WA is eyeing new stamp duty concessions. Do they go far enough?

Two leading property experts say the West Australian government’s plans for stamp duty concessions don’t go far enough and are urging state leaders to abolish the tax for first home buyers and downsizers.

This week, the Cook government unveiled plans to offer stamp duty concessions for off-the-plan and under-construction dwellings in a bid to provide more housing choice for buyers.

Strategic Property Group managing director Trent Fleskens said stamp duty was the biggest impediment, outside a deposit, to buying a new home.

“To make a real difference in this market, we need supply, supply, supply,” he said.

“The only way that the government can really help in this space is to get out of the way.

“And to get out of the way, it needs to make all new supply for first home buyers and downsizers stamp duty free.”

Meanwhile, Limnios Property Group managing director James Limnios said the WA government should follow an election promise from South Australian Labor to scrap stamp duty for people aged 60 and over.

The plan would benefit those purchasing a property valued up to $2 million with a land or apartment size smaller than their existing place of residence, which must be sold to claim the saving.

“The reality is that we need to start directing more financial incentives to enable thousands more people to downsize in the infill areas of Perth so we can fix the blockage in the housing market,” Limnios said.

Under the changes proposed by the WA government, West Australians buying any apartment, townhouse, villa, unit, duplex, or triplex in an eligible strata scheme either off-the-plan or under construction will be eligible for concessions.

No stamp duty will be paid for dwellings purchased off-the plan and valued up to $800,000, increasing to a 50 per cent concession above $900,000.

For dwellings bought while under construction, a 75 per cent concession is available up to $800,000, moving to a 37.5 per cent concession above $900,000.

Finance Minister John Carey said expanding the concession to include survey-strata for the first time will further boost housing density and increase housing choice.

Treasurer Rita Saffioti said the changes were the first of many new measures the government would deliver as part of the 2026-27 state budget to boost housing supply and affordability.

“By expanding stamp duty concessions to more homes, we’re providing greater choice to buyers and making home ownership more affordable,” she said.

“This means older Western Australians looking to downsize can save thousands when buying a new apartment, townhouse, villa, or unit off-the-plan or under construction.”

Limnios suggested other initiatives that could encourage more suitable infill housing for downsizers include slashing red tape and government costs.

“Now is the time for the state government to set up a taskforce to formulate this infill strategy focusing on new housing for downsizers that should be aggressively supported by all levels of government when completed,” he said.

“In particular, the taskforce should examine the massive subsidies taxpayers spend annually on new developing urban sprawl housing, that is now questionable in terms of demographic changes in our society, and whether this money would be better spent in encouraging more appropriate infill housing.”

Fleskens said the state government’s latest move would not suit the majority of people looking for a new property, whether it is someone looking to downsize or a first home buyer.

“The reality is, most products in the apartment and unit space already cost more than $800,000 so for the most part, most people won’t be able to benefit from this threshold change,” he said.

“In the same way that first home buyers aren’t benefiting from a $500,000 first home buyer threshold when the median house price is $850,000.”