Assignment Fee -Should I pay Stamp Duty on this?

Discussion in 'The Buying & Selling Process' started by Tubskinizer, 11th Aug, 2020.

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  1. Tubskinizer

    Tubskinizer New Member

    Joined:
    11th Aug, 2020
    Posts:
    1
    Location:
    South Australia
    Hi.

    My wife and I found a piece of land in SA. The property manager said that the land is worth $290K - it is a combination of the actual land cost of $260K plus an assignment fee of $30K. My question is, when stamp duty (SD) is computed, would it be for the $290k or the $260k only?
    I've done a bit of research by asking some people but I got different answers:
    1.) For some, they were only charged SD on the actual cost (does not include the 30K)
    2.) One conveyancer said that SD should be computed for $290k
    3.) Property manager said it's computed separately on $260K and 30K.

    Which one is correct? Can you enlighten me? Thank you.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,667
    Location:
    Australia wide
    have a look at the duties act or seek legal advice. Off the top of my head I would think $290k is the dutiable value.