We’re about to let you in on a secret about stamp duty that some conveyancers don’t even know about…
You might be eligible for a discount on your stamp duty when buying a new home – saving you thousands!
Here we’ll provide you with a simple explanation of the State Revenue Office form, 8F – stamp duty concession for seniors and various concession cardholders.
Provided you hold a pension card and have not applied for a concession on this same card in the past, you may apply. The form must be completed and submitted to your purchasing conveyancer soon after buying your new home. Without this form, no discount will be given.
For the discount, your new home must be owner occupied, meaning you can’t apply for a discount on an investment property.
If you are single and buying a home up to $330,000, no stamp duty applies. From $330,001 to $750,000, stamp duty is at a pro rata discounted rate. If you are a single first home buyer, then there is no concession available above $600,000.
Two individuals or a couple can apply for the $330,000 each – totaling $660,000. The home has to be in joint names to qualify as being stamp duty free and must be joint owner occupied. Both must have qualifying concession cards. From $660,001 to $1,500,000 the stamp duty is at a pro rata rate.
You can still apply for this discount if only one of you qualifies as being on a pension, however you must purchase the home as joint owners. The stamp duty discount is only applicable to the person with the pension card. Non-concession card holders must pay full stamp duty on their half.
If you bought a house jointly as a couple at $665,000, your total stamp duty would be approximately $403. This is the pro rata amount from $660,001 to $665,000.
At $750,001 and above for singles, all stamp duty concessions stop and full stamp duty on the whole purchase will apply and would be approximately $40,070.
At $1,500,001 and above for couples, all stamp duty concessions stop and full stamp duty on the whole purchase will apply.
If there are 3 of you buying a home to live in together, and you all have the correct qualifying concession cards, you can combine your stamp duty free concession and purchase to a value of $990,000. Then from $990,001 to $2,250,000 at a pro rata rate – at above $2,250,000 all stamp duty concessions stop for a three person qualifying purchase and full stamp duty will be applied to the total sale.
Please seek further independent advice prior to making any financial decision. The State Revenue Office can be contacted on 13 21 61
