Can The Clients Avoid Stamp Duty?

Stamp duty refers to a form of taxation that is charged by Australian state and territory governments for various purchases including insurance policies, lease and mortgage agreements, Hire Purchase Agreement contracts, vehicle registrations and transfers, and property transfers. 

Potential homeowners can avoid paying for stamp duty if they are eligible for stamp duty exemptions or concessions depending on the area they reside in. First-time home buyers, retirees, or borrowers that purchase an inexpensive property have the potential to pay a decreased amount of stamp duty or avoid paying for it completely. However, it is important to remember that avoiding or paying less in stamp duty largely depends on where a potential borrower lives. 

Stamp duty calculations depend on which Australian state a potential borrower resides in and the total purchase price of a property. Generally, stamp duty on a mortgage is calculated based on 3% to 4% of the property’s total purchase price. Potential borrowers can adequately budget and save funds for stamp duty by using a free online Stamp Duty Calculator before they apply for a loan. Additionally, mortgage brokers should be well informed on the various elements of stamp duty and be able to adequately assist their clients with creating a budget or savings plan. 

Potential borrowers who are interested in learning more about stamp duty calculations, exemptions, and concessions should reach out to a mortgage broker or visit the Australian Taxation Office’s official website for in-depth information and helpful assistance.