moreover, it is paid by the purchaser or the person to whom the title is legally transferred. In case of a mortgage or home loan, the borrower has to pay the requisite amount under NSW stamp duty legislation. Revenue generated through the collection of various stamp duties are then used to support public services, such as education, health, public safety, and law and order, etc.
NSW Stamp Duty Rates
The stamp duty rates are fixed by the NSW Office of State Revenue (OSR), which is the authorized body to administer the taxation laws made by the state government. The rules regarding any change in existing rates are also made by the NSW government. The stamp duty rates under the new Home Builder's Bonus program 2010 are as follows:
- For a property under pre-construction stage: No stamp duty is chargeable for home purchases worth up to $600,000.
- For a house or apartment undergoing construction: A 25 per cent cut on the existing stamp duty rate is applicable for houses under construction or newly-constructed homes or apartments bought at less than $600,000.
- For first home buyers: They are eligible for these stamp duty concessions and can also continue to receive $7000 First Home Owners Grant.
- For people aged over 65: They are given a full discount on purchases of newly-constructed homes worth up to $600,000.
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NSW Property Stamp Duty
The rate of NSW property stamp duty varies according to the kind of transactions and the sale value. The amount payable is based on the sale price and there are certain rules that govern the stamp duty calculation. In general, NSW property stamp duty is levied on
- Property Purchase
- Houses/Home Purchase
- Mortgages
- Land Purchase
- New Homes
- Property Sales
When is NSW Stamp Duty Payable? Well, the maximum period within which you are allowed to pay the tax amount is three months from the date of the exchange of contracts. In case of a property purchased off the plan the duty must be paid within three months of completing the agreement, 12-month expiry after the agreement date, or assigning a part or the whole of the buyer's interest under the agreement, whichever occurs first.
NSW Stamp Duty Calculator
If you are buying a property using mortgages, then you may have to pay two kinds of stamp duties, one on the property purchase price and the other on the borrowed money. Each has a different rate structure, and you may want to use a stamp duty calculator to know the correct figure of the total amount payable. The Office of State Revenue NSW Stamp Duty Calculator can be used to figure out the amount you need to pay. Some real estate agents also offer online calculator on their websites. Whether you are a first home buyer or want to use it for calculating duty on a commercial property, you will find it useful. On the other hand, if you want to do the calculation on an excel sheet, you need stamp duty formula.
Apart from the stamp duty calculator, you can find resources, like stamp duty table, scale, formula and a complete guide on tax rebate, exemption and applicable reduction in payable amount for special categories of homebuyers. Moreover, you can know about the chargeable fees and get additional information on discount & concession, changes in rates & abolished duties and also on NSW lease stamp duty. Use the resources given on this page to understand completely all these and also to find a stamp duty calculator for New South Wales.
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| NSW Office of State Revenue | Find first hand information on all aspects of stamp duty legislation including fees, discount, exemption and other benefits for first home buyers..
Website:http://www.osr.nsw.gov.au/ |
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| Stamp Duty Calculator | Find here a stamp duty calculator that reflects current changes in tax rates and legislation
Website: http://www.mcgrath.com.au/index.cfm?fuseaction=homeloan.stampDuty |
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| Stamp Duty Tables | You can find here the stamp duty tables showing applicable charges payable on different purchase price or borrowed amount
Website: http://www.inconjunction.com.au/index.php?id=128 |
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