If you’re buying a home in WA, then you might need to factor in stamp duty. Stamp duty or ‘land transfer duty’ is a government tax on transactions relating to land a property. Different rates of stamp duty apply depending on where you live in Australia, it also depends on whether;
- You’ll be living in property you’re purchasing
- You’re a first home buyer
- You’re buying an established property or vacant land
- You’re an Australian citizen
Stamp duty is calculated based on the value of your property. Generally, cheaper property is taxed at a lower percentage and will incur a much smaller stamp duty fee. Most property will fit into a category based on it’s value and will likely attract a lump sum payment plus extra for every $100 over a specified amount (i.e you might pay a lump sum of $2,280 + $2.85 per $100 above $120,000).
Many people forget about stamp duty, but it can add thousands to the cost of buying a home, because it’s an upfront cost it can’t be factored into your loan, so you’ll need to have enough set aside to cover it. Luckily there are exemptions and concessions available.
Am I exempt from paying stamp duty?
First home buyers are exempt from paying stamp duty on homes up to the value of $430,000 in WA. There are concessions available on homes with a value between $430,001 to $530,000. To receive exemptions or concessions on stamp duty you must be planning to use the home as your primary residence for at least six months commencing within 12 months of settlement if purchasing an established home, or within 12 months from the date of completion of building a home. Other eligibility requirements include:
- 18 years or older
- An Australian citizen or permanent resident
- You can’t have owned residential property anywhere in Australia before 1 July 2000
What are the stamp duty rates?
General stamp duty rates
| Dutiable Value | Duty Thresholds |
|---|---|
| $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 |
Concessional stamp duty rates
| Dutiable Value | Duty Thresholds |
|---|---|
| $0-$100,000 | $1.50 per $100 or part thereof |
| $100,001-$200,000 | $1,500 + $4.39 per $100 or part thereof above $100,000 |
First home owner stamp duty rates – established property
| Dutiable Value | Duty Thresholds |
|---|---|
| $0-$430,000 | Nil |
| $430,001-$530,000 | $19.19 per $100 or part thereof above $430,000 |
First home owner stamp duty rates – vacant land
| Dutiable Value | Duty Thresholds |
|---|---|
| $0-$300,000 | Nil |
| $300,001-$400,000 | $13.01 per $100 or part thereof above $300,000 |
Ready to find out more? From stamp duty, to loan options and approvals, our finance team is here to answer all your questions and help you to understand everything you need to know about buying a home in the South West.
We’ll be with you every step of the way to guide you through the finance process and get you into your own home. Get started on your home ownership journey and get in touch with us today!
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The team at Ventura South West can help. Our in-house finance team can run you through your finance options and will be there every step of the way, from application to approval. So what are you waiting for? Your dream home in the South West is waiting for you.
