Urgent Need to Revise Stamp Duty Thresholds for First Homebuyers in Perth
Following the 2025 State General Election, the Western Australian Government implemented increases to the stamp duty concessions for first homebuyers. The lower threshold, where no duty is paid, was raised from $450,000 to $500,000, while the upper threshold for concessional rates went from $600,000 to $700,000. Although these adjustments were initially welcomed, rapid property price growth in Perth has since rendered these thresholds largely ineffective for many aspiring homeowners.
Current Market Conditions and Price Growth
By the end of February 2026, the median house sale price in Perth had surged to $870,000, marking a significant increase of 13.7 per cent compared to the previous year. The lower quartile price, representing the point below which 25 per cent of house sales occur, stood at $730,000. This figure is $30,000 higher than the current upper stamp duty threshold, highlighting a critical gap in support for entry-level buyers. Additionally, the median unit sale price experienced a substantial rise of 20.4 per cent, reaching $620,000 over the same period.
Impact on First Homebuyers and Sales Data Analysis
A detailed review of sales data reveals that only 5.9 per cent of dwelling sales in Perth were below the $500,000 stamp duty threshold in the year to February, with a mere 12.7 per cent of these being houses. Furthermore, just 28.5 per cent of all dwellings sold fell below the $700,000 threshold, and only 49.3 per cent of these were houses. This data indicates that very few first homebuyers have been able to access the full stamp duty concession, and only a limited number qualify for partial relief, underscoring the urgent need for reform.
REIWA's Recommendations and Advocacy Efforts
In a 2025 Housing Issues Survey conducted on reiwa.com, 63 per cent of respondents identified stamp duty as a significant barrier to homeownership. In response, REIWA's 2026-27 Pre-Budget Submission has recommended increasing the first homeowner stamp duty thresholds to make them more accessible. The organisation advocates for linking these thresholds to REIWA data, with regular reviews to ensure they remain relevant to evolving market conditions. For instance, Keystart has already integrated REIWA data into its processes to align with market movements.
REIWA proposes that the lower threshold, where no duty is payable, should be set at REIWA's annual lower quartile of $730,000 for houses. This approach targets support at the bottom 25 per cent of the market, where many first homebuyers aim to purchase. Similarly, the upper threshold, above which no concession applies, should be pegged to REIWA's annual median of $870,000 for houses.
Government Revenue and Future Outlook
The State Government is projected to receive over $1 billion in stamp duty revenue this financial year, a windfall that could be better utilised to assist first homebuyers in entering the property market. With strong price growth forecasted to continue in Perth's property market, timely adjustments to stamp duty thresholds are essential to maintain housing affordability and support economic stability.
It is imperative that the State Government acts now to increase the first homebuyer stamp duty thresholds, ensuring they reflect current market realities and provide meaningful assistance to those striving to achieve homeownership.
