So you’re thinking of building a home, and so far it’s been fun! You’ve looked at home designs, walked through areas you’d like to live, found the local coffee shop, but now you’v reached the point where it’s all taxes and banker language. 

Well, don’t let your eyes glaze over yet!

As you probably know, the property market works a little differently when building versus buying your first home, which leads us to a common question: is stamp duty payable on house and land packages? 

Read on to understand everything you need to know about how stamp duty works in Western Australia, when you need to pay it, how much it might cost and how it applies specifically to building a house.

 

So, what is Stamp Duty?

Stamp duty, also called transfer duty in WA, is a government tax you pay when you buy property or land. It helps cover the cost of transferring property and goes into WA’s state budget. 

Stamp duty is based on the market value (the price you paid or expect to pay), and the more you spend, the more tax you’ll pay. Home buyers in WA can end up paying tens of thousands of dollars in stamp duty. And that’s on top of your mortgage, deposit, building inspections and settlement fees. Arghhh, right?

The good news? If you’re a first-home buyer, you might be eligible for concessional rates that reduce, or even eliminate, the duty you have to pay. Win!

And if you’re building a home, you’ll only pay stamp duty on the land, not the house, which can save you thousands. Win-win!

 

Is stamp duty payable on house and land packages?

How stamp duty in WA works depends on what kind of property you’re buying. If you’re purchasing an established home, you’ll pay stamp duty on the full purchase price of the property. 

This is where you’ll benefit if you’re building a new home with a house and land package. If the build hasn’t started yet, you’ll only pay stamp duty on the land component. This can mean big savings compared to buying an established home or a completed build. It all comes down to how the contract is structured and when the building work begins.

 

How much stamp duty could you pay?

In March 2025, the WA Government increased the stamp duty exemption threshold for land purchases from $300,000 to $350,000, meaning if you’re buying a block of land up to this value, you’ll pay zero stamp duty! This could save you nearly $7000.

If your land is worth between $400,000 and $450,000, you’ll still only have to pay a concessional rate, making now a great time to get into the market.

We used the WA government’s transfer duty calculator to estimate how much stamp duty on house and land packages you might expect to pay (please note, these figures may change depending on your specific situation): 

• Land value: $350,000 or less. Stamp duty: $0 
• Land value: $400,000. Stamp duty: $7,695. 
• Land value: $450,000. Stamp duty: $15,390.

You’ll need to pay stamp duty upfront (on top of your deposit), and it can’t be added to your loan, so budget for it early. Your lender usually pays it at settlement using funds you’ve provided. Miss the deadline, and you could face penalties, so don’t forget it!

 

How is stamp duty calculated on a house and land package? 

When you buy a house and land package, stamp duty is usually calculated based on the land value only, as long as you sign the contract before construction starts. 

This is because, at that point, you’re technically just buying the land. 

But if the build is already underway or the home is finished when you buy, stamp duty may apply to the total value of both the land and the house. So, timing can make a big difference to what you’ll pay. 

The basic formula for calculating stamp duty is:

Stamp duty = (purchase price of your home – First Home Owner Grant) x duty rate

First Home Owner Grant: If you’re a first home buyer, you may be eligible for a First Home Owner Grant of up to $10,000.

Duty rate: The duty rate is based on the purchase price of the property. Depending on your circumstances, your rate of duty will either be a general rate, a concessional rate, or a first-home owner rate. General rates of duty can range from 1.9% for houses under $120,000 to around 9% for houses over $725,000. You can find more information on rates of duty here.

For a more accurate estimate, check out the WA government’s transfer duty calculator.

 

Do first-home buyers have to pay stamp duty in WA?

Here’s a big win: In WA, you won’t need to pay stamp duty if you’re a first-time buyer and the established house you want to buy is under $500,000 OR if you are building and the block of land you are purchasing is under $350,000. That means you could save nearly $7000!

If you’re a first-home buyer, you also get a little extra help from the WA Government known as the first home owner rate (FHOR). Here are the facts:

• First-home buyers don’t pay stamp duty on any established home purchased up to the value of $500,000.
• Homes between the sale value of $600,000 to $700,000 receive concessions (reduced stamp duty).
• First-home buyers don’t pay stamp duty on land purchased up to the value of $350,000.
• Land between the sale value of $400,000 to $450,000 receives concessions (reduced stamp duty).
• You must be eligible for the FHOG for this to apply – check here! 

Check out the different Government grants and schemes here. For the most up-to-date info on stamp duty and current concession rates, always visit the WA Government website. And don’t forget, Easystart’s team of finance experts can help you apply for concessions. 

 

Can you reduce the amount of stamp duty you pay?

Yes, and in fact, many first-home buyers do. The key ways to reduce stamp duty are by building rather than buying, purchasing land below the concession thresholds, and claiming any government incentives you’re eligible for. Easystart’s in-house brokers can walk you through your options and make sure you’re not paying more than you need to.

 

How to buy a house and land package (with minimal upfront costs)

Minimising upfront costs like stamp duty when you buy a house and land package starts with knowing what you qualify for. 

Chat with a broker (like Easystart’s in-house team) to check your borrowing power and unlock any grants – like the First Home Owner Grant or stamp duty concessions. 

From there, you can secure land, choose a home design, and use your finance pre-approval to kick off the build with as little out-of-pocket as possible.

 

How is Stamp Duty Paid?

Stamp duty is an upfront cost that is paid on top of your deposit. You’ll need to factor in stamp duty when buying a house as it could mean saving even more money to cover off your deposit AND the stamp duty 😦

Ultimately, the actual payment of stamp duty is actioned by the bank or lender after settlement from funds the buyer provided prior to settlement.

Our hot tip 🔥: Make sure you budget for stamp duty on top of your deposit, mortgage, building inspection and settlement fees so you are not caught out.

 

 

Whatever you do, do NOT “forget to pay it”

Stamp duty is an essential part of buying a home, and as the person lodging and paying, you are liable for duty. It could even cost you a late payment penalty tax. 

You must pay before any certificate of duty (your receipt of payment for stamp duty) can be issued. Without that, you won’t be able to move forward in the home buying process 👎.

The payment is due within one month of a duties assessment notice (The bill from the Western Australian government that tells you how much stamp duty you owe), you can find more on when and how to pay stamp duty here.

 

Can stamp duty just be added onto my loan?

No 😞. In practice, stamp duty comes out of your cash deposit while the loan amount will increase to compensate.

 

How can stamp duty be reduced?

• A lower house price means less stamp duty to pay.
  • One way to reduce stamp duty is to negotiate the sale price of the property with the seller.
• Buy off the plan (before the property is built or completed)
  • If you build a home, you’ll only have to pay on the expected value of the home once completed which is often heavily discounted from the market value. If you can find a well-priced block, you’ll be saving yourself thousands in stamp duty!

• Take advantage of government incentives!
  • For first home buyers, there is a concession on stamp duty for a property worth more than $430,000 but less than $530,000. (See more on this below!)

• Transferring property between family?
  • You may be eligible for a stamp duty exemption! Look into exemptions for transfer between family members.
• Consult a financial advisor!
  • A financial advisor can help you navigate the confusing world of stamps and duties. At the end of the day, stamp duty is a big cost, you want to make sure you are not paying anything you are not required to.

 

Did you know that first home buyers can avoid paying stamp duty all together!

Here’s a big win: In WA, you won’t need to pay stamp duty if you’re a first-time buyer and the established house you want to buy is under $500,000 OR if you are building and the block of land you are purchasing is under $350,000.

 

 

Is there any other help for first home buyers? 🏠

If you’re a first homebuyer you get a little extra help from the WA Government known as first home owner rate (FHOR). Here are the facts:

• First home buyers don’t pay stamp duty on any established home purchased up to the value of $500,000.
• Homes between the sale value of $600,000 to $700,000 receive concessions (reduced stamp duty).
• First home buyers don’t pay stamp duty on land purchased up to the value of $350,000.
• Land between the sale value of $400,000 to $450,000 receives concessions (reduced stamp duty).
• You must be eligible for the FHOG for this to apply – check here! 

We have a list of the different Government grants & schemes here.

For the most up-to-date info on stamp duty and current concession rates, always visit the WA Government website.