Key takeaways
- Stamp duty, officially transfer duty, is a state government tax payable when you buy property in Western Australia.
- It is worked out on the purchase price using progressive rate brackets, so dearer properties attract a higher rate.
- First home buyers can receive concessions or exemptions, with the most generous relief on lower-value homes.
- It must generally be paid within two months of the transfer or contract date, and investors do not get the first home concessions.
Stamp duty catches a lot of first home buyers off guard, because it is a sizeable cost on top of your deposit. Andy has helped Western Australians budget for it since 2000, and he always factors it in early so there are no nasty surprises near settlement. Think of it like the registration on a car, an unavoidable cost of getting the keys, but one you can plan for.
What Stamp Duty Is
Stamp duty is a state government transfer duty payable on property purchases in WA. It is charged by the WA government and collected around settlement. Unlike your loan, it is not something you can borrow against the property to cover by default, it usually comes out of your own funds, which is why it needs to be in your budget from day one.
How It Is Calculated
Stamp duty in WA is calculated on the property purchase price using progressive rate brackets. As a rough guide, the rate steps up as the price rises, broadly from around 1.9% to 5.15% depending on the value. The higher the price, the higher the marginal rate, so a small jump in purchase price near a bracket can move the duty more than you would expect.
| Buyer type | Stamp duty position |
|---|---|
| First home buyer (lower-value home) | Concession or exemption may apply |
| First home buyer (higher-value home) | Reduced or full duty depending on price |
| Owner-occupier (not first home) | Standard duty applies |
| Investor | Full duty, no first home concessions |
The exact thresholds change over time, so always confirm the current figures before you commit.
Concessions for First Home Buyers
First home buyers can receive stamp duty concessions or exemptions, with the most generous relief on lower-value properties. These thresholds are reviewed by the government from time to time, so it is worth checking what applies the year you buy. The savings can run to thousands, which is real deposit money back in your pocket.
When and How It Is Paid
Stamp duty generally must be paid within two months of the property transfer or contract date. Your settlement agent usually handles the mechanics, but the money needs to be there. Investment properties pay full stamp duty without the first home buyer concessions, so factor that in if you are buying to rent out.
How Andy Helps
Andy builds stamp duty into your numbers from the start, so the figure you plan around is the figure you actually need. If you are a first home buyer, he will point you to the concessions you may qualify for and structure your deposit and loan accordingly. Pair this with our reads on first home buyer home loans and pre-approval.
The Next Step
Want a clear picture of your full upfront costs before you start looking? See the home loans page and get in touch with Andy.
Stamp Duty Questions
Do first home buyers pay stamp duty in WA?
Often a reduced amount or nothing at all on lower-value homes, thanks to first home buyer concessions. The thresholds change, so confirm the current figures with Andy.
Can I add stamp duty to my home loan?
Sometimes, depending on your deposit and the lender. Andy can structure your loan and deposit so the upfront costs are manageable.
Do investors get any stamp duty concession?
No. Investment properties pay full stamp duty without first home buyer concessions. It pays to budget for the full amount.
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