The Duties Act

The Duties Act 2001 imposes many different types of duties payable in many different circumstances. 

When purchasing a property, whether it is a house or land, you are liable to pay "Transfer Duty".

Transfer Duty

Transfer duty is calculated on the unencumbered value of the land, which in most cases will be the amount you have agreed to purchase the property for, i.e. the Contract price.

There are four general levels of transfer duty calculation and these are:-

1.             Standard Rate (used mainly where the property being purchased is an investment and will be rented out);

2.             Home Concession Rate (used mainly where the purchaser has owned other property, but will be using this particular property as their place of residence within one year from settlement and residing there for one year minimum);

3.             First Home Concession Rate (used where the purchaser has never owned property before and will be using the property as their place of residence within one year from settlement and residing there for one year minimum); and

4.             First Home Vacant Land Concession Rate (applies where the purchaser has never owned property and is buying vacant land to build a place of residence upon).

There are a standard set of requirements for any purchaser wishing to claim a Concessional rate of duty and the purchaser must be prepared to execute a statutory declaration relating to their eligibility for Transfer concession and their intended use of the property. 

Transfer Duty is generally calculated by your Solicitor and your Solicitor will ask you for payment of stamp duty to be provided prior to settlement.

Standard Transfer duty rates from 1 July 2008:

Dutiable value	Duty rate
Up to $5,000	Nil
$5,000 to $75,000	$1.50 for each $100, or part of $100, by which the dutiable value is more than $5,000
$75,000 to $540,000	$1,050 plus $3.50 for each $100, or part of $100, by which the dutiable value is more than $75,000
$540,000 to $980,000	$17,325 plus $4.50 for each $100, or part of $100, by which the dutiable value is more than $540,000
More than $980,000	$37,125 plus $5.25 for each $100, or part of $100, by which the dutiable value is more than $980,000

Home concession rates (amount subtracted from standard rate) from 1 July 2008:

Purchase price/value	Duty rate
Up to $350,000	$1.00 for each $100 or part of $100
$350,001 to $540,000	$3,500 + $3.50 for every $100 or part of $100 over $350,000
$540,001 to $980,000	$10,150 + $4.50 for every $100 or part of $100 over $540,000
More than $980,000	$29,950 + $5.25 for every $100 or part of $100 over $980,000

First home concession rates(amount subtracted from standard rate) from 1 July 2008 to 31 Aug 2008:

Purchase price/value	Concession amount
Up to $359,999.99	$3,500
$360,000 to $369,999.99	$3,200
$370,000 to $379,999.99	$2,900
$380,000 to $389,999.99	$2,600
$390,000 to $399,999.99	$2,300
$400,000 to $409,999.99	$2,000
$410,000 to $419,999.99	$1,700
$420,000 to $429,999.99	$1,400
$430,000 to $439,999.99	$1,200
$440,000 to $449,999.99	$1,000
$450,000 to $459,999.99	$800
$460,000 to $469,999.99	$600
$470,000 to $479,999.99	$400
$480,000 to $489,999.99	$200
$490,000 to $499,999.99	$100
$500,000 or more	Nil