Basic Calculation Framework

Transfer duty (formerly known as stamp duty) in Western Australia is calculated based on either the property's sale price or its current market value, whichever is higher. This is known as the dutiable value.

• Payment is required at or before settlement - transfer duty must be paid for a certificate of duty to be issued
• You must lodge documents for assessment within 2 months of purchasing the land or home
• Transfer duty is always paid by the buyer, not the seller
• Your solicitor or conveyancer typically handles the payment process and lodgement on your behalf
• Payment is due within one month after a duties assessment notice is issued
• Certificate of duty is required to register documents at Landgate

General Transfer Duty Rates (Current as of 2025)

These rates apply to most dutiable transactions unless specific concessions or exemptions apply. Western Australia uses a progressive rate structure based on property value.

Example calculation: For a $500,000 property, transfer duty would be $11,115 plus $6,650 (4.75% of $140,000 over $360,000) = $17,765

Off-the-Plan Duty Concession

Western Australia provides specific concessions for off-the-plan purchases to encourage new housing supply and development.

• Available for purchases of off-the-plan properties
• Specific eligibility criteria apply regarding construction timing and completion
• Must be genuine off-the-plan developments, not established properties
• Concession rates may apply depending on property value and purchaser circumstances
• Can be combined with first home owner concessions where eligible

Concessional Rate for Principal Residence and WA Business Assets

A concessional rate applies to property that is either a principal place of residence or a WA business asset, where the value of the entire property doesn't exceed $200,000.

First Home Owner Rate (Major Changes in 2024-2025)

Western Australia provides significant transfer duty concessions for eligible first home buyers, with enhanced benefits announced for 2025. The state government has progressively increased thresholds and improved rates.

Established Homes - Transfer Duty Rates

Vacant Land - Transfer Duty Rates

Eligibility Requirements

• Must qualify for a First Home Owner Grant or would have qualified if consideration had been paid or if the grant was available for established homes
• At least one applicant must be an Australian citizen or permanent resident
• At least one applicant must be 18 years or older
• Cannot have previously received the grant or first home owner rate of duty from any Australian jurisdiction
• Cannot have owned residential property in Australia before 1 July 2000, or if owned after this date, specific occupancy restrictions apply
• Property must be used as principal place of residence

First Home Owner Grant (FHOG)

In addition to transfer duty concessions, eligible first home buyers can receive a $10,000 First Home Owner Grant. This is a separate benefit from transfer duty relief.

Property Value Caps

• South of 26th parallel (including Perth metro): Land and building value must not exceed $750,000
• North of 26th parallel: Land and building value must not exceed $1,000,000

Residency Requirements

• Must occupy the home as principal place of residence for at least 6 continuous months
• Occupancy must begin within 12 months of completion date
• Must apply within 12 months of completion date

Foreign Buyer Surcharge

From 1 January 2019, Western Australia introduced a 7% foreign buyer surcharge (Foreign Persons Surcharge) on residential property acquisitions by foreign persons. This is in addition to standard transfer duty.

Who is Considered a Foreign Person?

• Foreign individuals: Not Australian citizens, permanent residents, or special category visa holders
• Foreign corporations: Companies where foreign persons control at least 50% of voting power or hold 50% of shares
• Foreign trusts: Where foreign persons hold at least 50% beneficial interest

Surcharge Details

• 7% rate applied to dutiable value of residential property
• Payable in addition to standard transfer duty rates
• Applies to both direct and indirect acquisitions of residential property
• Every person acquiring an interest in land must complete a foreign buyers duty declaration form
• Exemptions available for: Substantial development (construction/refurbishment of 10+ dwellings within 5 years) and subdivision for 10+ dwellings
• Certain non-residential acquisitions may be exempt

Example: A foreign purchaser buying a $600,000 residential property pays $17,765 in standard transfer duty PLUS $42,000 foreign buyer surcharge (7% of $600,000) = $59,765 total

Important: Australian citizens and permanent residents are exempt from the foreign buyer surcharge, even if residing overseas.

Transfer Duty Exemptions

Western Australia provides several exemptions from transfer duty in specific circumstances:

Spouse/De Facto Partner Transfers

• Full exemption for transfers of residential property between spouses or de facto partners
• Applies to current relationships and relationship breakdowns
• Nominal duty may apply in some circumstances post-relationship breakdown

Deceased Estate Transfers

• Transfers in accordance with the terms of a will attract nominal duty ($20)
• Transfers under intestacy rules (where no will exists) are also eligible for nominal duty
• Must be genuine estate distributions, not commercial transactions
• Applies to transfers from executor to beneficiaries as specified in the will

Family Farm Exemptions

• Exemption on transfer of farming land to family members
• Certain landholder acquisitions involving family farming corporations
• Specific criteria apply regarding family relationships and farming use

Charitable and Public Purpose Exemptions

• Transactions for charitable or similar public purposes
• Must meet specific criteria for charitable status

Cancelled Transactions

• Exemption if a transaction has been cancelled or terminated on relevant grounds
• Specific conditions apply for refund eligibility

Application and Assessment Process

Pre-approval for First Home Owner Rate

First home buyers can apply for pre-approval of the first home owner rate of duty before settlement. If not pre-approved, duty will be assessed at the general rate and paid at settlement, with a refund available after approval.

Lodgement Requirements

• Documents must be lodged within 2 months of purchasing land or home
• Assessment notice issued after lodgement
• Payment due within 1 month of assessment notice
• Certificate of duty issued after payment

Reassessment Options

• Can apply for reassessment if believe rate is incorrect
• Strict timeframe: Reassessment applications must be made within 2 months of assessment
• May need professional valuation for certain transactions
• Refunds available if eligible concessions were not initially claimed

Additional Costs and Considerations

Comparison with Other States

Western Australia's transfer duty system has several distinguishing features: