Stamp Duty Western Australia

What is Stamp Duty?

Stamp duty, which is often referred to as transfer duty, is a government tax on the transfer of property from one owner to another. The amount of stamp duty you’ll be asked to pay can depend on a few factors, such as the price and location of the property, and whether or not you’re a first-time homebuyer.

Stamp Duty Calculator WA

How much could I pay?

In Western Australia, you need to pay a transfer duty on property whether it’s residential or commercial. Rates are calculated based on the property’s dutiable value, which is either the price you paid for the property or its market value, whichever is greater.

Next let’s look at the duty thresholds for residential rates. These can apply to a residential property that’s going to be used as your primary residence, as well as rental properties or vacant land where you intend on building a home within five years.

Are there concessions available?

Depending on the value of your property and your personal circumstances, you may qualify for a lower rate of stamp duty.

A concessional rate of duty can apply if:

• You’re buying a residential property valued at less than $200,000, and you intend on living at the property full-time.
• You’re buying a business where the value is less than $200,000, and you plan on running the business indefinitely.

First Home Owner Rate of Duty Western Australia

You may also be entitled to lower rates via the First Home Owner Rate of Duty (FHOR) if you qualify for Western Australia’s First Home Owner Grant (FHOG). This is a $10,000 grant designed to give first time home buyers a little extra help. To be eligible for the grant you must:

• Be over the age of 18 and an Australian citizen or permanent resident;
• Have never purchased a home before 1 July 2000. If you have a spouse or partner, it must be their first home purchase too;
• Occupy the home as your primary residence for at least 6 months within one year of purchasing the home.

The value of your home must also meet certain thresholds. You can learn more about the FHOG in Western Australia and see if you are eligible on their website. If you do qualify, you may also be entitled to the first home owner transfer duty rate, or FHOR.

Could I be exempt from paying transfer duty?

There are a few types of transactions that might be exempt from stamp duty, such as:

• A transaction where the party paying stamp duty is the State, a local government or certain public authorities.
• Properties that are purchased for charitable purposes.
• The transfer of farms between properties.
• Property transferred or purchased in the process of bankruptcy.
• Cancelled transactions.
• Certain types of business transactions involving transfer to incorporated associates.
• First home buyers purchasing a property valued below $430,000.
• First home buyer purchasing vacant land valued below $300,000.

How do I lodge my transfer duty?

Depending on the type of transaction, you may be able to self-assess your transfer duty and then lodge it electronically through Revenue Online by an approved agent. Other transactions will require you to submit a hard copy. Generally, you’ll be asked to lodge your transfer duty within two months of the contract date.

Anything else?

Whether you’re buying your first home or investing in a second property, the homebuying process can be a little overwhelming. But we’re here to help. We’ve partnered with Lendi* to help you compare home loans from over 35 lenders and over 2,500 home loan products. Get started online or give Lendi a call on 1300 186 260 (08:30-18:30).

Last updated: 19/04/2021

Sources:
1. https://www.wa.gov.au/government/publications/transfer-duty-fs
2. https://www.wa.gov.au/service/financial-management/taxation-and-duty/calculate-your-transfer-duty
3. https://www.wa.gov.au/service/community-services/grants-and-subsidies/apply-the-first-home-owner-grant
4. https://www.wa.gov.au/organisation/department-of-finance/fhog