The first home owner rate (FHOR) is a concessional rate of duty applied to certain transactions such as a contract to purchase or transfer a home or vacant land.
Eligibility for the FHOR is aligned with the requirements under the First Home Owner Grant Act 2000. See the 'First Home Owner Grant' fact sheet for information about eligibility for the first home owner grant (grant).
A person may be entitled to the FHOR if the unencumbered value of the land, or the land and home, under the transaction does not exceed the dutiable value thresholds and:
- they qualify for the grant or
- they would have qualified for the grant except that
- the transaction was for the purchase of an established home or
- no consideration was paid under the transaction or
- they are an Indian Ocean Territory resident acquiring their first home.
A person not entitled to the FHOR because they do not or would not qualify for the grant may apply to have the residential rate of duty applied to their transaction. See the Transfer of Residential Land fact sheet for more information.
Dutiable value thresholdsShow more
The dutiable value threshold and limits apply to the whole value of the home or vacant land being transferred, not to the value of the person’s interest in the property.
Home and land
- The unencumbered value of the home and land together must not exceed $530,000.
- No duty is payable if the dutiable value does not exceed $430,000.
- If the dutiable value is between $430,000 and $530,000, duty is payable at a rate of $19.19 for every $100, or part of $100, by which it exceeds $430,000.
- The unencumbered value of the vacant land must not exceed $400,000.
- No duty is payable if the dutiable value does not exceed $300,000.
- If the dutiable value is between $300,000 and $400,000, duty is payable at a rate of $13.01 for every $100, or part of $100, by which it exceeds $300,000.
The Commissioner may apportion the first home owner rate of duty to land that is subdivided by a first home owner in certain circumstances. See Commissioner’s Practice DA 30 ‘First Home Owner Concession - Excluded Persons’ for more information.
Foreign transfer dutyShow more
Foreign transfer duty is chargeable when foreign persons purchase residential property. Even though the FHOR may apply to the transaction, foreign transfer duty is still chargeable if the purchaser is a foreign person. If there is more than one purchaser, foreign transfer duty will apply to the dutiable value of the foreign person’s interest in the property.
See the ‘Foreign Transfer Duty’ fact sheet for more information.
Kate, an Australian citizen, and her partner Simon, a foreign person, are first home buyers. They enter into an agreement to purchase a home as joint tenants for $400,000.
They are eligible for the first home owner rate of duty and no transfer duty is payable because the dutiable value is below the first home owner rate thresholds.
Because Simon is a foreign person, the foreign transfer duty chargeable on Simon’s 50 per cent joint tenant interest in the property is $14,000 ($200,000 x 7 per cent).
How to applyShow more
- Lodge Form F-FHOG1 ‘FHOG Application and/or Pre-approval for the First Home Owner Rate of Duty’ with an approved financial institution or RevenueWA.
- If you meet the criteria, RevenueWA will send you a letter of approval and Form FDA7 'First Home Owner Rate of Duty'.
- Submit the transaction record (e.g. contract for sale and/or transfer of land) together with the completed Form FDA7 'First Home Owner Rate of Duty' and Form FDA41 ‘Foreign Transfer Duty Declaration’ to your settlement agent or directly to RevenueWA if you are conducting your own settlement.
How to apply for a reassessment if duty has been paid
If you have already paid duty on your transaction at a higher rate, lodge a reassessment request directly with RevenueWA by submitting:
- Form FDA7 'First Home Owner Rate of Duty'
- a copy of the contract for sale by offer and acceptance or transfer of land relating to the purchase of the vacant land or established home and
- a copy of the Certificate of Duty that shows duty has been paid on the purchase.
Following your reassessment, we will refund any overpaid duty.
Time limit to apply for reassessment
Apply for the FHOR before the later of:
- for a home – 12 months after the date when the transferee has been registered on the Certificate of Title of the property (generally the settlement date)
- for vacant land on which a home is to be built –
- 12 months after the home is ready to be occupied (generally the handover date) or
- three months after the grant has been paid.
Obligation to notify the Commissioner of State RevenueShow more
As the FHOR is aligned with the criteria and conditions for the grant, the transferee must meet the grant requirements regardless of whether they receive the grant. This includes notifying the Commissioner of State Revenue within 30 days of the date it becomes apparent that any eligibility criteria will not be met.
See the ‘First Home Owner Grant’ fact sheet for the criteria and conditions that must be met.
If a person is required to repay the grant, a transaction that has been assessed at the FHOR will be reassessed at the residential or general rate of duty.
Providing false or misleading information is an offence under the Taxation Administration Act 2003 for which the maximum penalty is $20,000 plus three times the amount of tax that was or might have been avoided.