What is a Stamp Duty Valuation?
Stamp Duty is something you might not have heard of until you suddenly need to pay it. Like other kinds of tax such as Capital Gains, it’s a government fee that’s only payable when you are in the fortunate position of buying or being transferred a property. It’s payable on all types of property purchase or transfer, including residential, rural or commercial.
While there may be situations or ‘loopholes’ that can be enacted to avoid paying Stamp Duty, you will still likely need a full valuation report to support the transfer or sale. In most cases, I would advise new property owners to have their own conveyancer or solicitor ready to go, as valuations for Stamp Duty purposes are valid for only 90 days after the inspection date. If, after 90 days, the transfer hasn’t been completed, another inspection needs to take place and a new valuation service fee is payable.
Current Australian property and taxation laws require all valuation reports for Stamp Duty calculations to include a physical inspection by a qualified property valuer.
The valuation will determine the market value of a property and facilitate legal or taxation professionals to calculate stamp duty payable (or exemptions) based on this report. It is currently the only legal method for calculating the amount payable every time you purchase a property, including inheriting or transferring property in estate planning contexts that might not be tested ‘at market’.
Advice about the amount payable in different scenarios should always come from a legal practitioner such as a lawyer, solicitor or conveyancer experienced in property and estate matters, but a certified property valuer accredited with the Australian Property Institute (API) needs to be involved in the valuation to qualify market value.
They say death and taxes are the only inevitable parts of life, and it may never be more true than when you suddenly need to pay Stamp Duty for whatever reason, but doing it properly will save you plenty of time and money in the long run.
For the record, Revenue NSW handles Stamp Duty obligations while the Australian Tax Office (ATO) handles Capital Gains Tax liability for Australian property owners.
So, talk to your solicitor or conveyancer about your personal situation and have them send their instructions to a Certified Practising Valuer to make the process as easy as possible.
Or drop me a line and I can walk you through the process so it’s less irritating and confusing than it feels right now!
Good luck! May the power of friendly CPVs be with you…