What is Stamp Duty and how is it calculated?

Stamp duty is a state government tax on certain transactions. You generally need to pay it when you buy a motor vehicle, insurance policy or real estate.

The amount of stamp duty that applies to a transaction varies depending on several factors. The amount you need to pay may vary, depending on:

• Where you purchase your property
• The type of transaction taking place
• The value of the purchase
• Whether or not you’re a first home buyer
• Whether you’re classified as a foreign purchaser
• If the property will be your principal place of residence
• The stage of construction the building is at on the date you signed your contract

Am I required to pay Stamp Duty on my Assemble apartment?

You are required to pay stamp duty on the dutiable value of your property, and this is usually the price paid for the property or its market value, whichever is greater. However, when an off-the-plan concession applies, the dutiable value is the contract price minus the construction or refurbishment costs incurred on or after the contract date. This reduces the amount of duty you pay.

After construction commences on an ‘off-the-plan’ purchase there are certain stages of completion that, once reached, will change the dutiable value of the property. State Revenue Office states that where construction has not yet commenced however, a figure of 25% of the contract price will be used.

The best place to source information on stamp duty is the State Revenue Office (SRO) website where the legislation is explained, examples are provided, and a calculator is available to step you through the process.

Are Assemble projects ‘off-the-plan’?

Buying a home before any building works have started or have finished is commonly known as ‘buying off-the-plan’. When you buy off-the-plan, you may be eligible for the off-the-plan duty concession.

Am I eligible for an exemption or concession?

The first home buyer duty exemption or concession may be available to you if:

• Your home has a dutiable value of:
  • $600,000 or less to receive the first home buyer duty exemption,
  • $600,000 to $750,000 to receive the first home buyer duty concession.
• All the purchasers of the property meet the First Home Owner Grant eligibility criteria, and
  • At least one purchaser satisfies the residency requirement.

The exemption or concession is only available to you once. If you or your partner has received the benefit of this exemption or concession previously, you cannot receive it again. You can find further information on exemptions and concessions here.

How much Stamp Duty will I have to pay on my Assemble apartment?

The steps below outline how to calculate the stamp duty payable on your Assemble Apartment:
Step 1- Assemble will provide information regarding the stage of completion for your specific Assemble building at the time of signing your contract.

Step 2- Using this percentage, you can now go to the calculate the “dutiable value” by going to the “Off-the-plan concession” page to determine the dutiable value that applies to your specific circumstances by reading through the examples.

Step 3- The “dutiable value” figure is then entered into the stamp duty calculator on the SRO website here to calculate the stamp duty for your specific apartment.

By using the online government stamp duty calculators, you can calculate how much stamp duty applies to your Assemble apartment and plan your savings accordingly as this expense must be paid separately and cannot be included in your home loan. If you’re unsure whether you qualify for certain exemptions or grants, and to avoid any confusion, we recommend speaking with your lawyer or conveyancer to determine the stamp duty payable.

As mentioned above, the amount of stamp duty you are required to pay depends on your individual circumstances so it’s important that you do your own investigations into this tax to ensure that you’re prepared when it comes time to purchase your apartment.