What Are the Stamp Duty Rates for 2022?

Mortgage brokers who are assisting their clients with the home-buying process should be prepared to answer any questions their clients may have regarding stamp duty. Stamp duty is a type of taxation on various types of purchases, including property transfers, vehicle transfers and registrations, mortgage and lease agreements, and various types of insurance policies. 

The stamp duty rates in Australia for 2022 are generally between 4% and 5% of the total purchase price, but keep in mind that this varies depending on the location of the purchase in question. Clients can easily calculate stamp duty by using a free online Stamp Duty Calculator. 

Depending on the individual mortgage broker, stamp duty will either be required to be paid in full before the client signs a mortgage agreement and legally owns a property or no later than 30 days after the official purchase date. If a client fails to pay the stamp duty within the required time frame, they have the potential of facing a variety of consequences, including high fees, prosecution, forced property sales, and jail time. 

Mortgage brokers should recommend budgeting and creating a successful savings plan for stamp duty before they make any big decisions regarding home loan options. 

Some clients have the potential to receive concessions or exemptions of stamp duty if they are deemed eligible depending on the area the purchase resides in. Individuals looking to learn more about stamp duty should reach out to their mortgage broker or visit the Australian Taxation Office’s official website for in-depth information.