First Home Owner Rate of Duty: Thresholds, Rates & How It Works
A concessional rate of transfer duty for eligible first home buyers in WA — here’s what it means and how much it could save you.
Call 08 9525 0525 Email UsWhat Is the First Home Owner Rate?
The First Home Owner Rate (FHOR) is a concessional rate of duty applied to eligible transactions — such as a contract to purchase or transfer a home or vacant land. Eligibility is aligned with the requirements under the First Home Owner Grant Act 2000.
You may be entitled to the FHOR if the unencumbered value of the land — or the land and home together — does not exceed the relevant threshold, and:
- You qualify for the First Home Owner Grant, or
- You would have qualified except that you purchased an established home, paid no consideration under the transaction, or are an Indian Ocean Territories resident acquiring your first home.
Not yet approved before settlement? Duty is assessed at the general rate and must be paid at or before settlement. If you’re later approved for the grant, you can apply for a reassessment and refund.
Dutiable Value Thresholds — Home & Land
Current thresholds for transactions entered on or after 21 March 2025:
| Region | Max Unencumbered Value | No Duty Below | Rate Above Threshold |
|---|---|---|---|
| Metropolitan & Peel | $700,000 | $500,000 | $13.63 per $100 over $500,000 |
| Outside Metro/Peel | $750,000 | $500,000 | $11.89 per $100 over $500,000 |
Metropolitan region: Armadale, Bassendean, Bayswater, Belmont, Cambridge, Canning, Claremont, Cockburn, Cottesloe, East Fremantle, Fremantle, Gosnells, Joondalup, Kalamunda, Kwinana, Melville, Mosman Park, Mundaring, Nedlands, Peppermint Grove, Perth, Rockingham, Serpentine-Jarrahdale, South Perth, Stirling, Subiaco, Swan, Victoria Park, Vincent, Wanneroo. Peel region: Mandurah, Boddington, Murray, Waroona.
Dutiable Value Thresholds — Vacant Land
For transactions entered on or after 21 March 2025:
- Unencumbered value of the vacant land must not exceed $450,000
- No duty payable if the dutiable value does not exceed $350,000
- Between $350,000–$450,000: duty at $15.39 per $100 over $350,000
Previous rates continue to apply to agreements entered before 21 March 2025, even if settlement occurs after this date.
Foreign Transfer Duty
Foreign transfer duty (7% of dutiable value) is chargeable when foreign persons purchase residential property — even if the FHOR applies to the transaction overall. With more than one purchaser, it applies only to the foreign person’s share.
Example: Kate (Australian citizen) and Simon (foreign person) buy a $400,000 home as joint tenants and are first home buyers. No transfer duty applies as the dutiable value is below the FHOR threshold — but foreign transfer duty of $14,000 (7% of Simon’s $200,000 share) still applies to his interest.
How to Apply
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.
Receive your approval letter
If you meet the criteria, RevenueWA sends approval and Form FDA7 ‘First Home Owner Rate of Duty’.
Submit your transaction record
Together with completed Form FDA7 and Form FDA41 to your settlement agent, or directly to RevenueWA if self-managing settlement.
“Kristi and Sandy were absolutely incredible throughout the entire process — always responsive, always keeping us informed.”
Common Questions
What is the First Home Owner Rate of duty?
A concessional rate of transfer duty for eligible first home purchases in WA, aligned with First Home Owner Grant eligibility under the Duties Act 2008.
What’s the threshold for Perth metro buyers?
For contracts from 21 March 2025, no duty is payable up to $500,000, with the concession phasing out at $700,000 in the Metropolitan or Peel regions.
Do foreign buyers still get the First Home Owner Rate?
A foreign person may still access the FHOR on their share of a purchase, but foreign transfer duty of 7% still applies to their interest in the property.
Not Sure If You Qualify?
Every purchase is different. Talk to our team before you sign — it’s free, and could save you thousands.
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