Homebuyers in Western Australia will pay less stamp duty under sweeping changes announced for the state, with funding also earmarked for affordable housing projects and new home developments.
The Western Australian Government unveiled its state budget on Thursday, announcing a range of housing sector initiatives including changes to stamp duty thresholds, updates to its First Home Owner Grant, and an investment into its recently announced affordable homes project.
First-home buyers in WA’s fast-growing housing market are the main winners in the $297 million tax package, which the state government says will impact around 25,000 new buyers over the next four years and increase the number of new homes being built as part of the National Housing Accord.
Under the changes, first-home buyers will not pay stamp duty on new or established homes valued up to $600,000, up from the current $500,000 threshold, while concessional rates will apply to homes worth up to $800,000.
The property cap for the $10,000 First Home Owner Grant (FHOG) will also rise from $750,000 to $800,000.
Vacant land buyers are also set to benefit as the state looks to ramp up its delivery of new homes, with the stamp duty exemption threshold increasing from $350,000 to $450,000.
New homes get a boost from the WA budget. Picture: Getty
Concessional rates have also been extended to blocks valued up to $550,000.
A $375 million investment to push forward the supply of affordable homes has also been unveiled for what is now the country’s third-most expensive city to buy.
The funds are earmarked to build 500 affordable homes for first-home buyers in targeted growth corridors, through the Keystart program.
Six different shared equity home loans form the state’s Keystart Home Loans, which were established in 1989 to lower entry cost barriers into the housing market while also removing the need to pay Lenders’ Mortgage Insurance.
A new Keystart commercial financing facility costing $250 million is also set to provide low-cost finance for developments that include affordable housing.
Another $250 million will fund a new pre-sale guarantee scheme designed to help developers get new housing projects off the ground.
It comes after a formidable 12 months for the WA housing market, with median home prices up 21.5% in Perth and 16.3% for the rest of the state.
"The measures will expand access to support at a time when Perth’s housing market has experienced an extraordinary uplift in prices in recent years," REA Group senior economist Eleanor Creagh said.
REA Group senior economist, Eleanor Creagh. Picture: John Gass
Perth was the fastest-growing capital city in Australia over the last year, the PropTrack Home Price Index shows, with the median home price breaking the $1 million mark in March for the first time.
"Perth home values have more than doubled over the past five years," Ms Creagh added. "The median home value in Perth now sits just above $1.02 million, highlighting how rapidly affordability has deteriorated for aspiring first-home buyers.
"Lifting the stamp duty exemption and concession thresholds, alongside increasing the FHOG cap, should help improve the ability of first-home buyers to compete in a market where entry-level price points have shifted higher after a period of very strong price growth."
Help us improve your reading experience
Got a minute? Your feedback will help us build a better experience for you.
Help us improve this page
English (US) · 