Call our lawyers
now
or,
have our lawyers
call you
Stamp Duty in the ACT
Updated on Oct 25, 2023 • 5 min read • 246 views • Copy Link
Stamp Duty in the ACT
Stamp duty is a tax imposed on certain kinds of dutiable transactions or dutiable instruments. In the ACT, it is imposed on dutiable transactions. One of the most common situations where a person is required to pay stamp duty is when they purchase land or a new home. The ACT Revenue Office is responsible for administering stamp duty in the ACT. This page deals with stamp duty in the ACT.
Legislation
The rules for how stamp duty are imposed are contained in the Duties Act 1999. The ACT Revenue Office also publishes guidance on how the rules apply.
Dutiable transactions
The ACT imposes stamp duty on dutiable transactions. This includes transfers of dutiable property, declarations of trust over dutiable property, and agreements for the sale of dutiable property.
The transaction involved does not need to be set out in a written contract; it can occur, for example, electronically. There are also other kinds of dutiable transaction, such as duty on insurance premiums and motor vehicle registrations.
What is dutiable property?
Stamp duty only applies to dutiable transactions that occur to dutiable property. What is dutiable property is listed in section 10 of the Duties Act 1999. It includes land and options to purchase land in the ACT, and goods in the ACT (provided they are transferred as part of a larger transaction that includes another kind of dutiable property such as land). It does not include shares or units. This is important because a lot of jurisdictions still impose stamp duty on transfers of shares or units. Purchases of shares may still be subject to another kind of duty known as landholder duty, which applies when shares are purchased in a company that owns a certain amount of land in the Australian Capital Territory.
How much stamp duty do I have to pay?
There are formulas that the Australian Capital Territory Revenue Office uses to calculate how much stamp duty you have to pay on a dutiable transaction. Generally speaking, the amount you will have to pay depends on the value of the dutiable property (known as its dutiable value). The value of the dutiable property is equal to the greater of what you are paying for the property, or its market value free from other interests like mortgages. The rate of duty applied to that value is a rate determined by the ACT Revenue Office. For example, if land is transferred and that land has a value of $550,000, the amount of duty payable is equal to the sum of $15,800, plus 5% of the value of the land which exceeds $500,000 (i.e. $2,500). This gives a total stamp duty liability of $18,300. The rates of duty change depending on the value of the property.
How do I pay stamp duty?
Generally speaking, you pay stamp duty by lodging the original contract you entered into that causes the dutiable transaction to happen (e.g. an agreement for the sale of land) with the ACT Revenue Office, together with a cheque for the amount of stamp duty payable. This means you will usually calculate the stamp duty liability yourself before lodging the contract, so it is important you get legal advice to ensure you don’t miscalculate what you have to pay. You may also need to lodge a form with the contract. You can find a list of all the forms on the Revenue Office website.
The ACT Revenue Office will then return the stamped contract to you, together with the counterparts which will be stamped as not owing any duty. The amount of duty needs to be paid within 90 days of you coming under an obligation to pay it (i.e. the time at which the contract was entered into). It is very important that you comply with this deadline; if you do not, the ACT Revenue Office may charge you a penalty, or make you pay interest for late payment of duty.
Exemptions and concessions
The Duties Act 1999 includes a number of exemptions from paying duty, and concessions which reduce the amount of duty you have to pay. For example, transfers of property made to beneficiaries under a trust are subject to a concessional rate of $20 in certain circumstances. This also applies to distributions made under the will of a deceased person. Transfers made under a court order in divorce proceedings are fully exempt from duty, as are transfers made under other kinds of orders granted under the Family Law Act.
There is also a home buyer concession scheme for purchases of vacant land or new homes. The scheme no longer applies to purchases of established homes. For example, if you purchase a new home and satisfy the other requirements of the scheme, the amount of duty payable will be $20 if the value of the home is $446,000 or less. However, the concession does not apply to homes with a value of $550,000 or more, or vacant land with a value of $298,300 or more.
If you require legal advice or representation in any legal matter, please contact Go To Court Lawyers.
Michelle Makela
National Practice Manager
Michelle Makela is a Legal Practice Director at Go To Court Lawyers. She holds a Juris Doctor, a Bachelor of Science (Psychology) and a Master of Criminology. She was admitted to practice in 2006. Michelle has over 15 years experience in the legal industry, working across commercial litigation, criminal law, family law and estate planning.
Affordable Lawyers
Our Go To Court Lawyers will assist you in all areas of law. We specialise in providing legal advice urgently – at the time when you need it most. If you need a lawyer right now, today, we can help you – no matter where you are in Australia.How It Works
1. You speak directly to a lawyer
When you call the Go To Court Legal Hotline, you will be connected directly to a lawyer, every time.
2. Get your legal situation assessed
We determine the best way forward in your legal matter, free of charge. If you want to go ahead and book a face-to-face appointment, we will connect you with a specialist in your local area.
3. We arrange everything as needed
If you want to go ahead and book a fact-to-face appointment, we will connect you with a specialist in your local area no matter where you are and even at very short notice.
Related Law Topics
Domestic Violence and Residential Tenancies (ACT)
When a person in the ACT becomes a victim of domestic violence, this may affect their tenancy if they are living in a rental property. The Residential Tenancies Act 1997 contains a provision that deals specifically with domestic violence in the context of a residential lease and other provisions that ....
Posted in:
Residential Leasing
Can A Beneficiary Witness A Will? (ACT)
Can A Beneficiary Witness A Will? (ACT) In the ACT, there are a number of requirements for a will to be valid. These include that the will must be in writing (either typed, printed or handwritten), that the document is signed by the testator and by two adult witnesses. Traditionally, ....
Posted in:
Wills, Estates & Deaths
Testamentary Capacity (ACT) A fundamental principle of estate law in Australia is that a person has the freedom to decide how their estate is to be dealt with after their death. However, in order for a person’s will to be valid and impervious to challenge, they must have testamentary capacity ....
Posted in:
Wills, Estates & Deaths
Neighbourhood Disputes (ACT) It is common for people living in urban and suburban areas to find themselves involved in a dispute with a neighbour. Neighbourhood disputes may involve noise complaints, disagreements over trees or fences, or animals living on nearby properties. This article deals with neighbourhood disputes in the ACT. ....
Posted in:
Disputes
Animal Nuisance (ACT) Neighbourhood disputes often arise about domestic animals. In the ACT, these disputes are regulated by the Domestic Animals Act 2000. This act sets out the responsibilities that pet owners have in relation to looking after, controlling and cleaning up after their pets, and what can be done ....
Posted in:
Disputes
Probate Registry In Canberra When someone passes away in Canberra, it is necessary for an individual, either an executor or administrator, to assume legal authority over his or her deceased estate. It is often necessary in this circumstance for the deceased’s personal representative to apply to the Probate Registry in ....
Posted in:
Wills, Estates & Deaths
Tree Disputes in the Australian Capital Territory (ACT)
Tree disputes sometimes arise between neighbours when a tree on one property starts to affect a neighbouring property. They can also arise between the government and private individuals when a tree that is on council land causes damage to private property. This article deals with tree disputes in the ACT. ....
Posted in:
Disputes
Letters of Administration in Canberra
Letters of Administration in Canberra In Canberra, the Supreme Court of the Australian Capital Territory issues Letters of Administration to authorise someone to deal with an intestate, or partially intestate, deceased estate. This type of court order is also pertinent to cases where a testator has left a will but ....
Posted in:
Wills, Estates & Deaths
Small Claims (ACT) In the ACT, small civil claims where the amount of money or property in dispute is less than $25,000 can be made in the ACT Civil and Administrative Tribunal (ACAT). These claims may be made with or without legal representation. This page deals with the processes involved ....
Posted in:
Court Processes
Sub-letting Residential Tenancies (ACT)
Sub-letting Residential Tenancies (ACT) In the ACT, a tenant is not allowed to assign a lease or sublet premises without the written consent of the lessor. This page deals with assigning and sub-letting residential tenancies in the ACT. Legislation In the ACT, residential tenancies are governed by the Residential Tenancies ....
Posted in:
Residential Leasing
Tenants’ Rights and Responsibilities in the ACT
Tenants’ Rights and Responsibilities in the ACT In the ACT, residential tenancies are governed by the Residential Tenancies Act 1997. Disputes about tenancies are heard by the ACT Civil and Administrative Tribunal (ACAT), which can make orders to resolve disputes about residential tenancy agreements. This page deals with residential tenants’ ....
Posted in:
Residential Leasing
Executors (ACT) In the ACT, an executor of a will is empowered under the Administration and Probate Act 1929 to manage the deceased estate. A testator can employ a professional such as a lawyer or accountant to act as their executor or appoint a trusted friend or family member. An executor is ....
Posted in:
Wills, Estates & Deaths
Neighbourhood disputes often arise about dividing fences in urban and suburban areas. In the ACT, these disputes are regulated by the Common Boundaries Act 1981. That Act sets out how negotiations about fences should be approached, how the costs of fencing is to be divided and when parties can apply ....
Posted in:
Disputes
In the ACT, employment is regulated under both state and federal law. The Fair Work Act 2009 applies to all employees in the ACT. It sets out the National Employment Standards and regulates the operation of awards and enterprise agreements and provides protections for workers subjected to unfair or unlawful ....
Posted in:
Employment
In the ACT, an eligible party can dispute the last wishes of a testator if they have grounds to contest the will under the Family Provision Act 1969. A claimant must prove that the deceased had a moral duty to financially provide for them and failed to do so adequately in ....
Posted in:
Wills, Estates & Deaths