Stamp Duty and Land Tax in WA What Property Buyers and Investors Need to Know

WA Stamp Duty & Land Tax: Key Considerations for Property Buyers and Investors

Buying or owning property in Western Australia involves more than the contract price. Duty and tax obligations are central to property acquisition, investment and ownership.

This article outlines key features of stamp duty and land tax in WA and what buyers, investors and businesses should consider.

Transfer Duty in WA

Transfer duty in WA is governed by the Duties Act 2008 (WA) and applies to a wide range of “dutiable transactions”, including transfers of land.

Duty is calculated on the dutiable value, being the higher of consideration or unencumbered market value.

WA imposes “residential rates” and “general rates” depending on the nature of the land. High-value transactions attract substantially higher duty.

Duty can also arise from:

• declarations of trust
• acquisitions in “landholder” entities under Part 3 Division 3
• certain mortgagee or foreclosure transactions

WA also imposes Foreign Buyer Duty Surcharge of 7% on residential property acquired by foreign persons.

Land Tax in WA

Land tax in Western Australia is imposed under the Land Tax Assessment Act 2002 (WA) and applies to taxable land as at 30 June each year.

A principal place of residence is generally exempt. Investment properties and commercial properties are usually taxable, with progressive rates applied.

Foreign owners may also be subject to surcharge land tax on residential land.

Exemptions may apply for:

• primary production land
• land owned by charitable institutions

Practical Implications for Buyers and Investors

WA buyers and investors should consider:

• the upfront cost of duty
• the impact of trust or company ownership on duty liability
• foreign buyer surcharge and its impact on investment returns
• annual land tax obligations for investment holdings

Corporate groups may incur both transfer duty and land tax depending on how property is acquired or restructured.

Conclusion

Stamp duty and land tax form a significant part of the WA property landscape. Buyers and investors should plan for these costs early and obtain legal advice to ensure correct structuring and compliance. Contact our Perth conveyancing team today for tailored property advice.

This article was prepared with the assistance of Alexander Koshy.