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Stamp duty is a State tax on written
documents and certain transactions, such
as:
- Hire purchase agreements
- Motor vehicle registration and
transfer
- Leases and mortgages
- Insurance policies
- Transfers of property.
Amounts of the duty will vary between States
and Territories according to the type and value
of the transaction involved. The precise rules
vary according to the individual State or
Territory legislation. Certain exemptions and
concessions may also be available.
Your lawyer will calculate this amount and
ensure that the correct amount is paid at the
right time prior to settlement.
Late payment
Stamp Duty must usually be paid within 3
months of exchange of contracts (however this
may vary depending upon which State the
exchange took place and the type document) or,
if you have an incoming mortgagee, prior to or
at settlement. In the event of an extended or
delayed settlement you are reminded that if
Stamp Duty is not paid within three (3) months
of the first date of execution of the contract,
the Office of State Revenue will impose a
penalty interest to be calculated on a daily
basis. Your lawyer or licensed conveyancer will
ensure that such penalties are not incurred and
that the Stamp Duty payment is made on
time.
Exemptions and discounts
From time to time various State and Federal
Government schemes will allow certain classes
of property buyers to gain a discount or
exemption from payment of the stamp duty.
Public tenants are typically exempt from
payment of stamp duty.
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