Updated 1 July 2018 to reflect recent changes to NT Stamp Duty.
Read this article if you want to learn about calculating Stamp Duty in the Northern Territory.
If you just want to calculate your costs, use the online stamp duty calculator.
Important points to note about NT Stamp Duty
- Investors pay the standard rate of duty.
- There is a Principal Place of Residence rebate for Home Buyers.
- Eligible First Home Buyers may receive:
- Stamp duty discount
- Various grants available
- Low or middle income assistance is available.
Standard Rate of NT Stamp Duty (Transfer Duty)
The standard rate of duty is payable in the following instances:
- You’re purchasing for investment purposes
- You’re not eligible for the following:
- Principal Place of Residence Rebate
- First Home Owner Discount
- Senior, Pensioner and Carer Concession.
In the Northern Territory, the government has created a complex looking formula for purchase prices up to $525,000.
See the formula within the below table, D = (0.06571441 x V² ) + 15V
D = the Stamp Duty payable
V = Purchase Price or Value divided by 1000
How to calculate the NT stamp duty:
|Your Purchase Price||Standard Rate of NT Stamp Duty|
|$0 – $525,000||D = (0.06571441 x V² ) + 15V|
|$525,000 – $2,999,999||Purchase Price x 4.95%|
|$3,000,000 – $4,999,999||Purchase Price x 5.75%|
|$5,000,000 and above||Purchase Price x 5.95%|
Use the online stamp duty calculator to calculate how much you’ll pay.
NT Stamp Duty Concessions
There’s various NT stamp duty exemptions or concessions, here’s the most common:
Concessions for Home Buyers – purchasing a brand new home or vacant land
If you’re buying a brand new home in the NT, or buying land with the intention to build a new home, then you might be eligible for the Principal Place of Residence Rebate (PPRR) of $7,000.
Therefore, you receive a discount of $7000 off the above mentioned standard rate of stamp duty.
The PPRR is not available for First Home Buyers (if you’re a first home buyer, see below).
- You are purchasing a brand new (or substantially renovated) home that’s never been lived in.
- You are purchasing vacant land and will build a new home within 5 years of settlement and will occupy that home within 1 year of construction completion.
- You are not eligible for other concessions or grants.
You can take the PPRR eligibility test if you’re not sure.
First Home Buyer Concessions – for established homes
Eligible First Home Buyers purchasing an established home for up to $500,000 receive an exemption of NT stamp duty.
Called the First Home Owners Discount, it can save you up to $23,928.60.
- Established homes only (not brand new).
- If you are buying a brand new home, you may be eligible for the NT First Home Owners Grant. Your duty would be calculated on the standard rate of duty.
Take the First Home Owner Discount eligibility test over here.
How to calculate the NT stamp duty for first home buyers of established property:
|Your Purchase Price||Concessional Rate of Duty*|
|$0 – $500,000||Nil payable|
|$500,001 to $650,000||Standard duty less $23,298.60|
|Over $650,000||See standard rate of duty, above|
Other First Home Buyer Incentives
As a First Home Buyer, you could be eligible for:
- First Home Owners Grant $26,000
- Household Goods Grant $2,000
- Home Renovation Grant $10,000
Click here to read more about these grants.
Other NT Stamp Duty Discounts
There’s a few other scenario’s where you could be eligible for an exemption or concession of the stamp duty in the Northern Territory.
You may be eligible for an exemption if:
- You’re transferring the ownership to a spouse (a few rules apply)
- You’re a Senior, Pensioner, or Carer click here
You can see the full list of exemptions and concessions over here.
When is Stamp Duty Payable?
NT stamp duty is payable within 60 days of the transaction agreement (contract date).
Other Government Fees:
There are many possible fees that you could encounter, depending on the nature of your transaction, however in this article we’ll address only the 3 you’re most likely to encounter during a property transaction.
- Transfer Registration
- Mortgage Registration
- Mortgage Discharge Registration
In the NT Budget each year, the Treasurer will announce changes to the fees.
Transfer Registration (when a ‘transfer of ownership’ is occurring)
In good news for the NT, the cost of a Transfer Registration is quite good on a national scale (most other states have a rate that increases with the purchase price).
- Effective the 1 July 2018 the Transfer Registration fee is $145
When you purchase a property, there is a legal document that transfers the ownership of that property in to your name.
And the transfer of ownership has to be registered, and the State Government charges a fee for managing the register.
Mortgage Registration (when you are borrowing money)
The mortgage gives the bank the right to sell your property if you don’t pay them back.
- As at 1 July 2018 the Mortgage Registration fee is $145
The mortgage registration ensures that the mortgage can be viewed by a simple title search.
This therefore prevents you from selling your home and not paying back the lender – because the transfer of ownership wouldn’t be able to happen unless the previous mortgage was discharged.
Mortgage Discharge Registration (when you are refinancing or selling)
Payable when an existing mortgage is being discharged (released).
- Mortgage Discharge Registration Fee as at 1 July 2018 is $145.
This is usually payable when you’re refinancing.
However, if you’re purchasing a property, your new lender may prepare a Mortgage Discharge and charge you this fee. Your solicitor arranging the settlement, will pass on that fee to the seller so that you’re not out of pocket.
About NT Transfer Duty
NT Stamp duty exemptions and concessions
The NT Stamp duty legislation
Transfer of Land (for Transfer Registration, Mortgage Registration, and other lodgement fees)
Not purchasing in the Northern Territory?
Click the below link, and then choose your State: