Stamp Duty Calculator for Western Australia
Our Stamp Duty Calculator provides an easy way to estimate the stamp duty expenses you may encounter when purchasing property in any Australian state or territory.
It’s important to note that the results generated by our calculator are intended to serve as an indication of the potential stamp duty costs. They should be used to help you plan and include these estimates in your savings strategy.
Therefore, while our calculator provides a helpful estimate, it’s essential to consult with professionals to get a precise understanding of your specific stamp duty obligations.
How is stamp duty calculated in WA?
In Australia, the stamp duty you are required to pay varies based on the nature of your property purchase. If you are buying a home to live in, known as an owner-occupier purchase, you will be eligible for a concessional rate. However, if you purchase property as an investment, you will be subject to a higher standard rate.
Residential Property
When purchasing a property intended as your main residence, stamp duty is calculated at a rate that considers the property value and its usage. This rate is usually lower compared to investment properties.
Investment Properties
Stamp duty rates for investment properties are typically higher, reflecting the non-primary residence status of the property. This category includes rental properties and other forms of real estate investments.
Mixed-Use Properties
Properties that serve dual purposes, such as a combination of residential and commercial use, require a more complex calculation. The stamp duty for such properties is proportionally allocated based on the residential and commercial segments of the property.
Calculating stamp duty on vacant land in Western Australia
In Western Australia, the calculation of stamp duty on vacant land follows specific guidelines set by the WA Department of Finance.
Upon purchasing vacant land, the initial stamp duty is calculated at the general rate. This applies to all vacant land transactions before any developments are made.
If a residence is constructed on vacant land, and this construction qualifies for the First Home Owners Grant, buyers can apply for a stamp duty refund. This refund is granted once the FHOG is issued.
For instance, if you build a family home on the purchased land and it meets the criteria for the FHOG, you become eligible for this refund.
Understanding the stamp duty surcharge for foreign Investors in Western Australia
In Western Australia, foreign investors purchasing property are subject to a foreign buyers duty, also known as a stamp duty surcharge. This is in addition to the standard transfer duty. The surcharge for foreign buyers is set at 7% of the property’s dutiable value.
Example: In cases where property is jointly purchased and one of the buyers is a foreign individual, the surcharge applies proportionally. It’s calculated based on the foreign investor’s share in the property.
For instance, consider a scenario where a property valued at $600,000 is jointly purchased, and one of the buyers, holding a 40% interest, is a foreign investor. In this case, the standard transfer duty applies to the total value ($600,000), while the foreign transfer duty is levied on 40% of this amount, which is $240,000.
Applying the above scenario, the standard transfer duty would be calculated on the full $600,000. The additional foreign transfer duty for the foreign investor’s 40% share would be calculated as 7% of $240,000, amounting to $16,800.
Stamp duty for first home buyers in Western Australia
In Western Australia, first home buyers benefit from specific stamp duty concessions, making it more affordable to enter the property market. The amount of stamp duty payable varies depending on the value of the property or land being purchased.
First home buyers are exempt from paying any stamp duty on properties or vacant land valued at up to $430,000. This exemption aims to facilitate homeownership for first-time buyers.
Understanding the first home owners grant (FHOG) in Western Australia
In Western Australia, the First Home Owners Grant (FHOG) is set at $10,000. This grant is designed to assist first-time homebuyers in purchasing their initial home, providing a financial boost to make homeownership more accessible.
Property Value Caps for FHOG Eligibility
General cap: The total property value, including the home and land, must be $750,000 or less to qualify for the FHOG.
Higher cap for northern regions: For properties located north of the 26th parallel, a higher cap is set. Here, the total property value can be up to $1,000,000 for the FHOG eligibility.
