Calculate the transfer duty that is required to pay to the Goverment for the purchase of a $499,000 house.
What country are you from? Each country has different rates and percentages when buying a house. That is why you have to give details of the rules and regulations in your country so that we can help you.
Ok, that is fine. But, what are the rates and percentages that calculate "Transfer duty to the Government"? Look it up in your textbook or assignment. It generally goes something like this:
From 0 - $100,000 is 1%, From $100,000 - $200,000 is 2%, over $200,000 is at 3%......etc.
Not more than $5,000 Nil More than $5,000 up to $75,000 $1.50 for each $100, or part of $100, over $5,000 $75,000 to $540,000 $1,050 plus $3.50 for each $100, or part of $100, over $75,000 $540,000 to $1,000,000 $17,325 plus $4.50 for each $100, or part of $100, over $540,000 More than $1,000,000 $38,025 plus $5.75 for each $100, or part of $100, over $1,000,000 Additional duty of 3% applies to acquisitions of residential land by foreign persons (including companies and trusts) from 1 October 2016. Find out more about the additional foreign acquirer duty.
Is that it?
I will take a crack at it, but Melody can correct me:
Up to $5,000 is Nil
$5,000 to $75,000, or on $70,000 is $1.50 per $100. So, $70,000/$100 x $1.50=$1,050.
$75,000 to $479,000,or on $404,000 is $1,050 + $3.50 x $404,000/100 =$15,190. So, the total will be:
$1,050 + $15,190 = $16,240 - transfer duty to the Government.
Now you got it!!. But, since Melody is Australian, she is in a much better position to calculate the "transfer duty". So, Melody, if you see this, please help this young person! Thanks.
OK, forget the answer in #8. I think this the accurate answer, which is exactly the same as Bank LMI calculation:
Up to $5,000 is Nil:
From $75,000 to $479,000 is: $1,050[which is from $5,000 - $75,000] + $3.5 x $404,000/100[which is from $75,000 to $479,000] =$1,050 + $14,140 =$15,190 - trasfer duty to the Government.
