• Assessment of Transfer Duty


    The amount of transfer duty that is payable is calculated by determining the dutiable value and applying the appropriate rate of duty.

    The duties calculator and ready reckoners will be able to assist in estimating the amount payable.

     

    Rates of Duty

    Below are the rates of duty in Western Australia effective 1 July 2008.  For amounts payable and thresholds applicable to each rate, see Schedule of Rates.

    General rate

    The general rate applies to commercial property, rural property that is not also used as residential property, and vacant land which does not qualify for the residence rate.

    Residential rate

    The residential rate applies to places of residence, rental homes and land on which a residence is constructed within five years from the date the liability to duty arose. The residential rate also applies to mixed use property.

    For further information on whether the residential rate applies to you, please see Duties Fact Sheet ‘Transfer of Residential Property'.

    • See Application Form FDA11 'Residential Rate' (for transactions dated on or after 1 March 2011)
    • See Application Form FDA12 'Residential Rate' (for transactions dated before 1 March 2011)

     

    Concessional rate (s147)

    The concessional rate of duty applies to dutiable property that is either a principal place of residence or a Western Australian business asset where the dutiable value does not exceed $200,000.

    For further information on the eligibility requirements for the concessional rate refer to the applicable Duties Fact Sheets ‘Transfer of Residential Property’ or ‘Business Acquisitions’.

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    First Home Owner Rate

    A person may be entitled to apply for the first home owner rate of transfer duty if they:

    • qualify for a first home owner grant (‘grant’); or
    • would have otherwise qualified for a grant (had consideration been paid or for the purchase of an established home); or
    • are a resident of the Indian Ocean Territory acquiring their first home.

    A person who is not entitled to the first home owner rate of duty due to the value of the home or vacant land exceeding the specified thresholds may be eligible for the residential rate of transfer duty.  First home buyers should see Duties Fact Sheet ‘First Home Owner Rate of Duty’ to find out if their transaction qualifies for the first home owner rate.

     

    Duties Ready Reckoners

    Ready reckoners provide a matrix indicating the amount of duty payable depending upon the amount of the consideration.

    See also Duties Calculators.

     

    Dutiable value

    The dutiable value of a dutiable transaction is generally the consideration for the dutiable transaction or the unencumbered value of the dutiable property in circumstances where there is no consideration for the transaction, the consideration cannot be ascertained, or the unencumbered value is greater than the consideration.

    However, this does not apply to all dutiable transactions, and there are specific rules to determine the dutiable value of certain types of transactions set out within the Duties Act 2008.  For example, the dutiable value for the surrender of a lease is the consideration payable by the lessor.

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    Dutiable value of related party transactions

    When a dutiable transaction is between related parties, or the parties are not otherwise dealing at arms length, the dutiable property must be independently valued before an assessment is issued. 

    Parties can be related by:

    • blood or marriage;
    • prior business relationship;
    • related companies, as defined in the Corporations Act 2001;
    • partners in a partnership;
    • participants in the same joint venture;
    • trustees of trusts which have common beneficiaries;
    • joint owners of property; and
    • entities with other significant business relationships

     

    Valuations of residential, commercial or farming land

    Where required, a valuation can be made by the Valuer-General.  Complete and lodge a Duties Valuation Form (FDA27 'City, Town and Suburban Land' or FDA28 'Country Land') with your transaction record.

    Alternatively, a copy of a valuation from a licensed valuer will be accepted where:

    • the total value of the property is less than $2 million;
    • the valuation report is made within three months of the date of the transaction;
    • the valuer has carried out a physical inspection of the property; and
    • the Commissioner receives written advice from the taxpayer confirming that no improvements have been made to the land since the valuation was conducted.

    Where a report from a licensed valuer does not meet the above criteria, it will be referred to Landgate for valuation.

    For further information on related party transactions and valuation requirements refer to:

    Valuation of business assets

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    Consideration

    The consideration is something of value given for a promise.  For example, consideration may be the amount payable under a contract for the purchase of a home.  The consideration for a transaction can be monetary or non-monetary, for example, the assumption of liabilities or forgiveness of a debt. house

    Contingent consideration

    Contingent consideration is an amount that will only become payable on the occurrence of a future event that may or may not happen. An agreement for the transfer of dutiable property that contains a contingent consideration will initially be assessed on a dutiable value that includes the contingent consideration.

    A taxpayer may apply for a reassessment if duty has been paid on contingent consideration and:

    • the contingent consideration has not been paid;
    • the event has not happened, or has not happened within the time specified in the agreement; and
    • the event cannot happen in the future, or the time specified in the agreement for the happening of the event has passed or expired.

    To apply for a refund where the contingent event did not occur complete application form FDA4 'Contingent Consideration'

    For further information see Duties Fact Sheet 'Contingent Consideration'.

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    Reductions in consideration

    If the consideration under an agreement for the transfer of dutiable property is reduced after the agreement is entered into but before the property is transferred, the duty on the agreement will be assessed or reassessed on the reduced consideration if it is not less than the value of the property at the date the consideration was reduced.

    The Commissioner will obtain a valuation of the property as at the date the consideration was reduced unless certain criteria are met.  For further information refer to Commissioner’s Practice DA 28 'Duties – Reduction in Consideration'.  

     

    Increases in consideration

    If the consideration under an agreement for the transfer of dutiable property is increased, the duty on the agreement will be assessed or reassessed on the increased consideration.

    If the consideration is increased after the transaction is duty endorsed, the person liable to pay duty must lodge for reassessment the instrument that effects the increase in consideration within two months after the day on which the consideration is increased.

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    Aggregation of transactions

    Dutiable transactions that relate to separate items of dutiable property are to be treated as a single dutiable transaction if they together form, evidence, give effect to or arise from what is substantially one arrangement. Duty is chargeable on the total of the dutiable values of each of the dutiable transactions and is determined at the time liability to duty arose on each transaction.

    All instruments and transfer duty statements in the series of transactions should be lodged together under the one Duties Document Lodgment and Assessment Form, or if lodged separately, sufficient reference must be made to ensure the bundles can be cross-referenced to each other. The information listed in 4.1 of the Information Requirements will be required.

    For further information refer to Revenue Ruling DA 14 'Aggregation of Dutiable Transactions'.

     

    GST payable on consideration

    Where GST is payable on a transaction, the dutiable value will include the amount of GST.  For further information on the treatment of amounts of GST, refer to Commissioner's Practice DA 36 'Treatment of Amounts of Goods and Services Tax (GST)'.

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    What happens if I disagree with the assessment of duty?

    Lodging an objection does not remove or defer your liability, and payment of your assessment is still required by the due date.

    Contact the Assessor
    Before lodging an objection against your assessment,you should contact the assessor directly or through Duties Enquiries as it may be possible to resolve your enquiry without the need for an objection.
    Lodging an objection against your assessment

    If you consider that your assessment of transfer duty is incorrect you can lodge an objection against the assessment.

    objections

    An objection to your assessment must:

    • be lodged within 60 days of the date of issue shown on your assessment notice; and
    • state fully and in detail the grounds of your objection.

    Lodge your objection in person, electronically, or by post to:
    Commissioner of State Revenue
    Office of State Revenue
    GPO Box T1600
    Perth WA 6845
     

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