I have just started a new retail shop and I am having to get my head around my legal responsibilities. There is a lot to consider when you are employing people as well as having customers and suppliers interacting with your business every day. We are a successful business and part of staying successful is making sure that the business is set up correctly and that we look after everyone involved legally. This blog has tips for new retail store owners to help them understand what legal issues they can manage themselves and when it's time to get advice from a lawyer.
If you've been renting all your life and feel it is now time for you to buy a home, you may be learning about the process involved and picking up some of the terminologies. As you learn, you will find that you may need to pay stamp duty and wonder what this is all about.
It's Another Tax
Stamp duty is a rather archaic term for what is effectively just a tax that you need to pay whenever you buy a house. In this case, it can be quite a substantial tax, but it is based on the value of the property you're buying and does vary from state to state.
Brackets and Exemptions
Every state or territory has a method of calculating stamp duty according to individual brackets. But they may also have exemptions, and that means that you may be able to avoid some or even all of your stamp duty in certain circumstances. As you are a first-time buyer, you may be able to get relief if you purchase a home below a certain price and if it fits into a specific bracket. This does vary depending on where you live, and you need to check with the state or territory regulator for information. Alternatively, ask a conveyancer, and they will be able to give you the information right away.
Steeped in Time
Back in the day, when land or property transfer was less common than it is today, officials would actually stamp the document to make sure that the sale was official. This would signify that the buyer had to pay duty, and that terminology has stuck through time. Now, you will simply receive a notice of assessment and will typically pay electronically. Sometimes you need to do this on the day of settlement, while at other times, you may have several months to look after the bill.
Adding to the Burden
A first home purchase is a significant step for many Australians, and it can often be hard to find the necessary money to make everything work. Clearly, stamp duty does not help, and many people wish it would disappear in favour of some other taxation vehicle elsewhere.
Making Your Calculations
If you want to work out how much stamp duty is due on a particular house, ask your conveyancer for their help. They will be able to calculate the fee and let you know if you qualify for an exemption. Contact a conveyancing service near you to learn more.
Share17 November 2021
