A first home buyer purchasing an established or newly built home, or building a new home, can apply to be assessed at a new first home buyer threshold and rate of duty.
The first home buyer duty concessions apply as follows:
- If the unencumbered value of a first home is up to $450,000 then no duty is payable. Previously the threshold was $430,000.
- If the property’s unencumbered value is between $450,001 and $600,000, then duty is payable at a rate of $15.01 for every $100 above $450,000. Previously, this threshold was $430,001 to $530,000, and the rate of duty was $19.19 for every $100 over $430,000.
- If the unencumbered value of the property is over $600,000, then the buyer is liable for the full amount of duty, and no reduced rate applies. The top threshold was previously $530,000.
For vacant land, transfer duty exemptions are available on land valued at $300,000 or less, and concessions are available on land valued at $400,000 or less.
The new thresholds and rate applies to agreements entered into after 9 May 2024. Agreements entered into before 9 May 2024 are not entitled to the benefit of the new thresholds and rate even if settlement occurs after that date.
Any agreements entered into on or after 9 May 2024 assessed using the previous thresholds or rate can be re-assessed taking into account the new thresholds and rate.
The duty concession is in addition to the First Home Owner Grant, which provides a $10,000 lump sum payment to first home buyers constructing a new residential property.
The By Lawyers Conveyancing (WA) publication has been updated accordingly, including the Purchase of Real Property commentary and the Retainer Instructions – Purchase of Real Property precedent.