Property tax unpacked: What it really costs to sell a house in Perth

Selling a property is one of the biggest financial decisions most people make – yet so many get caught out with the true costs involved. 

While many countries tax the sale of property, Australia generally doesn’t. However, there is one tax that may apply, along with several non-tax costs. 

So, let’s break down the real price tag of selling a property in Perth and what WA sellers specifically need to know to avoid bill shock. 

The hidden costs of selling a house in Perth

Before tax even enters the conversation, most sellers will face a list of selling-related fees. These aren’t property taxes, but they directly affect your final outcome. 

In Western Australia, unlike some other places, these costs are often unbundled. So, rather than a single lump sum, you’re likely to see separate charges for services like marketing and conveyancing. 

Here is what you need to budget for: 

  1. Real estate agent commission

This is almost always your largest single expense. In Perth, agent commissions are unregulated, meaning they are negotiable. 

  • The cost: Typically ranges between 2.0% and 2.5% of the sale price in the Perth metro area, though it can be higher in regional WA (often 2.5%–3.0%). 
  • The structure: Most agents work on a fixed percentage basis. However, some may propose a tiered structure to incentivise a higher price (e.g., 2% up to $800,000, and 10% of the amount above that threshold) 
  • GST warning: Commission quotes must include GST by law, but always double-check whether the figure discussed is inclusive or plus GST. 
  1. Marketing and advertising

In WA, marketing is usually charged separately to the commission. You’re paying for the agent’s time via commission, but you’re paying for the media reach via marketing. 

  • The cost: A standard campaign in Perth usually falls between $1,500 and $4,000. 
  • What you get: This covers professional photography, floorplans, drone shots, signboards, and, most importantly, listings on major platforms like realestate.com.au and Domain. 
  • Why it matters: Skimping here is often a false economy, particularly in competitive Perth suburbs. A Premiere or Highlight listing ensures your property stays at the top of the search results. 
  1. Settlement agent (conveyancing) fees

You’ll need a settlement agent or solicitor to transfer the legal ownership of the property. In WA, it’s common to use a specialist settlement agent. 

  • The cost: Generally between $800 and $1,500. 
  • The role: They conduct title searches, adjust rates and outgoings, and ensure the money changes hands correctly. 
  • PEXA fee: Most settlements now happen electronically via PEXA, which has a small additional administrative fee (approx. $130–$140). 
  1. Property styling or staging

While optional, staging is becoming the norm in Perth, particularly for vacant properties or homes with dated furniture. 

  • The cost: Expect to pay between $2,000 and $5,000 for a hire period of 4 to 6 weeks. 
  • The ROI: Data consistently suggests that styled homes sell faster and often for a premium – because buyers can visualise themselves living in the space. 
  1. Mortgage discharge fees

If you have a mortgage on the property, your bank will charge a fee to close the loan account and remove its claim on the title. 

  • The cost: Usually $300 to $500 per loan account. 
  • Note: You may also face ‘break costs’ if you are ending a fixed-rate loan early. This can be thousands of dollars, so always check with your broker or lender before listing. 

Understanding Capital Gains Tax (CGT)

Capital Gains Tax (CGT) is the only tax that is directly linked to selling a property.  

CGT applies when you sell an asset, including property, for more than you paid for it. The difference between the purchase price and the sale price (after eligible costs) is the capital gain. 

Some important points for WA sellers: 

  • CGT is a federal tax, not a state tax 
  • WA has no separate CGT rules 
  • The amount of CGT payable depends on your overall taxable income in the year of sale. 

When CGT usually applies 

  • Investment properties 
  • Properties that were rented out for part or all of the ownership period 
  • Properties used for business purposes 

How to be exempt from CGT

In terms of property tax, many Perth sellers are surprised to learn they may not pay CGT, or pay less than they imagined.  

Main residence exemption 

If the property was your principal place of residence, you’ll generally be exempt from Capital Gains Tax. Even if it’s skyrocketed in value. 

Partial exemptions 

CGT may apply to part of the gain if: 

  • You rented out the property for a period 
  • You lived in the home but used part of it to generate income 
  • The property was your main residence for only part of the ownership period 

In these situations, only some of the capital gain may be taxable, depending on how the property was used over time. 

Investment properties 

For investment properties, CGT usually applies. However, the taxable gain can often be reduced by factoring in: 

  • Purchase costs (such as stamp duty and legal fees at the time of purchase) 
  • Selling costs (agent commission, advertising, conveyancing) 
  • Eligible renovations and improvements 

Understanding your eligibility early – and keeping good records – is going to help you a ton in the long run. 

Does stamp duty apply when selling a house in WA?

Stamp duty is one of the most common sources of confusion for sellers, and it’s often incorrectly lumped in with “property tax when selling”. 

In Western Australia: 

  • Sellers do not pay stamp duty 
  • Stamp duty is paid by the buyer 
  • This applies to all residential property transactions 

Stamp duty is absolutely a property tax. But it is not a cost of selling for WA homeowners.  

It pays to stay informed

The true cost of selling a house in Perth comes down to understanding: 

  • Your selling costs 
  • Whether Capital Gains Tax applies 
  • Which exemptions you may qualify for 
  • Which taxes you don’t need to worry about at all 

Getting clarity on these points early can help you plan with confidence and avoid surprises once your property is under offer. 

If you’re considering selling, speak with a local Perth agent who understands both the market and the numbers behind your sale. And make more informed decisions from the outset.