Authored by the expert who managed and guided the team behind the Australia Property Pack
Yes, the analysis of Perth's property market is included in our pack
Understanding property taxes and fees in Perth is crucial for making informed investment decisions in Western Australia's real estate market.
The Perth property market involves multiple layers of taxation and fees that can significantly impact your investment returns, from upfront stamp duty to ongoing land tax obligations.
If you want to go deeper, you can check our pack of documents related to the real estate market in Australia, based on reliable facts and data, not opinions or rumors.
Perth property buyers face stamp duty ranging from 1.9% to 5.15% of purchase price, plus ongoing land tax, council rates, and various fees.
Foreign buyers pay an additional 7% surcharge, while first-home buyers can receive significant duty concessions.
| Tax/Fee Type | Rate/Amount | When Paid |
|---|---|---|
| Stamp Duty | 1.9% - 5.15% of purchase price | At settlement |
| Foreign Buyer Surcharge | 7% additional duty | At settlement |
| Land Tax | 0.15% - 2.67% of land value | Annually |
| Council Rates | $800 - $3,500 annually | Quarterly |
| Water Charges | $200 - $800 annually | Quarterly |
| Emergency Services Levy | $80 - $350 annually | With council rates |
| Transfer Fee | $150 - $2,000 | At settlement |
What purchase price should I expect for stamp duty calculations in Perth?
Stamp duty in Perth is calculated as a percentage of your property's purchase price, with rates varying based on the transaction value.
For properties under $120,000, you pay no stamp duty. Properties between $120,000 and $300,000 incur duty at 1.9% of the purchase price.
Properties valued between $300,000 and $500,000 attract stamp duty at 2.85% of the purchase price. For properties between $500,000 and $750,000, the rate increases to 3.8%.
Properties exceeding $750,000 face the highest stamp duty rate of 5.15% of the total purchase price.
Settlement timing affects pro-rata charges for council rates and water charges, which are adjusted based on your settlement date within the financial year.
How does property purpose affect my tax obligations in Perth?
Your intended use of the property significantly impacts both upfront costs and ongoing tax obligations in Perth.
Owner-occupiers qualify for principal place of residence exemptions from land tax, while investment properties are subject to annual land tax obligations.
Investment properties also require you to declare rental income and claim property-related expenses on your tax return. First-home buyers purchasing as owner-occupiers can access stamp duty concessions worth thousands of dollars.
If you already own other Western Australian properties, your land tax is calculated on the aggregated unimproved value of all properties, potentially pushing you into higher tax brackets.
Commercial investors face different duty rates and may not qualify for certain residential concessions available to owner-occupiers.
What first-home buyer concessions are available in Perth?
First-home buyers in Perth can access substantial stamp duty savings through Western Australia's comprehensive concession scheme.
Australian citizens and permanent residents purchasing their first home for under $430,000 receive a complete stamp duty exemption, saving thousands in upfront costs.
| Property Value | Concession Amount | Savings |
|---|---|---|
| Up to $430,000 | 100% exemption | $0 stamp duty |
| $430,001 - $530,000 | Sliding scale reduction | Up to $8,190 |
| $530,001 - $600,000 | Sliding scale reduction | Up to $4,095 |
| Above $600,000 | No concession | Full duty applies |
| Off-the-plan new builds | Additional rebate | Up to $25,000 |
What foreign buyer surcharges apply in Perth?
Foreign buyers face significant additional costs when purchasing property in Perth through Western Australia's foreign buyer surcharge system.
Any foreign person or entity purchasing residential property incurs an additional 7% stamp duty surcharge on top of standard rates.
This surcharge applies to the foreign ownership percentage, so if a property is 50% foreign-owned, the surcharge applies to half the purchase price. The surcharge generates substantial revenue for the state government while cooling foreign investment demand.
Foreign buyers also face higher land tax rates, with an additional 1.5% annual surcharge on the unimproved land value of their Perth properties.
These surcharges make Perth property investments significantly more expensive for non-residents compared to Australian citizens and permanent residents.
How do I calculate land tax and Emergency Services Levy in Perth?
Land tax in Perth is calculated based on the unimproved land value shown on your annual valuation notice from Landgate.
The tax applies to the aggregated unimproved value of all your Western Australian properties, excluding your principal place of residence.
Land tax rates start at 0.15% for properties valued between $300,000 and $420,000, increasing progressively to 2.67% for values exceeding $11 million.
The Emergency Services Levy ranges from $80 to $350 annually based on your property's Gross Rental Value and is collected alongside council rates.
It's something we develop in our Australia property pack.
Don't lose money on your property in Perth
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What are the differences between strata and freehold properties in Perth?
Strata properties in Perth carry additional ongoing costs beyond standard rates and taxes that freehold owners avoid.
Strata owners pay quarterly administrative levies typically ranging from $300 to $800 per quarter, depending on building size and amenities.
Reserve fund levies, also called sinking fund contributions, range from $200 to $600 quarterly to cover major repairs and maintenance.
Special levies may be imposed for unexpected major works, potentially costing thousands of dollars per unit owner. These levies are mandatory and failure to pay can result in legal action.
Freehold properties avoid these strata costs but owners bear full responsibility for all maintenance and insurance costs.
What council rates should I budget for Perth properties?
Council rates in Perth vary significantly by local government area and property value, typically ranging from $800 to $3,500 annually.
The City of Perth charges some of the highest rates, while outer metropolitan councils generally have lower rate structures.
- City of Perth: $2,200 - $3,500 annually for residential properties
- City of Stirling: $1,400 - $2,800 annually depending on property value
- City of Wanneroo: $1,200 - $2,400 annually for most residential zones
- City of Joondalup: $1,300 - $2,600 annually based on Gross Rental Value
- Town of Vincent: $1,800 - $3,200 annually for inner-city properties
What water and utility charges apply to Perth properties?
Perth properties incur fixed annual charges for water, sewerage, and drainage services regardless of usage levels.
Water Corporation charges a fixed annual service fee of approximately $200-300 for standard residential connections.
Sewerage service charges range from $400-600 annually for most Perth residential properties, based on property type and connection size.
Drainage charges typically cost $150-250 annually for properties within the Water Corporation's drainage districts. Usage charges apply on top of these fixed fees based on actual water consumption.
Investment property owners can claim these utilities as tax deductions when the property generates rental income.
Are there additional regional levies in metropolitan Perth?
Metropolitan Perth properties are subject to several additional state and regional levies beyond basic council rates and land tax.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What off-the-plan and new build concessions exist in Perth?
Off-the-plan and newly constructed properties in Perth qualify for substantial stamp duty concessions under Western Australia's housing stimulus measures.
New apartment purchases can receive stamp duty rebates up to $25,000, significantly reducing upfront costs for buyers.
The rebate applies to contracts signed for new residential dwellings valued up to $750,000, with sliding scale reductions for higher values.
Construction must be completed within specific timeframes to qualify, and the property must be used as a principal place of residence initially.
These concessions aim to stimulate new housing construction and make homeownership more accessible for Perth residents.
What mortgage registration fees should I expect in Perth?
Mortgage registration fees in Perth are charged by Landgate and vary based on your loan amount and property value.
Transfer registration fees range from $150 for properties under $120,000 to approximately $2,000 for high-value properties exceeding $3 million.
Mortgage registration typically costs between $150-300 depending on loan size, plus additional fees for multiple mortgages or complex security arrangements.
Lender fees vary significantly between financial institutions but commonly include loan establishment fees ($300-1,500), valuation costs ($300-600), and legal documentation fees ($200-500).
It's something we develop in our Australia property pack.
What settlement and conveyancing costs apply in Perth?
Settlement costs in Perth include mandatory legal and administrative fees that every property buyer must pay regardless of purchase method.
| Service | Typical Cost Range | Description |
|---|---|---|
| Settlement Agent | $800 - $1,500 | Legal conveyancing services |
| Title Search | $50 - $150 | Property title verification |
| Building Inspection | $300 - $600 | Structural assessment |
| Pest Inspection | $200 - $400 | Termite and pest check |
| Strata Report | $200 - $500 | For apartment purchases |
| Bank Fees | $500 - $2,000 | Loan processing costs |
| Pro-rata Adjustments | Variable | Council/water rate adjustments |
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Understanding Perth's property tax structure is essential for making informed investment decisions in Western Australia's dynamic real estate market.
By accurately calculating all upfront and ongoing costs, you can better assess the true return on investment for your Perth property purchase.
It's something we develop in our Australia property pack.
Sources
- Department of Finance Western Australia - Transfer Duty
- Landgate - Registration Fees
- Treasury Western Australia - Duty Information
- Water Corporation - Service Charges
- Consumer Protection WA - Strata Information
- First National Real Estate - Buying Costs
- REIWA - Property Purchase Costs
- PerthNow - Property Market Updates