The WA Labor Government has announced some major changes to stamp duty to support Western Australians to purchase their own home and save them thousands. These major housing policy changes follow a recent REIWA survey where More than 60% of survey respondents agreed stamp duty was a significant barrier to homeownership in Western Australia.
WA Labor Government Makes Home ownership More Affordable
In a swift delivery of one of their key election commitments, the WA state government has increased stamp duty concessions for first home buyers with this major housing policy.
What are the changes to stamp duty for First Home Buyers?
Effective from March 21, 2025, the government has increased stamp duty exemptions and concessions for first-time homebuyers, providing more support for those purchasing eligible homes, land, apartments, and townhouses.
House Purchases:
- In Perth and Peel regions, the stamp duty exemption threshold rises from $450,000 to $500,000, and the concession threshold increases from $600,000 to $700,000.
- Outside Perth and Peel, the exemption threshold rises from $450,000 to $500,000, and the concession threshold increases from $600,000 to $750,000.
Vacant Land Purchases (Statewide):
- The exemption threshold increases from $300,000 to $350,000, and the concession threshold rises from $400,000 to $450,000.
What does this mean for First Home Buyers in WA?
This means first home buyers in Western Australia will save nearly $18,000 on stamp duty when purchasing homes up to $500,000. Those buying homes valued up to $700,000 in Perth or Peel, or $750,000 in regional areas, will also benefit from reduced stamp duty.
First home buyers purchasing vacant land will save almost $11,000 on properties valued up to $350,000 and will also save on land up to $450,000.
Around 22,000 first home buyers are expected to benefit from these changes, with roughly 8,000 buyers no longer paying any stamp duty at all when purchasing established homes or vacant land.
What about off-the-plan purchases?
The government has expanded and extended stamp duty concessions for new off-the-plan homes. These will apply to both apartments and, for the first time, townhouses on strata plans.
- Before Construction: Buyers of off-the-plan homes will pay no stamp duty on properties up to $750,000, with a 50% concession for homes above $850,000.
- During Construction: Buyers will receive a 75% concession on properties up to $750,000, with a 37.5% concession for properties above $850,000.
These expanded concessions will apply to off-the-plan purchases from March 21, 2025, through June 30, 2026.
Benefits for Buyers
These stamp duty changes aim to make homeownership more affordable by increasing housing choice and supporting housing supply. They will particularly benefit seniors looking to downsize and encourage the development of new multi-residential properties.
Here’s what they said
Premier Roger Cook:
“Western Australia has the fastest-growing economy and population in the country, which creates housing challenges. These changes will help turn the dream of homeownership into a reality for thousands of people each year.”
Treasurer Rita Saffioti:
“By increasing stamp duty exemptions and concessions again, we are saving Western Australians thousands of dollars, helping them get into the housing market while increasing housing supply.”
Finance Minister David Michael:
“We’ll introduce the legislation to support these changes as a priority when Parliament resumes. Eligible buyers who pay duty under the old thresholds can apply for a refund once the changes are in effect.”
For more information about eligibility and how to access these concessions, visit wa.gov.au.
As you navigate the process of purchasing your first home and taking advantage of these exciting new stamp duty exemptions and concessions, it’s essential to have expert guidance. Working with an experienced Perth mortgage broker can make all the difference. A skilled broker will not only help you understand the full range of options available but will also streamline your home loan application, ensuring you access the best rates and terms suited to your needs. With their local expertise and knowledge of the latest market trends, a mortgage broker can take the stress out of the process and help turn your dream of homeownership into a reality.
Contact one of the best mortgage broker in Perth today to get started on your home buying journey! We understand that there is a lot to know and we can help to guide you the through the entire process from start to finish, and then we keep an eye on your ohm sloan as you go forward.
You can also visit our FAQ page for more specific First Home Buyer information and download our free first home buyer finance guide.
Disclaimer: The information provided on this blog is for general informational purposes only and does not constitute financial or professional advice. While we strive to provide accurate and up-to-date information, mortgage laws and regulations can change, and individual circumstances may vary. We recommend consulting with a qualified financial advisor or mortgage broker to assess your specific situation and needs. Base Home Loans is not responsible for any actions taken based on the content of this blog. Always conduct your own research and consider seeking professional advice before making financial decisions.
