What taxes and fees need to be paid when purchasing Australian real estate?
It is also essential to pay taxes when buying real estate in Australia. From buying a house, maintaining a house to selling a house, every process is related to paying taxes. What taxes will be paid at each step? Let us explain them one by one.
The first is the taxes and fees that need to be paid when buying a house.
The one-time taxes and fees that need to be paid when buying a house include stamp duty, lawyer fees, FIRB application fees, loan application fees, etc. The fees are roughly as follows: stamp duties vary in different regions, such as Sydney 4%, Victoria 3.5%, and Brisbane 3.2%. The legal fees are not exactly the same, they are about 1350-1650 Australian dollars. When the house price is ≤ AUD 10,000, the FIRB application fee is AUD 5,000. When the house price is less than or equal to AUD 2 million, the application fee is AUD 10,000; when the house price is above AUD 2 million, the application fee increases by 654.38+00,000 for every 1 million price range. The loan application fee is 600-900 Australian dollars.
Secondly, there are taxes and fees that need to be paid in the process of raising a house.
The taxes and fees involved in the process of maintaining a house include: municipal tax, property fees, sewage fees, rent management fees, and house insurance premiums, which are basically paid every year. The specific expenses are roughly as follows: municipal tax is 1,000 Australian dollars per year, property management fees are 1,000-2,000 Australian dollars per year, sewage fees are 900 Australian dollars per year, 5%-6% rental management fee, and house insurance is 300-700 Australian dollars per year.
The last thing is the taxes that need to be paid when selling the house.
If you are a seller, you also need to pay some taxes when selling a house, mainly value-added tax. The so-called real estate value-added tax refers to a tax levied on the difference between the selling price and the cost price of a property. The value-added part within one year is 50%, and the value-added part after one year is 30%. However, there are various tax credit policies, so the value-added tax will be reduced to 10%-15% of the value-added part, and the value-added amount is less than 25,000 Australian dollars.
Now you should know what taxes and fees you need to pay when buying Australian real estate. If you have any questions, you can find out through online consultation. There will be professional consultants to answer your questions about buying a house in Australia, as well as a series of issues involved in the process of buying a house.
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