All need careful attention and budgeting to avoid mortgage stress down the line. In this article, we discuss stamp duty further from its purpose, calculation, and potential impact on those looking to get into the real estate market.

Stamp duty, also known as transfer duty, is a tax charged by the state government on certain purchases, including whenever a property is sold or transferred to a new owner. The tax cost is the responsibility of the buyer and is typically factored in by lenders when calculating their borrowing capacity for a loan. State governments add stamp duty to their budget to fund local public services, infrastructure projects, health, transport, education and more.

The calculation of stamp duty varies dramatically between states and territories. Additionally, the value of the property, the type of property, and its intended use play a big part on how much the buyer is expected to pay.

There are stamp duty calculators that you can find online to estimate how much your total liability can be.

First-time homebuyers eligible for the First Home Owners Grant, pensioners, and certain other eligible groups may be entitled to concessions or exemptions, reducing their stamp duty liability.

When this significant expense is payable is again dependent on the state and could be expected on settlement date or up to 12 months after.

It is vital for those looking to purchase property to find out if they are eligible for any stamp duty exemptions or concessions. Stamp duty is a sizable cost that needs to be accounted for so they can make informed decisions with their property purchase. 

When considering a property purchase, always use official resources and consult professionals, such as conveyancers and finance professionals, to ensure you accurately calculate your stamp duty liability and comply with local regulations.

Any advice provided is general in nature and should be considered in line with your financial situation, needs and objectives.