Know Everything About New WA Stamp Duty Update

In an attempt to solve the housing affordability crisis, the WA government recently updated stamp duty reliefs. Now, more people can step into their first home without a concern about stamp duty, an unavoidable expense. But what’s stamp duty all about? How will it be calculated? What will be the eligibility criteria? How much exemption will first-home buyers get? 

Brief On Stamp Duty 

While purchasing any property, stamp duty is one of the inevitable expenses that every buyer needs to pay. Currently, the stamp duty in Western Australia is $1.2 billion. This tax often applies to the purchases of any residential property, commercial property, and vacant land. 

As for its payment, buyers must pay it within one month after having a property contract. However, for first-home buyers recently, the government issued some relief. 

WA Stamp Duty Waiver

With the first major housing policy, the WA government released a new update on the stamp duty waiver effective from 21st March 2025. Now, around 22k first-home buyers will benefit from this relief while saving nearly $18k on their first-home purchases. Even people purchasing their new strata apartments/townhouses can save up to $15k. 

That means, if people buy their first home valued at up to $500k, no stamp duty will be there. However, the purchase must be made in the Perth and Peel-like regional areas. Meanwhile, the government announced concessional rates for homes valued between $500k and $700k purchased within designated areas. 

Additionally, homes valued between $450k and $500k purchased outside Perth and Peel qualify for a complete exemption from stamp duty. As for the concessional threshold, it will increase from $600k to $750k. 

First-home buyers can even take advantage of a stamp duty exemption on vacant land purchases if they purchase land valued between $350k and $450k.  

Likewise, there will be no stamp duty for pre-construction dwellings up to $750k with reduced concessions above $850k. Under-construction dwellings will receive a 75% concession for values up to $750k and 37.5% above $850k.  

More importantly, these concessions and exemptions will be effective for off-plan purchases from 21st March 2025 until 30th June 2026. Off-the-plan purchases mean purchasing properties (houses or apartments) yet to be constructed. 

Calculation Of Stamp Duty Concession

Since everyone wants the benefit of a stamp duty waiver, knowing its calculation becomes important. Therefore, the Western Australian government calculates the stamp duty concession using the following simple slab rate: 

Eligibility Criteria for WA Stamp Duty Relief 

So, buyers will be eligible for stamp duty exemptions and concessions in Western Australia if they meet the below criteria: 

• Buyers must be 18 years of age 
• The first home purchase must be valued from $450k to $500k for stamp duty exemption and from $450k to $600k for concessions.
• Buyers must have Australian citizenship or permanent residence.
• They must not have previously owned any residential property in Australia.  
• The purchased property must be the principal place of residence.

Contribution Of Stamp Duty Relief On Homeownership 

This recent update on stamp duty has made a significant contribution to homeownership, especially for first-home buyers. For example, first-home buyers can now use stamp duty relief amounts instead of savings to cover their loan deposits. This enables them to reserve savings for additional property investments, enhancing opportunities to grow and strengthen their investment portfolio. 

Additionally, first-home buyers can further consider their refinancing plans with lower interest rates, thereby improving their financial security. In a broader context, the WA stamp duty relief will increase regional property investments, easing pressure on urban housing demand.

With expanded concessional rates for home and vacant land purchases, first-home buyers can easily tap into the property market. Thus, with all this, the stamp duty relief will encourage more construction activities with long-term housing affordability.  

Concerns With WA Stamp Duty Relief 

However, it may raise certain concerns among Australians while making first-home purchases, like. 

• Rise in Property Prices: The property market is subject to fluctuations so it can contribute to a rise in property prices. For example, rising property prices driven by demand-supply gaps can make homeownership increasingly unaffordable for first-home buyers.
• More Pressure on Regional Areas: The current stamp duty concession exemptions may increase more pressure on regional areas for housing supply. As a result, it will create property pricing concerns for both first-home buyers and the WA government.  
• Strong Population Growth: The increasing population in both regional and urban areas further exaggerates the housing shortage concerns. This is because the population is projected to reach 3.57 million by 2036 with a 1.8% annual rate.
• Implementation Delays: Although new thresholds are expected to take effect on March 21, 2025, there may be potential delays.  Since implementation requires legislative and system updates, it can delay benefits for first-time home buyers. Additionally, meeting eligibility criteria also creates confusion for them. 

Steps To Approach Stamp Duty Benefits Correctly

Since stamp duty relief in Western Australia offers valuable homeownership opportunities, first-time buyers should use it strategically. Following are the key steps first-time home buyers should take for this: 

Understand Eligibility Criteria 

Firstly, first-home buyers must meet eligibility criteria, including Australian citizenship/permanent residency and not previously owning property in Australia. This will help them get the required concessions and exemptions over stamp duty in WA. 

Purchasing Property Within Thresholds 

 The buyers must purchase their property as per the new thresholds. For example, if they purchase a property valued at up to $500k, they will be eligible for full exemption. Conversely, properties above $700k or $750k in regional areas qualify buyers for concessional benefits under specified thresholds. Additionally, first-time homebuyers should aim for exemptions of up to $350k and concessions of up to $450k when buying vacant land.

Knowing Off-Plan Purchases 

For buying off-the-plan, first-home buyers should know that the new concessional rates will apply. For example, for a dwelling up to $750k, no stamp duty will be paid subject to concessions for higher values. 

Calculating Potential Savings

Before making any purchase or applying for stamp duty, buyers must calculate how much they can save through reliefs. For instance, currently buying property valued at $500k can save around $18k in stamp duty. This step will help them plan their future finances.   

Gathering Required Documents 

The WA government requires having all the necessary documents, be it proof of residency status or identification. So, first-home buyers must ensure they have all of them, which will make the application process for concessions/exemptions simpler. 

Plan Your Purchase Timeline

Stamp duty relief is effective from March 21, 2025, to June 30, 2026. So, buyers should plan purchases within this period. This will help take maximum advantage of the relief before any changes take place in it.  

Conclusion

Undoubtedly, the new WA stamp duty relief is effective in making homeownership more affordable, it comes with both benefits and concerns. The provided concessions and exemptions allow first-home buyers to save more money, which they can use for refinancing and other investment strategies. 

Additionally, they can easily tap into the property market. However, they may face challenges like rising property prices, more pressure on regional areas, increasing population growth, and implementation delays. 

They must therefore take into account everything from comprehending eligibility requirements to promptly making plans for home purchases. Furthermore, they should consult financial advisors or mortgage brokers to gain actionable insights on leveraging WA stamp duty relief. 

To plan your first home today or learn more about WA stamp duty relief, contact us at Nfinity Financials. Or call us at 1300 GET LOAN or 0456 456 267.

FAQs

These are some the most frequently asked questions by our readers.

Q1. Do recent stamp duty updates provide exemptions for vacant land purchases? 

Yes, first-home buyers purchasing vacant land can qualify for exemptions if the purchase price is $350,000 or less. For land valued between $350,001 and $450,000, a sliding-scale concession applies.

Q2. What if you are buying off the plan?

For buyers buying off the plan valued at $750k, full-duty exemptions will be there subject to concessions for higher values. 

Q3. Can you receive stamp duty benefits more than once in WA? 

No, the stamp duty exemptions and concessions are available only once per individual or couple. If you or your partner have previously received an exemption or concession for first-home buyer duty, you are not eligible again. 

Q4. How to avoid paying stamp duty WA? 

First-home buyers should purchase established homes valued at $500k or less than that to avoid paying stamp duty.