Australia’s largest state has introduced major tax reforms to accelerate the delivery of new housing and attract first-home buyers.
First Home buyers
The Western Australian government has increased stamp duty exemptions and concessions for first home buyers in its first significant housing policy announcement since its re-election in March.
For purchases made after 21 March, the stamp duty exemption threshold for house purchases in Perth and Peel will increase from $450,000 to $500,000, while the concession threshold for first home buyers will increase from $600,000 to $700,000.
For house purchases in regions outside Perth and Peel, the stamp duty exemption threshold will increase from $450,000 to $500,000, and the concession threshold for first home buyers will increase from $600,000 to $750,000.
The state government said the move means that Western Australians buying their first home under $500,000 could save nearly $18,000.
Vacant land exemptions and concessions
The stamp duty exemption threshold for statewide vacant land purchases will increase from $300,000 to $350,000, while the stamp duty concession threshold for first home buyers will increase from $400,000 to $450,000.
“Not only does Western Australia have the fastest growing economy in the nation, we have the fastest growing population, which creates pressures in areas like housing,” Premier Cook said.
“But my government will never stop working towards every Western Australian having a home, so we are making home ownership more affordable for first home buyers and supporting new housing supply across Western Australia.
Off-the-plan consessions for all Australian buyers.
The government also announced that it had expanded and extended stamp duty concessions for new off-the-plan homes purchased before or during construction.
Thresholds were lifted by $100,000 for dwellings purchased before construction commences, meaning no stamp duty will be paid for dwellings up to $750,000, tapering to a 50 per cent concession above $850,000.
For dwellings bought while under construction, a 75 per cent concession is available up to $750,000, tapering to a 37.5 per cent concession above $850,000.
The changes apply to apartments and include townhouses on strata plans for the first time, a move the WA government said will help boost housing density, increase housing choice, and provide more options for seniors to downsize.
The government said the stamp duty reforms would save people purchasing new strata apartments or townhouses up to $15,000.
The expanded concessions will apply to off-the-plan purchases from 21 March 2025 until 30 June 2026.
Western Australian Finance Minister David Michael said buyers eligible for the new thresholds and needing to pay duty under the previous thresholds at settlement can apply for a refund when the system changes are implemented.
“Legislation to support these changes will be introduced into Parliament as a priority once Parliament resumes,” he said.
