In Western Australia you have two months from the date of the contract to lodge it with RevenueWA for duty assessment. If you miss the deadline you’ll be charged a penalty on top of the duty. The later you are, the higher the penalty. Your settlement agent usually lodges the contract, but it’s the buyer’s obligation. This is one reason why you should appoint a settlement representative as soon as possible after the contract is signed.
What is transfer duty?
Transfer duty is a state government tax on dutiable transactions, the most common of which is buying a property. Duty is calculated on the value of the transaction, so the more the property is worth the more you pay. The obligation to lodge arises once both parties have signed the contract.
Who lodges it?
It is the buyer’s responsibility to lodge the contract for duty assessment with RevenueWA. In practice your settlement agent or settlement lawyer does it for you. That doesn’t move the obligation off you.
There are two ways it can be lodged:
- the original contract goes to RevenueWA in person or by post with a lodgement form; or
- it is lodged online through an approved provider, which is usually your settlement agent or settlement lawyer.
The deadline
The buyer has two months from the contract date to lodge.
What happens if you are late
If you lodge late but do so voluntarily, there is no penalty in the first 7 days. After that it runs from 1.25 per cent up to 10 per cent of the duty depending on how late you are. Those rates double if RevenueWA contacts you before you lodge.
Frequently asked questions
Who pays transfer duty?
The buyer. It is payable on the contract and the transfer, not shared with the seller.
Does the deadline change if settlement is delayed?
No. The two months run from the date of the contract rather than from settlement, so a delayed settlement does not buy you more time to lodge.
What if I am a first home buyer?
You may pay reduced duty or none at all, depending on what the property is worth and whether it is vacant land, new or established. The lodgement deadline is the same either way.
Talk to us about your settlement
We act for buyers and sellers on settlements across Perth and Western Australia, including lodging the contract for duty assessment as part of your settlement. See First home buyers: what happens at settlement in WA
Call the settlements team on (08) 9220 4430 or download an itemised quote for your own transaction.
This article is general information and not legal advice. Every property transaction turns on its own facts.
