New stamp duty thresholds introduced to Parliament

Legislation to increase the stamp duty exemption and concession thresholds for first home buyers was introduced to Parliament on 9 April.

REIWA has consistently advocated for increases to stamp duty thresholds and welcomes the changes, which were announced in March and are expected to be implemented in May. First home buyers who have bought a home or land on or since 21 March will have to pay the current rate of duty but will be able to apply for a refund when the legislation comes into effect.

The following increases to stamp duty exemptions and concessions for first home buyers will apply once the legislation is passed:

  • First home buyers in Perth and Peel will pay no stamp duty for purchases valued up $500,000 (up from $450,000), and a concessional rate on purchases valued up to $700,000 (increased from $600,000);
  • For first home buyers in the regions, the stamp duty exemption threshold will also increase from $450,000 to $500,000 and the concession threshold will increase from $600,000 to $750,000; and
  • For vacant land purchases statewide, the stamp duty exemption threshold will increase from $300,000 to $350,000 and the stamp duty concession threshold will increase from $400,000 to $450,000.

REIWA’s stamp duty calculator will display the existing rate of duty and will be updated when the new thresholds apply.

The legislation also introduced changes to stamp duty concessions for off-the-plan homes purchased either before or during construction.

The changes will apply to apartments and, for the first time, will also include townhouses on strata plans.

They will see no stamp duty paid for new dwellings up to $750,000 (up from $650,000), tapering to a 50 per cent concession for purchases over $850,000 (up from $750,000). Concessions are capped at $50,000.

For dwellings under construction, a 75 per cent concession is available up to $750,000 (up from $650,000), tapering to a 37.5 per cent concession for dwellings valued over $850,000 (up from $750,000).

These changes will also be backdated to 21 March.

The off-the-plan concessions will apply until 30 June 2026.

Sourced from REIWA