Stamp duty is an amount of tax levy imposed by the government on the transfer of property ownership in Australia. The amount of stamp duty is payable based on the value of the property. To determine the value of a property, a stamp duty valuation report is required or mandatory. In this article, we will discuss the importance of stamp duty as to why it is so critical while undertaking a valuation assessment for tax purposes.
Obtaining a property valuation for stamp duty purposes is a very important process, and must not be overlooked. The value of the property determined by a qualified valuer in the valuation report may determine the cost of stamp duty, you need to pay to the State Revenue Office (SRO) in Victoria or Revenue NSW in New South Wales. In essence, the higher the valuation (value of property), the higher amount of tax you need to pay to the Government.
Stamp Duty 印花税
Obtain a Property Valuation for Stamp Duty
A property valuation report for stamp duty purposes is an assessment of the value of a property. This report is written by a qualified and licensed property valuer, either a CPV or MRICS from Australia Property Institute (API) or Royal Institution of Chartered Surveyor (RICS), locally and internationally recognised in each respect.
As part of the valuation assessment, a qualified valuer will need to write up a valuation report for stamp duty purposes and attend inspections (if they are not desktop valuations). The value of a property is based on a variety of factors including location, zoning, building size, age, and overall condition of the property.
The report reflects an independent opinion of the value of the property, which is then used to determine the amount of stamp duty which is payable. Valuation reports for stamp duty purposes are used by property investors, owners, conveyancers, buyers and sellers. This process helps to ensure that they are paying the right amount of stamp duty, as well as avoiding disputes over the ultimate value of the property.
The Importance of a Property Valuation for Stamp Duty Purposes
The importance of a stamp duty valuation report cannot be neglected, as it may affect the ‘financial health’ of every individual. For example, if a value of property is under $600,000 in the valuation report, under the current tax legislation of Victoria, you may not need to pay stamp duty at all. However, if a value of property is $650,000, you may need to pay approximately $17,500 as a cost for stamp duty even as a first home buyer and even more than $30,000 if it is not your first property.
This valuation or ‘value of property’ entirely depends on the opinion or mercy of a valuer. In a nutshell, this is the impact of valuation reports in the respect of stamp duty. At Asia Valuation, we do strong due diligence by maintaining a concrete database and never underestimating the importance of every single sales evidence we put in the valuation reports.
Should you need help with a property valuation for stamp duty purposes, we will listen to your circumstances and connect you with a professional valuer.
What is immigration property valuation?Property valuation reports for immigration purposes have no different with other types of valuation reports. Immigration property valuation report is a submission of valuation assessment for Department of Home Affairs, mainly for asset declaration purposes. This valuation report is useful for applicants who apply for Business Innovation and Investment (Provisional) Visa Subclass 188 A, B, C and possibly E, and Visa Subclass 888. At Asia Valuation, our team is based in Australia and Hong Kong and China, we can help you determine the value of your property whether it is inside or outside Australia.
Why is accurate property valuation essential in immigration cases?Accurate property valuation is essential in the application of business investment visa, as the Department of Home Affairs is very stringent in approving application for such visa. Many applicants get rejected in the process of application due to not attaining certain requirement or amounts of their total net assets. Every dollar worth a chance in the application of Business Innovation and Investment (Provisional) Visa. Asia Valuation can directly deal with you or your migration lawyers, ensuring our valuation reports meet your needs for such a critical application.
Can the ‘valuation for immigration purposes’ impact visa eligibility?Yes, the valuation for immigration purposes may impact visa eligibility. The assessed valuation can certainly impact visa eligibility as the amount of total net assets in the valuation reports can become evidence of financial capacity in Australia. This is a critical checklist from Australian Government while approving any visa application for business investment subclass. A thorough property valuation report with proper qualification adds credibility ensuring a smoother application.
What is the necessary qualification required for writing a valuation report for immigration purposes?Australian Government is favouring MRICS over CPV in relation to immigration valuation matter as Immigration Department believed valuation experts in their respective home countries armed with stronger local market knowledge compared to valuers practising in Australia. And hence, we only appoint MRICS for immigration valuation matters inside and outside Australia as to avoid report rejection.
Do you provide formal valuation services in languages other than English?No. Our valuation reports are well-written in English and courts in Australia only accept Sworn Valuation Reports in English version. However, our team in Asia Valuation can provide verbal advice in Mandarin and Cantonese if required.
Where are you located?Asia Valuation has office locations in Melbourne and Sydney. We also have partner office in Hong Kong.