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Stamp duty is a tax imposed by the state government in Australia, and it is one of the most expensive costs encountered when buying property. The amount of stamp duty owed is directly tied to the purchase price of the property, and it is generally payable within 30 days of signing a contract or receiving a duties assessment notice. While stamp duty rates vary across Australia, pensioners and seniors can benefit from various stamp duty discount schemes, concessions, and exemptions. In Western Australia, pensioners selling their homes to downsize can get a 50% discount on the new home, provided it is worth less than the previous home and valued below a certain threshold.
| Characteristics | Values |
|---|---|
| Pensioner concessions | Pensioners selling their home to downsize can get a 50% discount on the new home, provided it is worth less than the previous home and is valued below $400,000. This offer was valid until 30 June 2022. |
| First Home Buyer concessions | First Home Buyers are exempted from paying stamp duty if the value of the property is $430,000 or less. Concessions are available for homes up to $530,000. |
| Off-the-plan purchases | A stamp duty rebate is available for off-the-plan purchases for Western Australians who entered an off-the-plan pre-construction contract between 23 October 2019 and 23 October 2021, or signed a contract between 4 June 2020 and 31 December to purchase an off-the-plan apartment under construction. |
| Spousal exemptions | Couples who are married or have been de facto partners for two years can transfer residential property without paying stamp duty if the property is their primary place of residence. |
| Family farms | Family farms can be transferred to another family member without having to pay stamp duty. The exemption is not valid for the land for the following five years. |
| Stamp duty rates | For properties worth $120,000 and below, stamp duty is payable at a rate of 1.9%. It increases in increments to $28,435 plus 5.15% of dutiable value over $725,000. |
| Stamp duty payment deadline | Stamp duty must be paid within one month after a duties assessment notice is issued. |
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What You'll Learn
Pensioner concessions
Stamp duty is a tax imposed by the state government, and the amount varies from state to state. It is one of the most expensive costs encountered when buying a property in Australia. Pensioners, senior citizens, and carers can get stamp duty concessions or exemptions. These vary across states and territories, with some regions recently expanding their concessions to stimulate the real estate market post-COVID-19.
In Western Australia, pensioners selling their homes to downsize can get a 50% discount on their new home, provided it is worth less than their previous home and is valued below $400,000. This offer was valid until 30 June 2022, and the purchase of the new home must be completed within six months of selling the previous one.
Western Australia also offers a 50% rebate on stamp duty for off-the-plan purchases to stimulate new apartment construction. There are no stamp duty exemptions for first-time home buyers in WA, but they are exempt from paying stamp duty if the value of the property is $430,000 or less. Concessions are available for homes up to $530,000.
In other states, like Tasmania, pensioners can get a 50% stamp duty discount on properties valued up to $600,000. The ACT offers exemptions for purchases valued at $600,000 or less, which could save buyers around $15,720. The Northern Territory also offers a concession, with an upper limit for land at $385,000 and for homes at $750,000.
The amount of stamp duty you pay is directly tied to the purchase price of your new home. So, negotiating a lower price not only saves you upfront but also reduces the stamp duty owed. It's important to stay up-to-date with government policies on stamp duty as they can change, and you may be able to unlock new opportunities for savings.
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First home buyer exemptions
In Western Australia, first home buyers are exempt from paying stamp duty on homes worth under $430,000 and vacant land under $300,000. There are also concessions for homes valued between $430,000 and $530,000, and vacant land valued between $300,000 and $400,000. To qualify for these exemptions and concessions, buyers must move into the home within 12 months of purchasing and live there for at least six consecutive months. These benefits are only available once.
To be eligible for the first home buyer status in Western Australia, both you and your spouse/partner must be first-time home buyers, meaning neither of you has previously owned residential property in Western Australia or elsewhere in Australia. There is also an age requirement—applicants must be at least 18 years old at the time of the property purchase. Additionally, at least one buyer must be an Australian citizen or permanent resident, and the property must be used as the principal place of residence.
If you are purchasing vacant land to build your first home, you may still qualify for exemptions or concessions, provided the land's purchase price falls within the specified thresholds.
First home buyers who are members of the permanent forces of the Australian Defence Force when they exchange contracts are exempt from meeting the residence requirements if they and everyone they are buying with are on the NSW electoral roll.
In addition to stamp duty exemptions, first home buyers in Western Australia may also be eligible for a $10,000 grant. To qualify for the grant, the applicant must be a natural person (not a company or trust), be 18 years of age or older, and at least one applicant must be an Australian citizen or permanent resident. Furthermore, neither the applicant nor their spouse can have previously received a grant under this scheme, and neither can have owned residential property anywhere in Australia before 1 July 2000.
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$21.95
Off-the-plan purchases
Western Australia offers a range of stamp duty concessions and exemptions for eligible pensioners. These vary depending on the type of property purchased, its value, and the date of purchase.
Western Australia offers stamp duty rebates for off-the-plan purchases. These are geared towards stimulating new apartment construction. This incentive is available for eligible Western Australians who entered into an off-the-plan pre-construction contract between 23 October 2019 and 23 October 2021. Alternatively, a contract signed between 4 June 2020 and 31 December to purchase an off-the-plan apartment under construction also qualifies for the rebate.
In addition, a 75% stamp duty discount was available for anyone purchasing off-the-plan (pre-construction) until 23 October 2021. This discount allowed buyers to reduce the value of the property by the costs of construction or refurbishment, lowering the payable stamp duty. The property must be valued at less than $750,000 and needs to be the principal place of residence for 12 consecutive months, starting within 12 months of possession.
Other concessions and exemptions
Pensioners in Western Australia are exempt from paying stamp duty if their property is valued up to $330,000. They receive a partial concession for properties priced between $330,001 and $750,000. Pensioners selling their home to downsize can get a 50% discount on the new home, provided it is worth less than the previous home and is valued below $400,000. This offer was valid until 30 June 2022, and the purchase of the new home must be completed within six months of selling the previous one.
First-time homeowners in Western Australia are exempt from stamp duty on purchases up to $430,000, and concessions are available for purchases up to $530,000.
It is important to note that eligibility criteria can vary across states, and specific state revenue office websites should be consulted for the most current details.
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Regional affordability
Stamp duty is a tax imposed by the state government, and the revenue is used to improve various sectors such as health, transport, and emergency services. The amount of stamp duty varies from state to state and depends on factors such as first home buyer benefits and concessions. Generally, the higher the property's price, the higher the stamp duty.
Western Australia's stamp duty concessions focus on regional affordability, with incentives for those moving to more affordable homes outside major cities. First Home Buyers (FHBs) in Western Australia are exempt from stamp duty for homes worth under $430,000, and vacant land under $300,000. Concessions are also available for houses between $430,000 and $530,000 and vacant land from $300,000 to $400,000. To be eligible for these exemptions and concessions, buyers must move into the home within 12 months of purchasing and live there for at least six consecutive months.
Pensioners in Western Australia also benefit from stamp duty concessions. They are exempt from paying stamp duty if their property is valued up to $330,000 and receive a partial concession for properties priced between $330,001 and $750,000. Additionally, pensioners selling their homes to downsize can get a 50% discount on a new home valued below $400,000, provided it is worth less than their previous home. This offer was valid until June 30, 2022, and the purchase of the new home had to be completed within six months of selling the previous one.
Western Australia also offers a 50% rebate on stamp duty for off-the-plan purchases, encouraging the construction of new apartments. These incentives are designed to stimulate the housing market and make purchasing a new home more accessible and appealing, particularly in regional areas.
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Property value
The amount of stamp duty owed is directly tied to the purchase price of a home. In Western Australia, first-time home buyers are exempt from paying stamp duty if the value of the property is $430,000 or less. Concessions are available for homes valued between $430,000 and $530,000. The home purchased must be used as the primary place of residence. If the property is worth more than $530,000, full stamp duty rates apply.
Pensioners, senior citizens, and carers can get up to $10,000 off stamp duty costs as long as the property is valued below $750,000 or $385,000 for vacant land. Pensioners are exempt from paying stamp duty if their property is valued up to $330,000, while they get a partial concession for properties priced between $330,000 and $750,000.
Western Australia's scheme focuses on stimulating new apartment construction, offering up to a 50% rebate on stamp duty for off-the-plan purchases. This incentive is designed to encourage investment in the housing market.
Stamp duty is often included in the price of a home. For example, if a home is on the market for $400,000, the asking price may be higher or may include the cost of stamp duty. It is important to find out if stamp duty is included in the price before purchasing a property.
Online calculators can be used to estimate the amount of stamp duty owed. While these calculators are not exact, they provide an approximate value.
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Frequently asked questions
Pensioners in Western Australia are eligible for stamp duty concessions. They are exempt from paying stamp duty if their property is valued at up to $330,000, and they get a partial concession for properties priced between $330,001 and $750,000.
Western Australia offers a 50% rebate on stamp duty for off-the-plan purchases to stimulate new apartment construction. There are also concessions for pensioners selling their homes to downsize. They can get a 50% discount on the new home, provided it is worth less than the previous home and valued below $400,000.
The stamp duty rates in Western Australia vary depending on the value of the property. For properties worth $120,000 and below, stamp duty is payable at a rate of 1.9%. It increases incrementally to $28,435 plus 5.15% of the dutiable value over $725,000.
