Stamp Duty Valuations

Stamp duty is the amount of tax payable upon the transfer of ownership of an asset between two or more parties, designed to cover the legal costs incurred by the transaction. A stamp duty valuation is a compulsory requirement of the Office of State Revenue when a property was not sold on the open market and where there is an identifiable relationship between the sale parties, therefore deeming the transaction to not be at ‘arms length’ (ie. not at current market value).  For instance, a sale between family members is more times than not, at an amount considerably less than the assets current market value.

The Office of State Revenue also requires a valuation report to be carried out by an independent valuation firm when there is a transfer of ownership of property into a different name, including legal entities such as companies, trusts or superannuation funds.

The amount of stamp duty payable on a property transaction is calculated by the Office of State Revenue based on the current market value of the asset in question, not the transfer amount negotiated between the related parties.  It is therefore a legal requirement that this assessment of market value is completed by a professionally qualified valuer who is a current member of a relevant governing industry body, such as the Australian Property Institute (API).

As stamp duty is a significant added cost to an already large transaction, it is paramount that an accurate valuation report is obtained to ensure you do not pay more tax than you need to.  As industry leading valuers, Powerhouse Property Professionals staff are all members of the Australian Property Institute (API), and are experienced in providing valuations which meet the legislative requirements of the Office of State Revenue that will ensure you receive an accurate representation of the value of your property.  Please phone us on 1300 097 912 today, or fill out our quotation request form below if you require a stamp duty valuation.