WA Government Increases Stamp Duty Thresholds for First Home Buyers

The Western Australian Government has introduced significant reforms to stamp duty thresholds, making it easier for first home buyers to enter the property market. These changes, which took effect on 21 March 2025, raise the exemption and concession thresholds for both vacant land and established homes. First home buyers will now pay no stamp duty on vacant land valued up to $350,000, with a concessional rate applying for land priced up to $450,000. For those purchasing an established home, the exemption threshold has increased to $500,000 across both metropolitan and regional areas, with concessional rates extending to $700,000 in metro regions and $750,000 in regional WA. These updates could save eligible buyers up to $18,000, reducing upfront costs and making homeownership more achievable.

The reforms also include an extension and expansion of the off-the-plan duty concession, designed to boost housing supply and encourage new developments. Originally set to expire in June 2025, the concession will now continue until June 2026 with improved benefits. Buyers who purchase off-the-plan homes before construction starts will pay no stamp duty on properties valued up to $750,000, while a 50% concession will apply for properties between $750,000 and $850,000. For under-construction properties, a 75% concession is available up to $750,000, tapering to 37.5% for properties between $750,000 and $850,000. The program has also been expanded to include townhouses and villas on strata plans, making it more accessible to a wider range of home buyers.

Industry experts, including the Real Estate Institute of Western Australia (REIWA), have welcomed these changes as a positive step towards improving housing affordability. REIWA CEO Cath Hart highlighted that strong population growth and a shortage of new housing have made it increasingly difficult for first home buyers to secure a property. By raising stamp duty thresholds, the government is easing financial barriers, while the off-the-plan concessions are expected to incentivise developers to build more homes, particularly in high- and medium-density areas. These measures are designed to not only support first home buyers but also stimulate growth in the property market.

The WA Labor Government has positioned these reforms as part of a broader strategy to tackle housing affordability and increase homeownership opportunities. Up to 22,000 buyers are expected to benefit from these changes, which offer direct financial relief and encourage investment in new housing stock. Although the new thresholds came into effect on 21 March 2025, legislative amendments and system updates are required to finalise the changes, with full implementation expected by June 2025. Home buyers who purchase property before the system updates are completed will be eligible for refunds to ensure they receive the full benefit of the new thresholds.

With housing affordability remaining a key concern for many Western Australians, these stamp duty reforms provide much-needed relief for first home buyers and investors alike. By reducing upfront costs and expanding incentives for new developments, the government is making homeownership more attainable while supporting a more sustainable property market. As these changes roll out, they are expected to have a lasting impact on the accessibility and affordability of housing across WA.

If you'd like to talk about how this will affect your property plans, don't hesitate to contact the team at Bellcourt on 08 6141 7848