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What is stamp duty?
Stamp duty, also known as transfer duty, is a one-off government fee paid by the purchaser of a property in Western Australia (WA).
Stamp duty in WA is calculated on the market value of the property or the price you paid for the property, whichever is higher. This is known as the dutiable value of the property.
So the higher the dutiable value of the property, the more expensive the stamp duty will be.
How is stamp duty calculated in WA?
In Western Australia, different rates apply depending on whether you’re buying as an owner/occupier (in which case you’ll pay the residential rate) or an investor (in which case you must pay the more expensive general rate).
How is stamp duty calculated on residential property in WA?
The residential property rate applies to places of residence, rental homes (investment properties) and land on which a residence is constructed within five years from the date the liability to duty arose.
The residential rate also applies to mixed use property, e.g. a restaurant with a residence above it.
The stamp duty (transfer) rates for residential properties in Western Australia (WA) are as follows:
| Purchase Price/Value | Stamp Duty (Transfer Duty) Rate |
|---|---|
| $0 – $120,000 | $1.90 per $100 or part thereof |
| $120,001 – $150,000 | $2,280 + $2.85 per $100 or part thereof above $120,000 |
| $150,001 – $360,000 | $3,135 + $3.80 per $100 or part thereof above $150,000 |
| $360,001 – $725,000 | $11,115 + $4.75 per $100 or part thereof above $360,000 |
| $725,001 + | $28,453 + $5.15 per $100 or part thereof above $725,000 |
For example, if you were purchasing a $600,000 house in WA, you would fall within the $360,001 – $725,000 category. Therefore, you would be charged an upfront stamp duty of $11,115 plus an additional charge of $ 11,400 for a total of $22,515.
Given the higher-priced property in and around Perth, WA, a Perth property buyer purchasing a $1 million house will need to pay stamp duty of $42,615.50.
Can I add the cost of stamp duty to my home loan?
Stamp duty is one of the single biggest ticket item costs when buying a property. You may be able to add the stamp duty amount to your first home buyers loan – saving you from having to come up with the amount upfront.
Give us a call on 1300 889 743 or complete our free assessment form to speak with one of our mortgage brokers regarding a suitable home loan.
How is stamp duty calculated in WA for commercial or rural properties?
Stamp duty for commercial or rural properties in WA is calculated on a general rate.
This generally applies to commercial and rural property that is not also used as residential property, and vacant land which doesn’t qualify for the residential rate.
The general rate of duty for commercial or rural properties in WA is as follows:
| Purchase Price/Value | Stamp Duty (Transfer Duty) Rate |
|---|---|
| $0 – $80,000 | $1.90 per $100 or part thereof |
| $80,001 – $100,000 | $1,520 + $2.85 per $100 or part thereof above $80,000 |
| $100,001 – $250,000 | $2,090 + $3.80 per $100 or part thereof above $100,000 |
| $250,001 – $500,000 | $7,790 + $4.75 per $100 or part thereof above $250,000 |
| $500,001 + | $19,665 + $5.15 per $100 or part thereof above $500,000 |
How is stamp duty calculated on vacant land in WA?
According to the WA Department of Finance: If you purchase vacant land , duty will initially be charged at the general rate. If a house is then built on the land that is eligible for the First Home Owners Grant (FHOG), a refund will be available, on application, once the grant is issued.
Stamp duty or transfer duty on vacant land in WA is exempt from stamp duty for values up to $300,000. Concessions are available for land valued between $300,001 and $400,000.
The concessional rate for vacant land is $13.01 per $100 or part thereof above $300,000.
How much is the stamp duty surcharge for foreign investors in WA?
A foreign buyers duty (stamp duty surcharge) of 7% on the dutiable value of the property is charged for foreign buyers, which is in addition to the normal transfer duty.
If you are acquiring property with another person and only one of you is a foreign person, foreign buyers’ duty will only apply to the extent of the purchase by the foreign person.
For example, you purchase a property for $500,000. The buyer who is foreign is a joint tenant (50% interest in the property).
- Transfer duty will apply to the total amount ($500,000) and foreign transfer duty will apply to the 50% share that is being purchased by the foreign person ($250,000 – which is 50% of the purchase price or unencumbered value of the property).
- If you are eligible for the first home owner rate of duty, no transfer duty is payable and $17,500 ($250,000 x 7%) foreign transfer duty is payable.
How much is the off-the-plan stamp duty rebate in WA?
A 75% rebate on stamp duty for off-the-plan purchases is available to both owner-occupiers and investors who enter into:
- a pre-construction contract between 23 October 2019 and 23 October 2021 (inclusive) to purchase a new residential unit or apartment or
- a contract signed between 4 June 2020 to 31 December 2020 to purchase a new unit or apartment under construction.
The rebate amount is capped at a maximum of $50,000 for the pre-construction contract and $25,000 for a contract under which construction has already commenced.
This 75% rebate applies to both the standard stamp duty as well as the foreign stamp duty surcharge (if applicable).
WA Stamp duty exemptions
When is stamp duty in WA exempted?
Stamp duty in WA may be exempted in the following cases:
- Spousal transfer
- Charitable transactions
- Family farm transactions
Unless stated, you must apply for an exemption from transfer duty.
How much is the stamp duty for first home buyers in WA?
Stamp duty for first home buyers in WA is calculated as follows:
- First home buyers pay no stamp duty in WA if you’re buying a home or vacant land for less than $430,000.
- First home buyers pay discounted stamp duty if you’re buying a property valued between $431,000 – $530,000.
- First home buyers pay the residential or general rate of duty for property valued over $530,000.
| Purchase Price/Value | Stamp Duty (Transfer Duty) Rate |
|---|---|
| $0 – $430,000 | No stamp duty payable |
| $430,001 – $530,000 | $19.19 per $100 or part thereof above $430,000 |
| $530,001 + | The residential rate of duty generally applies |
How much is the First Home Owners Grant in WA?
Currently, the First Home Owners Grant (FHOG) in WA is $10,000.
The cap limits the total value of property (i.e. total value of home and land) to $750,000.00 or less, or if the home is located north of the 26th parallel to $1,000,000 or less.
FAQs: Stamp duty (Transfer duty) WA
Who pays the stamp duty in WA?
The stamp duty is paid by the purchaser of the property. The purchase becomes liable for the stamp duty once the sale or transfer takes place.
Your conveyancer or solicitor lodges an application on your behalf. They’ll also arrange for the duty to be paid. This is typically done as part of the settlement process. They’ll also know if you are entitled to any exemptions or concessions.
When do I pay the stamp duty in WA?
Generally, you must pay the stamp duty within one month after a duties assessment notice is issued
You or your solicitor can pay the stamp duty via online, credit card, Bpay, post, cash or cheque in person.
What other fees are there with stamp duty?
In addition to stamp duty, there is the mortgage registration and title transfer fees. Our stamp duty calculator WA above automatically calculates these additional fees.
The WA title transfer fee operates on a sliding scale determined by the value of the property you’re purchasing ranging from $178.20 to $568.20, and the mortgage registration fee from 1 July 2020 is $178.20.
How much is stamp duty on a $500,000 house in WA?
Stamp duty on a $500,000 house in WA is $17,765 for a non-first home buyer buying an established property, new home or vacant land as their main place of residence.
The stamp duty for the same house which will be used as an investment is $17,765.
For a first home buyer, the stamp duty is discounted to $13,433 on a $500k home purchase.
Are you ready to apply for a home loan?
Our mortgage brokers can assess your situation and work out if you have a large enough deposit to buy a home.
They can also clarify any questions you may have about the cost of stamp duty, transfer fees or first home owners grants in Western Australia (WA).
Speak to one of our specialist mortgage brokers by calling us on 1300 889 743 or fill in our online assessment form to find out if you’re ready to buy.
