Yes, in most cases you do pay transfer duty, also known as stamp duty, on new builds in Western Australia. Whether you’re buying land, a house and land package or an off-the-plan property, stamp duty applies unless you meet specific exemptions or concessions. Here, we’ll explain how it works, when it applies and what buyers need to know.
What is Stamp Duty (Transfer Duty) in WA?
Stamp duty is a state government tax applied to certain property transactions in Western Australia. It is payable when a dutiable transaction occurs, such as when land is transferred or when a property changes hands. The amount of duty depends on the value of the property and any applicable concessions. RevenueWA administers the duty and sets the rules of payment and lodgement.
How Much is Stamp Duty on a $750,000 House in Western Australia?
On a property valued at $750,000, the estimated transfer duty in WA is around $29,700. This figure is based on the current WA transfer duty scale where higher value properties attract a higher marginal rate. The actual duty depends on the contract price and any concessions you might be eligible for.
Can I Avoid Stamp Duty?
Stamp duty usually can’t be avoided by changing the way a purchase is structured. However, WA offers concessions and exemptions for certain buyers. These include first home buyer concessions, off-the-plan concessions and vacant land concessions. Eligibility rules must be met and applications lodged with RevenueWA to receive any reduction or exemption.
When Do You Pay Stamp Duty in Western Australia?
Stamp duty becomes payable when a dutiable transaction occurs, usually when a contract is signed. The signed transaction must be lodged with RevenueWA within the statutory period, typically two months and payment met by the due date. Many buyers employ conveyancers or settlement agents to manage the lodgement and ensure deadlines are met.
Do You Pay Stamp Duty When You Build A New Home In WA?
Whether stamp duty applies depends on the type of transaction. Building a home doesn’t automatically trigger duty unless the contract involves the transfer of land or an interest in land. The following will explain the most common scenarios:
Stamp Duty on Land
Buying a block of land is a dutiable transaction. Duty is assessed on the land value at the time of purchase. First home buyer concessions and other relief measures may reduce the amount payable, but unless an exemption applies, duty must be paid on any land purchase.
Stamp Duty on the Build Contract
If you already own the land and enter into a contract with a builder to construct your home, this usually doesn’t attract stamp duty. Construction contracts are considered services contracts and don’t involve the transfer of land ownership. Some packaged contracts may differ, so professional advice is recommended.
Stamp Duty on House and Land Packages
House and land packages are typically treated as the purchase of land with improvements. Duty is payable on the total dutiable value of the land and included dwelling component. Eligible buyers might be able to claim off-the-plan concessions or first home buyer reductions to reduce their duty.
How To Calculate Stamp Duty on A New Build in WA
To calculate stamp duty:
- Determine the dutiable value, usually the contract price.
- Check which concessions apply, including first-home, off-the-plan, land-only or regional concessions.
- Apply the WA transfer duty rate to the dutiable value after concessions.
- Lodge the transaction with RevenueWA and pay by the due date.
RevenueWA offers an online calculator to estimate duty based on your property type and location.
It is important to note that the stamp duty rates may change over time, so it is advisable to consult the latest information from the Western Australia Government Revenue Office or seek professional advice for accurate calculations.
Stamp Duty Exemptions and Concessions in WA
New Homes (Perth Metro & Peel)
Buyers of new homes in the Perth and Peel regions may be eligible for stamp duty concessions. These concessions can reduce or even eliminate duty for first home buyers and off-the-plan buyers, depending on the property value and buyer eligibility. Rules and thresholds are set by RevenueWA and are subject to change, so it's important to check your specific situation before signing a contract.
New Homes (Regional WA)
Regional areas of Western Australia have different duty thresholds and concessions compared with metropolitan zones. First home buyer and new build concessions in regional WA are often more generous, providing more relief for buyers in these regions. Always confirm your eligibility based on the property classification and location to make sure you’ve accessed all available concessions.
Vacant Land Concessions
Purchasing vacant land with the intention of building a home can qualify for stamp duty concessions. Depending on the land value, you may receive a full exemption or a partial reduction in duty. To qualify, you must demonstrate your intention to build and comply with RevenueWA requirements. These concessions are designed to support new home construction and make building more affordable.
Off-the-Plan Stamp Duty Concessions in WA
Buying off-the-plan, before or during construction, can also offer duty reductions. Eligibility is based on factors such as the property price, contract date and construction progress at the time of purchase. Off-the-plan concessions are intended to encourage new housing supply and can significantly reduce the stamp duty payable, making early investment in new builds accessible to more buyers.
Stay Informed During Your New Build
Stamp duty rules and concessions in WA can change and the amount you pay will depend on factors like the contract date, location and buyer eligibility. Using the official WA transfer duty calculator and reviewing RevenueWA guidance is essential.
Consulting Novus Homes advisors or a conveyancer will help you understand your obligations and make the most of the concessions available to you, to ensure your new home purchases is as cost-effective as possible.