What Is a Stamp Duty Valuation?
The amount of stamp duty tax you’ll be liable to pay is typically based on the property’s purchase price.
The Office of the State Revenue will accept an assessment of stamp duty based on the selling price that appears in the contract of sale.
But, in some instances, the sale isn’t conducted in an open market and is negotiated between related parties like family members, for example. If that is the case, the Office of State Revenue will need to ensure that the stamp duty payable is in accordance with the property’s fair market value.
That’s where providing stamp duty valuations come in.
The Office of the State Revenue will generally require a property valuation for stamp duty purposes in the following circumstances:
- where the property is being transferred between related parties, for example, mother and son;
- where the property is being transferred into a superannuation fund; or
- where the property is being transferred between trusts or other associated legal entities.
So even if there isn’t an exchange of money between the parties – stamp duty (or transfer duty) must be paid.
An accurate stamp duty valuation report needs to be completed by an experienced Certified Practising Valuer in each of the circumstances mentioned above.
How Do We Perform Stamp Duty Valuations?
To provide accurate, fair market value stamp duty valuations, our Duo Tax Property Valuers need to consider the property attributes, such as:
- type of property concerned – is it residential or commercial?
- size and build of the property – how many bedrooms does it have?
- location; and
- surrounding amenities such as nearby schools, public transport and shopping
Once the property attributes are considered, our Property Valuers will generally consider the recent sales evidence of similar properties to gauge an indication of a similar market value.
We’ll then produce an accurate valuation report that you can submit directly to the Office of the State Revenue.
You’ll have to pay stamp duty according to the report and the State or Territory’s stamp duty thresholds.
Why Choose Duo Tax Property Valuers?
Our mission at Duo Tax has always been to help property investors save money where they can.
Stamp duty is already a significant expense when it comes to buying property, so, for stamp duty purposes, you’ll want to obtain fair market value calculations so that you’re not paying a cent more than you need to.