The good news is, there are concessional rates that reduce or even eliminate stamp duty, particularly if you’re a first home buyer.

Plus if you choose to build, you will only pay stamp duty on the land –  which can save you thousands.

Why do we pay stamp duty?

Theoretically it covers the cost to the WA Government of changing the property documents. The revenue is added into the state government budgets. Many people feel stamp duty tax is outdated and creates yet another barrier to home ownership. Luckily, there are some ways to lower the amount or get it around it completely.

Who pays stamp duty?

That would be you – the home buyer. The amount of stamp duty you’ll need to pay is calculated on the value of the property.  There are plenty of calculators online, but REIWA have one here.

How is stamp duty paid?

Stamp duty is an upfront cost that is paid on top of your deposit. You’ll need to factor in stamp duty when buying a house as it could mean saving even more money to cover off your deposit and the stamp duty.
Ultimately, the actual payment of stamp duty is actioned by the bank or lender after settlement from funds the buyer provided prior to settlement.

Can stamp duty just be added onto my loan?

Sadly, no. In practice, stamp duty comes out of your cash deposit while the loan amount will increase to compensate.

How can stamp duty be reduced?

•  A lower house price means less stamp duty to pay.
• If you build a home, you’ll only have to pay stamp duty on the purchase of the land – not the construction of the home. If you can find a well-priced block, you’ll be saving yourself thousands in stamp duty!
• For first home buyers, there is a concession on stamp duty for a property worth more than $430,000 but less than $530,000.
• A transfer of property between spouses

Can you avoid stamp duty?

Here’s a big win: In WA, you won’t need to pay stamp duty if you’re a first-time buyer and the house you want to buy is under $430,000. We have House & Land packages that can within that budget!

Is there any other help for first home buyers?

If you’re a first homebuyer you get a little extra help from the WA Government known as first home owner rate (FHOR). Here are the facts:

• First home buyers don’t pay stamp duty on any home purchased up to the value of $430,000.
• Homes between the sale value of $430,000 and $530,000 receive concessions (reduced stamp duty).
• First home buyers don’t pay stamp duty on land purchased up to the value of $300,000.
• Land between the sale value of $300,000 and $400,000 receives concessions (reduced stamp duty).
• You must be eligible for the FHOG for this to apply – Do you qualify?

Definitely something to bear in mind when purchasing your first home. Still in the research stage?