Stamp duty is described as general revenue from a levy imposed on various types of instruments and this article discusses the various aspects of the stamp duty rates of WA, Western Australia.  The instruments on which stamp duty is imposed by the government are:

• Transfer and agreement for sale of houses or land
• Mortgages
• Documented gifts
• Insurance policies
• Transferring and issuing motor vehicle licenses
• Hire of goods

Stamp duty is levied by the state governments in Australia and the stamp duty rates are different for each state.  Stamp duty is calculated as a percentage on the purchase price of a property or the deal agreement and the purchaser has to pay the stamp duty in these transactions. The proceeds of the stamp duty collected in the state is usually a significant amount of money that is put to use by the state government for public welfare activities such as education, health, law and order and public safety.  

Concession in stamp duty rates are available for the purchase of principal place of residence or of the place of business undertaking that has a dutiable value that does not exceed $200,000.  The details pertaining to stamp duty concessions are contained in section 75AE of the Stamp Act 1921. Home mortgage rates are applicable in the case of borrowing of money to purchase, improve and erect a dwelling house, or for refinancing a loan the proceeds of which have been fully used towards purchasing, improving or erecting activities only.  The appropriate application forms are available in the office of revenue of the Western Australia State government. The stamp duty calculators help the taxpayers to calculate the stamp duty for the conveyance and mortgage transactions.  The information regarding the stamp duty rates WA and also concessions and exemptions are available in the website of the government department can be had in section 85(2) of the Act at www.dtf.wa.gov.au

The WA state government has abolished the stamp duty in the budget of 2008 for first home buyers and made home affordability easier for those buying homes for the first time.  This change will benefit 90 percent of the first home buyers in Western Australia who will not be paying any stamp duty at all towards the home purchase.  The abolition means first home buyers of houses costing $350,000 will save $13,000 which they would have paid as stamp duty otherwise.  For houses valued at the threshold of $500,000 save $20,000.  The median house price in WA has increased by 8 percent and the stamp duty on such high prices make it difficult for the home buyers to enter the housing market.

Similarly the WA government has reformed the land tax also by lifting the threshold from $100,000 to $250,000. This step is aimed at easing the cost pressures on owners and lessens the risk of rental increases in future.  The authorities felt that the reforms in stamp duty and land tax were long overdue as they have not been adjusted for 25 years. With the new stamp duty rates WA effective from 1st July 2008, the prevailing rates will encourage aspiring home owners to enter the housing market that has become affordable.