Resting on Contract Stamp Duty

Resting on Contract Stamp Duty: What You Need to Know

When it comes to buying or selling a property, there are many fees and taxes that need to be paid. One of these is the contract stamp duty, which can often be a significant amount. But did you know that in some cases, you may be able to rest on this duty?

Resting on contract stamp duty is a term used to describe a situation where the duty has already been paid on a previous transaction, and therefore does not need to be paid again. This can occur in situations where a property is being sold multiple times within a short period, for example, if it is being flipped or renovated.

If you are considering resting on contract stamp duty, there are a few things that you need to be aware of. Firstly, it is important to confirm with your solicitor or conveyancer that the stamp duty has been paid on the previous transaction. You will need to provide evidence of this, such as a copy of the stamp duty certificate.

Secondly, it is important to note that resting on contract stamp duty is not a given. The decision to allow resting on the duty is entirely at the discretion of the revenue authority in your state or territory. In some cases, they may require additional documentation or information before granting the exemption.

If resting on contract stamp duty is allowed, it can provide a significant saving for buyers or sellers. Stamp duty rates vary between states and territories, but in some cases can be as high as 7% of the property value. Resting on the duty can therefore save thousands of dollars.

It is important to note that resting on contract stamp duty is not the same as claiming a stamp duty concession or exemption. Concessions and exemptions may be available in certain circumstances, such as for first home buyers or pensioners. These are separate from resting on the duty and may also require specific documentation or information to be provided.

In conclusion, resting on contract stamp duty can be a significant saving for buyers or sellers in certain circumstances. However, it is important to confirm with your solicitor or conveyancer that the duty has been paid on the previous transaction and to check with the revenue authority in your state or territory before assuming the exemption will be granted.