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As described in the web site for the Western Australian Office of State Revenue:|
“Stamp Duty may be described as a general revenue that is imposed on various types of documents (instruments) such as:
The above definition is accurate as it applies across all States.
- transfers and agreements for the sale of real estate
- documented gifts
- policies of insurance
- hire of goods (rental), and
- transfer and issue of motor vehicle licences.”
As it applies to real estate it is a state tax based upon the value of the property charged on the contract of sale. The value of the property is generally the price on the contract as confirmed by the Government valuation however if the property is being sold or transferred to another party at less than full market value, as often happens between family members, then the stamp duty will be calculated at an assessed value not the sale price. Each state has its own rate of duty.
Mortgage Stamp Duty has been abolished in some States of Australia and if you need assistance in determining the costs associated with stamp duty specific to your home purchase Call Your Local Finance mortgage broker on 1300 787 665.