Stamp duty on new home has been a regular source of income for Australian state governments. It is also predicted that Australians will in the future be paying more stamp duty for their properties though more reforms are needed in this context. Stamp duty is steadily increasing the funds of the government to a large extent. The government should make adequate changes to the stamp duty upper limit to stimulate property markets further. Stamp duty on new home differs in different states in Australia. In Sydney and Melbourne, the amount paid for stamp duty is around three month’s salary of an individual; on the other hand in Queensland it is lower. These high bills have caused difficulty for people moving to their houses, because stamp duty takes a larger chunk of their bills.

First let us understand that tax duty is a tax on title transfer alone and has nothing to do with property tax. The money collected thus is used to run public healthcare programs, education and other welfare and safety programs for the general public. The price of the property will vary depending on where you buy the property, as stamp duty varies from state to state. It is calculated depending on the buying price and is a percentage value of the property price and at times a combination of percentage and a fixed value. They should be added to the price of the property when planning to buy a property.

First time home buyers have some concessions on stamp duty based on some criteria. Those who are eligible for First Home Buyer’s Grant offered by the state governments also have programs to make up for stamp duty exclusively only for first time home buyers. For those who are not first time buyers they will be eligible for ‘Principle Place of Residence Rebate’ where they can save up to two thousand five hundred dollars on stamp duty. You can contact the state or territory’s Office of Revenue for stamp duty related queries. Stamp duty on a new home is the top priority on the minds of property buyers. They need to calculate the cost of the house keeping in mind the stamp duty as this take a considerable sum. Though, it is also felt by real estate dealers that lower the stamp duty on new home more would be the property transactions, but the state governments totally depend on these duties to fill their treasury.