Stamp duty is a tax that is levied on documents. Historically, this included the majority of legal documents such as cheques, receipts, military commissions, marriage licenses and land transactions. A physical stamp (a revenue stamp) had to be attached to or impressed upon the document to denote that stamp duty had been paid before the document was legally effective. More modern versions of the tax no longer require an actual stamp. The duty was originally introduced in the Netherlands in 1624 and spread to other countries subsequently, France 1654, Denmark 1657 and Prussia 1682.
The federal government of Australia does not levy stamp duty. However, stamp duties are levied by the Australian states on various instruments (written documents) and transactions. The rates of stamp duty vary from state to state, as do the nature of the instruments or transactions subject to duty. Some jurisdictions no longer require a physical document to attract what is now often referred to as “transaction duty”. Major forms of duty include the transfer duty on the sale of land, businesses, shares and other forms of dutiable property; mortgage duty; lease duty and duty on the hire of goods. Rebates or exemptions are available from transfer duty and mortgage duty for those purchasing their first home.
Often a stamp duty property valuation report is required by the office of state revenue by a registered property valuer when transferring ownership between related parties. The stamp duty paid is based on the valuation provided. Stamp duty valuations are also required where property is being transferred into a superannuation fund and various trusts and entities.
Experts have been providing stamp duty valuations for the use of the Office of state revenue for many years and have the experience to provide a valuation to suite your needs and meet the requirements of the Office of State Revenue.
A capital gains tax valuation is valuation of a tax on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property. Not all countries implement a capital gains tax and most have different rates of taxation for individuals and corporations.
For equities, an example of a popular and liquid asset, national and state legislation often has a large array of fiscal obligations that must be respected regarding capital gains. Taxes are charged by the state over the transactions, dividends and capital gains on the stock market. However, these fiscal obligations may vary from jurisdiction to jurisdiction.
Capital gains tax in Australia is only payable upon realized capital gains, except for certain provisions relating to deferred-interest debt such as zero-coupon bonds. The tax is not separate in its own right, but forms part of the income tax system. The proceeds of an asset sold less its ‘cost base’ (the original cost plus addition for cost price increases over time) are the capital gain. Discounts and other concessions apply to certain taxpayers in varying circumstances. The amount left after applying the discount is added to the assessable income of the taxpayer for that financial year.
You pay tax on your capital gains. It’s not a separate tax, just part of your income tax, although it is generally referred to as capital gains tax (CGT). If you make a capital loss, you cannot claim it against income but you can use it to reduce a capital gain in the same income year. If your capital losses exceed your capital gains or you make a capital loss in an income year you don’t have a capital gain, you can generally carry the loss forward and deduct it against capital gains in future years. All assets you’ve acquired since tax on capital gains came into effect (on 20 September 1985) are subject to CGT unless specifically excluded. Selling assets such as real estate or shares is the most common way you make a capital gain or capital loss. CGT also applies to intangible assets such as business goodwill. Some of your main personal assets are exempt from CGT, including your home, car, and most personal use assets, such as furniture. CGT also doesn’t apply to depreciating assets used solely for taxable purposes, such as business equipment or fittings in a rental property.
CGT Valuation- Often, after disposal of property that is not the principal private residence, the Inland Revenue will require a formal written valuation to calculate any Capital Gains Tax due. Any gain in value made on a property, residential or commercial or held as an investment unless owner occupied, is subject to this Tax.
In addition, when it is intended to transfer the ownership of a share of a property or the entire property, a value has to be given in order to assess the amount of Stamp Duty to be paid to the Inland Revenue.