Stamp Duty on Commercial Property

Introduction
When you purchase a commercial or business property you will become responsible for paying a number of costs and fees up front. If you require a loan for the property you are interested in, for example, you will need to pay a deposit as well as numerous additional fees. An example of a fee that comes along with purchasing a commercial property is stamp duty, and stamp duty can be an expensive fee to pay. This article will describe and define stamp duty and inform you of situations where it may apply. Additionally, this article will also describe the amount of stamp duty you may have to pay when dealing with a commercial property.

 

What specifically is stamp duty?
Stamp duty refers to a tax in Australia that the government charges when a variety of items are sold. In most cases, the person responsible for paying the stamp duty tax will be the person who is purchasing the item in question. The money collected from the stamp duty typically is funneled toward payment of document transfer costs so documents can be transferred legally into the new owner’s name. When commercial properties are involved, such transfers also include the title to the property in question.

When is the stamp duty tax charged?
The applicability of the stamp duty tax will vary depending on the property and persons involved in each situation. This section will describe situations where the stamp duty may apply:

Variance in every state: As described earlier in the article, the precise details of stamp duty will necessarily change from person to person and across circumstances. The most significant factor involving when you will be required to pay your stamp duty will typically be the state in which you are purchasing the property in question.

Charged during property settlement: In most cases, the stamp duty only becomes payable after you have already paid money for the commercial property in question and all other matters have been taken care of.

Payable during three month span: Although the specifics are likely to vary from one state to the next, or across different territories, in most cases, you will be required to pay the full amount of the stamp duty within three months of when the property matters have been settled. This process is designed to provide you with extra time to acquire the funds necessary to fully pay the stamp duty.

How much will you be required to pay?
Typically, commercial property values will require higher stamp duty than residential properties. This is because commercial properties are designed to allow the people who purchase them to make significant profits due to their locations.

Effects of stamp duty: Different states will have different stamp duties, but all will charge in brackets determined by property prices.

Calculate the stamp duty using one of our 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)