Clarity on Stamp Duty in WA
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Here is what I currently understand...
1- land under $300k has no stamp duty for first home owner ( paid at time of block purchase but refunded when building contract signed and you apply to get the stamp duty back from Dept of Finance/State Revenue)
2- stamp duty is paid at $13.01 per m2 when purchase price is between $300k and $400k ( paid at time of block purchase and the portion you paid for between $300 and $400k is not refunded as the benefit is that it is a reduced rate? Do you get the stamp duty money back that would have been charged up to the $300k mark?
3- block over $400k does not qualify for any reduced rates/exemptions and therefore is about $15k in stamp duty?
If anyone has exact links to clarify this for me that would be fab as I did a lot of mortgage sites, calculators etc are out of date or don't break the rates down etc.
Thank you
Stamp Duty for First home owners is calculated at the General Rate at time of block purchase (so remember to factor this into your budget). Dept of Finance (State Revenue) gives you 12 months to pay but you legally need to pay at your block settlement, so if that is 30 days from signing contract etc, you pay at 30 days.
Once you have your build contract signed and enacted you apply for the stamp duty refund or rate recalculation.
- If your block was less than $300K you get all of what you paid back.
- If your block was between $300k and $400k they recalculate the stamp duty at the first home owners reduced rates (i.e nothing for up to $300k and then $13.01 per $100 or part thereof) between $300,001 and $400k. So, in theory you get a bit of a refund.
- If your block is over $400K your block is charged at the general rate, and then at build time, the stamp duty is recalculated at residential rates (which are cheaper than general BUT, are not "subsidised/reduced" like for first home owners buying blocks under $400k).
Guess they consider if you can afford a $400K block, you are not really a first home buyer income bracket.
Regardless of what stamp duty levy you fall under, as a First Home Owner (if you qualify as one) you can still apply for the current $10k FHOG on build completion. Hopefully the new Government Budget announcement in May doesn't change any of this.
Also, you only get FHOG when build is complete? Or can you get it when you sign the contract?
The cynic in me says they do it this way so they can hang on to your stamp duty for a bit, earn some interest on it, and then pay back the principal to you when you do eventually apply for the FHOG.
Do you know how long it takes to receive the stamp duty back? Our block was under $150K but we had to pay stamp duty at settlement as we didn't have a build contract.
Also, you only get FHOG when build is complete? Or can you get it when you sign the contract?
Also, you only get FHOG when build is complete? Or can you get it when you sign the contract?
I understood that you can get FHOG when you apply after signing the contract, but I may be completely wrong. Has been a bit difficult trying to get clear information - lots of waffle everywhere on how "substantial" the grant is, etc. but they don't give proper details about the actual process, which is what most of us really need to know.
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