Foreign Buyers Duty
For transactions executed on or after 1 January 2019, an additional 7% duty will be chargeable on the dutiable value of certain acquisitions of residential property by foreign buyers.
Each person acquiring land in Western Australia must complete a foreign buyers declaration form HERE declaring whether they are a foreign person.
The Online Duties system will be modified to allow self-assessment of most dutiable transactions that are chargeable with foreign buyers duty.
For the purposes of the foreign buyers duty, residential property is –
1. land in Western Australia that is, or is capable of being, or is intended to be, used solely or dominantly for residential purposes;
2. vacant or substantially vacant land that is zone solely for residential purposes; or
3. any estate of interest in land described in (1) or (2).
A foreign person includes a foreign individual, corporation or trust.
See the foreign transfer duty HERE and foreign landholder duty fact sheets HERE for information about foreign persons and residential property.
Exemptions or nominal transfer duty
Most dutiable transactions that would be eligible for nominal duty or an exemption from transfer duty will also be exempt from foreign buyers duty. This includes certain transactions involving family court orders and matrimonial agreements, deceased estate transactions and partitions of residential property.
Face-to-face customer education sessions commenced in December 2018. Visit our OSR's education page to register now for upcoming sessions HERE.
Foreign buyer duty publications, frequently asked questions and other support material is available HERE
For more information on foreign buyers duty, see the legislation available on the Western Australian Parliament website HERE
Watch the Video HERE
Source: 19th December 2018 AICWA e-Newsletter
Just in case you missed it, the $3000 First Home Owner Grant was removed for eligible contracts dated from and including 3 October 2015. Here's the run down...
The good news is this only affects existing residential properties. However where eligible you should still be able to attain the 'First Home Owner Transfer Duty Concession' namely Nil duty for approved First Home Owners in the price $430k and under, then scaled up to normal levels up to $530k.
The 'New Homes' Grant of up to $10k currently remains in place for approved First Home Buyers. Along with Transfer Duty Concessions within the above mentioned ranges.
The change in FHOG
According to the Office of State Revenue, the first home owner grant (FHOG) is a one-off grant payable to first home owners that satisfy all the eligibility criteria.
Download a free copy of the 'First Home Owner Grant' fact sheet below, or for an explanation of these changes in plain English, contact Damien at A1 Conveyancing to check where you stand.
2015/16 Western Australian State Budget The Western Australian State Budget was handed down on 14 May 2015.
The new levels of First Home Buyer Duty levels are nil for under $430k and revert to normal at $530k effective from 3 July 2014.
Royal assent was granted on 2 July 2014, so now applies to all First Home Buyer contracts dated 3 July or later.
Contact A1 Conveyancing to discuss your title transaction needs.
Keep me updated, join us here...