The cost of stamp duty in WA

Thinking about buying a property in Western Australia? Don’t forget to factor in the cost of stamp duty. We’ve broken down how stamp duty is calculated for property buyers in WA, and how you could save if any concessions or exemptions apply.
According to CoreLogic, Western Australia has been experiencing a housing downturn since mid-2014. The silver lining to this, CoreLogic says, is that Perth is one of the most affordable entry points to a capital city housing market when measured against household incomes. So, if you considering nabbing a property in Western Australia, don’t forget to factor the cost of stamp duty into your budget. Stamp duty can end up being one of the biggest upfront costs you pay when buying a property and could potentially leave you thousands of dollars out of pocket.
What is stamp duty?
Stamp duty, or transfer duty as it’s officially referred to in Western Australia, is a government tax you typically have to pay when you acquire property, or in other words when property is transferred from one person to another.
As a charge levied by state and territory governments, the rules on how stamp duty is calculated vary from place to place. A common thread is that the more expensive your property is, the more stamp duty you’ll typically need to pay.
How much you pay in stamp duty is primarily determined by three major factors: the state or territory you’re buying the property in, the value of the property, and whether you’re eligible for any concessions or exemptions. Let’s take a look at how stamp duty is worked out in Western Australia.
How is stamp duty calculated in WA?
In Western Australia, stamp duty is calculated by applying the appropriate rate of duty to your property’s ‘dutiable value’, according to the WA Department of Finance. It explains that your property’s dutiable value is usually its market value or the amount you agreed to pay for the property, whichever is higher. This means that even if you didn’t purchase the property – for example if it was given as a gift – you may still need to pay stamp duty based on the property’s market value.
Which rate of stamp duty will you pay in WA?
There are four different rates of stamp duty in WA. The rate that applies to your property purchase depends on the type of property you buy – and the type of buyer you are. The different rates of duty are:
General rate
This applies to commercial property, rural property not used as residential property, and vacant land that doesn’t qualify for the residential rate.
Residential rate
This rate applies to places of residence, rental homes, mixed-use property and land on which a residence is constructed within five years from the date you become liable to pay stamp duty.
Concessional rate
This applies to principal places of residence where the property is valued at $200,000 or less.
First home owner rate
If you’re buying a first home in WA, a concessional rate of duty can apply. We’ll take a closer look at first home buyers shortly.
Finally, if you’re a foreign buyer acquiring residential land, the WA state government imposes an additional duty of 7% of the property’s dutiable value, on top of the stamp duty rate that would normally apply.
To get an idea of how much stamp duty you’re likely to pay in WA, you can head over to our Stamp Duty Calculator and select WA from the drop-down menu to get started.
Stamp duty for first home buyers in WA
Whether you’re buying a property in Perth, Broome or anywhere in between – and regardless of whether it’s for residential, investment, commercial or farming purposes – you’ll typically need to pay stamp duty.
However, if you’re a first home buyer you may be eligible to pay zero stamp duty, or at least pay a concessional rate, depending on the value of the property you buy.
On vacant land worth up to $300,000, or a home (including land, if applicable) valued up to $430,000, first home buyers pay no stamp duty in WA. A concessional rate of duty applies on vacant land valued between $300,000 and $400,000, and a home valued from $430,000 to $530,000.
According to the Department of Finance, you may be eligible for the first home buyer rate of duty in WA if you:
- qualify for the First Home Owner Grant in WA, or
- would have qualified if you’d paid for the property or if the grant was available for established homes, or
- are a resident of the Indian Ocean Territory acquiring your first home.
When is stamp duty paid in WA?
The WA Department of Finance explains that you’ll need to lodge documents regarding your property purchase within two months of purchasing the land or home. You then need to pay the duty within one month of a duties assessment notice being issued.
Are there any exemptions to paying stamp duty in WA?
In some circumstances, you may be exempt from paying any stamp duty at all. The WA Department of Finance lists various instances where duty exemptions can apply. These include:
- Spousal exemptions – where one married or de facto partner transfers a property which is the couple’s principal place of residence so that they own it together with their partner as joint tenants or tenants in common in equal shares.
- Family farm transactions – where farming land is transferred to a family member who intends to continue using the land for primary production.
- Cancelled transactions – in these cases the would-be buyer may need to apply to the Department of Finance to avoid paying transfer duty, depending on the circumstances.
Your solicitor or conveyancer may be able to assist with completing and lodging stamp duty documents, advising you on key deadlines specific to your transaction, and offering tailored advice on all the upfront costs associated with buying property in WA.
The comparison rate for all home loans and loans secured against real property are based on secured credit of $150,000 and a term of 25 years.
^WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
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Additional reporting by Tamika Seeto. Cover image source: Cloudsrest Images/Shutterstock.com
This article was reviewed by our Sub Editor Tom Letts and Deputy Editor Sean Callery before it was updated, as part of our fact-checking process.

The comparison rate for all home loans and loans secured against real property are based on secured credit of $150,000 and a term of 25 years.
^WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
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The comparison rate for all home loans and loans secured against real property are based on secured credit of $150,000 and a term of 25 years.
^WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.