Stamp Duty Valuation
In Melbourne, stamp duty is also referred to as Land Transfer Duty. This is a tax you pay to the State Revenue Office (SRO) when you buy a property or acquire it by other means. It is a tax on the land and its ownership. To pay the correct amount, a valuation for stamp duty should be prepared.
Valuations and related party transfers
A common way to acquire property is by a private sale or transfer between related parties. This is known as a related party transfer, and examples include:
- Gifting a house to a child or family member
- Transferring the property of a deceased estate
- Adding, removing, or transferring the title to a spouse or de facto partner
- Changing the name on the title from a company to an individual’s or vice versa
- Transferring the property into an SMSF or family trust
Not every situation will lead to paying stamp duty tax. There are concessions and exemptions that many may be eligible for. Always check what you can claim before you pay.
How are valuations for duty tax completed?
A property valuation for stamp duty purposes must be prepared by a Certified Practising Valuer. Details of this valuer and their qualifications are to be included in the report. Along with this information are details of the method used and the factors that were considered in their assessment. These factors include:
- The overall size of the property
- Comparable sales from within the last 6 months
- Local amenities such as schools, transport, shops, and public recreation centres
Frequently Asked Questions
Q: When is stamp duty paid?
Stamp duty is to be paid within 30 days of settlement by the purchaser or transferee. It may be payable on the day if you settle electronically. This must be an upfront payment. As such, it is best to have some funds set aside as part of your budget when you are on the market to buy property.
Q: Is stamp duty calculated on purchase price or valuation?
Stamp duty is calculated using a sliding scale and the open market value of the acquired property. This value can be discovered through a valuation. If the property was bought at a price higher than the market value, then stamp duty is calculated according to the purchase price.
Get in touch with our stamp duty valuation specialists
At Melbourne Property Valuers Metro, we are the leading experts in stamp duty valuations. Our team of Certified Practising Valuers (CPVs), accredited by the Australian Property Institute (API) and also holding AVI and RICS qualifications, bring over 20 years of experience to every valuation. This extensive expertise ensures our valuations are reliable, efficient, and accurate, giving you the confidence you need for your property transactions.
Contact us today to speak with a specialist, make a booking or request a free quote. Call us on (03) 9021 2007 or write to us via our contact form below.