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First Home Owner Stamp Duty Concessions Extended

Buying your first home is one of life’s biggest milestones, but high upfront costs — particularly stamp duty — can put a damper on the excitement. Good news for Western Australians: the State Government has announced changes to the First Home Owner Stamp Duty Concessions, making it easier for first home buyers to get into the market. These updates, effective for transactions entered into from 21 March 2025, are designed to help more buyers save thousands at settlement. Let’s dive into what’s changed and what it means for you.

Changes to the First Home Owner Rate of Duty

New Thresholds for Vacant Land: If you’re planning to build your dream home, the new vacant land thresholds will make a significant difference. Under the updated rules:

• The value of the land must not exceed $450,000 (up from $400,000).
• No stamp duty is payable on land valued up to $350,000 (previously $300,000).
• For land valued between $350,000 and $450,000, a reduced rate of $15.39 per $100 (or part thereof) applies.

This adjustment could save first home builders thousands of dollars, making land purchases far more accessible across WA.

New Thresholds for Established Homes: For first home buyers eyeing an existing property:

• Homes must now be valued at no more than:
  • $700,000 for properties in the Perth Metropolitan and Peel regions.
  • $750,000 for properties outside these regions.
• No stamp duty is payable on homes valued up to $500,000 (up from $450,000).
• A reduced duty rate applies for homes valued between $500,000 and $700,000 (Metro and Peel) and $500,000 and $750,000 (Regional WA).

These changes recognise the challenges first home buyers face in an evolving property market, particularly with rising property values across Western Australia. See our monthly market updates for more information on those.

Changes to the Off-the-Plan Duty Concession

Extended Timeline and New Thresholds: In more good news, the off-the-plan duty concession has not only been extended, but expanded:

• The concession has been extended until 30 June 2026 (originally set to expire on 30 June 2025).
• Full exemption (no duty payable) for off-the-plan properties valued up to $750,000 (previously $650,000).
• 50% duty concession applies for properties valued between $750,000 and $850,000.
• Partial concession (50% for higher-value properties) applies to properties over $850,000.

The size of your concession now also depends on when in the construction process you buy:

• Pre-construction contracts:
  • No duty for properties up to $750,000.
  • 50% concession between $750,000–$850,000.
• Under-construction contracts:
  • 75% duty concession up to $750,000.
  • 37.5% concession between $750,000–$850,000.

Importantly, the concession has been expanded to cover all types of off-the-plan dwellings within strata schemes and community (building) schemes — including townhouses and villas, not just high-rise apartments. However, it does not apply to survey-strata lots where a home is to be built later.

Transitional Arrangements and Refunds

As the legislative amendments were introduced on 9 April 2025, there will be a transition period before RevenueWA systems fully implement the new rates (expected by June 2025). If you enter into a transaction after 21 March 2025, but settle before the system updates are completed, you may initially pay the current rate. Eligible buyers will be able to apply for a refund of any overpaid stamp duty after settlement. This ensures that no first home buyer misses out on the new concessions simply due to timing.

Why These Changes Matter

With the WA property market remaining competitive, particularly for first home buyers and renters looking to secure a place of their own, these changes represent important financial support. Increasing the thresholds acknowledges, to some degree, the significant price growth we’ve seen over recent years and aligns government policy with current market realities — potentially making the dream of home ownership a reality for more Western Australians.

Time to Act

If you’re thinking about purchasing your first home or an off-the-plan property, these enhanced first home owner stamp duty concessions may have opened a great opportunity to get the ball rolling. Whether you’re buying vacant land, an established home, or a property off-the-plan or under construction, significant savings are available to help you get onto the property ladder.

At McKinley Plowman, our experienced Finance team can guide you through the critical lending side of securing your first home. Call us today on (08) 9301 2200, or get in touch online to start your journey towards home ownership.

written by:

Paul Moran

Paul has over 35 years of experience in finding financial solutions for homebuyers, investors and business owners.
A licensed broker and member of the Mortgage & Finance Association of Australia (MFAA), Paul’s extensive experience includes 20 years with a major bank, seven of which were as commercial banking manager.
Paul delivers a holistic financial solutions to achieve the best possible outcome for a client’s personal or commercial lending needs. Paul also provides a comprehensive financial consultancy to business owners on commercial, equipment and invoice finance.