A commercial property transaction includes unavoidable expenses, like stamp duty – a fee payable upon the purchase of property.
Let’s start by looking at what stamp duty is, how it’s calculated, and any exemptions that might apply in Australia.
Here’s everything you need to know.
Contents
Stamp Duty on a Commercial Property
Stamp duty or transfer duty is a state imposed fee applicable on individuals who buy a property (commercial or residential) in Australia. This nominal fee includes the transfer of businesses, insurance, and other shares, critical to a sale or purchase of land.According to the NSW Government’s Revenue Department, you’re required to pay duty or transfer fee when you purchase a commercial property. In some cases, you may also need to pay stamp duty on fixtures, machines, plants and equipment.
What Impacts the Stamp Duty on a Commercial Property?
Cost of stamp duty depends on several factors, including sale price of the property, as well as a buyer’s location and business purpose. Common factors to consider when determining stamp duty costs on a commercial property are:
- If you’re a stated beneficiary of the deceased estate owner
- If the duty payable is settled between a married couple or de facto
Key Takeaways
- Stamp duty is a state-imposed fee on commercial property purchases in Australia, also applicable to fixtures, machines, plants, and equipment.
- Factors affecting stamp duty include the property's purchase price, intended use, and whether it's a principal place of residence.
- Payment is generally due within three months of the sale or transfer.
- The rate varies by state, with calculators available for specific estimates, e.g., NSW government's calculator for property stamp duty.
- Exemptions or concessions may apply under certain conditions, such as property transferred between spouses or from a deceased estate.
Need Help with Your Commercial Property? Contact Leah Jay
Invest in a valuable commercial property with the help of property experts who will not only help you find out how much stamp duty is payable for a property, but also provide other property solutions to ensure the best returns.
Leah Jay deals with commercial property management and procurement for small to large-scale businesses and companies in Australia. Our expert team has experience with the NSW commercial estate landscape and can answer all your queries. To learn more about commercial property management, call us today.
Disclaimer: This information is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your situation, and for professional advice, seek out a financial adviser.
- The price paid for the property or highest market value
- The expected use of the property and surrounding facilities
- The property purchased is a principal place of residence
