Stamp Duty South Australia

What is Stamp Duty?

Ok, first things first. Stamp duty is basically a land transfer tax on all real estate purchases in not just South Australia, but across the country. The state of purchase, property price, and location can all factor into how much stamp duty you’ll be required to pay. Like other taxes, the funds usually go towards state infrastructure projects and services. Also, it’s not an ‘ongoing’ tax. You only pay stamp duty once per property at the time of purchase, usually within 30 days of settlement. So, when budgeting, it’s just an initial outlay, not an ongoing addition to your mortgage.

What’s a land transfer duty?

You’re probably more familiar with the term ‘stamp duty’. ‘Land transfer duty’ is the same thing, but perhaps a clearer term for the one-off payment relating to the transfer of land. It can also be referred to as ‘transfer duty’ for this reason.

How does the Stamp Duty Calculator SA work?

Don’t stress. The Stamp Duty Calculator SA is super easy to use. All you need to do is enter some simple info and it does all the hard work for you.

Here’s the basic info you’ll need to plug into the Stamp Duty Calculator SA:

• The state or territory of the property you’re buying (we’re assuming SA!).
• The purchase price of the property. Generally speaking, the higher the price, the higher the stamp duty.
• How much you’re borrowing.
• Whether it’s a primary residence or an investment property. Investment properties can sometimes attract a higher amount.
• The type of build or property. Is it a new build? An existing home?

And the result is?

Once all your info is entered, you’ll get a breakdown of not just the stamp duty estimate but also the possible mortgage registration fee and transfer fee. If you’re eligible for any government concessions, you’ll also be notified. This might include any grants like the First Home Owner Grant. This info can be handy to have when budgeting, as these bits and pieces can often be forgotten while looking for a home and sorting out your mortgage.

Is the Stamp Duty Calculator SA accurate?

You should always use these calculators as a guide rather than as fact. The true costs will come from the state government, but the calculator does its best to give you as accurate an answer as possible. Always check with the relevant state bodies for the final amount. If the information entered is accurate in regards to the value of the property, the location, and property type, you should get a fairly reliable response.

What other factors can affect stamp duty?

We’ve listed a few factors already that can impact the cost of stamp duty, such as location and property price. Depending on your circumstances, there could be some other factors that affect the cost of stamp duty in SA.

• Foreign investment: Foreign purchasers of land in SA can incur an additional foreign ownership charge, which is currently 7% of the value of the interest in the land.
• Inherited property: If you inherit a property from a family member, usually due to death or divorce, there may not be a requirement to pay stamp duty.
• First time home owner: While there is currently no concession on stamp duty itself, if you’re a first home buyer in SA, you may be eligible for a $15,000 grant from the government towards the purchase.

What other fees might I have to pay?

As mentioned earlier, the Stamp Duty Calculator SA will also display some other expenses.

• Mortgage registration fee: This covers the cost of registering your mortgage. In short, the securing of your property to the loan. This is a standard fee on any mortgage.
• Transfer fee: This is the fee to transfer the ownership to yourself from the current owner. This fee is calculated based on the value of the property.

Could I qualify for a stamp duty exemption?

There are a few instances where you may not be required to pay stamp duty in South Australia. For example, exemptions may include:

• The transfer from a deceased estate: This generally applies if you’re the beneficiary under a will.
• Domestic partnership transfers: If you’re transferring ownership of your property within your domestic partnership.
• Transfer of farming property: This is only if the transfer is between family members.

What about stamp duty on Investment Properties?

Government Duty Charges are generally different when you’re buying an investment property as opposed to a home you’re going to live in. However, in South Australia, this currently doesn’t apply.

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Sources:
1. https://www.business.gov.au/finance/taxation/stamp-duty
2. https://www.revenuesa.sa.gov.au/stampduty/FOS
3. https://www.revenuesa.sa.gov.au/taxpayer-stories/first-home-buyer

Last updated: 23/06/2021