Stamp duty is a tax that has existed for hundreds of years in countries with English law. It is essentially a tax that is levied on documents. Historically, the documents were stamped as evidence that the duty had been paid. In modern times, physical stamps are no longer used.

Transferring property from one party to another is a transaction that can attract stamp duty. This is why it is payable when you buy a home. The tax is paid because property is being passed from the seller to the buyer. It is the buyer of the property who must pay the duty.

Although stamp duty is levied in all states and territories in Australia, it is not a federally collected tax. Each state and territory is responsible for administering the duty. Variations between the rules and regulations exist between each state, including variations in how the tax is calculated.

Buying a house for $300,000 in one state may therefore require a different amount of stamp duty to be paid than buying a house of the same value in another state.

Added to this, concessions may be applied to property purchases based on whether certain conditions are met, and these rules differ between the states as well. Concessions may be awarded under special circumstances such as the recipient of the property being a first time buyer, and the value of the property being too low to attract the duty.

Although there are many variations between the states and territories, some important similarities occur. The basic method for calculation stamp duty is essentially the same all across Australia. As the value of the property being transferred increases, the percentage rate used to calculate the amount payable also increases.

Each state has a minimum threshold so lower value properties avoid having stamp duty applied to any transfers in ownership that may occur. This is to ensure that low income earners are not unfairly levied with a tax they cannot afford.

There is also an upper limit over which the rate applied remains the same. The upper limit is usually around one million dollars and the rate of tax applied can be more than five percent once the value exceeds the upper limit.

Each state and territory has their own Office of State Revenue that is responsible for collecting the duty. Each Office of State Revenue (OSR) has its own website with up to date information on stamp duty. If you Kamagra jelly need to find out any information about stamp duty, visit the website of your local OSR in the first instance.

If you do not find what you are looking for and are still confused about whether you will be required to pay stamp duty on your next property purchase, speak to a qualified mortgage broker. A mortgage broker should be able to help with your questions and provide you with contacts to look into the issue further if required.

Mortgage brokers usually keep up with all the latest news and rule changes concerning stamp duty and are therefore a good source of information.

Author Bio: Qualified Mortgage Brokers here to help you find a suitable home loan for your personal situation http://www.moneynet.com.au/ through our online form http://www.moneynet.com.au/

Category: Finances
Keywords: mortgage brokers, mortgage broker