Great news for anyone looking to enter the property market in Western Australia! The WA Government has just announced significant increases to stamp duty exemption and concession thresholds, particularly benefiting first home buyers and those purchasing off-the-plan.

This is a move Holdsworth Real Estate, alongside REIWA, strongly welcomes. As property prices have grown, the previous stamp duty thresholds meant many buyers, especially first home buyers, were facing a substantial tax bill on top of their deposit and other costs. REIWA surveys confirmed stamp duty was seen as a major barrier by over 60% of respondents.

These changes aim to make home ownership more accessible. Here’s what you need to know:

Big Savings for First Home Buyers (FHBs)

Effective for contracts signed from March 21, 2025*, the thresholds for FHBs purchasing established homes have increased:

• Perth & Peel Region:
  • Full Exemption: Pay NO stamp duty on homes valued up to $500,000 (previously $450,000).
  • Concessional Rate: Pay reduced stamp duty on homes valued between $500,001 and $700,000 (previously phased out at $600,000).
• Regional WA:
  • Full Exemption: Pay NO stamp duty on homes valued up to $500,000 (previously $450,000).
  • Concessional Rate: Pay reduced stamp duty on homes valued between $500,001 and $750,000 (previously phased out at $600,000).

What does this mean? A first home buyer purchasing a property at $500,000 will now save nearly $18,000 in stamp duty costs!

Changes for Vacant Land (Statewide)

If you’re a first home buyer looking to purchase land to build:

• Full Exemption: Applies up to $350,000 (previously $300,000).
• Concessional Rate: Applies for land valued between $350,001 and $450,000 (previously phased out at $400,000).

Boost for Off-the-Plan Purchases (Apartments & Townhouses)

To encourage the supply of new homes, the government has also improved the stamp duty concessions for purchasing off-the-plan, importantly extending this to strata townhouses as well as apartments:

• New Dwellings (Pre-Construction):
  • 100% Stamp Duty Rebate (No Duty Payable) up to $750,000 (up from $650k).
  • Concession tapers down to 50% for values over $850,000 (up from $750k).
• Dwellings Under Construction:
  • 75% Stamp Duty Rebate up to $750,000.
  • Concession tapers down to 37.5% for values over $850,000.

What this means: This makes buying new apartments and townhouses off-the-plan significantly more affordable and supports the development of much-needed medium and high-density housing.

IMPORTANT NOTE ON TIMING & REFUNDS:

While the effective date is March 21, 2025, the legislation enabling these changes still needs to pass through WA Parliament.

• What happens now? If you sign an eligible contract from March 21 onwards, you will initially need to pay stamp duty based on the old thresholds.
• What happens later? Once the legislation is officially passed and implemented, eligible buyers can apply to RevenueWA for a refund of the difference between the duty paid and the new, lower amount payable.

We advise keeping good records of your transaction. Holdsworth Real Estate will keep you informed as the legislation progresses.

Your Next Step

This is fantastic news, removing a significant financial hurdle for many West Australians. Whether you’re a first home buyer eager to see how much you can save, or you’re considering the benefits of buying an apartment or townhouse off-the-plan, these changes could make a real difference to your budget.

Want to understand exactly how these new stamp duty thresholds impact your purchasing power or explore your property options? Contact the expert team at Holdsworth Real Estate today! We’re here to provide clarity and guide you through every step of your property journey in WA.