Stamp Duty

Stamp Duty is a government tax on certain documents and transactions. Stamp Duty is charged at either a flat rate or an ad valorem rate (based on the value of the transaction) depending on the particular document or transaction.

Transfer Stamp Duty

Transfer Stamp Duty is payable by the purchaser of real estate based upon the purchase price of the property. Depending on individual State legislation, the duty is payable to the Office of State Revenue anywhere from the day of settlement to 3 months after the date of exchange of contracts.

For properties that are purchased in Victoria, Transfer Stamp Duty will be debited from your nominated related account on or about the date of settlement. You will need to ensure that sufficient funds are held in your account to cover this cost. Your solicitor or conveyancer will be able to provide you with the exact figure that will be required.

Mortgage Stamp Duty

Mortgage Stamp Duty is a State or Territory Government tax (based on where the property is situated) payable by the borrower and assessed on the amount secured by the mortgage. The higher the amount secured by the mortgage the greater the Mortgage Stamp Duty that is payable.

Once settlement is completed, any Mortgage Stamp Duty applicable to your loan will be debited from your Loan Account or, where you have chosen interest only payments, it will be debited to your related account (not the Loan Account).

More information

For information about Stamp Duty ask a solicitor or conveyancer or visit the web site for the government revenue office of your State or Territory. You’ll find links for them here on the Australian Tax Office web site.

Some first home buyers may be eligible for a concession on Stamp Duty. To find out if you qualify, visit the First Home Owner’s Scheme web site at www.firsthome.gov.au.