If you are buying your first home, and the settlement date is September 1st 2014 or later, the stamp duty that you will be required to pay will be reduced. Sounds good, right? The fact is that stamp duty for first home buyers has been reduced several times in recent years, and the last reduction, (from 40% to 50% of the full rate), will come into effect after the end of this month.
How much will this save you? Well, here’s an example:
- Purchase price: $360,000
- Usual stamp duty: $14,370
- First home stamp duty $7,185
Because the discount on stamp duty for first home buyers has been increased from 40% to 50%, in the example above the buyers would save an additional $1,437 in stamp duty.
Obviously, the more you are paying for your first home, the more you will save in stamp duty.
So if you are signing a contract for your first home this weekend, make sure you set your settlement date for September or later!