In Perth, a loan between private individuals needs no licence, but irregular mining incomes, distance and a large expatriate population call for a written contract, traceable transfers, declaring interest to the ATO and a habit of checking WA ScamNet.
Perth, the most isolated of the big capitals
Capital of Western Australia, Perth lies more than two thousand kilometres from Adelaide, the nearest large city. Its economy depends heavily on the mines of the Pilbara and the Goldfields, with high wages but sometimes brutal employment cycles.
FIFO workers: high wages, broken incomes
Fly-in fly-out workers spend two or three weeks on a mine site and then return to Perth. A contract can end suddenly, so the schedule of a loan between colleagues should allow a deferral or suspension if the job is lost.
British, South African and French expatriates in Perth
Perth has large communities born in the United Kingdom and South Africa, plus French engineers in mining or gas. Before lending to an expatriate, read our page on peer-to-peer loans for expatriates, which details the risk of departure.
Western Australia and the National Credit Code
Western Australia applies the National Credit Code to professional lenders. A one-off loan between two colleagues from Fremantle or Joondalup is not covered: it is an ordinary contract, and proof rests on the written agreement and bank statements.
WA ScamNet, the state's anti-scam service
Consumer Protection WA runs WA ScamNet, which publishes alerts about scams targeting the state's residents, including fake lenders and fake investment sites. The service complements Scamwatch, the national platform run by the ACCC, the competition and consumer regulator.
Perth Magistrates Court for an unpaid debt
A debt between individuals is claimed before the Magistrates Court of Western Australia, which offers a simpler minor case procedure. Legal Aid WA and Perth community legal centres can explain the forms before you lodge your claim.
Lending between site colleagues without paperwork: a risk
On mine sites, loans are often sealed with a handshake between two rotations. Yet a colleague transferred to Queensland becomes hard to reach. Use our peer-to-peer loan contract and sign it before the flight to site.
Perth's time zone and international scams
Perth runs on Western Australian time, close to Singapore's. Fraudsters based in South-East Asia call during local office hours posing as lenders. Our page on international transfer loan scams describes the schemes they use.
Interest income for a Perth-based lender
A Perth resident who receives interest from a friend declares it to the ATO, the Australian Taxation Office, with their other income, even when paid in cash. A high-earning FIFO worker may see this interest taxed at the top marginal rate.
Fake mining lenders and debt consolidation offers
Some ads target indebted mine workers by offering to refinance a car loan or a loan for a ute. Before replying, read our list of warning signs and fake private lender profiles, then check the licence on the ASIC register.
After a scam: useful contacts in Perth
Call your bank immediately, then report the facts to WA ScamNet and Scamwatch. Cyber fraud is reported on ReportCyber, which passes it to the WA Police Force. IDCARE helps secure your identity if a passport or licence was handed over.
Perth and other Australian cities
The federal framework is the same from Adelaide to Brisbane, but only Western Australia has WA ScamNet. For comparison, the Sydney page covers parental home loans, and the national guide recalls the 48% cap applying to regulated non-bank lenders.
Setting up a private loan in Perth
- Assess how stable the borrower's income is, especially the time left on their mining contract or work visa.
- Draft a contract allowing a deferred instalment if a FIFO assignment ends, without cancelling the debt.
- Sign before leaving for site, in front of a Western Australian Justice of the Peace or an independent witness.
- Pay the funds by transfer from an Australian bank and keep the transaction confirmation.
- Schedule repayments by direct debit, aligned with the borrower's pay cycle.
- In a dispute, send a written letter of demand, then file a claim with the Perth Magistrates Court.
Indicative costs of a private loan in Perth
| Item | Amount in AUD | Note |
|---|---|---|
| Interest between colleagues | Free choice (indicative) | Outside the National Credit Code if occasional |
| Cap for regulated non-bank lenders | 48% a year, fees included | Does not cover one-off private loans |
| Witnessing by a JP | Free (indicative) | Western Australian volunteers |
| Minor case at the Magistrates Court | Filing fees per the schedule | Check with the registry |
| Tax on interest | Marginal rate, often high for FIFO workers | Declared to the ATO |
File to prepare in Western Australia
- WA driver's licence or passport
- Borrower's employment contract or payslips
- Loan contract signed before leaving for site
- Direct debit authority
- Proof of transfer and record of repayments
- Contact address outside Australia for an expatriate
Mistakes to avoid in Perth
- Lending to a FIFO colleague on trust between two rotations, with no contract and no proof of transfer.
- Ignoring the alerts published by WA ScamNet about fake lenders targeting the state's residents.
- Accepting a debt consolidation offer by phone from a company that cannot be found on the ASIC register.
- Sending money abroad to unlock a loan, a typical demand in international transfer scams.
- Forgetting to declare to the ATO interest received in cash from a friend or colleague.
Questions often asked in Perth
What should you plan for if a FIFO borrower loses their contract in Perth?
Include a temporary suspension clause in the contract, for example three months, with instalments resuming afterwards. The debt remains due. An amended written agreement is better than a verbal arrangement if the situation drags on.
Does WA ScamNet replace Scamwatch for a Perth resident?
No, the two work together. WA ScamNet issues alerts specific to Western Australia, while Scamwatch centralises reports at national level. Reporting to both, as well as to your bank, gives the best chance of action being taken.
Can you lend to an expatriate whose visa expires soon?
It is possible, but the schedule should end before the visa runs out, with an address and a bank account in their home country. Otherwise, recovering the money abroad becomes slow and expensive for the lender.
Is interest on a loan between Perth colleagues taxable?
Yes, if received by an Australian tax resident, it is added to the income declared to the ATO. An interest-free loan creates no taxable income, but keep the documents proving that it really is a loan.