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Date Published : Wednesday, February 06, 2008
A recent study found that Australians have to deal with some of the highest interest rates and stamp duty costs in the Western world.
The number of Australians become home loan free is dwindling as more and more dollars are needed to pay stamp duty on housing moves.
According to the 2008 Demographia International Housing Affordability Survey, Victorians face some of the highest stamp duties in the world, paying between five and six per cent on a home depending on the value of the property, with the state government collecting a record $3.6 billion in stamp duty last year.
So what is stamp duty and why do we have to pay it?
Stamp duty is imposed upon certain documents and some undocumented acquisitions. This includes the selling of real estate of vehicles.
The value of stamp duty which must be paid varies from state to state, house to house, dependent on the value of the home. For example, on a property worth $300,000 in Victoria, stamp duty would be nearly $14,000, where as in Tasmania the figure would be closer to $10,000.
It is a major source of state funding which governments cannot do without.
However recently, to help homebuyers in the difficult climate, state governments have reduced, where possible, stamp duty. New South Wales has introduced provisions to reduce or abolish certain duties over a number of years and includes changes to mortgage duty.
The other states and territories have also overhauled their own legislation, in some cases making stamp duty charges for property transfer much more affordable.
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