Buying your own home is costly, and it’s not just the price of the actual home that you need to buget for, there are a whole swag of associated costs that you will need to pay when you decide to become a home owner.
One of the biggest costs you will pay in New South Wales is Stamp Duty. Stamp duty is essentially a tax paid to the state government. Each state or territory within Australia has a different way of calculating and charging stamp duty, but it is always calculated on the purchase price of the property you have bought.
So if you are buying a home, how do you know how much stamp duty you will need to pay?
Stamp duty NSW is a complex calculation:
Purchase price Stamp duty
up to $14,000 $1.25 per $100
$14,001 – $30,000 $175 plus $1.50 per $100
$30,001 – $80,000 $415 plus $1.75 per $100
over $80,000 $1,290 plus $3.50 per $100
over $300,000 $8,990 plus $4.50 per $100
over $1,000,000 $40,490 plus $5.50 per $100
Or you can simply use a stamp duty calculator for NSW, ensure that you are using a calculator specifically for NSW so you know that it is calculating the stamp duty that you will have to pay. A stamp duty calculator should also alert you to any relevant government grants or subsidies which may apply to your purchase, which could assist in reducing the amount of stamp duty you will be liable for. As you can see from the table above, it is important for you to know how much your stamp duty could be, as in today’s property market, you could well be facing a bill of tens of thousands of dollars!