Stamp Duty


What is it?

 

Stamp Duty is a State Government form of revenue, or taxation, applied to various types of "documents" or "transactions."
Generally most legal contracts attract this charge, as well as insurance premiums and vehicle registration.

Thus, "Contracts" for the purchase of Real Estate, a business purchase, documented gifts, mortgages and other similar items attract stamp duty.

For details applicable to Real Estate transactions, see firstly "Rates" below or our Settlement Fee Calculator.



Stamp Duty Rates and Concessions from 10 May 2007

 

Stamp duty on property transactions is applied on an ad-valorem scale, effectively, the higher the purchase price of the property, the higher the stamp duty applied to the purchase.
However, various concessions are provided to various segments of the community, principally First Home Buyers and people buying lower prices properties that will be their principle place of residence.
Based on the above, once could say there are three categories applicable:

 

1. First Home Buyers

 

Further information as to eligibility for a First Home Owner Grant can be found in the First Home Owner Grant Information Pamphlet available from the Office of State Revenue or the website at www.osr.wa.gov.au.

Home
To be eligible for the First Home Owner Rate of stamp duty, the value of the home must not exceed $600,000. Where the amount or value of the consideration for a home does not exceed $500,000, no duty is payable. Where the amount or value of the consideration exceeds $500,000 but does not exceed $600,000, duty is payable at a rate of $26.10 for every $100 and any fractional part of $100 by which the amount or value of the consideration exceeds $500,000.

Vacant Land
To be eligible for the First Home Owner Rate of stamp duty, the value of the vacant land must not exceed $400,000. Where the amount or value of the consideration for vacant land does not exceed $300,000, no duty is payable. Where the amount or value of the consideration exceeds $300,000 but does not exceed $400,000, duty is payable at a rate of $15.70 for every $100 and any fractional part of $100 by which the amount or value of the consideration exceeds $300,000.

 

2. Concessional

 

A Concessional rate is applied to purchasers of residential properties, up to a value of $200,000.00, where the purchaser will reside in the property. This concession is for people who do not qualify for the First Home Owner Grant but are lower income earners or buying lower priced property for their principle place of residence. see our Settlement Fee Calculator.

 

3. All Others

 

All other buyers pay at the normal rate, see our Settlement Fee Calculator.