What is transfer duty?
Transfer duty is a state government tax imposed on all dutiable transactions over dutiable property in Western Australia. Most transfers of real estate attract transfer duty at ad valorem rates – ie according to the value of the transaction. A transaction becomes dutiable and an obligation to lodge it for assessment arises once the contract has been signed by both parties.
Who makes the lodgement?
It is the responsibility of the buyer of the property to lodge the contract for duties assessment at the Office of State Revenue (OSR).
Lodgement is simple and involves:
- giving the the original contract to OSR either in person or by post; or
- lodging online using an approved service provider – generally a Settlement Agent or Settlement Lawyer such as Flat Rate Settlements.
The buyer has two months from the Contract Date to lodge with OSR.
Penalty tax for late lodgement
If you miss the deadline, you may be liable to pay penalty tax for late lodgement. Penalties are outlined in OSR’s Commissioner’s Practice TAA 18.2. If the Contract is lodged voluntarily, OSR’s policy is to impose penalty of between 1.25% and 10% of the transfer duty depending on how late the lodgement is made.