As a homeowner or a property buyer, one of the most important things to know is the stamp duty date of contract. This is the date on which the contract for sale or transfer of ownership of a property is signed, and it is an essential element in determining the amount of stamp duty you will be required to pay.
Stamp duty is a tax levied by the government on the purchase or transfer of ownership of a property. The amount of stamp duty varies depending on the value of the property and the location of the property. In most cases, the higher the value of the property, the higher the stamp duty you will need to pay.
The stamp duty date of contract is crucial because it determines the applicable stamp duty rate. For example, if the property is located in NSW and the contract for sale is signed on or after July 1, 2021, the stamp duty rate will be based on the market value of the property as at the date of the contract. This new rule reflects the NSW government’s decision to transition from stamp duty to a land tax system, where homebuyers are given a choice between paying upfront stamp duty or an annual land tax.
In contrast, if the contract for sale was signed before July 1, 2021, the stamp duty rate will be based on the market value of the property as at the date of settlement. This means that if you signed a contract to purchase a property before July 1, 2021, and the settlement date is on or after that date, you will be subject to the old stamp duty rules.
It’s worth noting that the stamp duty date of contract can also impact the eligibility for certain concessions or exemptions. For example, in Victoria, first homebuyers who purchase a property for less than $750,000 and sign a contract on or after July 1, 2021, may be eligible for a stamp duty exemption. Similarly, in Queensland, if you sign a contract to buy a new or existing home or vacant land on or after July 1, 2021, you may be eligible for a stamp duty concession.
In summary, the stamp duty date of contract is a critical factor to consider when purchasing or transferring ownership of a property. It determines the applicable stamp duty rate and can also impact the eligibility for certain concessions or exemptions. As a homeowner or buyer, it’s essential to have a clear understanding of the stamp duty rules in your state or territory and seek professional advice to ensure you comply with the relevant regulations.