All purchasers are liable to pay stamp duty once contracts have been exchanged.
The timeframe for payment of stamp duty varies in different situations and circumstances.
All purchasers have 3 months from the date of the contract to pay stamp duty. However, if the purchaser is obtaining finance for the purchase the duty must be paid on or before settlement and in all other cases within 3 months of the date of the contract to avoid the interest penalty.
Purchasers who are purchasing property “Off the Plan”
The duty must be paid within three months from the date of:
• completion of the agreement; or
• the assignment of the whole or any part of the purchaser’s interest under the agreement, or
• the expiration of 12 months after the date of the agreement, whichever occurs first.
Foreign Investor purchasers purchasing “Off the Plan”
Foreign persons as defined in the Foreign Acquisitions and Takeover Act are no longer entitled to the 12 month deferral for the payment of stamp duty for off-the-plan purchases of residential property. The applicable duty must be paid within 3 months after the liability to duty arises. The Foreign investors are also subject to 4% surcharge rate on their duty which is payable at the same time as the stamp duty.