New thresholds expected to ease affordability pressures and boost home ownership
The Real Estate Institute of Western Australia (REIWA) has welcomed the state government’s recent decision to increase stamp duty thresholds for first-home buyers, describing it as a positive step towards making homeownership more accessible.
According to REIWA chief executive Cath Hart (pictured above), the institute had long been advocating for these changes, especially as rising property prices had pushed many first-home buyers beyond the current concession limits.
“Strong population growth and low building completions have seen the WA property market experience sustained price growth over recent years,” Hart said. “Not only are first-home buyers having to pay more for a home, but the strong increase in prices has also meant many were no longer eligible for the existing stamp duty concessions.”
A recent Housing Issues Survey conducted by REIWA received close to 15,000 responses, with 63% of respondents identifying stamp duty as a major barrier to homeownership. Hart noted that these reforms would provide meaningful savings for many first-home buyers, easing their path to entering the property market.
The revised thresholds, effective from March 21, will offer increased exemptions and concessions for first-home buyers. In the Perth and Peel regions, the exemption threshold will rise from $450,000 to $500,000, while the concession threshold will increase from $600,000 to $700,000. For regional areas, the exemption threshold will increase from $450,000 to $500,000, with the concession threshold moving up from $600,000 to $750,000.
For vacant land purchases statewide, the exemption threshold will be raised from $300,000 to $350,000, and the concession threshold will go from $400,000 to $450,000. First-home buyers purchasing a property valued up to $500,000 will see savings of nearly $18,000 under the new structure.
REIWA also welcomed expanded stamp duty concessions for off-the-plan and under-construction properties. For the first time, these concessions will extend beyond apartments to include townhouses on strata plans.
“No stamp duty will be paid for new dwellings up to $750,000 (up from $650,000), tapering to a 50% concession for purchases over $850,000 (up from $750,000),” Hart said. “For dwellings under construction, a 75% concession is available up to $750,000, tapering to a 37.5% concession for dwellings valued over $850,000.”
“These changes will make off-the-plan or under construction apartment and townhouse purchases more affordable. It will also help support much needed new high and medium density developments.”
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