Australia's largest state has introduced major tax reforms to accelerate delivery of new housing and draw in first-home buyers.
Following its recent election win, the Western Australian government has announced a series of stamp duty changes on established and new homes.
As part of the changes, the government lifted the value threshold for stamp duty concessions on off-the-plan properties for all homebuyers.
This follows various state governments making changes to stamp duty for new builds, including Victoria slashing it on off-the-plan homes and Queensland axing it across all new builds for first-home buyers.
The state lifted the value threshold for stamp duty concessions on off-the-plan homes. Picture: Getty
The concession, which first commenced in October 2019, aims to make homeownership more accessible and increase construction jobs by offering a duty concession on eligible apartment and townhomes.
Now in effect until 30 June 2026, the threshold sits at $750,000 for off-the-plan dwellings purchased before construction commences, meaning no stamp duty will be paid for these properties. A 50% concession applies to properties valued above $850,000.
For properties bought while under construction, a 75% concession is available up to $750,000 and tapers to a 37.5% concession for properties valued above $850,000.
The changes apply to all off-the-plan apartments and townhomes on strata plans, which is proposed to boost housing density, increase housing choice and provide more options for downsizers.
WA finance minister David Michael said a pre-enactment determination will be made to allow the changes to be applied to eligible transactions made from Friday, 21 March 2025.
"Buyers that are eligible for the new thresholds who need to pay duty under the previous thresholds at settlement can apply for a refund when the system changes are implemented,” he said.
The stamp duty changes are in effect until 30 June 2026. Picture: Getty
What’s in store for FHBs
First-home buyers have also been handed significant relief, with various exemptions in place for established homes across the state.
For first-home buyers looking to build, there are further stamp duty exemptions on offer for vacant land purchases.
Statewide, the stamp duty exemption threshold has increased from $300,000 to $350,000 and the concession threshold has increased from $400,000 to $450,000.
This can save first-home buyers almost $11,000 when buying vacant land.
According to the government, close to 22,000 first-home buyers are expected to benefit from these changes, with approximately 8000 no longer paying stamp duty when buying vacant land.
WA treasurer Rita Saffioti said the changes follow the state government increasing first-home buyer stamp duty exemptions and concessions for the first time in over a decade in 2024.
"Now, we've increased the level of support again, to save Western Australians thousands of dollars when they purchase their first home,” she said.
"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."
Are you looking for an off-the-plan property? Check out our New Homes section.
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