Buying a home is a significant investment and stamp duty is often one of the most substantial expenses associated with it.
In New South Wales, stamp duty is a state government tax applied to the purchase and transfer of land and property, always paid by the buyer.
The amount paid is generally linked to the value of the property. The more expensive the property, the higher the stamp duty.
Governments use revenue from stamp duty to fund public services like education, healthcare and infrastructure.
Using Loan Station’s Stamp Duty Calculator
Calculating stamp duty can be tricky, but Sydney-based mortgage broker Loan Station’s stamp duty calculator 2023-2024 makes it easier.
The calculator uses a sliding scale of taxation and various variables, such as property value, to provide a final figure. You’ll need to input information like whether you’re a first home buyer in Sydney or if you’re a foreign purchaser, as well as property value, type (primary residence or investment) and property status (established, new or vacant land).
For example, for a $500,000 home purchase by an owner-occupier (not a first home buyer), stamp duty in NSW would be around $17,235.
Additional Fees to Consider
Apart from stamp duty, there are other fees to be aware of, such as land transfer fees and mortgage registration fees. Loan Station’s stamp duty calculator includes a breakdown of rates and thresholds for these fees.
For example, the mortgage registration fee and land transfer fee are both $165.40 as of 1 July 2023.
Understanding stamp duty rates in NSW
Stamp duty varies by state. Most states separate the tax you pay into value bands (such as $351,000 – $1,168,000), then charge a lump sum plus an extra fee for every $100 spent over the lower end of the category.
In NSW, for a property in the $351,000 – $1,168,000 bracket, a home buyer will be charged $10,530 plus $4.50 for every $100 that the value of the property exceeds $351,000.
Stamp Duty Exemptions and Concessions in NSW
NSW exemptions and concessions include:
- First home buyer grants
- Spouse or partner exemption
- Deceased estate exemption
- Family farm exemption
- Pensioner concession
The First Home Buyers Assistance Scheme provides a full exemption or reduced transfer duty rate. The requirements are that:
- This must be the first Australian home you’re purchasing
- Your property value must be less than $1 million
- Your must move into the property within 12 months from settlement and live there for at least 12 continuous months
The $10,000 First Home Owner Grant is available for newly built or substantially renovated homes. The requirements are that:
- You must be a first home buyer of a new home or building your first home
- Your home must be worth a maximum of $600,000 unless it’s a house-and-land package with a comprehensive building contract, then it’s a maximum of $750,000
- You must move into the property within 12 months from settlement and live there for at least 12 continuous months
Under the Shared Equity Home Buyer Helper, the NSW government will pay up to 40% of the purchase price of an eligible property, retaining it as equity.
This grant helps eligible single parents (with dependent children), single people (50 years and over), first home buyers who are employed as key workers (such as nurses, teachers or police officers) and victim-survivors of domestic and family violence with buying a home.
It’s aimed at NSW residents who want to buy a home, but wouldn’t be approved for a home loan because of their circumstances.
The requirements are that:
- You’re only able to service a home loan with the government contribution
- You meet income and asset thresholds
- You’re able to contribute a minimum 2% deposit
- You’re ready to occupy the property as your main home from the day of settlement
In summary
Understanding and calculating stamp duty is important when navigating the journey of buying a property in NSW. Using tools like Loan Station’s stamp duty calculator simplifies this process, providing clarity on the associated expenses.
Ready to make your property dreams a reality? Our team at Loan Station is here to guide you every step of the way. We aim to find the best home loan rates in Sydney for you. Call us at 1300 46 46 11 or drop us an email at info@loanstation.com.au for a personalised consultation.
