WA’s New Housing Tax Changes: What First Home Buyers Need to Know
The Western Australian Government has introduced a $297 million housing tax package designed to make it easier for first home buyers to enter the property market.
Announced as part of the 2026–27 State Budget, the changes include increased stamp duty exemption thresholds, expanded concessions and updates to the First Home Owner Grant (FHOG).
The aim is to help more Western Australians afford their first home while encouraging the construction of new housing across the State.
The changes were announced on 7 May 2026, with separate off-the-plan concession changes announced on 12 March 2026.
Government source: WA Government – 2026–27 Housing Taxation Package
Bigger Stamp Duty Savings for First Home Buyers
One of the most significant changes is the increase in stamp duty exemption thresholds.
From 7 May 2026, eligible first home buyers in Western Australia can purchase a newly built or established home valued at up to $600,000 without paying any stamp duty. Previously, the exemption applied to homes valued up to $500,000.
Concessional stamp duty rates are also available for eligible homes valued between $600,000 and $800,000.
Previously, the upper concession threshold was $700,000 in the Perth metropolitan and Peel regions and $750,000 in other parts of Western Australia.
These changes could mean significant upfront savings when purchasing a first property.
According to the WA Government’s announcement on 7 May 2026, eligible first home buyers purchasing a newly built or established home valued at $600,000 can save $22,515 in stamp duty, paying no transfer duty compared with the $22,515 ordinarily payable.
This is the saving compared with ordinary stamp duty rates, rather than an additional saving of $22,515 compared with the previous first home buyer concessions.
Government sources: WA Government – $297 million tax package to deliver for WA first home buyers, 7 May 2026 and RevenueWA – Transfer Duty Assessment
Vacant Land Buyers Also Benefit
The package also encourages new home construction by increasing support for first home buyers purchasing vacant land.
Eligible first home buyers purchasing vacant land valued at up to $450,000 will now pay no stamp duty, an increase from the previous $350,000 exemption threshold.
Concessional stamp duty rates also apply to eligible vacant land purchases valued between $450,000 and $550,000.
This is particularly beneficial in areas where rising land prices have pushed many buyers above the previous eligibility thresholds.
According to the WA Government, eligible first home buyers purchasing vacant land and building a new home could receive combined benefits of up to $25,390, comprising:
• $15,390 in stamp duty savings on vacant land valued at $450,000.
• $10,000 First Home Owner Grant, where the buyer and new home meet the grant’s eligibility requirements.
Importantly, the Government’s example assumes that the total property value is within the applicable First Home Owner Grant cap.
These combined savings could make a substantial difference to the upfront costs of purchasing land and building a first home.
Government source: WA Government – $297 million tax package, including the vacant land savings table and RevenueWA – Transfer Duty Assessment.
First Home Owner Grant Cap Increased
The property value cap for the $10,000 First Home Owner Grant has also increased.
For eligible transactions commencing on or after 7 May 2026, the maximum property value eligible for the grant is:
• $800,000 for homes located south of the 26th parallel, including Perth and surrounding areas, increased from $750,000.
• $1,000,000 for homes located north of the 26th parallel, which remains unchanged.
This change reflects the rising costs of purchasing and building homes in Western Australia.
It is important to understand that the First Home Owner Grant is available to eligible buyers purchasing or building a new home, including certain substantially renovated homes.
The $10,000 grant is not available for ordinary established home purchases.
Applicants must also satisfy the relevant eligibility requirements, including conditions relating to previous property ownership and residency.
Government source: RevenueWA – About the First Home Owner Grant.
Changes to Eligibility Rules
Another important update is that the Government has removed the link between the First Home Owner Grant property value caps and eligibility for first home buyer stamp duty concessions.
Previously, the FHOG property value caps could affect eligibility for the first home owner rate of duty.
Under the new arrangements, eligible first home buyers may qualify for a stamp duty exemption or concession on vacant land even when the combined value of their land and new home exceeds the FHOG property value cap.
For example:
A first home buyer purchases vacant land valued at $430,000 and enters into a building contract for $450,000.
The combined house-and-land value is $880,000.
Although this exceeds the $800,000 FHOG cap applicable to Perth, the buyer may still qualify for a full stamp duty exemption on the $430,000 vacant land purchase, provided they satisfy the relevant eligibility requirements.
However, they would not qualify for the $10,000 First Home Owner Grant where the total transaction value exceeds the applicable grant cap.
This change is particularly helpful for people building new homes, where increasing construction costs can push the combined house-and-land value above the FHOG threshold.
Government sources: RevenueWA – 2026–27 Housing Taxation Package and RevenueWA – Finance Legislation Amendment (Housing Affordability) Bill 2026, Circular 23
Expanded Off-the-Plan Stamp Duty Concessions
The WA Government has also expanded and extended its off-the-plan stamp duty concession program.
The updated arrangements apply to eligible contracts entered into from 12 March 2026 to 30 June 2028.
The program now covers a wider range of eligible new housing developments, including:
• Apartments
• Townhouses and villas
• Duplexes and triplexes in eligible schemes
• Strata and community titles (building) developments
• Survey-strata and community titles (land) developments
The amount of stamp duty concession available depends on the property’s value, contract date and whether construction has commenced when the contract is entered into.
Purchases Before Construction Commences
For eligible off-the-plan purchases where construction has not yet commenced:
• Properties valued at $800,000 or less: A 100% stamp duty concession may apply.
• Properties valued above $800,000 but below $900,000: The concession gradually reduces from 100% to 50%.
• Properties valued at $900,000 or more: A 50% concession may apply.
Purchases During Construction
For eligible off-the-plan purchases where construction has commenced but has not yet been completed:
• Properties valued at $800,000 or less: A 75% stamp duty concession may apply.
• Properties valued above $800,000 but below $900,000: The concession gradually reduces from 75% to 37.5%.
• Properties valued at $900,000 or more: A 37.5% concession may apply.
These concessions are capped at $50,000 and are subject to the relevant eligibility requirements.
Importantly, the off-the-plan concession is not limited to first home buyers. Other eligible purchasers may also benefit.
The Government has introduced these changes to encourage new housing developments, increase housing supply and provide greater housing choice, including opportunities for seniors looking to downsize.
Government sources: WA Government – Stamp Duty Concessions to Give More Choice for Home Buyers, 12 March 2026 and RevenueWA – Apply for an Off-the-Plan Duty Concession.
How Many People Could Benefit?
The WA Government estimates that its $297 million housing tax package will benefit more than 25,000 first home buyers over four years.
Approximately 12,000 buyers are expected to pay no stamp duty when purchasing an eligible established home or vacant land.
The broader State Budget also includes investment in housing developments and initiatives designed to increase housing supply across Western Australia.
Together, these measures aim to improve housing affordability and help more Western Australians achieve their goal of home ownership.
Government source: WA Government – $297 Million Tax Package to Deliver for WA First Home Buyers, 7 May 2026.
What This Means for Buyers
For many Western Australians, these changes could significantly reduce the upfront costs associated with purchasing or building their first home.
The increased property value thresholds also more closely reflect current market conditions, particularly in Perth and fast-growing regional areas where rising property prices have placed many homes beyond the previous concession limits.
While affordability challenges remain, the expanded exemptions and concessions may help eligible first home buyers reduce their upfront expenses and enter the property market sooner.
It is important to remember that eligibility is not automatic.
The concessions and grants available depend on individual circumstances, including:
• The date the contract was entered into
• The value and type of property being purchased
• Previous property ownership
• Whether the property is newly constructed, established or off-the-plan
• Applicable residency requirements
Generally, eligible applicants must occupy the home as their principal place of residence for a continuous period of at least six months, commencing within 12 months of completion of the eligible transaction, unless an approved variation applies.
Government source: RevenueWA – First Home Owner Grant Eligibility and Residence Requirements.
Understanding which benefits apply to your circumstances can help you make informed decisions when purchasing your first home.
With greater stamp duty savings and expanded Government support now available, it is an excellent time to explore what these changes could mean for your property journey.
Need Help With Your First Home Settlement?
At Vicki Philipoff Settlements, our experienced team is here to help guide you through the settlement process, whether you’re purchasing an established home, vacant land or a newly constructed property.
We understand that buying your first home is an important milestone, and our friendly team is committed to making your settlement as smooth and stress-free as possible.
To find out more about buying your first home or vacant land in Western Australia, contact the team at Vicki Philipoff Settlements today.
Official WA Government Sources and Further Information
The information in this article has been drawn from the following official Western Australian Government and RevenueWA publications:
WA Government – $297 Million Tax Package to Deliver for WA First Home Buyers (7 May 2026) – Includes the official tables showing the $22,515 and $25,390 potential savings.
RevenueWA – 2026–27 Housing Taxation Package – Overview of the May 2026 measures, commencement dates and implementation.
RevenueWA – Transfer Duty Assessment – Official first home buyer stamp duty exemption and concession thresholds.
RevenueWA – About the First Home Owner Grant – Grant amounts, property value caps, eligibility and residence requirements.
RevenueWA – Finance Legislation Amendment (Housing Affordability) Bill 2026, Circular 23 – Detailed explanation of the legislative changes, including the removal of the link between FHOG caps and first home owner duty concession eligibility.
WA Government – Stamp Duty Concessions to Give More Choice for Home Buyers (12 March 2026) – Government announcement expanding off-the-plan concessions.
RevenueWA – Apply for an Off-the-Plan Duty Concession – Detailed concession percentages, property thresholds, scheme types and eligibility.
Disclaimer: The information contained in this article is general in nature and is current as at October 2026. It is provided for information purposes only and does not constitute legal, financial or taxation advice. Government grants, stamp duty concessions, eligibility criteria and applicable legislation may change. Eligibility depends on individual circumstances. Readers should obtain appropriate professional advice and confirm current requirements with RevenueWA before making property-related decisions.
