Stamp Duty Tasmania

What is Stamp Duty? 

In the fine land of Tasmania, stamp duty is also known as Property Transfer Duty and is orchestrated by Tassie’s State Revenue Office under the Duties Act 2001. They call it “acquiring an interest in property,” but we know it as snagging yourself a piece of real estate, buying a house, and so on. You also might hear the phrase ‘dutiable value’, which means the price you paid for the property or its market value, whichever is greater, and includes any GST payable. 

How much is stamp duty in Tasmania? 

Stamp duty is a progressive tax, meaning you’ll pay a higher rate for bigger purchases. Again, this is based on the purchase price or the market value of the property, also known as its ‘dutiable value’. 

For a breakdown of the standard transfer duty rates, we can turn to the table below:¹State Revenue Office Tasmania – Rates of Duty 

When do I need to pay stamp duty in Tasmania? 

For the past five years, Tasmania averages 450 property sales every twelve months.²Real Estate Institute of Tasmania – REIT June 2023 Quarterly Report – Eastern Tasmania 08/08/23 Given Tassie has the smallest population of any Australian state (just about 560,000 in the 2021 census),³abs.gov.au – Snapshot of Tasmania that’s still a fair amount of houses changing hands.  

Stamp duty is a one-time payment that is required within three months of settlement, and there are a few Tas-specific things to know about this tax, which we will cover in the following paragraphs. 

Do first home buyers have to pay stamp duty in Tasmania? 

The First Home Buyers of Established Homes Duty Concession in Tasmania is a sweet deal for those looking to break into the property market. This concession offers a generous 50% discount on property transfer duty for Australian citizens or permanent residents who have not previously owned a home in Australia or received a First Home Owner Grant. 

Eligible transferees must occupy the purchased home under $600k as their principal place of residence for six months within 12 months of acquiring the property.  

Are there other stamp duty exemptions or concessions in Tasmania? 

Pensioners 

If you’re a savvy pensioner looking to ditch the old homestead and trade it in for something cosier in Tassie, this concession slashes your property transfer duty by a cool 50%. But, of course, there’s a bit of a checklist. Your new place needs to be a bit less fancy than the old place, with a dutiable value of $600,000 or less, and the sale of your old house needs to wrap up between February 10, 2018, and June 30, 2024. 

You’ll also need to be 60 or over, rocking a Pensioner Concession Card, receiving a DVA special rate pension, or holding a Commonwealth Seniors Health Card. Plus, you’ve need to have called your old place home for at least six months before this whole switcheroo and plan to stick around in the new joint for another six months.  

Personal Relationships Concession 

For the lovebirds, there’s a nice little deal called the Personal Relationship Duty Exemption, like a cupid’s arrow for buying property. Those in a marriage, significant relationship, or caring partnership who are transferring the love nest to their other half get some slack on the duty front. 

You and your sweetheart can dodge the duty hassle if you’re swapping a home and planning to hold it together as joint tenants or tenants in common with equal shares.  

Do foreign buyers have to pay stamp duty in Tasmania? 

Since 1 April 2020, the rate of additional duty in Tasmania increased to 8 percent. This means for foreign purchasers, an additional duty is payable when purchasing property, whether you are an individual, corporation or trust. This additional surcharge is on the proportion of the dutiable value of residential property directly or indirectly acquired by a foreign person and 1.5 per cent on the proportion of the dutiable value of primary productions property directly or indirectly acquired by a foreign person. 

Can I get a Home Loan that covers stamp duty? 

Lenders don’t typically cover stamp duty as part of a Home Loan. Some lenders might be willing to make an exception, though.  

Where can I find and compare Home Loans?  

If you’re looking to buy a home, but haven’t found the right loan yet, then there’s no time like the present to get searching! We’ve partnered with Lendi to make things a little bit easier for you. Weigh up your options with our home loans comparison tool and choose from a range of different providers.