So, you are looking to find the perfect property. You have spoken to your bank and know the price range which works best for you. You have even remembered to factor stamp duty into your budget. For those who may have forgotten, stamp duty is a duty which is payable when you acquire property in NSW. For example, purchasing a property for $400,000 would incur stamp duty of $13,452. If you are a first home buyer, you may be eligible for an exemption from duty.
If you are acquiring property as a gift, stamp duty is still payable, unless an exemption applies. As there is no purchase price, stamp duty is calculated on the value of the property which must be evidenced by a Valuation.
A Valuation may also be needed for purchase transactions involving related parties. In such a situation, stamp duty would be calculated on the greater of the purchase price and the value of the property.
Upon stamping of the Contract and/or Transfer, Revenue NSW will require that you complete a Purchaser/Transferee Declaration. The purpose of the declaration is to report to the Australian Taxation Office on the transfer of land and to identify if you are a foreign person as Surcharge Purchaser Duty and Surcharge Land Tax may be applicable.
Supporting evidence must also be furnished to Revenue NSW. For instance, if you are acquiring land in your own name and are an Australian citizen, you will need to produce a certified copy of your full Birth Certificate (not extract), current Australian Passport or Australian Citizenship Certificate. If the name on any of your documents is not your current name i.e. you have since married, you will need to produce evidence of your change of name. Such evidence includes your Marriage Certificate issued by the Registry of Births Deaths and Marriages. The ceremonial certificate signed on your wedding day is not sufficient evidence.
To make the transition to home ownership as smooth as possible, contact the expert team at Everingham Solomons, where Helping You is Our Business.
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