Mar 17

When do I pay Stamp Duty?

Stamp Duty and Vendor Finance across the land.

In all  states Stamp Duty is payable on the purchase price or the value of the property, which ever is greater ( the government always wins ). The stamp duty is always payable but is due to be paid at different times according to the paperwork you use and the state you are purchasing in.

Instalment Contracts

As an instalment contract is deemed a sale awaiting settlement stamp duty is due in all states within 60 days of exchange of contracts ( this is when both parties have signed the instalment contract and have exchanged them for the other party to sign ). The 60 days varies from state to state so check with your Office of State Revenue.

The exception is Victoria where the Stamp Duty is not due until the Title transfers to the new purchasers name.

Lease Options

In all states a lease Option is not considered a sale as a Contract of sale is not yet exchanged. The exchange of contracts for the purchase occurs at the end of the Lease Option period.

Stamp duty is not payable by the purchaser on a Lease Option until such time as they have acquired the bank loan and have exercised the option to purchase (that is the purchaser has approval for the loan and a contract of sale is drawn up and exchanged.)

The exception is Victoria where the full Stamp Duty is payable within 30 days of signing the Lease Option paperwork.