Conveyance Duty in the ACT - Residential
Conveyance duty, also commonly known as stamp duty, applies to the purchase of most properties in the ACT. This includes land, residential property as well as off-the-plan purchases. A notable change in the ACT Government 2018-19 budget is the gradual reduction of the stamp duty for residential properties and exemption of commercial properties valued under $1,500,000 from the duty liability. The ACT Government’s long term strategy is to reduce the stamp duty impost and to collect those funds through the increased property rates charges. The key intent of this process is to reduce the up front property purchase costs and to spread funding liability in a more equitable way to be collected from all land owners across the ACT.
So how is the stamp duty calculated? It is normally calculated on the overall dutiable value of land and improvements. For example, a residential home on a block of land will attract stamp duty on its full market or purchase value. House and land packages and off-the-plan purchases are treated in exactly the same way. For example, and off-the-plan apartment purchased for $350,000 will attract stamp duty of the full purchase price. A house and land package where the land is not settled until the completion of construction will be dutiable on the full price of land + construction components of purchase.
However, a notable exception to the examples above is acquisition of land under a separate contract. For instance, is a block of land is purchased and settled under a separate contract prior to construction then the stamp duty is only payable on the land component. For a lot of new home buyers and investors such split contracts can be very attractive and save significant sum of money in duties. Here at Block Real Estate we work with a select group of local Canberra builders and developers who offer house and land purchases under split contracts. If you are looking to save on stamp duty in the ACT contact us for a no obligation consultation.
There are some other property purchase transactions that are exempt from the stamp duty in the ACT, including those related to deceased estates, public hospitals, schools, some trust transactions, etc. For a full summary of exemptions please see the ACT Government Conveyance Duty page.
Rates of conveyance / stamp duty
So what the approximate stamp duty amounts on a property purchase? Below are some examples derived from the ACT Government calculator as at 18/08/18. You can work out the exact amounts for your transaction by using the ACT Government Calculator and then following up with a phone call to the ACT Revenue to confirm.
Purchase price $250,000, conveyance duty $3,750
Purchase price $300,000, conveyance duty $4,900
Purchase price $350,000, conveyance duty $6,700
Purchase price $400,000, conveyance duty $8,500
Purchase price $450,000, conveyance duty $10,300
Purchase price $500,000, conveyance duty $12,100
Purchase price $550,000, conveyance duty $14,380
Purchase price $600,000, conveyance duty $16,660
Purchase price $650,000, conveyance duty $18,940
Purchase price $700,000, conveyance duty $21,220
Purchase price $750,000, conveyance duty $23,500
Purchase price $800,000, conveyance duty $26,550
Purchase price $850,000, conveyance duty $29,600
Purchase price $900,000, conveyance duty $32,650
Purchase price $950,000, conveyance duty $35,700
Purchase price $1,000,000, conveyance duty $38,750
Purchase price $1,050,000, conveyance duty $42,050
Purchase price $1,100,000, conveyance duty $45,350
Purchase price $1,150,000, conveyance duty $48,650
Purchase price $1,200,000, conveyance duty $51,950
Purchase price $1,250,000, conveyance duty $55,250
Purchase price $1,300,000, conveyance duty $58,550
Purchase price $1,350,000, conveyance duty $61,850
Purchase price $1,400,000, conveyance duty $65,150
Purchase price $1,450,000, conveyance duty $68,450
Purchase price $1,500,000, conveyance duty $70,950