Budgeting for settlement: stamp duty and other costs

When you buy a Hidden Valley lot, the deposit is $10,000 and the balance of the price is due at settlement. But there are other costs to plan for too, and it’s much easier to plan for them now than to be surprised later. Settlement is expected in mid-2027, so you’ve got time.

At settlement

The balance of the price

The purchase price less your $10,000 deposit.

Transfer duty

In WA, transfer duty (often called stamp duty) is payable on land purchases and is collected by RevenueWA. The amount depends on the price and your circumstances. It’s generally the biggest extra cost.

RevenueWA has an online calculator, and your settlement agent will confirm the exact figure.

Settlement agent fees

A settlement agent prepares the documents, liaises with the other parties and lodges the transfer. Their fee plus disbursements (searches, registration fees and so on) vary between agents. Get a quote before you sign.

Finance costs

If you’re borrowing, there may be application fees, valuation fees and mortgage registration fees. Ask your lender or broker for a full list.

Adjustments

Some ongoing costs, like rates, can be adjusted between buyer and seller at settlement. Your settlement agent will include these.

After settlement

Once you own the land, there are ongoing costs. See the costs of holding vacant land for more.

• Council rates from the Shire of Irwin
• Water charges for the town water service
• Land tax, depending on your total WA landholdings
• Insurance, if you choose to insure the land
• Maintenance, such as firebreaks under Shire rules

A simple budgeting approach

1. Get a transfer duty estimate from the RevenueWA calculator.
2. Get a quote from a settlement agent.
3. Ask your lender for a list of fees.
4. Ask the Shire for current rates for Rural Residential land.
5. Add a buffer for anything unexpected.

Why it’s worth planning early

Settlement on a land purchase often happens months after you sign. At Hidden Valley it’s expected in mid-2027. That’s a long time for circumstances to change, so a clear budget now makes the final step smooth.

It also helps your lender. If you’re borrowing, your lender will want to know how you’re covering the deposit, the balance and the costs. Having the numbers ready speeds things up.

Don’t forget the build

If you plan to build soon after settlement, your budget doesn’t stop at settlement. Consider:

• Building costs, which a builder can estimate once you have a design
• Site works such as the driveway and pad
• Service connections from the boundary to your home
• Bushfire (BAL) requirements, which can affect construction specifications
• Shire application fees
• Landscaping and outdoor areas

Many buyers arrange a construction loan separately once they’re ready to build. Ask your lender how land and construction lending can work together.

Worked example of a settlement checklist

Here’s the kind of checklist a settlement agent might go through with you:

1. Confirm the balance owing after the deposit.
2. Confirm transfer duty and when it’s due.
3. Confirm any rates or other adjustments.
4. Confirm settlement agent fees and disbursements.
5. Confirm finance is approved and documents are signed.
6. Confirm funds are ready to transfer on settlement day.

Your settlement agent will give you the exact figures. The point is to know the steps so nothing catches you off guard.

Understanding transfer duty in WA

Transfer duty is a state tax on the transfer of property. Every state has its own version with different rates and rules. In WA it’s administered by RevenueWA under the Duties Act.

A few things to know:

• The amount is generally calculated on the purchase price, or the property’s value if that’s higher.
• Rates are set by the state government and can change, so always check current figures.
• Concessions may be available in certain circumstances, such as some first home buyer schemes, with their own eligibility rules.
• Foreign buyers may pay additional duty.
• Your settlement agent will calculate and arrange payment as part of settlement.

Because the rules have details and exceptions, don’t rely on a general figure from a friend or a different state. Use the RevenueWA calculator and confirm with your settlement agent.

Settlement agents: what you’re paying for

A settlement agent’s job includes:

• Reviewing the contract and explaining your obligations
• Ordering searches and certificates
• Liaising with the seller’s representatives and your lender
• Calculating adjustments
• Preparing transfer documents
• Arranging payment of duty
• Completing settlement and lodging the transfer

Fees vary. Ask what’s included, what disbursements to expect and whether there are extra charges for things like electronic settlement.

Ongoing costs in more detail

Once you own the land, a few costs repeat each year.

Cost	Who charges it	Notes
Council rates	Shire of Irwin	Ask the Shire for current Rural Residential rates
Water service charges	The water provider	Check with the provider
Land tax	RevenueWA	Depends on your total landholdings
Insurance	Your insurer	Optional for vacant land, but worth considering
Maintenance	You	Firebreaks and vegetation under Shire bushfire rules

Example budgeting checklist

Use this as a starting point and fill in the numbers as you get quotes.

1. Balance of purchase price at settlement
2. Transfer duty estimate from RevenueWA
3. Settlement agent fees and disbursements
4. Lender fees, if borrowing
5. First year’s rates and water charges
6. Insurance
7. Land maintenance
8. A contingency buffer

A word on contingencies

Things change between signing and settlement: interest rates, personal circumstances, costs. A contingency buffer gives you breathing room.

Interstate buyers: what’s different

If you’ve bought property in another state, a few things may feel different in WA.

• Settlement agents are commonly used for settlements, rather than solicitors or conveyancers as in some states. You can still choose a solicitor if you prefer.
• The contract form is the REIWA offer and acceptance, with the 2022 General Conditions.
• Transfer duty is calculated under WA rules, which differ from other states’ stamp duty.

Don’t assume costs or processes will match what you’ve seen elsewhere. Ask your settlement agent to walk you through the WA approach.

Timing your money

For a purchase with settlement months away, think about where your money will be in the meantime.

• The deposit is paid within 7 days of acceptance.
• The balance and costs are due at settlement.

If you’re using savings, consider keeping the settlement funds somewhere accessible and secure. If you’re selling another property, think about the timing so funds are available when needed.

If you’re borrowing

Your loan will usually cover part of the price, with your own funds covering the rest plus costs. Ask your lender:

• What percentage of the price will you lend on this land?
• Can costs like duty be included?
• What do I need to provide before settlement?
• How long is the approval valid?

Settlement day: what actually happens

On settlement day, your settlement agent and the other parties complete the transaction, usually electronically. Funds move between accounts, duty is paid and the transfer is lodged. You’ll usually just get a call or email to confirm it’s done. Then the land is yours.

After settlement: setting up

Once you own the land:

• Make sure the Shire has your correct postal address for rates notices.
• Set up the water account.
• Decide whether to insure the land.
• Diarise any maintenance requirements, such as firebreaks.
• Start planning your build, if you haven’t already.

Budgeting for the long term

Some buyers hold their land for years before building. If that’s your plan, budget for several years of rates, charges and maintenance, not just the first. It helps you hold the land comfortably until you’re ready.

Talking to professionals

You don’t need to work all this out alone. Three people can help:

• Your settlement agent: settlement costs, duty and adjustments
• Your lender or broker: loan costs and what can be financed
• Your accountant: tax and ongoing costs such as land tax

A short conversation with each can save you money and stress.

Common budgeting mistakes

• Forgetting duty altogether. It’s usually the largest extra cost.
• Using another state’s figures. WA rates and rules differ.
• Underestimating settlement fees. Get a quote, including disbursements.
• Ignoring holding costs. Rates and charges apply from settlement.
• No buffer. Something always costs more than expected.
• Not talking to a lender early. Some costs can or can’t be financed, depending on the lender.

A note on the deposit

Your $10,000 deposit is paid early and held in trust. At settlement it’s applied to the purchase price, reducing the balance you pay.

Common questions

Who calculates stamp duty?

RevenueWA. Your settlement agent will confirm the exact amount.

When is the balance due?

At settlement, 14 days after titles are available.

When is stamp duty paid?

Generally at or around settlement. Your settlement agent will tell you the timing.

Are there concessions?

Concessions may apply in some circumstances. Check eligibility with RevenueWA.

Can I add stamp duty to my loan?

That depends on your lender. Ask them.

What do settlement agents charge?

Fees vary. Get quotes from a few.

Do I pay rates before I build?

Yes, council rates apply once you own the land.

Is land tax payable on vacant land?

It may be, depending on your total landholdings. Check with RevenueWA.

Do interstate buyers pay WA stamp duty?

Yes. Transfer duty is based on where the property is, so WA duty applies to land in WA.

Can concessions apply to vacant land?

Some concessions have specific rules about land and building. Check eligibility with RevenueWA.

Will my settlement agent pay the duty for me?

Settlement agents typically arrange payment of duty as part of settlement, using funds you provide.

How long before settlement should I get a cost estimate?

A few months ahead is sensible, so you have time to arrange funds.

Are settlement costs the same in every state?

No. Duty rates and settlement practices differ between states.

Do I need to set up accounts after settlement?

Yes. Make sure the Shire and water provider have your details.

Is a settlement agent cheaper than a solicitor?

Fees vary. Get quotes and compare what’s included.

Is the deposit taken off the price at settlement?

Yes. The deposit is applied to the purchase price at settlement.