Stamp duty is a State Government transfer fee and must be paid prior to settlement on every property purchased.
The amount will depend on the home’s value, type of property and whether or not you’re a first home buyer or a foreign purchaser. If you fall outside these categories then stamp duty will cost you about four per cent of your property’s sale price.
According to REIWA, first home buyers are exempt from stamp duty if the value of the property is below $430,000. They will pay a concessional rate of stamp duty up to the value of $530,000. And until October 2021, a 75 per cent stamp duty rebate is available for apartments bought off-the-plan.
Jones and Co director Kelly Jones said stamp duty was a heavy tax burden for many prospective buyers.
“Stamp duty must be paid for every property purchased and adds a considerable amount onto the cost of home ownership,” she said. “This is particularly the case if buyers have to add the stamp duty amount onto the money they have borrowed.”
REIWA has called on the West Australian Government to introduce a more broad-based tax system, which would see the upfront stamp duty payment replaced with annual payments.
REIWA president Damian Collins said other states were looking at removing stamp duty and WA needed to ensure it was not left behind.
“According to Deloitte, removal of stamp duty could lead to a 60 per cent uplift in transactions, generating an additional $1 billion to the economy,” Mr Collins said. “There has never been a better time to take this step.”
Kelly Jones agrees.
“Spreading the cost of property taxes across many years will make home ownership a reality for more West Australians,” she said. “Stamp duty is a significant barrier to housing affordability and it’s essential it is phased out.”
To calculate the current amount of stamp duty you’ll pay on a property purchase, just key in the amount on REIWA’s calculator.
Get the latest property market updates and listings for your neighbourhood.
No sales calls, just the latest property info straight to your inbox.
