In Perth and surrounding areas when looking to build a new home, you’ll often hear the term “stamp duty” being used a lot. In Western Australia, the official term is actually transfer duty and refers to state government tax charged on certain property transactions. It’s usually paid when ownership of property is transferred to you, for example when you settle on a block of land or a completed home.
Because it is tied to the transfer of ownership, you generally do not pay stamp duty on a standard building contract itself. What you pay depends on what you are actually buying and what is being transferred at settlement.
When you the block first, then build
If you buy vacant land in a Perth metro estate and then sign a separate building contract with your builder, transfer duty is typically assessed on the land purchase. Your settlement agent or conveyancer will usually arrange the duty assessment and payment as part of land settlement.
RevenueWA Residential land guidance also notes situations where construction activity and related arrangements can affect how duty is assessed or reassessed in some circumstances, so it is important your conveyancer understands your exact contract structure.
When the build can affect duty: turnkey and some house and land structures
Are you buying vacant land? Or are you buying land and a home that the seller is obliged to provide.
If your contract is structured so the seller or developer is effectively selling you a completed home, even if it is not finished yet, then duty can be assessed on the combined value. This is more likely with turnkey style packages where the agreement is for a finished product rather than land only.
Because house and land can be documented in different ways, your conveyancer should confirm what RevenueWA will treat as the dutiable property before you sign.
Off the plan apartments in Perth
If you are buying an apartment off the plan, WA has an off the plan duty concession that may reduce the duty payable for eligible purchases. The WA Government information page explains eligibility and provides examples of how the concession can apply.
First home buyer concessions in WA
If you are a first home buyer, you may be eligible for the first home owner rate of duty, which can reduce the duty you pay on an eligible purchase. RevenueWA provides a fact sheet outlining eligibility and how the concession works.
A practical Perth specific detail is that thresholds and outcomes can differ depending on whether the property is in the Perth and Peel regions or outside those regions, so location matters when checking your estimate.
Do not miss this if it applies: foreign transfer duty
WA applies foreign transfer duty to certain transactions involving residential land, which can materially increase the duty payable if it applies to your circumstances.
A quick checklist to confirm what you will pay
Before you sign, ask your settlement agent or conveyancer:
- Is this vacant land only, with a separate building contract later?
- Or is it a single arrangement where the seller must deliver a completed home at settlement?
- Am I eligible for the first homeowner rate of duty, and does the Perth and Peel location affect my thresholds?
- Is this an off the plan purchase and eligible for the off the plan duty concession?