Stamp duty and government grants

Great news during the week revealing Australia’s underlying inflation rate has fallen to a three-year low of 3.2%, bolstering the case for a rate cut this month.

Since the data was revealed earlier in the week, several lenders including Westpac are now tipping a cash rate cut will be announced by the RBA when they meet in a few weeks time. Let’s hope!

In other news during the week, the Queensland state Premier David Crisafulli has announced that his first order of business upon Parliament returning is the scrapping of stamp duty on all new build for first home buyers.

With this in mind, in the week’s newsletter, we do a state by state comparison of stamp duty.

Stamp duty and state based government grants vary from state to state, in some cases quite dramatically, to the extent that relocating interstate to buy your first home can be a very real consideration .

Here’s a breakdown by state:

New South Wales

Stamp Duty:
Standard stamp duty rates for most NSW properties are as follows:

• If you spend $97,000 to $364,000: $1,564 plus $3.50 for every $100 over $97,000
• If you spend $364,000 to $1.212 million: $10,909 plus $4.50 for every $100 over $364,000
• If you spend over $1.212 million: $49,069 plus $5.50 for every $100 over $1.212 million
• If you spend over $3.636 million on a residential property: $182,389 plus $7.00 for every $100 over $3.636 million

If you’re an eligible first home buyer, you might be off the hook for stamp duty in NSW, provided the property you purchase is valued at less than $800,000. First-time buyers purchasing homes for more than $800,000 but less than $1 million can apply for a concessional stamp duty rate.

Government Grants and Incentives:

• FHOG A $10,000 grant is available for first-home buyers purchasing a new home valued up to $600,000, or up to $750,000 for land and building combined.

Victoria

Stamp Duty Calculation:
General stamp duty rates in Victoria are:

• If you spend $130,000 to $960,000: $2,870 plus 6% of the dutiable value over $130,000
• If you spend $960,000 to $2 million: 5.5% of the dutiable value
• If you spend over $2 million: $110,000 plus 6.5% of the dutiable value over $2 million
• If you’re an eligible first home owner in Victoria, you won’t be required to pay stamp duty as long as your property’s value is $600,000 or less. If it’s between $600,000 and $750,000, you’ll be eligible for a concessional rate. Such rates may also be available for pensioners, farmers, and those purchasing a property off-the-plan.

Government Grants and Incentives:

• FHOG: A $10,000 grant for new homes in metropolitan areas and $20,000 in regional areas, for properties valued up to $750,000.

Queensland

Stamp Duty Calculation:
Standard rates for Queensland properties purchased for $75,000 or more are as follows:

• If you spend $75,000 to $540,000: $1,050 plus $3.50 for every $100, or part thereof, over $75,000
• If you spend $540,000 to $1 million: $17,325 plus $4.50 for every $100, or part thereof, over $540,000
• If you spend more than $1 million: $38,025 plus $5.75 for every $100, or part thereof, over $1 million
• If you’re an eligible first home buyer, you will receive a stamp duty concession or exemption if the property you’re purchasing is valued at less than $800,000 and the tax may be waived if you’re buying or building a new property.

Government Grants and Incentives:

• FHOG: A $15,000 grant for first-home buyers purchasing or building a new home valued less than $750,000.

Western Australia

Stamp Duty Calculation:
General stamp duty rates for WA property, starting with properties valued at over $150,000 are as follows.

• If you spend $150,000 to $360,000: $3,135 plus $3.80 for every $100, or part thereof, above $150,000
• If you spend $360,001 to $725,000: $11,115 plus $4.75 for every $100, or part thereof, above $360,000
• If you spend $725,001 or over: $28,453 plus $5.15 for every $100, or part thereof, above $725,000
• A concessional stamp duty rate is available for those buying an entire WA property worth less than $200,000.

First home owners may also be exempt from stamp duty when purchasing a property worth up to $450,000 or vacant land worth up to $300,000, while a concessional rate applies for properties valued between $450,001 and $600,000 and land valued between $300,000 and $400,000.

Government Grants and Incentives:

• FHOG: A $10,000 grant for first-home buyers purchasing or building a new home valued up to $750,000 south of the 26th parallel and $1,000,000 north of it.

South Australia

Stamp Duty Calculation:
Standard fees for properties purchased in SA, valued at $250,000 and up, are as follows:

• If you spend $250,000 to $300,000: $8,955 plus $4.75 for every $100, or part thereof, over $250,000
• If you spend $300,000 to $500,000: $11,330 plus $5 for every $100, or part thereof, over $300,000
• If you spend more than $500,000: $21,330 plus $5.50 for every $100, or part thereof, over $500,000
• Unlike other states, SA only provides stamp duty relief for eligible first home buyers purchasing new homes or blocks of land, not those buying already established properties. However, first home buyers claiming stamp duty exemptions aren’t restricted by property value caps.

Government Grants and Incentives:

• FHOG: A $15,000 grant for first-home buyers purchasing or building a new home valued up to $575,000.

Tasmania

Stamp Duty Calculation:
Stamp duty on property purchases worth $200,000 and over are as follows:

• If you spend $200,000 to $375,000: $5,935 plus $4 for every $100, or part thereof, over $200,000
• If you spend $375,000 to $725,000: $12,935 plus $4.25 for every $100, or part thereof, over $375,000
• If you spend over $725,000: $27,810 plus $4.50 for every $100, or part thereof, over $725,000
• Eligible first home buyers spending less than $750,000 to enter the market will see stamp duty waived. The first home buyer discount in Tasmania applies to both new and established properties.

Government Grants and Incentives:

• FHOG: A $10,000 grant for first-home buyers purchasing or building a new home.

Australian Capital Territory

Stamp Duty Calculation:
The ACT calls stamp duty ‘conveyance duty’. Some of the current standard rates are as follows:

• If you spend $300,001 to $500,000: $2,154 plus $3.40 per $100 over $300,000
• If you spend $500,001 to $750,000: $8.954 plus $4.32 per $100 over $500,000
• If you spend $750,001 to $1 million: $19,754 plus $5.90 per $100 over $750,000
• If you spend $1,000,001 to $1,454,999: $34,594 plus $6.40 per $100 over $1 million
• If you spend $1,455,000 and over: A flat rate of $4.54 per $100 applied to the total value
• First home buyers may pay no stamp duty or a reduced rate, depending on their household income and how many dependent children they have

Government Grants and Incentives:
Home Buyer Concession Scheme: Provides full stamp duty concessions for eligible buyers purchasing new homes or vacant land, subject to income thresholds.

Northern Territory

Stamp Duty Calculation:
Rates for property purchases of more than $525,000 are as follows:

• If you spend $525,001 to $3 million: 4.95% of the property value
• If you spend $3 million to $5 million: 5.75% of the property value
• If you spend more than $5 million: 5.95% of the property value

The NT Government does not currently offer first home owner exemptions or concessions for stamp duty (although it did for a short period between February 2019 to June 2021).

Government Grants and Incentives:

• FHOG: A $10,000 grant for first-home buyers purchasing or building a new home.
• Territory Home Owner Discount: Offers concessions up to $18,601 on stamp duty for new or existing homes or land.

Note: Eligibility criteria and benefits for grants and concessions can change. It’s essential to consult the relevant state or territory revenue office or a financial advisor for the most current information.

Variable

The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR.

1 Year Fixed

The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR. At the end of the three year fixed period, the borrowers interest rate will revert to a standard variable rate for the life of the loan.