Are you looking to build or buy your first home in WA? Then it’s important to be prepared for WA stamp duty.
Here, I’ve broken down the stamp duty rates in WA, how stamp duty works, and what concessions you may qualify for as a first time home buyer.
What is stamp duty?
Stamp duty is a one-time payment the government charges when a property is transferred to a new owner. Consider stamp duty, also known as transfer duty, like a tax.
The money collected from stamp duty is used to support the local economy and fund public sectors, such as roads, transportation, emergency services, healthcare, and education.
Do first home buyers pay stamp duty in WA?
In Australia, individuals must pay stamp duty when buying a property. This includes first time home buyers.
Western Australia stamp duty rates are a common concern among first time home buyers wondering “how much is stamp duty in WA?”.
Along with saving up enough money to build or purchase an established home, you’ll also want to make sure you have enough funds to cover stamp duty.
Stamp duty can end up being around 4 to 5% of a property’s value, resulting in a potential fee of thousands of dollars.
Fortunately, most states and territories offer stamp duty concessions and exemptions for first time home buyers.
What stamp duty concessions and exemptions are available in WA?
Stamp duty rates vary by state and territory, but first time home buyers in WA may qualify for a discounted stamp duty rate if:
- The value of the home and land is less than $430,000
- Properties valued between $430,000 and $530,000 are subject to a discounted duty rate of $19.19 per every $100 above $430,000.
- Vacant land valued below $300,000 is exempt from stamp duty
- Land valued between $300,000 and $400,000 is subject to a transfer duty charged at $13.01 per $100 above $300,000
| Purchase Price | Stamp 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 + | $11,115 + $4.75 per $100 or part thereof above $360,000 |
Source: wa.gov.au
The home must also be a residence, not an investment property. Foreign buyers may be eligible as well but they may be responsible for a foreign transfer duty.
To learn more, read about the First Home Owner Rate of Duty.
Stamp duty rates in WA and other states
The rates of stamp duty in WA vary across the different states and territories.
It’s always important to double check the stamp duty rate for your specific state or territory before buying a property.
Most state governments offer stamp duty concessions and exemptions and first home buyer grants to help offset the cost of purchasing a first home.
Each program is subject to specific criteria, such as location, property value, residency status, and more.
See the list below to view stamp duty rates by state and territory.
Western Australia
When buying a first home in Western Australia, eligible new or existing homes under $430,000 in value are exempt from WA stamp duty. Vacant land valued less than $300,000 is also exempt from WA stamp duty.
New or existing homes valued between $430,000 and $530,000 are subject to a transfer duty rate of $19.19 per every $100 above $430,000.
Land valued between $300,000 and $400,000 is subject to a transfer duty charged at $13.01 per $100 above $300,000.
New South Wales
In New South Wales, first time home buyers may be eligible for a stamp duty exemption through the First Home Buyer Assistance Scheme. With this scheme, first time home buyers may be exempt from stamp duty if they purchase a new or existing home under $800,000. For homes up to $1,000,000, a concessional rate of duty is offered.
For land purchases, an exemption may be possible for land up to $350,000 in value. A concessional rate applies to land between $350,000 to $450,000.
Victoria
For Victorian first-time buyers in Victoria, they may be eligible for a stamp duty exemption. The VIC government offers a stamp duty exemption for first time home buyers purchasing new or existing properties for $600,000 or under. A concessional rate applies to homes up to $750,000.
South Australia
There are currently no stamp duty exemptions or concessions for first time home buyers in South Australia. However, first time home buyers may be eligible for a first time buyer grant in SA when purchasing an apartment or newly built house.
Queensland
First-time buyers in Queensland may be eligible for a stamp duty concession. To qualify, new or existing homes must be valued at $550,000 or less. Vacant land worth less than $400,000 may be exempt from stamp duty.
Tasmania
Tasmania does not offer first time home buyers any stamp duty exemptions. However, the TAS government offers a stamp duty concession of 50%. To be eligible, the property must be $600,000 or less in value.
ACT
There are stamp duty exemptions for new homes and vacant land in Australia’s Capital Territory. For homes valued under $470,000, no stamp duty is required.
Stamp duty concessions are available for new-build homes between $470,000 and $607,000 in value.
For first time home buyers who build a residence on vacant land in ACT, stamp duty is not required for properties under $281,200 in value. Stamp duty concessions are available for new home builds and land valued at $329,500 or less.
Northern Territory
Currently, there are no stamp duty exemptions or concessions offered by the Northern Territory government for first time home buyers.
However, the Northern Territory government does offer the Northern Territory’s First Home Owner Grant Scheme. If eligible, this scheme offers a $10,000 bonus to help offset upfront fees when purchasing a first home.
What are the standard rates of duty?
The standard residential rates of duty for those who are not buying their first home are as follows:
| Purchase Price | 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 |
Source: wa.gov.au
FAQs about WA stamp duty laws
How is stamp duty calculated?
Generally, the higher a property is valued, the more stamp duty will be owed. The specific stamp duty also depends on your location as rates vary by state and territory.
You can use a stamp duty calculator to help figure out how much WA stamp duty you will owe.
First time home buyers can use the Transfer Duty Calculator tool on Western Australia’s government website to help determine how much stamp duty they need to pay.
How do I apply for these government first home buyer grants or schemes?
To apply for these home buyer grants and schemes, check with the relevant government department website. Since each exemption or scheme is specific to the area, you’ll want to check individual state and territory government websites.
When do I need to apply for the First Home Owner Grant?
Each state and territory has specific rules regarding deadlines, but you generally need to apply for the First Home Owner Grant within one year of the settlement date.
Do first home buyers pay stamp duty in WA?
First home buyers may be required to pay stamp duty in WA. Stamp duty rates WA depend on several factors, including the location of the property and its value.
How does WA stamp duty work in WA?
Residential stamp duty in WA is paid to the WA Department of Finance unless you qualify for an exemption.
Summary
If you’re a first home buyer buying a home or vacant land for less than $430,000, you will pay no stamp duty. If you’re buying a property valued between $431,000 and $530,000, you will pay a discounted rate of duty. However, you will need to pay the general rate of duty for a home that is valued over $530,000.
Whether you want to find out more about stamp duty exemptions and concessions or what grants are available for first time home buyers in WA, I’m here to assist you. You can also read my helpful First Home Buyer’s Guide.
Reach your home ownership goals today by getting in touch today.
