Western Australia’s foreign transfer duty rules are facing scrutiny, with a leading Perth buyer’s agent urging the state government to exempt temporary visa holders from the 7% surcharge applied to foreign property buyers.
Buyer’s agent Peter Gavalas (pictured), from Resolve Property Solutions, said the surcharge undermines government efforts to attract and retain skilled workers needed to fill labour shortages.
“The current rules around foreign transfer duty miss the intent of why we're trying to attract people,” Gavalas said. “The tax exists to charge foreign investors an extra 7% when they are buying property, which is understandable for speculators and passive investors.
“But right now, we are actively trying to get people to come to Perth and WA on a work visa – we want to attract the skilled talent needed to grow the economy and fill critical labour shortages. They shouldn't be slugged an extra 7% just for accepting this offer.”
WA’s foreign transfer duty, introduced in 2019, adds a 7% surcharge to the purchase price of residential properties bought by “foreign persons” — anyone who is not an Australian citizen, permanent visa holder or special category visa holder (such as certain New Zealand citizens).
That definition includes temporary visa holders, such as those on subclass 482 Skills in Demand visas, many of whom are already living and working full-time in WA.
According to PropTrack, Perth’s median dwelling value hit $875,000 at the end of September 2025, meaning the surcharge adds an extra $61,250 to the cost of a typical purchase — on top of standard stamp duty.
“This is a major disincentive for skilled migrants who are looking to establish roots in Perth,” Gavalas said.
Gavalas argued that temporary residents working in WA should be treated differently from passive offshore investors, given their long-term contribution to the state economy.
“By granting an exemption or a reassessment pathway to those who are moving to WA on an eligible work visa and intend to occupy the property as their principal place of residence, the state could send a more welcoming and consistent message to essential overseas talent,” he said.
For mortgage brokers, WA’s foreign buyer duty directly impacts affordability for skilled migrant borrowers — a growing segment of the housing market.
If reforms are introduced, brokers could see a lift in borrowing capacity and loan demand from temporary visa holders seeking to settle permanently in Perth, particularly in family and middle-ring suburbs.
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