WA lifts first home buyer stamp duty thresholds

The measures, unveiled as part of the 2026–27 Western Australian state budget, include higher stamp duty exemption and concession thresholds, an increased First Home Owner Grant (FHOG) cap, and additional financing initiatives aimed at supporting housing supply.

From 7 May, first home buyers purchasing newly built or established homes in Western Australia will pay no stamp duty on properties valued up to $600,000, up from the previous $500,000 threshold. Concessions will also apply to homes valued up to $800,000, increased from $700,000.

For vacant land purchases, the stamp duty exemption threshold will rise from $350,000 to $450,000, while concessional rates will apply up to $550,000.

The Western Australian government said the changes could deliver savings of up to $22,515 for buyers purchasing a new or established home and up to $25,390 for those purchasing land and building a home.

The property value cap for the state’s $10,000 FHOG will also increase from $750,000 to $800,000.

According to the government, the measures are expected to benefit more than 25,000 first home buyers over the next four years, including around 12,000 buyers who would no longer pay stamp duty when purchasing an established home or vacant land.

The package also extends support for buyers purchasing off-the-plan properties, with stamp duty relief now applying to survey strata dwellings in addition to apartments and town houses. Under the expanded scheme, no stamp duty will apply to qualifying pre-construction purchases up to $800,000, tapering to a 50 per cent concession above $900,000.

Alongside the tax measures, the Cook government announced additional housing supply initiatives tied to a broader $2 billion housing agreement between the state and federal governments.

This includes:

• A $375 million commitment to build 500 affordable homes for first home buyers supported through shared equity loans via Keystart.
• A $250 million commercial financing facility aimed at supporting affordable multi-unit developments.
• A further $250 million pre-sale guarantee program designed to help developers meet financing thresholds for apartment and town house projects.

Premier Roger Cook said the package formed part of the government’s broader housing affordability agenda.

“My government’s priority is ensuring every Western Australian has a home,” Cook said.

“In recent days, I have announced initiatives for renters, investments in medium- and high-density developments, and plans to build hundreds of homes for frontline service workers in regional WA.”

Treasurer Rita Saffioti said the budget represented the “biggest ever package” to support first home buyers in the state.

“This year’s State Budget is delivering the biggest ever package to support first home buyers because every Western Australian deserves the opportunity to own their home,” Saffioti said.

“It’s about supporting young people who are thinking about their future, as well as parents and grandparents thinking about future generations.”

Broader changes

The announcement comes as housing affordability and supply remain key policy issues nationally, with Western Australia, as well as other state governments, increasingly using stamp duty concessions, shared equity schemes, pre-sale guarantees, and other incentives to support first home buyer participation and housing construction.

While Western Australia has continued to be one of the strongest home-building markets in the country, brokers have reported a lack of housing supply in the state, with house prices in Perth growing faster than any other capital city.

Nationally, the federal government has also sought to address housing affordability and supply pressures through measures announced in the 2026–27 federal budget.

Treasurer Jim Chalmers announced major tax reforms aimed at prioritising owner-occupiers and first home buyers over property investors, including proposed changes to negative gearing and capital gains tax.

Under the reforms, negative gearing will be restricted to newly built properties from 1 July 2027, meaning investors will no longer be able to offset losses from established investment properties against personal taxable income.

The federal government also flagged changes to capital gains tax, moving away from the blanket 50 per cent CGT discount towards an indexation model under which only gains above inflation would be taxed.

At the same time, the budget retained a range of existing home buyer support measures, including the 5 per cent deposit Home Guarantee Scheme and the Help to Buy shared equity scheme, under which eligible borrowers can co-purchase homes with the federal government.

The federal government also confirmed it would extend the ban on foreign investors purchasing existing homes until mid-2029, while retaining limited exemptions linked to housing supply outcomes.

[Related: Broking industry applauds move to make IAWO permanent]

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