Stamp duty is a tax imposed by the Office of State Revenue that is payable on the transfer of an asset including:-
- the purchase of real estate
- the transfer into and out of a Superannuation Fund or Trust entities such as a Family Trust
- gifting of property.
Stamp duties vary between states and are assessed based on the value of the property being transferred. First home buyers are eligible for exemptions and concessions on their stamp duty liability if they purchase vacant land or a new home and the value of the property is below set value thresholds.
If the property being transferred is purchased on the open market, the Office of State Revenue will generally accept the purchase price of the property for the assessment of the amount of Stamp duty payable.
If a property is not purchased on the open market and there is a relationship between the vendor and the purchaser and the transaction is not at “arms length”, eg a transfer between family members, the Office of State Revenue will require a valuation by a registered valuer to ensure the correct amount of Stamp duty is assessed on the transaction.
Evidence of value by a registered valuer will generally be sought by the Office of State Revenue in the following circumstances:
- the parties are associated persons or entities; or
- in the case of an agreement for sale, there is no selling agent and the same legal firm or conveyancer is acting for both parties; or
- the transaction relates to fractional interests in the property; or
- the consideration appears low for the type of property being sold.
Stamp duty is an expensive tax! Northern Rivers Valuations can accurately assess the value of your property to ensure a fair assessment of the duty is made and you do not pay any more tax than is required by law.
The aforementioned information is only general in nature and it is not intended to constitute professional or legal advice. Please contact your accountant, solicitor, financial advisor, Office of State Revenue or relevant government authority for specific advice relating to your situation. See Disclaimer
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