Stamp Duty In TAS: How Does It Work? (Australia)


Joel: What is Stamp Duty and how much will
you have to pay when you buy a property in Tasmania? Now, before we start, if you want great tips
on home loans in Australia, please subscribe to our channel and don’t forget to hit the
bell so you get notified when we upload new videos Stamp duty, now referred to as Property Transfer
Duty in Tasmania, is a tax payable to the state government when you acquire a property
in some form. This means if you purchase, are gifted or inherit
property or vacant land as well as easements, covenants and shares, you’ll be required to pay
Stamp duty. So how is property transfer duty calculated in
Tasmania? The duty is calculated on the market value
of the land or property, or the consideration the price paid for the property, whichever
is greater. What this means is if you purchase the property
below market value, for example, at a discount or from a friend or family member, you will
still be required to pay duty on the actual value of the land or property rather than
the amount that you paid for it. Joel: Now if you’re in a rush, you can use
our free calculator tool to see exactly how much you’ll have to pay using the link. So how is Standard Property Transfer Duty
calculated? For land or property valued between $3,000
and $25,000 you’ll pay $50 plus an additional $1.75 for every $100 over $3,000. So up to $435. For land or property valued between $25,000
and $75,000 you’ll pay $435 plus an additional $2.25 for every $100 over $25,000 so up to
$1,560. For land or property valued between $75,000
and $200,000 you’ll pay $1,560 plus an additional $3.50 for every $100 over, so up to $5,935. For a land or property valued between $200,000
and $375,000 you’ll pay $5,935 plus an additional $4 for every $100 over $ 200,000 so up to $12,935. For land or property value between $375,000
and $725,000 you’ll pay $12,935 plus an additional $4.25 for every $100 over $375,000. So that’s up to $27,810. For land or property valued $725,000 and more. Joel: You’ll pay $27,810 plus an additional
$4.50 for every $100 over $725,000. As with most states and territories, there are a number
of exemptions and concessions available. So let’s go through these now. So what are concessions and exemptions in
Tasmania? Tasmania does not offer concessions or exemptions
to first time buyers or pensioners. Also, as the state government charges Stamp
Duty on the acquisition of property including when is inherited, there is no concession
or exemption available. However, concessions may be available when
property is transferred between partners in a marital or de facto relationship provided
certain criteria is met. The property must be owned by both parties
and the two parties must have equal shares or serve as joint tenants and the property
must be their principal place of residence. If the Duty has been paid on the transfer
of vacant land between a marital or de facto relationship, a refund may be available provided
the parties have a joint share in the land. Joel: And have built the house on the land as
their primary place of residence. To be eligible, these conditions must’ve been
met within two years of the initial transfer. If the property is being transferred from
both people in the relationship to just one of the parties, this exemption does not apply. There might also be exemptions available following
the breakdown of a marriage or a de facto relationship. Again, certain criteria must be met,. So, when is property Duty payable in Tasmania? You become liable for Property Transfer Duty the moment that transfer occurs and you have
three months from this date to pay the amount you owe. Interest and penalty taxes may begin
to accrue if you don’t make your payment on time That’s it guys, if you found this video helpful,
give us a thumbs up and if you have any questions, feel free to leave them in the comments below. Make sure you check out our channel for other
relevant videos and tips. See you next time.

2 Comments

  • Thanks for watching! Were you aware of the concessions & exemptions available in the TAS? Let us know in the comments below 😊

  • So different in every state, thanks for making it easy to understand the differences and what we have to pay in each state.

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