Perth’s New Transfer Duty Thresholds: A Settlement Guide to the March 2025 Changes

Transfer duty (otherwise known as ‘stamp duty’) is the tax that the state government charges on a property transfer transaction. It’s usually the second biggest cost after the deposit for a property purchase. The good news is, in March 2025, the WA government announced a change for first home buyers, which is likely to be welcomed by many and should ease quite some financial pressure. From 21 March 2025, changes to property transfer duty thresholds mean that first home buyers purchasing a property under $500,000 in WA will pay no transfer duty, a saving of up to $18,000. A concessional rate applies for properties up to $700,000 in Perth or $750,000 in regional areas. New housing developments can access even higher concessions. These are among the most significant duty reforms since 2014. As part of KDD Conveyancing’s property settlement services, we can help you understand your eligibility for these new threshold concessions for exemptions and how they may affect the property settlement process to ensure it runs smoothly.

KDD Conveyancing’s expert and knowledgeable conveyancers can assist with calculating your correct transfer duty fees so that you can prepare finances accordingly.

What the new thresholds actually are and what changed from 21 March 2025

The new increase in thresholds was the first time a change had taken place for over a decade, so they are quite significant. 

For the purchase of established homes between 9 May 2024 and 20 March 2025, no transfer duty was payable for properties at $450000 or under, but the new thresholds mean that no duty is payable if the dutiable value does not exceed $500,000. A concessional duty rate applied to established properties of $450,000 to $600,000, whereas now, the threshold has expanded so that first home buyers can buy a home of $700,000 to access a concessional duty rate.

For regional buyers of established homes, the transfer duty exemption was $450,000, now $500,000. The concessional rate previously applied for homes purchased for $600,000, which has now increased to $750,000 in regional areas.

For land, transfer duty rates were available for $300,000 purchases, but from March 21, this will also increase to $350,000. The concessional rate threshold for land has also increased so that first home buyers can access it for purchases of land from $450,000.

With rising property prices, the government has expressed that these changes aim to give first-home buyers better access to buying a property and to encourage the purchase of homes in regional areas.

The expansion of thresholds also extends to foreign investors purchasing off-the-plan properties, with the transfer duty concession raised from $500,000 to $650,000. These changes aim to increase the supply of new apartments and the incentive to purchase by making them more affordable.

As the REIWA reports, the legislation also introduced changes to transfer duty concessions for off-the-plan homes purchased either before or during construction. 

The changes will apply to apartments and, for the first time, will also include townhouses on strata plans. 

How the concession works at settlement

Transfer duty is typically payable before or at the time of settlement. Your conveyancer will calculate and organise the payment of this for you as a part of their property settlement services, lodging it with the Revenue Office. The buyer can include the funds in their loan amount, or the buyer can pay the funds as part of the deposit to the conveyancer.

Revenue WA also has a calculator available so that you can estimate your exact costs.

To be assessed at the first home owner’s rate, you must meet the requirements of the First Home Owner Grant (FHOG).

As the WA government outlines, to be eligible for the first home owner rate, you must meet the eligibility criteria for the FHOG even if a grant is not payable because:

• The transaction was for the purchase of an established home or
• No consideration was paid under the transaction or
• You are an Indian Ocean Territories resident acquiring your first home.

To be eligible for the FHOG, you must be 18 years or over, an Australian citizen or a permanent resident at the time of making an application and you must hold a relevant interest (ownership) in the land on which the home is situated and must own the home in your own capacity. 

According to the WA government, if you are not approved for the grant before settlement, your duty will be assessed at the general rate. Although this will need to be paid by settlement, you have the chance to apply for a reassessment and a refund of duty once you have been approved for the grant.

When you apply for the grant, you are also seeking pre-approval for the first home owner rate of duty. When pre-approved, you must still apply for assessment or reassessment of duty at the first homeowner rate.

This might feel overwhelming, and this is why engaging a conveyancer at KDD Conveyancing can be very helpful to alleviate any concerns about how all this will impact your settlement. With an expert in property settlement services ready to promptly answer any questions you may have. 

What documentation your conveyancer needs to confirm your eligibility

You can apply for the FHOG online or via paper form after all parties have signed the contract to buy or build a home and to apply within 12 months of completion or settlement. A conveyancer can assist if you feel you need it. They can help you check that all details on the form are in order, such as ensuring you enter the correct bank details, because if the money goes into the wrong bank account, you may not get it back. 

They can also check that all names are correct and that the form is complete, as having it sent back to you for completion can lead to delays in processing. 

To then apply for the First Home Owners Rate of Duty, a form will need to be lodged with the Revenue WA office, and once approved, you will need the completed form with the contract of sale to a settlement agent. 

How KDD Conveyancing handles transfer duty at settlement

If you are a first home buyer, it is definitely worthwhile checking your eligibility for the First Home Owners grant which will also give you pre-approval for the First Home Owners Rate of Duty. You wouldn’t want to miss out on a potential $18000 of savings on your purchase. This is where KDD Conveyancing can assist you with the help of their property settlement services team. We can take the time to confirm whether you might be eligible and help you lodge the relevant forms accurately and efficiently, first for the First Home Owners Grant and then to apply for the First Home Owners Rate of Duty. 

We are here to help you understand the new changes so that you don’t have to spend ‌time getting your head around them. 
Make your first home-buying experience a positive and stress-free one, while saving money, by getting in touch with KDD Conveyancing to discuss your situation and purchase.