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The government will soon table legislation to see first home buyers statewide pay no stamp duty for properties valued up to $500,000.
Following the outcome of the 2025 Western Australian state election earlier this month, the re-elected Labor government has announced increased stamp duty exemptions and concessions for first home buyers.
Premier Roger Cook said that the new policy was a response to the housing pressures that had been amplified by the surging population growth in Western Australia.
“These sensible changes will deliver real savings for Western Australians looking for their first home, helping to turn the dream of home ownership into reality for thousands of people each year,” Cook said.
Finance Minister, David Michael, said that legislation to support these changes would be “introduced as a priority once Parliament resumes”.
“A pre-enactment determination will be made after the legislation is introduced to allow the changes to be applied from that date to eligible transactions made from Friday, 21 March 2025,” he said.
Additionally, Michael said that buyers who have paid duty under the previous thresholds at settlement will be able to apply for a refund once the system changes have been implemented.
Beginning 21 March 2025, the stamp duty exemption threshold for house purchases in Perth and Peel will rise from $450,000 to $500,000, and the concession threshold will increase from $600,000 to $700,000.
Stamp duty exemptions for house purchases in regions outside Perth and Peel will be increased from $450,000 to $500,000, while the concession threshold will be lifted from $600,000 to $750,000.
For purchases of vacant land across the state, the stamp duty exemption threshold will rise from $300,000 to $350,000, and the concession threshold will increase from $400,000 to $450,000.
Through the changes, the state government said that first-time home buyers in Western Australia will not have to pay stamp duty on a house valued up to $500,000, saving close to $18,000.
The Western Australian government has forecast that nearly 22,000 first home buyers will benefit from the changes, with around 8,000 no longer required to pay stamp duty when purchasing an established home or vacant land.
“These important measures will help more Western Australians get into the housing market while also increasing housing supply and choice now and into the future,” Treasurer Rita Saffioti said.
The Real Estate Institute of Western Australia (REIWA) said the stamp duty changes were welcomed, as previous research showed that stamp duty was one of the main barriers to home ownership.
“Strong population growth and low building competitions have seen the WA property market experience sustained price growth over recent years,” REIWA CEO Cath Hart said.
“Not only are first home buyers having to pay more for a home, the strong increase in prices has meant many were no longer eligible for the existing stamp duty concessions,” she added.
Hart said that the revised stamp duty exemptions and concessions would significantly benefit first home buyers in Western Australia.
“These changes will see significant savings for many first home buyers, helping them make the move to home ownership, and be welcomed by the community,” she said.
Off-the-plan duty concessions also expanded
The government has also announced that revised stamp duty concessions will be available for new off-the-plan homes purchased before or during construction, and for the first time will apply to townhouses on strata plans.
Thresholds will be lifted by $100,000 for dwellings purchased before construction commences, with no stamp duty paid for dwellings up to $750,000 and a 50 per cent concession provided for purchases above $850,000.
For dwellings bought while under construction, a 75 per cent concession will be available for purchases up to $750,000, which will then taper to a 37.5 per cent concession for dwellings valued above $850,000.
The expanded concessions will apply to off-the-plan purchases starting from 21 March until 30 June 2026.
“These changes will make off-the plan or under construction apartment and townhouse purchases more affordable. It will also help support much-needed new high and medium density developments,” Hart concluded.
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