Joel: What is Stamp Duty and how much will you have to pay when you buy a property in
Tasmania?
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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
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