First home owner stamp duty

First home owner stamp duty

So what is stamp duty anyway?

Buying your first home is super exciting. But there is also lots of things you need to be aware of. For example, did you know that you have to pay stamp duty on house and land purchases in WA?
However, it is not all bad news for first home owners when it comes to rates of duty.
In addition to the government incentives and rebates offered to first home buyers in WA, there is also stamp duty exemptions and concessions available, saving you huge amounts of money!
 
So what is stamp duty anyway?
Stamp duty is a tax applied by the State Government, which is payable in relation to the transfer of land and property.
Stamp duty is calculated taking into account a number of different factors – including whether the property is brand new or established, it’s location and whether or not you are a first home buyer (and there is good news for First Home Buyers!).
REIWA has a really cool calculator to help calculate duty payable: https://reiwa.com.au/advice/calculator-tools/stamp-duty-calculator-wa/
 
What exemptions do First Home Buyers get?
The good news for first homebuyers (we said there would be some!) is homes purchased with a value of less than $430,000, do not owe stamp duty.
So if you buy a house and land package under $430,000 as a first home buyer you won’t pay any duty.
But if a person who was not a First Home Buyer did, they would be paying over $14,000 in stamp duty – so it is an awesome saving!
 
What happens if my purchase is over $430,000?
If the dutiable value of the home is more than $430,000 but less than $530,000, duty is payable at a rate of $19.19 for every $100, or part of $100, by which the dutiable value exceeds $430,000.
Confused? Basically you still get a much  lower calculated rate as a First Home Buyer, even if the value of your first property is over $430,000 (ie you don’t have to pay any duty on that first $430,000 of value so you still save over $14,000 in duties too).
 
What about if I am just purchasing vacant land?
For a first home buyer purchasing vacant land, the first home owner rate of duty is applicable if the land costs less than $400,000.
  • If the dutiable value of the land is no more than $300,000, no duty is owed.
  • If the value is more than $300,000 but less than $400,000, duty is calculated at a rate of $13.01 for every $100, or part of $100, by which the dutiable value exceeds $300,000 (so once again you are still saving on duty payable for that first $300,000 as a first home buyer – great news!)
 
For more information about stamp duty and the concessions available to First Home Buyers visit: http://www.finance.wa.gov.au/cms/State_Revenue/FHOG/Forms_and_Publications.aspx#FHOGforms
 
 
Source: Pindan Homes