Stamp Duty Rates Act is an act relating to the Imposition of Stamp Duty on certain Instruments in the Australian Capital Territory.  The duty is levied by the government on transactions such as transfer and agreement for sale of properties vehicles or businesses and declaration of trust over.  The purchaser has to pay the stamp duty. The rate of duty is based on the property value and the type of property.

• Land and Improvements
• Business Assets
• Hire Goods
• Motor Vehicles
• Insurance
• Franchise Agreements
• Landholder Duty - Shares, Units and Interests
• Commercial Leases   
• Shares, Units and Interests

The rates revenue collected are used to provide funding for the many municipal and public welfare services and certain essential services.  The owner is described in the Rates Act of 2004 as the registered proprietor of a parcel of land, a mortgage in his possession or an individual holding the parcel of land under a sublease from the Territory. According to the Stamp Duty Rates Act the tax revenues are used for the following:

• For making additions and to maintain main roads, bicycle paths and footpaths
• Waste and garbage removal services, street lighting and cleaning and storm water drainage
• To establish and maintain and amenities like recreational areas, swimming pools, community halls and public libraries

Stamp Duty Rates on Home Mortgages

Under section 85 of the Stamp Duty Act, a concessional rate of duty is available for ‘home mortgages.’  The concessional rate of duty is applicable if mortgagor is an individual, part or the entire secured amount is used for dwelling provided in section 85(2) and used by the mortgagor as his or her sole principal place of residence.   

Stamp Duty Concessions

All the states extend stamp duty concessions for first home buyers.  Some states provide concessions on stamp duty to some principal places of residence.  Concession on stamp duty is also available for some educational authorities, registered charities etc.

Concession on rate of duty is available for the amount secured by a home mortgage is used for the mortgagor’s own occupation. A different rate of concession can also be availed for the amount secured by mortgage where only a part of the secured amount is used for own occupation of the mortgagor and for the part that is not used for own occupation. Changes to transfer stamp duty concession rates for Home Buyers announced by the ACT State Revenue Office effective are from 1st January 2009 to 30 June 2009. Eligible persons can receive the following concessions under the Home Buyer Concession Scheme. The eligible property must be a residential home. Purchase price up to $340,000 - concessional transfer stamp duty of $20 (minimum duty) is applicable.

• For homes valued at above $340,000 but less than $422,000 $19.75 for each $100 or part thereof by which the dutiable value exceeds $340,000 ($20 minimum duty).
• For properties of value $422,000 or more, no concessional transfer stamp duty is applicable

The individual can approach the Office of Revenue of the Australian Capital Territory for detailed information on the stamp duty rates act.