WA Foreign Buyers Surcharge

From 1 January 2019, the WA state government introduced a foreign buyer surcharge, known as the Foreign Buyers Duty. Western Australia is the last state that introduced Foreign Buyers Surcharge in Australia. In addition to the usual transfer duty that is payable on the purchase of the property or land, foreign buyers will be charged an extra 7% of the value of the property.

Definitions

A foreign person is:

A foreign individual who is not an Australian citizen, permanent resident, or special category visa holder.

A foreign corporation:

  • A corporation incorporated outside Australia; or
  • A corporation in which foreign persons control at least 50% of the voting power or hold 50% of the shares in the corporation.

A trustee of a foreign trust:

  • A discretionary trust controlled by a foreign person;
  • A discretionary trust for which foreign persons and their associates hold at least a 50% interest as takers in default; or
  • A non-discretionary trust for which foreign persons and their associates hold beneficial interests in at least 50% of the income or property of the trust.

Residential property includes:

  • land that is capable or intended to be used solely or dominantly for residential purposes; or
  • vacant land zoned solely for residential purposes.

Examples include established homes and apartments, vacant land zoned residential, land for residential developments, and land or buildings intended to construct or convert to residential property.

Foreign Buyer Duty Calculations

The easiest way to calculate Foreign Buyer Duty is head to our WA stamp duty calculator enter the property price and select "Yes" under "Foreign Buyer" option.

However if you are buying property with a foreign person then only that person will be charged Foreign Buyer Duty on their share of the purchase price.

For more information about foreign buyer surcharge please visit WA Office of State Revenue.