Lease Stamp Duty on Property

Stamp duty is a charge that will apply when most properties you deal with are sold. The charge involved with a stamp duty might be quite steep and can make up a large part of the starting costs of a property. However, a lot of people might not buy particular properties, especially if they plan to use them for commercial or business purposes. In such cases, some people may choose to sign leases rather than make purchases. This article will offer an introduction to leases and explain the various features one may encounter when dealing with leases. Additionally, the article will also describe the pros and cons to using a lease in comparison to purchasing property and how stamp duties are related to leases.

 

What exactly is property leasing?

Property leasing is a real estate alternative to buying property. This part of the article will describe what constitutes a lease, as well as when people are most likely to use leases:

Lease: At the most basic level, a lease in Australia refers to the rental of a piece of land. As an alternative to purchasing or buying a property, you may be able to rent or lease it instead. When you choose to purchase a property, in most cases, you will receive a loan and pay some sort of deposit as payment for the property. In contrast, when you lease, you only pay part of how much the property costs and you will only pay for the part you use. For example, you might lease a property worth $300,000 and pay the lease for it for several years. If you end up paying about $150,000 toward the lease, when the lease period has ended, you may be able to purchase the property for $150,000 more.

Commercial property: It is common to lease commercial properties due to being able to use income resulting from the property as payment toward the lease.

What exactly is stamp duty?

Stamp duty refers to a charge in Australia that may accompany large or significant purchases. This part of the article will explain the stamp duty and how it applies to payments with leases:

Stamp duty: In Australia, the stamp duty is most often found when properties are purchases. The amount of money you pay for stamp duty will vary depending on the amount of money you spent on purchasing the property, as well as on the state you reside in in Australia. In most cases, you will have to pay a significant amount in stamp duty if you purchase a property valued past $500,000.

Does a stamp duty apply to properties that are leased? In most cases, you will not need to pay a stamp duty when you are leasing a property; this offers you the chance to save a lot of money when you lease. However, you will have to abide by certain conditions where you might have to pay stamp duty even when dealing with leases. For example, stamp duty will apply in situations when you are using a transferred lease.

Calculate stamp duty using one of our online stamp duty calculators:

Stamp Duty Calculator New South Wales (NSW)

Stamp Duty Calculator Victoria (VIC)

Stamp Duty Calculator Queensland (QLD)

Stamp Duty Calculator Western Australia (WA)

Stamp Duty Calculator South Australia (SA)

Stamp Duty Calculator Australia Capital Territory (ACT)

Stamp Duty Calculator Tasmania (TAS)

Stamp Duty Calculator Northern Territory (NT)